Results were strong, both financially and operationally, with a continuation of the positive trends seen in recent periods. Operating profit was up 2% to £30.1 million, while total contract value (TCV) was significantly ahead of 2022 at £165m, up 16% YOY driven by strong pipeline conversion.

Andrew Denton (pictured), Chief Executive Officer of Alfa noted that the key drivers for Alfa’s success in FY23 include a robust global demand for software, the strength of the asset finance industry, the demand for Alfa products across its chosen markets in 37 countries, the reliability of delivery of Alfa products and strength of their systems, with “Alfa’s success breeding more success”.

Revenue quality continued to improve as a result of changing product mix and customer diversification. Revenue grew by 9% compared to 2022 to £102m driven by a 16% increase in subscription revenues.

Alfa is successfully executing against its strategy of transitioning to a subscription licence model, in line with market trends. Subscription TCV reached £119 million in FY23, accounting for 31% of total revenues.

Alfa also boasts an ongoing programme of investment in people and technology, with an 8% increase in headcount as well as the 2023 launch of Alfa Systems 6, to ensure product offering and delivery remains best in class and future ready.

2023 was a record year for deliveries recording 35 in the year compared to 28 in 2022 with seven new customer go-lives.

In 2024, Alfa continues to see software projects proceed, new sales close and new opportunities enter the pipeline, with revenue growth expected to be mid to high single digits driven by continuing strong growth in subscriptions. Within this performance, Alfa anticipate a greater weighting in the second half of the year as new sales come fully on stream.

Denton commented: “Throughout 2023 we have remained focused on operational excellence and delivering our strategy with continuing strong growth in our subscription business and a record seven go-lives for our customers. We have continued to develop our product roadmap and have announced the launch of Alfa Systems 6, the sixth major version of our software.

“We have a strong late-stage pipeline and have converted two of these to wins in the last few months. We have built a resilient business with reduced customer concentration, operating across diverse markets both geographically and by asset class.

“The business is supported by a growing subscription revenue base and the conversion of the late-stage pipeline points to a strong second half in 2024 for our services. This alongside the inherent robustness of the asset finance software market and our continued investment in high-quality people, underpins our strong confidence in the outlook for the business,” he added.