Alfa Financial Software Hldgs PLC Trading Statement (0667Q)

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RNS Number : 0667Q

Alfa Financial Software Hldgs PLC

01 June 2018

1 June 2018

Alfa Financial Software Holdings PLC

Trading Update

Alfa Financial Software Holdings PLC ("Alfa" or the "Company"), a leading developer of mission critical software for the asset finance industry, today announces a trading update.

We have been informed by one of our major customers that they have decided to delay their implementation project. We are satisfied that this decision is related to the customer's internal systems and we currently understand that the project is likely to be restarted in early 2019 when their underlying issues have been resolved.

In addition to this, a potential new customer has significantly increased the geographical and functional scope of the project, and one of our larger existing customers seems likely to extend its decision point regarding the expansion of another major contract. Therefore, the potential implementation start dates for each of these could be later in 2018, or into 2019.

These delays will have some impact on the first half of 2018, and a significant impact on the second half. As a result we are revising full year revenue guidance to GBP71 - GBP75 million, at a USD:GBP budget rate of 1.35, assuming these delays persist. EBIT will also be materially below management's previous expectations as a result of our predominately fixed operating costs, notwithstanding a focus on cost efficiencies through the remainder of the year.

Interim results for the six months ending 30 June 2018 will be announced on 4 September 2018.

Andrew Denton, Chief Executive of Alfa said:

"We are disappointed by this unexpected delay in one of our major implementations, due to factors outside our control. Similarly, the expansion in scope of both a potential new implementation and another of our existing projects will have a negative impact on 2018 but in the medium term we anticipate a benefit as the projects are enlarged and implemented. We are absolutely focussed on the conversion of these specific projects and other opportunities to ensure our growth momentum is restored."

Enquiries

 
 Alfa Financial Software Holdings PLC 
  Andrew Denton, Chief Executive Officer 
  Viv Maclachlan, Chief Financial Officer    [phone] 
 Tulchan Communications LLP 
  James Macey White 
  Matt Low                                   [phone] 
 

The information contained within this announcement is deemed by Alfa to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Notes to Editors

Alfa has been delivering systems and consultancy services to the global asset and automotive finance industry since 1990. Our best practice methodologies and specialised knowledge of asset finance mean that we deliver the largest software implementations and most complex business change projects. With an excellent delivery history over nearly three decades in the industry, Alfa's track record is unrivalled.

Alfa Systems, our class-leading technology platform, is at the heart of some of the world's largest asset finance companies. Key to the business case for each implementation is Alfa Systems' ability to replace multiple client systems on a single platform. Alfa Systems supports both retail and corporate business for automotive, equipment, wholesale and dealer finance on a multijurisdictional basis, including leases/loans, originations and servicing. An end-to-end solution with integrated workflow and automated processing using business rules, the opportunities that Alfa Systems presents to asset finance companies are clear and compelling.

With over 30 clients utilising Alfa in 26 countries, Alfa has offices in Europe, Asia-Pacific and North America. For more information, visit www.alfasystems.com.

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June 01, 2018 09:18 ET (13:18 GMT)