LONDON (ShareCast) - (Sharecast News) - Alfa Financial Software has raised profit guidance for the full year after reporting double-digit revenue growth in the third quarter, causing shares to rise on Thursday.
Alfa, which develops software for the asset finance industry, said revenues were up 14% year-on-year to £28m in the three months ended 30 September, helped by a 19% jump in subscription revenues.

Software sales were up "substantially" from a low base last year "with a shift back towards client-led development after a period of strong investment", while services revenues were stable.

The third quarter saw the full release of the Alfa Systems 6, having launched five out of six instalments in the first half, with the final releases offering customers AI-enabled automated decision-making and integrations to other systems.

"This new major version exemplifies the cutting-edge technology and architectural choices that set us apart from our competitors and delivers functionality and capabilities that will differentiate us further and continue to drive sales momentum long into the future," Alfa said in a statement, adding that customer feedback has already been positive.

Alfa predicted "further strong growth" in the fourth quarter and reiterated its guidance for mid to high single-digit revenue growth for 2024 a a whole.

However, due to a reduction in anticipated costs, with some expected costs deferred into next year, the operating profit target for the full year has been lifted by £1m.

"The launch of Alfa Systems 6 is a major milestone for the company and I am delighted with the reaction that we have already received from customers and prospective customers in day to day conversations and at industry conferences," said chief executive Andrew Denton.

"This has set the foundations for strong future growth in the business as evidenced by the conversion of a number of key prospects along with the continuing strength of the pipeline."

The stock was up 3.5% at 225.61p by 1032 GMT.

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