Alfa Financial Software sees FY profits ahead of expectations after strong Q3

12th Nov 2026 15:00

(Sharecast News) - Alfa Financial Software said on Thursday that full-year profits were expected to come in slightly ahead of market expectations following stronger-than-anticipated cost control, as the software provider reported continued growth in subscription revenues and its sales pipeline.

The company said revenues for 2026 were now expected to be close to expectations, while profits would be slightly ahead, helped by lower costs resulting from "carefully managed" recruitment and reduced spending on travel, professional fees and IT.

Third-quarter revenue rose 3% year-on-year to £32.7m, supported by an 18% increase in higher-margin subscription revenues to £13.1m.

Delivery revenues declined 4% year-on-year to £16.1m, while software engineering revenues fell 7% to £3.5m, reflecting reduced client-led development activity.

Alfa said it expected a strong final quarter for software engineering revenues, including work to migrate an existing private cloud customer to its Alfa Cloud platform.

Total contract value (TCV) increased 13% year-on-year to £250.8m at the end of September, up from £247m in June, driven by a 16% increase in subscriptions.

The group added that its growing pipeline provided greater visibility over revenues into 2027 and beyond.

Chief executive Andrew Denton said: "We continue to invest in the product and our people to enhance our leading position in the market."

He added: "Our delivery teams have continued to execute successfully and we remain confident in our go-to-market with another record TCV and a stronger late-stage pipeline which in turn underpins our confidence in the future prospects for the business."

Alfa shares were up 4.2% at 168p by 1454 GMT.

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