LONDON (Alliance News) - Alfa Financial Software Holdings PLC on Thursday reported strong growth in 2017 in its first annual results since its London initial public offering last year, though it did warn growth will be slower as the dollar weakens.
Shares were down 21% on Thursday morning at 377.94 pence each. Alfa Financial's June IPO was the sixth biggest in London during 2017, pricing shares at 325.00p for a market capitalisation of GBP975.0 million.
At reported rates, revenue for 2017 rose 20% to GBP87.8 million, and at constant currency rates the figure increased 9% year-on-year to GBP86.1 million. Billings for the year increased to GBP76.8 million from GBP74.0 million.
Alfa Financial's pretax profit for 2017 came in at GBP33.9 million, double the previous year's GBP17.2 million.
The company, which is paying no dividends for the year, said revenue growth was driven by completing larger projects in the Software Implementation segment, with customers then moving into Ongoing Services & Development (ODS).
A strong dollar in the first half of 2017 also boosted revenue. However, as this currency weakens, Alfa Financial said it expects to report "low" double-digit growth on a budget rate in 2018, with new customer projects achieving run rate in the second half of the year.
Software Implementation revenue fell 7% to GBP44.8 million, as customers "naturally" progressed into ODS. This segment's revenue more than doubled to GBP21.2 million fromGBP8.7 million, while the Maintenance segment's revenue rose 31% to GBP21.8 million.
Revenue growth across all geographies was solid, with the UK up 19% to GBP30.7 million, the US 16% to GBP42.2 million, and the Rest of the World by 37% to GBP14.9 million.
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