UK software giant, Alfa Financial has recorded more than better results after it’s high-profile stock market listing last June.
The London-based technology group experienced big sales due to their big contract wins in the US and Europe. Alfa Financial develops IT systems for asset finance businesses.
Alfa revealed that the year-on-year revenues rose up to 57% in the half year to June 30, as different banks and other financial businesses opted for further technology to boost their IT systems. The profits before tax saw a 14.8% increase to £14 million.
Chief Executive of Alfa Financial, Andrew Denton reveals that he has more upcoming contracts in store for the London-based company. He further revealed that the group was working towards becoming the first preference of every asset finance company in the world.
Alfa Financial, which was found back in 1990, provides software to companies that supply money to smaller businesses on loan, and gives other loans to buy different assets including cars, agricultural machinery etc. According to market analysts, this financial asset business is worth up to $2.9 billion.
In the last few years, the company hit its peak, winning customers including the Bank of America, Mercedes-Benz, Nordea, Barclays as well as Uber, the online ride service that has announced that it has made an investment in the car financing program in the US. On Wednesday’s night, the Alfa Financial was promoted to FTSE 250 index of mid-cap UK firms.
The flotation of the London-based firm was the UK’s biggest listing of a tech firm in the past two years. The shares of the firm have increased by more than 66% on their offer price, as investors are now more interested in investing in a fast-growing British technology firm. Moreover, this Thursday, the share price of Alfa Financial rose by 5.4% to £4.57.
Market analysts identify this fast-growing success of Alfa as a result of companies wanting to modernise their technology to meet the ever-increasing demands of a competitive market.
An analyst in Barclays confirmed that the need to reduce their costs and computerise their operations will force the asset finance industry businesses to opt for package apps, which is one of the biggest reasons behind Alfa’s success.
On the other hand, Mr Denton revealed plans of working towards getting more business from car financing companies in Europe, and more equipment financing companies in the US. Right now, Alfa’s US revenues mainly come from car loan companies, which has resulted in Denton wanting to expand in the equipment financing sector in the US. Moreover, the London-based firm also wants to attract smaller companies, with off-the-shelf tech, which is hosted on the cloud.
According to Mr Denton, Alfa, in the long-run want to expand in the machine learning and artificial intelligence sectors. They are looking for a mix to apply the latter on their policies, to further earn more success.