Alfa reports 34% jump in H1 2025 profit before tax

Alfa, a specialist in software development for the asset finance sector, has reported a 34% increase in profit before tax, reaching £21.5m ($29m) for the first half of 2025, ending 30 June.

During the period, the company's revenue climbed to £62.5m, showing a 20% growth compared with the same period last year, or a 22% rise when adjusted for constant currency.

Alfa’s operating profit rose by 33% from £16.2m to £21.6m.

The financial performance also led to an increase in earnings per share.

Basic earnings per share went up by 33%, from 4.05 pence (p) to 5.38p while diluted earnings per share grew by 34%, from 4p to 5.35p.

The company also announced a special dividend per share of 5p, which is a 19% increase from the 4.2p declared in the first half of the previous year.

Looking ahead, Alfa has highlighted a strong foundation for continued long-term growth, which is attributed to the record level of total contract value achieved at the end of the previous year.

The company is actively working with several customers in the late-stage pipeline and anticipates continuing this work into the second half of the year before finalising full contract agreements.

The first-half performance was largely driven by a significant rise in software engineering revenues.

However, Alfa expects a reduction in software engineering revenues in the second half and anticipates effects from planned increases in headcount investment and salary costs.

Despite currency challenges and broader macroeconomic uncertainty, the company maintains confidence in achieving its full-year expectations.

Alfa CEO Andrew Denton said: “We are delighted to have met our bold expectations for the first half of 2025. We have delivered strong growth and made strategic progress across the business. Alfa Systems 6 has been the frictionless upgrade for our customers that we planned, and we now have nine of them live on this version.

“Continued investment in our software and our people is expanding our competitive advantage as well as our serviceable and target addressable markets, particularly in US auto originations, commercial finance and fleet.”

"Alfa reports 34% jump in H1 2025 profit before tax" was originally created and published by Leasing Life, a GlobalData owned brand.

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