Alfa Financial Software Holdings PLC · LSE:ALFA
Alfa Financial Software — H1 2017 Earnings Presentation
25 slides from Alfa Financial Software's earnings presentation, Aug 31, 2017
Slide 1: H1 2017 Interim Results
H1 2017 Interim Results 31 August 2017
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the fo
Slide 3: Agenda
Agenda Introduction and Business Update Andrew Denton, CEO Financial review Viv Maclachlan, CFO Sales review Andrew Denton, CEO Summary Andrew Denton, CEO Q&A Definitions
Slide 4: Introduction and business update
Introduction and business update Andrew Denton - CEO
Slide 5: We are Alfa
We are Alfa Leading financial performance 2016 Revenue: £73.3m H1 2017: £45.1m 2016 Adjusted EBIT: £32.8m H1 2017: £21.4m H1 2017 Adjusted EBIT margin: 47% Mission critical Deep IP Flexible platform Market leading product software Innovation built on deep Software enabling the asset Broad functional
Slide 6: Asset finance is a massive, complex and growing market
Asset finance is a massive, complex and growing market One party owns and rents out an asset to another party, which has use of asset but does not own it Definition Secured nature of financing lowers costs Ability for user to pay in installments increases affordability / expands market Broad r
Slide 7: H1 2017 – at a glance
H1 2017 – at a glance Financial and operational highlights £45.1 £21.4 29% 47% million million Adjusted EBIT Revenue Revenue growth(1) Adjusted EBIT(1) margin(1) Increased 57% on H1 At constant currency Increased 77% on H1 Increased from 42% in H1 2016 2016 2016 300 94% 2 3 Completed Headcount Staff
Slide 8: Focusing on customers…
Focusing on customers… Customer wins in June provides further geographic diversity New customer wins - 2 new customer wins announced in June 2017 - In line with forecast and expectations set during IPO - Pipeline remains healthy with a good mix of opportunities 31 Customer win 1 Customer win 2 Custo
Slide 9: Enabling business agility…
Enabling business agility… Regulatory and compliance focus creates opportunity for Alfa Market update • Increased regulatory and compliance scrutiny − Particular focus on the automotive industry • Overall we have seen the following trends in H1 2017: − Europe: Trend towards multi-country systems con
Slide 10: Delivering with the best people…
Delivering with the best people… Headcount grows to 300 and on track for further recruitment in H2 Recruitment and retention • 37 new graduates and experienced hires onboarded in H1 2017 • 34 recruits expected in H2 2017 • Recruitment geographically spread • Minimal impact of Brexit seen to date • R
Slide 11: Leading with the best technology…
Leading with the best technology… Business in a Box techniques proven and Cloud offering productised Business in a Box and Cloud • First implementation using Business in a Box techniques completed in February 2017 • Rapid deployment and proven pre-configuration • Alfa hosted in the Cloud tried and t
Slide 12: Financial Review
Financial Review Viv Maclachlan, CFO
Slide 13: H1 2017 – at a glance
H1 2017 – at a glance Financial and operational highlights Financial Operations £45.1m £21.4m 3 Revenue Adjusted EBIT completed 57% actual and 29% Adjusted EBIT margin implementations CC increase on H1 of 47% 2016 £20.5m 5.7 pence 300 Cash, Adjusted EPS - Personnel 53% operating cash diluted (headco
Slide 14: Income statement analysis: key metrics
H1 2017 Income statement analysis An overview of key metrics H1 2017 H1 2016 % Key Financial Metrics £m £m Growth Overview Revenue 45.1 28.7 57% Revenue – constant currency 43.9 34.0 29% • Revenue growth due to; Operating profit 14.0 12.1 15% Adjusted EBIT 21.4 12.1 77% − Completing implementations;
Slide 15: Income statement analysis: revenue by type
H1 2017 Income statement analysis An overview of revenue (by type) • 3 completed customer implementations in H1 2017, with Implementation Implementation H1 2017 H1 2016 £million transition to ODS following completion • Underlying revenue implementation increased by £3.0m or Underlying revenue 24.3 2
Slide 16: Income statement analysis: expenses and foreign currency
H1 2017 Income statement analysis Expenses and foreign currency Costs by nature Cost overview H1 2017 H1 2016 • Personnel costs increased due to headcount Personnel (including consultants, training and recruitment expenses) 18.2 13.0 increases and personnel mix Travel costs 2.0 1.6 • Foreign currenc
Slide 17: Cash flow data
H1 2017 Cash flow data A high level analysis Summary Cash Flow Commentary £ million H1 2017 H1 2016 • No debt and strong cash position Operating profit 14.0 12.1 Depreciation 0.2 0.2 • Cash outflow in period from pre-IPO dividends of Share based payments 4.4 - £60.7 million, offset by settlement of
Slide 18: Cash flow analysis
H1 2017 Cash flow analysis Cash reserves decrease to £20.5 million, following payment of pre-IPO dividends Settlement of loan (£27m+) and payment of dividends disclosed in Increase in trade Prospectus and other 50.0 receivables relates to maintenance, Increase due to subsequently maintenance 45.0 re
Slide 19: Balance Sheet
H1 2017 Balance Sheet A high level analysis Summary Balance Sheet Commentary £million June 2017 Dec 2016 Total non-current assets 26.1 53.1 Non-current assets decreased due to repayment of £27.0 million loan from the Parent Current assets Trade receivables and accrued income 19.8 13.2 H1 2017 tr
Slide 20: Sales review
Sales review Andrew Denton, CEO
Slide 21: Sales pipeline
Sales pipeline Healthy, strong and diverse pipeline into 2018 and beyond Sales update H1 2017 Sales process Continuing to be the Stage 1. Request For Information: leading industry brand 10+ competitors presence Stage 2. Initial Demonstration: 10+ competitors Digital initiative launching in Q4 Stage
Slide 22: Summary
Alfa’ Summary Andrew Denton, CEO
Slide 23: Summary
Summary Strong momentum in H1, giving confidence in the full year outlook • 2 new customer wins Customer • In line with forecast and expectations set at IPO focused • Strong and diverse pipeline out to FY18 and beyond underpinning our confidence • Increased regulatory and compliance demands from mar
Slide 24: Q&A
Q&A
Slide 25: Definitions
Definitions Measures not specifically defined by IFRS Adjusted EBIT Adjusted Earnings and Adjusted EPS, diluted • Adjusted EBIT is defined as profit from continuing operations before income • Adjusted Earnings is defined as profit for the period from continuing operations taxes, finance income, IPO-
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