《Alfa Financial Software (ALFA) 2024年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《Alfa Financial Software (ALFA) 2024年年度報告「LSE」.pdf（164頁珍藏版）》請在三個皮匠報告上搜索。
1、Breakthrough Year:Empowering the future of financeAlfa Financial Software Holdings PLC Annual Report and Accounts 20242024 Monitor Magazine:Best Company in Equipment Finance(Innovation),winner2024 LeasingWorld Gold Awards:ED&I Trailblazer category,winner2024 Megabuyte:18th Best Performing in Mid-Mar
2、ket 50Investors in People:Awarded IIP Gold status and Top 20(of its size)2025Megabuyte50 awards:Best Performing Company(Financial Services),shortlisted2024 plc awards:Tech Business of the Year,shortlistedStrategic report1 Key highlights2 Our year in review3 Investment case4 About Alfa5 Business mode
3、l6 CEO review10 Market overview12 Alfa Systems 614 Strategy in action19 Key performance indicators21 Financial review25 Environmental,Social andGovernance29 Task Force on Climate-related Financial Disclosures 32 Streamlined Energy and Carbon Reporting 34 Risk management37 Principal risks and uncerta
4、inties46 Stakeholder engagement49 Viability statementCorporate governance52 Chairmans introduction53 Code compliance54 Board of Directors56 Company Leadership Team57 Our governance framework58 Board leadership and Company purpose61 Board activities 62 Engaging with our stakeholders and Section 172 S
5、tatement66 Division of responsibilities68 Composition,succession andevaluation71 Nomination Committee Report76 Audit and Risk Committee Report83 Remuneration Committee Report85 Annual report on remuneration100 Directors Remuneration Policy104 Alignment of Remuneration Policy105 Directors report110 S
6、tatement of Directors responsibilitiesFinancial statements112 Independent auditors report119 Consolidated statement of profit or lossand comprehensive income120 Consolidated statement of financialposition121 Consolidated statement of changesinequity122 Consolidated statement of cash flows123 Notes t
7、o the consolidated financialstatements151 Company statement of financial position152 Company statement of changes in equity153 Notes to the Company financialstatementsAdditional information158 Five-year history159 Shareholder informationAwardsESGAlfa ESG:2024 Sustainability Progress Report2024 has b
8、een abreakthrough yearfor Alfa.With the ongoing development of Alfa Systems 6,we have delivered game-changing innovations that empower our customers to scale faster,operate more efficiently,and adapt tothe demands of an evolving asset finance landscape.Our focus on pushing technological boundaries i
9、s helping shapethe future of finance,providing the tools and flexibility needed to meet tomorrows challenges.As we move forward,ourcommitment to innovation and customer success remains atthe heart of everything we do.Setting a new standard with Alfa Systems 6ContentsAlfa Financial Software Holdings
10、PLC|Annual Report and Accounts 2024Subscription revenue growth+18%2023:+16%Revenue109.9m2023:102.0mTCV1221.3m2023:165.3mOperating profit34.3m 2023:30.1mOperating profit margin31%2023:30%EBITDA margin2 34%2023:32%Closing headcount502+5%average headcount3Cash20.5m 89%conversion4Dividends paid522.1m 20
11、23:19.7m1.Total Contract Value.See“Definitions”on page 19 for further information.2.Earnings before interest,taxes,depreciation and amortisation,as apercentageof revenue.3.Over the 12 months to December 2024,compared with 12 months to December2023.4.Operating free cash flow conversion.See“Definition
12、s”on page 19 for furtherinformation.5.Amounts paid during the financial year.1Additional informationCorporate governanceFinancial statementsStrategic reportKey highlights2024Alfa Financial Software Holdings PLC|Annual Report and Accounts 2024Looking aheadWith strong momentum,we are well-positioned t
13、ocontinue delivering breakthrough innovations and long-term value.2023Pillar 1:EfficiencyFully optimised UX,withsuperpersonalised screen design.2024 has been a landmark year forAlfa,marked by key milestones ininnovation,customer success,andexpansion.JanuaryMarchMarchSeptemberOctoberJulyMayPillar 2:T
14、otal capabilityMeeting the complex end-to-end lifecycle demands of successful finance providers.Alfa awarded MonitorBestCompany inEquipment Finance 2024forInnovationPillar 4:ScalabilityTruly always-on,financially coherent operation without restriction.Alfa System 6:Fully realisedPillar 6:Collaborati
15、ve ecosystemSimple integration with market innovations and through Alfas trusted partner network.Pillar 5:Intelligent automationSystemised decision-making through AI and rules-based workflows.Pillar 3:SustainabilitySatisfying emerging business models,driven by net zero and ESG regulation.500employee
16、s worldwideJuly100thUS employeeDecemberFastestfull Alfa Systems go-live delivered2Additional informationCorporate governanceFinancial statementsStrategic reportOur year in reviewAlfa Financial Software Holdings PLC|Annual Report and Accounts 202436%50%14%BanksCaptivesIndependents59%41%AutomotiveEqui
17、pmentvAlfa Systems is at the heart of some of the worlds largest andmost innovative asset finance companies.Supporting alltypes of auto,equipment and wholesale finance business,our software platform uses leading-edge digital technologies todeliver proven functionality and performance.Our identityWe
18、are a software and delivery company.Our global reach37Countries502EmployeesEMEA revenueCustomer typeEnd marketsAmericas revenueAsia Pacific revenue42%7%51%Revenue by:Activity34%16%50%SubscriptionSoftware EngineeringDeliveryRevenue110m+8%Operating profit34m+14%Operating profit margin31%+1%Dividends p
19、aid22m+12%Employee engagement82%+0%Why invest?Markets Massive market Push&pull factors drive growth Large barriers to entryProduct Exceptional IP Market leading softwareReturns Diversified across geographies and end markets Recurring revenues with growing SaaS Strong cash generation delivering divid
20、endsFind out more overleaf about what sets AlfaapartStrategic reportAdditional informationCorporate governanceFinancial statements3Investment caseAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Point of SalePoint of SaleAsset ManagementOriginationsContract ServicingCommon Workflo
21、w Engine&Business RulesCommon Accounting EngineCommon Business IntelligenceCommon DatabaseSingle PlatformAlfa Systems satisfies requirements of all sizes:asan integrated point solution,a rapid off-the-shelf implementation or an end-to-end platform for the complex global enterprise.What Alfa does.dif
22、ferentlyMarket-leading softwareTechnical excellenceFlexible platformDeliveryPeopleFunctional depth and a bulletproof accounting engineProven across customers in 37 countries,large and smallCountries and regions all on one systemExceptional IPCloud-native and secure Software-as-a-ServiceExtensible so
23、ftware,embedded in the systems landscapeYour processes as workflows and business rulesFlexible and configurable product structuresBuilt for finance and accounting professionalsAn unrivalled track record in project deliveryRapid,preconfigured delivery modelAlfas people:the best in the businessAlfas v
24、ibrant cultureStrategic reportAdditional informationCorporate governanceFinancial statements4About AlfaAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024DeliverySubscriptionSoftware EngineeringTypes of RevenueSoftware EngineeringSubscriptionDeliveryAlfas propositionGenerating reven
25、ueDriving activityResulting in.1234DeliverySoftwareMission critical softwareUnrivalled track recordFlexible platformBulletproof delivery modelDeep IPIndustry knowledgeMarket-leading product+Subscription revenue grew by 18%in2024 Both Software Engineering and Delivery revenue driving Subscription rev
26、enue Alfa Systems 6 is SaaS onlyBusiness growth and transition to SaaS Overall revenue growth Subscription gaining higher proportion of the business Low customer churnCash generation Strong free cash flow Stakeholder return driving dividendsPeople Growth in headcount Improved career opportunities St
27、rong retention and engagementSoftware Strengthened IP Expanded functionality,including market expansion Planet UNSDG SBTiGreat people+Strong culture+InnovationProduct investmentNew implementationsUpgradesContract growthNew modules5Additional informationCorporate governanceFinancial statementsStrateg
28、ic reportBusiness modelAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Andrew DentonChief Executive Officer2024 Breakthrough Year 2024 has been a breakthrough year for Alfa.Another year of strong revenue growth overall powered by subscription revenue growth,with 50%of customers n
29、ow on Alfa Cloud.A record number of customer wins giving a record TCV level.Ten new modules,delivering value to our customers and driving incremental sales.The launch of Alfa Systems 6 underlining the importance of product investment and innovation.Business reviewBreakthrough year We look back on 20
30、24 as a year of breakthroughs,whilst maintaining our excellent delivery record,we:Launched Alfa Systems 6 Moved to SaaS only sales strategy Achieved landmark contract wins in allourmarkets Generated record TCV of 221m Grew total Alfa headcount to over 500people Grew our US operation to over 100colle
31、agues Grew our customer base so that our top 5 customers now account for less than a third of our revenuesWe have made significant strategic progress in 2024,increasing our functional lead over our competition with the release of Alfa Systems 6.We have continued to grow the business despite the reve
32、nue headwinds from our transition from a perpetual licence to a SaaS model.We have an SaaS only sales strategy.We had a record year for customer wins,converting eight customers from the late-stage pipeline,which led us in the second half of the year to increase our recruitment targets in both EMEA a
33、nd the US.The success we have had in winning US Auto clients means that we believe we are now the go-to solution for that market.We have also Strategic reportAdditional informationCorporate governanceFinancial statements6CEO reviewAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024o
34、pened up a new area of this market with the introduction of our Total Originations capability as part of the Alfa Systems 6 launch.We have continued to grow the Company,ending the year with global headcount in excess of 500,with over 100 people in the US,and at the same time we have maintained the e
35、xtremely strong Alfa culture.Our diversification across end markets and customers means that our top 5 customers now account for less than a third of our revenues,five years ago they were nearly two-thirds of our business.Our delivery excellence remains a key differentiator for us,and this has conti
36、nued in2024 with twenty-six delivery events in theyear.Strong growth driven by fast growing subscription revenuesFinancial performance was strong with continued growth in revenue and profit.Revenue was up 8%to 109.9m(2023:102.0m)at actual exchange rates or up 9%at constant currency rates.Subscriptio
37、n revenues continued to grow strongly,up 18%year on year largely driven by growth from existing customers.The impact of new customer wins on subscription revenues and margins will be much more pronounced after go-live,which depending on the project can take several years as contract volumes ramp up
38、to full run rate on the system,acting asa foundation for future growth acceleration.Delivery revenues were up 1%to 55.0m(2023:54.6m).We expect stronger growth in 2025 as the implementation of new projects won in Q4 2024 start to rampup.Software Engineering revenue increased strongly in the second ha
39、lf,up 70%to finish the year at 17.4m(2023:15.6m),up 12%on prior year and with a good pipeline of work for 2025.We delivered strong growth in operating profit,increasing 14%to 34.3m(2023:30.1m)on the back of the 8%growth in revenues at an improved gross margin of 64.5%(2023:62.5%)which flows through
40、to an improved operating margin of 31.2%(2023:29.5%).Cash conversion in the year was 89%(2023:115%);as expected this was lower than 2023 which benefited from an unusually high level of receipts just before the December 2023 year end.As the SaaS model becomes more embedded,cash conversion will trend
41、over time to between 90%-100%.We finished the period with cash of20.5m(31 Dec 2023:21.8m).Pipeline conversions driving very strong TCV growthWe saw very significant growth in our TCV through the year with the conversion of eight customers from the late-stage pipeline,with TCV reaching a record level
42、 of 221.3m at the end of the year.We have continued to see strong growth in our Subscription TCV but the most significant increases were in Delivery and Software Engineering TCV,as these increase immediately when contracts are signed.At the point of the contract win the Subscription TCV is relativel
43、y low,but increases over time as we get closer to go-live and full run-rate revenues.We had 21 customers each contributing revenues of more than 2m in the period,up from 19 last year and up from just seven in 2019.Our top five customer concentration has significantly reduced to 32%of our revenues in
44、 2024,compared with 61%in 2019.Our largest customer represented just 7%of our revenues in 2024.Delivery and Software EngineeringagilityIn 2023 we saw more go-lives than any other year in Alfas history.Following this in 2024 wehave started work with an unprecedented number of large customers.We conti
45、nue to focus on simplifying and increasing the speed of our implementations so that we can deliver more concurrent implementations.Alfa Cloud has been the most significant contributor tothis process,allowing us to start implementations quickly and enabling us to demonstrate system functionality to c
46、lients much earlier in the project than before.At the year-end there were six implementations underway with Alfa Cloud.The transition to new projects means that oursoftware engineering teams have been pivoting in the second half of 2024 and into thefirst half of 2025 away from Alfa Systems 6 to supp
47、orting these new large projects with customer driven development.Whilst the focusmay have shifted there continues to beongoing investment into the product to maintain and grow our market lead.We invested into our UK Equipment Start and US Auto Start products to facilitate further growth in these mar
48、kets.Expanding Alfa Systems 6 functionalityIn 2024 we saw the complete launch of Alfa Systems 6.This has been a hugely important step in showcasing our ongoing product investment in both functional and technical capabilities.Functional investment increases our product capability for existing markets
49、 butalso expands our addressable market.Technical investment includes the use of the latest software tooling,including integration and AI capabilities.The ten new modules that have been released cover additional functionality such as 24/7 andCompose;they also cover new financial product capabilities
50、 such as usage based charging and revolving credit facilities,opening up incremental sales opportunities.These new modules not only open up incremental sales opportunities to existing customers but also open up new markets for us in Commercial Finance and US Originations,which have thepotential to s
51、ignificantly increase our addressable markets.We believe it is really important to continue to invest in both functional and technical areas and this will continue in 2025.Strategic reportAdditional informationCorporate governanceFinancial statements7CEO review continuedAlfa Financial Software Holdi
52、ngs PLC|Annual Report and Accounts 2024Headcount growth,supported by strong retentionThe successful conversion of the pipeline during the year resulted in us accelerating recruitment plans in the second half.Retention rates have remained very high,being 96%for the year.This demonstrates the continue
53、d strength of the Alfa culture which is a key driver of our success.Headcount at the end of the year was up 6%at 502(2023:475)with average headcount in the period of 485(2023:463),up 5%on last year.Strategic progressAlfa is a software and delivery company.Ourstrategy for creating long-term,sustainab
54、le business value is to:Strengthen grow our differentiation Scale increase our capacity Sell further profitable growth Simplify enable more concurrent implementations,more efficientlyDuring 2024 we have made good progress across all of these areas,with key highlights noted below.Strengthen:Launch of
55、 Alfa Systems 6 Refreshed our software development model Invested in our people,increasing internal learning and development resources Refreshed our induction approach for newjoinersScale:Increased headcount to over 500 people Investigating an increase in our global footprint through further geograp
56、hic smarthubs Expanding addressable market into US Auto Originations and Commercial Finance Improved process for partner onboardingSell:Record eight wins Sold first US Auto Originations implementation Continuing sequential growth in subscriptionrevenues Moved to single-tenant SaaS only salesstrategy
57、Simplify:Completed enabling investment for our partner-led delivery MVP in UK Equipment Completed an accelerated implementation with Alfa Start for a US Auto customer Development of Alfa Start accelerator for USEquipmentmarket Improved migration tooling Further automated testing to simplifyupgradesA
58、ll of the above have contributed to making significant progress on our strategy,with the strongest evidence being revenue growth of 9%(at constant currency)comfortably exceeding average headcount growth of 5%and with Subscription revenues growing at 18%the fastest growing revenue stream.Capital retu
59、rnWe are a highly cash-generative business,withcash conversion of 89%in 2024,which as expected was down on 2023 due to some early receipts at the end of 2023.We expect cash conversion to trend towards 90-100%over time.We are committed to investing in our product and people to ensure that we continue
60、 to offer market-leading solutions andexcellent delivery and service to our customers.Our mechanism for returning capital is the payment of a regular,ordinary final dividend and we have a policy to grow this progressively.We will also consider special dividends when we have excess capital.Notwithsta
61、nding the return of 22.1m excess cash to shareholders during the year through ordinary and special dividends,we ended the period with cash of 20.5m.As such,the Board has today proposed an ordinary dividend of 1.4pence per share,up 8%,with an ex-dividend date of 29 May 2025,a record date of 30 May 20
62、25 and a payment date of 27 June 2025.The ordinary dividend would amount to a total payment of c.4.1m.In addition,the Board hasdecided to declare a special dividend of 2.4pence per share,up 20%on the special dividend declared this time last year,with an ex-dividend date of 1 May 2025,a record date o
63、f 2 May 2025 and a payment date of 30 May 2025.The special dividend would amount to atotal payment of c.7.1mStable market conditionsWhilst over the last few years the macro environment has been uncertain,the asset finance market and demand for software within it has remained robust.The asset finance
64、 market is a more secure form of lending and it has a history of gaining market share in uncertain times compared with non-asset backed lending markets.Alfa Systems is operational in 37 countries;in automotive finance,equipment finance,wholesale finance and loan finance;for OEMs,banks and independen
65、ts and across all asset classes.The breadth and diversity of Alfas business interests has helped insulate us fromunderlying economic uncertainty in individual markets as demonstrated by our ongoing track record of growth,our record TCVandstrong pipeline.Strong pipelineWe had a hugely successful year
66、 in 2024 in converting the late-stage pipeline,with arecord eight customer wins coming out of thepipeline.We ended the year with eight customers in the late-stage pipeline,of which five we are already engaged in paid work under letters of engagements on implementations aswe finalise commercial contr
67、acts.We are seeing good activity in the early-stage pipeline,reinforced by strong positive customer reaction to Alfa Systems 6 before and during the recent conference season.We remain confident in both the demand for our best-in-class software and our ability to win work in the market.Strategic repo
68、rtAdditional informationCorporate governanceFinancial statements8CEO review continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024 Make it better together starts with collaboration.By aligning teams,sharing knowledge,and working together,we drive meaningful change,improve proc
69、esses andenhance the way we support each otherand our clients.Challenge without being challenging its bringing ideas openly and confidently to drive improvement,always ensuring the approach is respectful,solution-focused and encourages collaboration.I value creativity and enjoy the process of genera
70、ting and implementing new ideas.Im proud to be part of a team that strives to create innovative solutions and lets great ideasgrow,together.To me,creating a positive impact means understanding my why and using that to enable me to say yes to as many initiatives,projects,favours and can I borrow you?
71、moments as I can.On top of that,positivity in itself and bringing happy energy also seems to create impact!Living our valuesMichael DorraniSenior Consultant(Sydney,Australia)Phoebe LumleyProject Manager(London,UK)Charlotte de GrouchySenior Project Manager(London,UK)Steve OHaraHead of Business Develo
72、pment,Asia Pacific(Sydney,Australia)Net-zero commitment and UNGCThe majority of our emissions come from our supply chain,so engaging with suppliers and working with them to reduce their emissions isfundamental to the overall success of us achieving our SBTi(Science Based Targets initiative).During 2
73、024,we started an engagement process with our keysuppliers.Generally across our key suppliers we can see that there is a strong desire to reduce emissions.During the year we joined the UN Global Compact(UNGC)which will help us drive forwards our corporate sustainability agenda.OutlookThe exceptional
74、ly strong conversion of wins inQ4 2024 has led to us entering this year witharecord level of TCV,setting an excellent foundation for continued growth and underpinning our confidence in the year ahead.Building on the strong subscription growth in2024 we expect mid-teens growth inSubscription revenues
75、 inFY 2025,alongside strong momentum in our Delivery and Software Engineering revenues aswe implement some key projects for new clients,driving an expectation of double-digit revenue growth overall.The markets strong response to the launch ofAlfa Systems 6 in 2024 has endorsed thesuccess of our stra
76、tegy of continuous investment in our business and we remain well positioned for further progress and focused ondelivering value in 2025 and beyond.Andrew DentonChief Executive Officer12 March 2025Strategic reportAdditional informationCorporate governanceFinancial statements9CEO review continuedAlfa
77、Financial Software Holdings PLC|Annual Report and Accounts 2024Asset Finance Market is a resilient market through different macroeconomic environments.The asset finance software market is more dependent on industry push-pull factors.Pull FactorsSoftware as a business enabler and driver of innovation
78、Expedite digitalisationBusiness agility and flexibilityIncreased adoption and functionalities of AI/MLExposure to green technologiesAddressable software market of$3.4bn1 Push FactorsSoftware not fit for purpose and high cost of ownershipRegulatory and cyber security requirementsPoorly integrated poi
79、nt solutionsIncreased ownership costInefficient workflows and lowautomation1.A Deloitte view of the asset finance software industry,202210Additional informationCorporate governanceFinancial statementsStrategic reportMarket overviewAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024E
80、xisting Alfa marketsAddressable Market ExpansionAdjacent Market ExpansionMarketUnited StatesEuropeAustralia,NZ&RoWOriginationsCommercial FinanceAutoAuto One of the largest auto finance markets Large Auto finance players with high volumes and scale In addition to asset finance servicing,originations
81、is a substantial market Larger,international players dominate themarket and require multi-country and multi-jurisdictional features Asset lifecycle and support for new sustainable business(e.g.fleet)modelsneeded The rest of the world,excluding Asia,makes up less than 4%of world asset finance volumes
82、,with Australia and New Zealand making up the majority of this market Finance companies willing to invest in Originations platforms to make use of new technology to increase automation and speed of response Alfa currently supports end-to-end originations at scale globally in diverse clients in Auto
83、and Equipment Alfa working alongside key customers in Auto and Equipment finance to enhance offering of key,flexible functionality in target markets with biggest opportunities Multiple trillion USD market.Expanding into adjacent market with some of the same players who invest in asset finance who co
84、uld be used as a soft route into themarket Modernisation of the Commercial finance market is driven by the need for automation and increased efficiency of processes as private credit players increase competition The variability and complexity associated with commercial loans and finance make Alfa Sy
85、stems the ideal fitEquipmentEquipment Private credit entering this attractive market and partnering or acquiring older equipment finance Diversification into more complex financial product structures related to commercial finance Some larger,cross-border finance providers but more,smaller,local play
86、ers within single countries Ability to quicky adapt new pricing models is key Support for Sustainability features is importantAlfa clients 6 of the USAs top 10 autolenders 2 of the USAs top 3 equipmentlessors 3 of the UKs top 5 equipment lessors 2 of Australias top 5 asset finance lenders In live pr
87、oduction in South Africa with consumer and commercial finance portfolios Strong interest in originations from existing clients and prospects,with some clients already using the product Some of Alfas largest equipment finance clients invest in wider commercial finance products allowing us to learn an
88、d expand within this client baseAlfa position Alfa is the de facto go-to company in US Auto and UK Equipment,withvery strong presences in other markets We use one system across all markets and are unique in having capability across all markets We have different competitors in each market Alfa provid
89、es exceptional high volume asset support ensuring stability,scalability and robust performance Multi-country and multi-jurisdictional features makes Alfa a great fit to support large international asset finance players Alfa Systems provides unparallelled support in converting high-level processes in
90、to configured workflows and business rules,improving efficiency Alfa has launched originations product,which covers direct and indirect lending,from quoting to funding Alfa has invested in commercial finance revolving credit facilities and syndications functionalityStrategic reportAdditional informa
91、tionCorporate governanceFinancial statements11Market overview continuedPillar 1:EfficiencyIntroducing Compose:Fully optimised UX,with superpersonalised screen design.When we talk to our customers,they always tell us their greatest operational challenges are around efficiency and achieving economies
92、of scale.Alfa Systems already equips our customers with robust functionality that empowers them to replicate and automate their processes,and the efficiency pillar is designed to enhance with tools to:Create superpersonalised screens for different users,processes and products through utilising Alfa
93、Compose.This is built on the investment in a UI framework and is astep change in UX for Alfa users,allowing them to quickly see the information relevant to that task;Manage cases at scale through Case Supervision functionality.New supervisor dashboards and enhanced SLA and bulk case functionality al
94、lows cases and queues to be managed efficiently.Pillar 2:Total CapabilityMeeting the complex end-to-end lifecycle demands ofsuccessful finance providers.Alfa Systems 6 continues to fulfil a key role as the core platform on which asset finance ecosystems are orchestrated.The Total Capability pillar g
95、ives customers the ability to:Operate a single platform globally for Originations and Servicing,using the same powerful pricing and workflow engine for end-to-end processes.Investment has been focused on building out an efficient,scalable Originations offering suitable for the US Auto market,where s
96、peed and accuracy is of utmost importance;Operate a single platform for the different products and structures in use at the customer organisation.Alfas investment in revolving credit facilities,direct billing contracts and usage-based products is a significant step in this journey;Benefit from a pre
97、configured end-to-end product,covering Servicing,Collections and Remarketing,and incorporating regulatory reporting.The investment in Alfa Start accelerators across Europe,the UK,the USA andAustralia allows a cost-effective offering for new prospects,reducing implementation time.Pillar 3:Sustainabil
98、itySatisfying emerging business models,driven by net-zero and ESG regulation.The equipment and automotive finance industries areundertaking a period of exciting change,driven by environmental concerns and regulations.Alfa has been investing in this area to enable our customers to support the require
99、d changes to their business models flexibly.TheSustainability pillar gives them the ability to:Track and report on their portfolios Scope 3 emissions tomeet regulatory requirements,at an individual,asset and portfolio level;Manage an enhanced asset lifecycle,incorporating second and third lives for
100、assets with off-lease depreciation and views of inventory;Utilise flexible,automated usage-based contracts and pricing,including API updates of actual usage,triggering necessary billing or contract adjustments;Provide both asset and service subscriptions alongside traditional auto and equipment leas
101、es and loans,effectively enabling Everything-as-a-Service(XaaS)business models through AlfaSystems.A breakthrough iteration of our SaaS platformFounded on six pillars,2024s iteration of the Alfa Systems software platform delivers important changes in performance and function,helping financeproviders
102、 tackle the significant challenges they face,and seize the lucrative opportunities that lie waiting:010203Alfa Systems 6Pillar 4:ScalabilityTruly always-on,financially coherent operation without restriction.Scalability in Alfa Systems 6 presents leading-edge functionality designed for providers look
103、ing to scale theirbusiness with flexibility and speed.Building on AlfaSystems stable,performant platform,long-term investments by Alfa have delivered the Scalability pillar,equipping finance providers with everything they need to:Optimise resource expenditure:Alfa Clouds adaptable resource model off
104、ers automated deployments,serverless databases and SOC1-certified processes;Onboard new portfolios:Powerful new tooling makes thetransfer of acquired portfolios onto Alfa Systems 6 quick and painless;Expand into new markets:Through business rules and advanced configuration management,Alfa Systems 6
105、gives customers the power to roll out operations with flexibility and speed,using the same configuration in multiple countries,or as a seed for rollouts in new regions or business lines.Pillar 5:Intelligent AutomationSystemised decision-making through AI and rules-based workflows.Intelligent Automat
106、ion in Alfa Systems 6 harnesses cutting-edge cognitive technologies,including predictive modelling,to empower our customers to create efficiency gains through a variety of intelligent,automated decision-making tools.Intelligent Automation is designed to:Automate any and all of a customers processes:
107、Alfa customers have the power to automate their processes to an extent that suits their business.Decision trees andnested rulesets,triggered by automated workflows,business rules and APIs,allow a heuristics-driven intelligent experience at common customer touchpoints;Onboard and upskill people:AskTh
108、ea,the conversational AI chatbot for Alfa Systems support and guidance,offers immediate insights for users seeking answers,available functionality and potential solutions;Onboard new products and processes:Using AskThea,business change professionals can quickly consult Alfa Systems documentation to
109、understand workflow and other configuration changes needed to implement new processes,providing further flexibility and power;Understand and reduce portfolio credit risk:Alfa Decisioning,a brand new credit decision engine,combines with Alfa iQs proven experience in predictive AI for dynamic optimisa
110、tion of credit underwriting,with customer-specific modelling.Pillar 6:Collaborative EcosystemSimple integration with market innovations andthroughAlfas trusted partner network.Collaborative Ecosystem in Alfa Systems 6 allows customers to tap into Alfas expertise and best practices tosource and integ
111、rate with new technologies,creating customised,end-to-end solutions painlessly.Collaborative Ecosystem is designed to:Enable efficient access to new technology:Drawing on Alfa Systems extensive catalogue of REST APIs,efficiently designed SPIs and leading-edge data transfer technology,customers can e
112、asily integrate new software and services into the core platform.By working with Alfas architects and accredited partners,customers can achieve powerful integrations with up-to-date technology and build their own customised platform and help drive innovation within their organisation;Take advantage
113、of Alfas knowledge and experience:Alfas network of consultants and technical experts collaborate to build up a rich knowledge base of integration case studies and solutions,helping customers to refine their choices and understand best practices;Access trained,knowledgeable local resources:Alfas part
114、nership ecosystem goes beyond software collaborations;our delivery partnerships offer customers access to local resources fully trained on Alfa Systems configuration and processes,enhanced by Alfas AI assistant,AskThea.040506Alfa Systems 6 continuedAlfa Financial Software Holdings PLC|Annual Report
115、and Accounts 2024Everything we do supports our growth and strategy.Our strategy for creating long-term,sustainable business value is:StrengthenGrow our differentiation ofmarket-leading People,Product and Delivery by:Investing in our smart,diverseteam Investing in our product;and Investing in our del
116、ivery methodology and tooling.Read more on page 15ScaleIncrease our capacity for developing and delivering AlfaSystems,and extend our reach,by:Developing our smart,diverseteam Leveraging global talent sources to enhance our competitive position Growing our partner ecosystem Expanding our addressable
117、 market;and Enabling partner led delivery ofAlfa Start.Read more on page 17SellEnable profitable growth by focusing on:Alfa Systems on Alfa Cloud Subscription revenue Incremental sales;and Commitment to our chosen targetmarkets.Read more on page 16SimplifyEnable more concurrent Alfa Systems implemen
118、tations,moreefficiently,by:Simplifying our product Simplifying our implementations Simplifying our processes acrossour organisation;and Expanding our Alfa Start offering.Read more on page 18Strategic reportAdditional informationCorporate governanceFinancial statements14Strategy in actionAlfa Financi
119、al Software Holdings PLC|Annual Report and Accounts 2024Number of partner relationships2022202730202320242024 highlightsProductOver 2024 we have invested not only in furthering major initiatives into adjacent markets,but also in delivering on thepromises made by the Alfa Systems 6 pillars.The advent
120、 of Product Owners has allowed smaller investment items tobeprioritised and managed,in order to fulfil corporate objectives.This has enabled valuable,targeted enhancements across the Alfa Systems product,delighting our customers,contributing to the new business pipeline,simplifying configurations an
121、d allowing the scaling of customer processes.PeopleWe continue to invest in our people across Alfa,bolstering our ever-expanding Learning and Development offering with new learning content and courses during 2024.We appointed a new Talent Manager,who will focus on enhancing our talent growth.Our ove
122、rall employee engagement,measured in quarterly Pulse surveys,stood at 82%for 2024.Maintaining our culture remains a key priority,focusing on providing support,events and experiences that all foster a great working environment.Delivery2024 has been a pivotal year for Alfa Delivery.In Asia-Pacific,we
123、began a V4 to V6 upgrade for a longstanding global auto finance client.In the USA,we started work with severalnew clients,one going live within nine months of starting,and progressing into implementation for several others.In EMEA,we delivered several V4 to V5 upgrades,delivered the first phase go-l
124、ive for a global auto manufacturer and appointed anew EMEA Head of Delivery.Globally,we appointed two regional Implementation Architecture Heads,to support our growing operations.Grow our differentiation of market-leading People,Product and Delivery,by:Investing in oursmart,diverseteam;Investing in
125、ourproduct;Investing in our delivery methodology and tooling.37mInvestment in product(2023:35m)*PlansProductNext year we will continue creating value for our clients and Alfa by harnessing the creativity of our engineers and aligning their focus to our strategic objectives.PeopleIn 2025 we are focus
126、ed on maintaining and preserving our precious culture,with the outputs of research exercises across the Company being explored and embedded.DeliveryWe intend to focus on further improvements to reduce the time and effort involved in an Alfa Systems upgrade to increase upgrade cadence,as well as simp
127、lifying delivery as a whole.AskTheaGrowing out of innovation:AskThea reflects one of the core principles of our AI strategy,democratising the use of AI within Alfa to deliver efficiency gains.AskThea builds upon AWS tools within asecure environment,to allow users fromAlfa and our clients to run cust
128、omqueries on the Alfa product documentation.A first use-case of generative AI chosen not only for its value,but also the quality of the underlying data.#of live customers,over time*This investment is calculated based on the total time spent by people in our Product Engineering team working on Alfa S
129、ystems product either for specific customer developments,which are largely chargeable,or internal investment and enhancement of the product.It does not include time spent on implementing or maintaining and supporting systems for customers.It includes salary costs and a full overhead allocation,and i
130、ncludes amounts shown as R&D expense and costs that have been capitalised.Strategic reportAdditional informationCorporate governanceFinancial statements15Strategy:StrengthenAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024202229%31%34%202320242024 highlightsMarketingAlfa has reinf
131、orced our position as industry leader through the year-long rollout of Alfa Systems 6.Via a series of six pillars,the campaign emphasised scalability through SaaS,sustainability,automation and integration,also launching Total Originations and showcasing innovation with Compose and AskThea.Octobers e
132、nhanced full launch featured a memorable keepsake in the form ofagraphic novel,whose comic-style visuals defined an impactful multi-channel campaign,dominating industry pressand events,and drawing considerable interest from prospects and customers.New modulesA new module structure was launched with
133、Alfa Systems 6,allowing more modular access to Alfa Systems 6 functionality.To support new and emerging business models within the asset finance industry,various new modules and service packs were launched,including service packs for Subscription services and XaaS,enabling customers to understand ou
134、r functionality in these areas.SubscriptionSince 2017,Alfa has adopted a cloud-first sales strategy,endeavouring to convince prospective customers of the numerous benefits of Alfa Cloud.With scalability being a key component of the fourth pillar ofAlfa System 6,in 2024 we have made the full transiti
135、on to amodel under which Alfa Systems is only available as a single-tenant SaaS solution.This provides themutual benefit of continuing the upward trajectory ofSubscription revenue,while also allowing us to provide exceptional value to ourcustomers.Enable profitable growth by focusing on:Alfa Systems
136、 on Alfa Cloud;Subscription revenue;Incremental sales;Commitment to our chosen target markets.PlansThe continued evolution of the Alfa Systems product,alongside the release of new modules planned for 2025,brings further opportunities for our customers to adopt more of the latest features through inc
137、remental module sales.Whilst Alfa Systems is market-leading software in US Auto for Servicing,the significant investment in Alfa Systems Originations offering provides us with a major opportunity toexpand our market presence into the Originations space.This will be a focus for the coming year.Additi
138、onally,we will look to capitalise on our investment in tangential markets,such as commercial finance,building and delivering a strong go-to-market strategy.Alfa ComposeBuilding on a hugely successful launch,weve continued to invest in the platform by greatly expanding both Composes functionality and
139、 its available component library.The number of supported screen entities has more than tripled as the library of components continues to be built out,unlocking the potential of bespoke screens for a far greater number of use cases.In the area of editability,Compose nowsupports the ability to add wiz
140、ards to screens,giving our customers controlover data users visibility and editability access.Subscription revenue shareStrategic reportAdditional informationCorporate governanceFinancial statements16Strategy:SellAlfa Financial Software Holdings PLC|Annual Report and Accounts 20242022441475502202320
141、242024 highlightsMarket expansionIn 2024 Alfa concentrated on expanding its footprint into adjacent markets.This involved joining Commercial Finance organisations globally,building a Minimum Viable Product(MVP)for a Revolving Credit Facility(RCF)product and partnering with acustomer to build a Syndi
142、cations product.We also commenced analysis and design of a Fleet product,tobe built out in 2025,to take advantage of the necessary importance of this market from EV sales quotas.RecruitmentIn 2024 Alfa reached an important milestone,surpassing 500 colleagues globally.Our recruitment practices remain
143、 robust and inclusive,with 2024 joiners being 50%female,45%male and 5%non-binary.Overall retention is 96%.We continue to partner with organisations that support ourdiversity targets.This year also saw us launch our new improved Induction programme,piloted successfully byourgraduate intake in EMEA in
144、 September.This new induction is modular,enabling us to tailor the content toeachaudiences needs.PartneringWe initiated a strategic partnership with gaidnts in Germany,an IT consultancy start-up founded by EGC(EuroGroup consulting).We also completed the programme of enabling investment for the partn
145、er-led delivery(PLD)of our Alfa Start product inourhome market.The partnering team was expanded to support our global partner programmeoperations and services.Furthermore,we improved partner onboarding,including the implementation ofa Learning Management System for managing training courses,scheduli
146、ng,reference materials and completion/certification testing outcomes.Our partners access to systems and supporting information was also enhanced,opening up more roles for partners.Increase our capacity for developing and delivering AlfaSystems,and extend ourreach,by:Developing our smart,diverseteam;
147、Leveraging global talent sources to enhance our competitive position;Growing our partner ecosystem;Expanding our addressablemarket;Enabling partner led deliveryofAlfa Start.PlansMarket expansionWe will be focusing investment on features that enable the expansion of addressable share of target market
148、s and adjacent markets.RecruitmentNext year we will continue to embed and improve our induction processes,with focus on supporting our growth targets.Well continue to attract and retain diverse talent through employer brand promotion and maintaining Alfas reputation as a great place to work.Partneri
149、ngIn 2025 we aim to further expand our partner certification programme and make further progress on enabling PLD.We will also evaluate potential partners to further strengthen our partner ecosystem and market coverage.OriginationsWorking in conjunction with a major USAuto Captive,we have been concen
150、trating the work of several of our engineering teams to build upon Alfas excellent global Originations product to enable itsuse,at scale,within the highly competitive US Auto market.Speed,scale and efficiency are key in thismarket,so it is essential to take advantage of new technologies that allow c
151、ustomisation and facilitate automation and dynamic pricing.Global headcount8Ongoing partner-assisted projectsStrategic reportAdditional informationCorporate governanceFinancial statements17Strategy:ScaleAlfa Financial Software Holdings PLC|Annual Report and Accounts 202420222162120232024Enable more
152、concurrent Alfa Systems implementations,more efficiently,by:Simplifying our product;Simplifying our implementations;Simplifying our processes across our organisation;Expanding our Alfa Start offering.22Alfa Start implementations can reach live production in as little as 22 weeksPlansAlfa Start for U
153、S Auto FinanceIn 2025 we will continue driving down project timescales through simplification,focusing on traditionally longer-running activities such as data migration and integration development.The Portfolio Load tool,already used for ago-live in 2024,will increase speed to market for smaller por
154、tfolios.In terms of integration,we continue to generate design documents tosupport and accelerate client build.Alfa Start for US Equipment FinanceWe will embed our simplified migration tool intoAlfa Start for US Equipment Finance andimplementation methodology.Additionally,we will expand the product
155、and process reach following our commercial loan investment to cover any use cases,such as syndications.Advanced Configuration ManagementAdvanced Configuration Management provides additional control over Alfa Systems configuration,through:Fast Configuration Transfer which extends the existing configu
156、ration export tool,supporting continuous improvement activities with the ability to automate the promotion to production of subsets of Alfa Systems configuration.Contextual Parameter Filtering which allows customers to control who can usedifferent parameters,meaning parameters relating to different
157、operations can be managed within asingle Alfa Systems instance.#of clients on long-term supportbranches2024 highlightsAlfa Start for US Auto FinanceAlong with several ongoing projects which are using Alfa Start as an accelerator,2024 included a complete implementation launched in under nine months b
158、y rigidly following the Alfa Start methodology.These projects have allowed us to continually refine our framework,including the addition ofpre-written materials for the different stages of a project.New on-project learnings have also fed back into the configuration of existing processes,and the crea
159、tion of new ones,as we expand our functional coverage to support auto financiers of all shapes and sizes.Alfa Start for US Equipment FinanceThe end of 2023 saw the launch of Alfa Start for US Equipment Finance,with multiple clients using this to accelerate their implementations.2024 also saw the dev
160、elopment of our simplified migration tool,introducing a number of features specific to the market.Data MigrationInvestment in 2024 has further enhanced the Alfa MigrationSuite,focusing on simplification and continuous improvement.Weve streamlined AWS migration processes,simplified implementation thr
161、ough product and process enhancements,and refined best-practice documentation to reduce project duration and cost,delivering greater efficiency and value for our clients.TestingIn 2024,we made significant strategic investments in our quality assurance capabilities by migrating our performance testin
162、g infrastructure to cloud-based platforms,enabling greater scalability and flexibility.We enhanced our automated testing framework with advanced regression detection techniques,allowing earlier identification of potential issues.These improvements have streamlined our testing processes and strengthe
163、ned our ability to deliver high-quality software more efficiently.Strategic reportAdditional informationCorporate governanceFinancial statements18Strategy:SimplifyAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Our strategic priorities1Strengthen2 Sell3 Scale4 SimplifyAlfa measur
164、es a range of financial and operational metrics to help manage business performance.Definition and KPI calculation methodIn considering the financial performance of the business,the Directors and management use key performance indicators(KPIs),some of which are defined by IFRS and some of which are
165、not specifically defined by IFRS.We believe that operating free cash flow conversion isa key measure required to assess our financial performance.It is used by management to measure liquidity.This measure is not defined by IFRS.The most directly comparable IFRS measure for operating free cash flow c
166、onversion is cash flows from operations.The measure is not necessarily comparable to similarly referenced measures used byother companies.As a result,investors should not consider this performance measure in isolation from,or as asubstitute analysis for,our results of operations asdetermined in acco
167、rdance with IFRS.Headcount:Represents the number of Alfa employees under contracts of employment asat31 December of each year.Employee retention rate:Represents the retention of Alfa employees over the previous 12-month period,excluding any managed staff attrition.Employee engagement:The overall emp
168、loyee engagement score is derived from quarterly employee Pulse survey ratings based on the questions“I am happy in my role”and“I would recommend Alfa to a friend as an employer”.The figures shown are for the last survey of the year.Operating free cash flow conversion:Calculated ascash generated fro
169、m operations,less capital expenditures,less the principal element of lease payments in respect of IFRS16.Operating free cash flow conversion represents operating free cash flowgenerated as a proportion of operating profit.Total contract value(“TCV”):TCV is calculated byanalysing future contract reve
170、nue based on the following components:(i)an assumption of three years of Subscription payments assuming these services continued as planned(actual contract length varies by customer);(ii)the estimated remaining time to complete Delivery and Software Engineering deliverables within contracted softwar
171、e implementations,and recognise deferred licence amounts(which may not all beunder a signed statement of work);and(iii)Pre-implementation and ongoing Delivery andSoftware Engineering work which is contracted under astatement of work.As TCV is a reflection of future revenues,forward looking exchange
172、rates are used for the conversion into GBP.Constant currency:When the Company believes itwould be helpful for understanding trends in itsbusiness,the Company provides percentage increases or decreases in its revenues or operating profit to eliminate the effect of changes in currency values.When tren
173、d information is expressed herein“in constant currencies”,the comparative results arederived by re-calculating comparative non-GBP denominated revenues using the average exchange rates of the comparable months in the current reporting period.Headcount5022022441475502202320242024 performance2024 saw
174、us achieve a significant milestone with ourheadcount tipping over 500.Our continued strong retention and recruitment tosupport growth directly enable us to achieve our revenue growth and make usfuture ready.Why do we measure this?Our revenue growth and ability to win new business isheavily dependent
175、 on the number and deep expertise ofour people and therefore growing our team for the future is key to this goal.Employee retention rate96%202290%97%96%202320242024 performanceOur continued focus on nurturing our culture,investing in our people andtheir career growth contributes to our high retentio
176、n.Identifying interesting and challenging opportunities for growth provides variety and challenge that is a key contributor to retaining ourpeople.Why do we measure this?Our deep expertise in the industry and our ability toservice our customer relationships is driven by the quality of our people.A h
177、igher retention rate demonstrates sustained engagement and maintenance of key skills andknowledge.Employee engagement82%202284%82%82%202320242024 performanceEmployee engagement has remained strong through the year,with a continued focus on fostering a culture of open and two-way communication.Our pe
178、ople feel listened to,informed,and alongside the work that our communities champion,invested in making Alfa a great place to work.Why do we measure this?Measures levels of employee satisfaction and connection tothe business.There is a positive correlation between employee engagement and business per
179、formance and the metric should be a lead indicator for retention rate performance.Linked to remuneration:NoLinks to strategic priorities:1 3 Linked to remuneration:YesLinks to strategic priorities:1 3 Linked to remuneration:YesLinks to strategic priorities:1 3 OperationalStrategic reportAdditional i
180、nformationCorporate governanceFinancial statements19Key performance indicatorsAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024FinancialGroup revenue109.9m202293.3m102.0m109.9m202320242024 performanceGroup revenue grew by 8%(9%on constant currency basis),with particularly strong g
181、rowth in our Subscription stream,up 18%,driven by ramp up of new customers and ongoing projects as theyprogress through implementation stages and reach go-live,as well as growth within the existing customer base.Delivery revenue is slightly ahead of 2023 following the particularly strong period in t
182、he first half of 2023,while Software Engineering is up 12%as aresult of an increased focus on client-led development in the second half of 2024.Why do we measure this?Growing revenue is a measure of customer and business success.It is central to our objective of growing by maintaining our leading co
183、mpetitive position through differentiation of People,Product and Delivery.Operating profit34.3m202229.6m30.1m34.3m202320242024 performanceOperating profit grew 14%from last year as a result of 8%growth in revenues with net operating expenses growth of 5%,primarily drivenby a 5%increase in average he
184、adcount.Why do we measure this?Operating profit is an indicator of the Groups profitability.It can be used toanalyse the Groups core operational performance without the costs of capital structure and tax expenses impacting profit.Operating profit margin31.2%202231.8%29.6%31.2%202320242024 performanc
185、eOperating profit margin increased to 31%for the year as a result of gross profit margin improvement,partially offset by growth inSG&A costs including investment in our legal and commercial functions to support pipeline conversion,marketing spend associated with Alfa Systems 6 launch,increased IT an
186、d cyber security costs,and increased amortisation of intangible assets now in use.Why do we measure this?Operating profit margin is ameasure of how effectively we sell Alfa Systems and manage our cost base.It also allows comparison across different companies andsectors.Cash20.5m202218.7m21.8m20.5m20
187、2320242024 performanceCash generated from operations was sufficient toallow for the payment of further special dividends totalling 18.3m which reduced the Groups cashbalance.Why do we measure this?Cash is critical to allow the Group to cover its expenses,provide funds for investment,growth and to me
188、et its long-term needs.Cash generation is a good indicator of the underlying health of thebusiness.Operating free cash flowconversion89%2022102%115%89%202320242024 performanceOperating free cash flow conversion for 2024 was below 100%partially due to the unwinding of early cash collections at the en
189、d of 2023,increased spend on investment in product,and our continued transition to a subscription model as a result of which our cash conversion will trend toward 90-100%in the long run.Why do we measure this?A strong unencumbered balance sheet position is key to growing the business in thefuture.Ou
190、r business has always been cash generative and this KPI allows us to monitor cash flows before investment in capital projects.Total contract value 221.3m2022142.9m165.3m221.3m202320242024 performanceTotal TCV has seen exceptionally strong growth since 31 December 2023 driven by strong pipeline conve
191、rsion with eight customer wins during the year.Subscription TCV grew at 14%,in line with Subscription revenue for the year,with Delivery TCV more than doubling as a result of thesignificant new implementation projects contracted as well as growth in Software Engineering TCV of 38%driven by developme
192、nt requirements for new customer implementations.See p23 for further detail.Why do we measure this?Helps to predict revenue and the value of a contract over its lifetime,which will generally extend beyond the current financial year.See p19 for adetailed explanation of thecalculation.Linked to remune
193、ration:YesLinks to strategic priorities:1 2 3 4Linked to remuneration:YesLinks to strategic priorities:1 2 3 4Linked to remuneration:YesLinks to strategic priorities:1 2 3 4Linked to remuneration:YesLinks to strategic priorities:1 2 3 4Linked to remuneration:YesLinks to strategic priorities:1 2 3 4L
194、inked to remuneration:NoLinks to strategic priorities:1 2 3 4Strategic reportAdditional informationCorporate governanceFinancial statements20Key performance indicators continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Duncan MagrathChief Financial OfficerStrong figures wit
195、h PBT up 15%,TCV up 34%The business continues to grow revenues and profits and generate excess cash.The growth in subscription revenues and the very strong TCV gives us confidence for the future growth of the company and has allowed us to declare a special dividend of 2.4p and propose an ordinary di
196、vidend of 1.4p,with the combined total up 15%on this time last year.Financial resultsm20242023Movement%Revenue109.9102.08%Gross profit70.963.711%Operating profit34.330.114%Profit before tax34.129.615%Taxation(8.5)(6.1)39%Profit for the period25.623.59%Basic EPS8.68p7.99p9%Diluted EPS8.56p7.90p8%Reve
197、nues increased by 8%or 7.9m to 109.9m in the 12 months ended 31 December 2024(2023:102.0m),with growth at constant currency stronger at 9%.Revenues grew very strongly in North America,up 37%on the back of some large customer wins over the last 18 months,and now account for 42%(2023:33%)of revenues.S
198、trategic reportAdditional informationCorporate governanceFinancial statements21Financial reviewAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Gross profit increased to 70.9m(2023:63.7m)up 7.2m,with gross margin at 64.5%(2023:62.5%)with the increase in gross margin as a result of
199、 increased capitalisation ofcosts from more investment focused on new modules.Sales,General&Admin expenses increased to 36.6m(2023:34.3m)with the largest increase due to increased headcount inSales,Legal&Commercial and Information Security.There were also increased computer costs as we closed two da
200、ta centres moving to a Cloud-based solution,reducing the need for future capex.Other cost increases included health costs and profit share.Other income was 0.0m(2023:0.7m).Overall operating profit increased by 14%to 34.3m(2023:30.1m)with profit before tax of34.1m(2023:29.6m).The Effective Tax Rate(E
201、TR)for 2024 was 24.9%(2023:20.6%),the increase being principally due to the impact of the increase inthe UK corporation tax rate from 23.5%to 25.0%for 2024 and the change in R&D relief.Profit for the period was 25.6m(2023:23.5m).RevenueRevenue bytypem20242023Movement%Subscription37.531.818%Software
202、Engineering17.415.612%Delivery55.054.61%Total revenue109.9102.08%Subscription Strong growth in subscription revenuesSubscription revenues arise from revenues from SaaS and other recurring services.Overall subscription revenues increased strongly by 18%to 37.5m(2023:31.8m)with growth driven from both
203、 new and existing customers.Subscription customers now total 39(2023:35)and 60%of subscription revenues come from customers using Alfa Cloud.Subscription revenues now account for 34%ofoverall revenues(2023:31%).We have a single-tenant SaaS solution.We and our customers benefit from a single standard
204、 code-set and database,but with multi-layer data segregation as opposed to code-based segregation used in multi-tenant SaaS models.One of the big benefits of this approach is that customers can control their release cycles rather than having an upgrade timetable dictated to them.Our SaaS services ar
205、e ISO 27001 and ISO 27018 certified and SOC1 and SOC2 audited to confirm compliance with controls around data security and availability.Given the mission-critical nature of our systems for our customers,having such third party verification of our compliance with these standards is a key selling poin
206、t.Software Engineering Strong H2 forchargeable workSoftware Engineering revenues largely arise from chargeable development work for new and existing customers,along with some perpetual licence recognition.Software Engineering revenues for the year increased by 12%on the back of new customer start-up
207、s.We also saw a reduction in the customised perpetual licence recognition downto 3.3m in the year(2023:4.4m)as aconsequence of the successful transition to asubscription SaaS model.There were one-off licence revenues of 0.8m(2023:0.7m).Our strategy is to continue to develop our software,to ensure th
208、at we meet and exceed customer and market needs as they evolve and as the regulatory and commercial environment continues to change.We have the industry leading software and we continue to invest toincrease that lead,through a balance of customer funded development and self-funded development.Delive
209、ry High-quality deliveryDelivery revenues arise from work for existing customers delivering new modules,upgrades,migrations and other services,aswell as work with new customers on project definition and implementation of AlfaSystems.Following a record year of deliveries in 2023,in2024 we saw six new
210、 large projects start-up.These projects are multi-year projects with go-lives in subsequent years.Overall Delivery revenues increased by 1%to 55.0m(2023:54.6m)at actual exchange rates.Total revenues from existing customers,including V4 to V5 upgrades was 38.7m(2023:36.1m).Within this,as expected,V4
211、to V5 upgrades are slowing down as we come to the end of that programme and they accounted for 12%(2023:17%)of total Delivery revenue.As V4 to V5 projects are replaced by new projects this will further boost Subscription revenues due to the higher incremental Subscription revenues they will generate
212、 in thefuture.We had 26 delivery events in the year which as expected was down on the record 35 last year.As noted 2024 was more about starting up new projects,however there were three go-lives during the year,one V4 to V5 upgrade in the UK,and then two smaller initial go-lives for automotive custom
213、ers,one in the UK and one in the US,as part of multi-year projects with multiple go-lives.Strategic reportAdditional informationCorporate governanceFinancial statements22Financial review continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Total Contract Value(TCV)TVC by stre
214、amm20242023Movement%Subscription136.7119.514%Software Engineering24.617.838%Delivery60.028.0114%Total TCV221.3165.334%Total contract value(TCV)at 31 December 2024 was 221.3m(31 December 2023:165.3m).TCV grew strongly on the back of the record eight wins during the year and also due to the continuing
215、 growth in subscription TCV.TCV by stream for next 12monthsm20242023Movement%Subscription41.937.113%Software Engineering13.58.755%Delivery40.321.290%Total TCV95.767.043%Of the TCV at 31 December 2024,95.7m(2023:67.0m)is currently anticipated to convert into revenue within the next 12 months.The subs
216、cription portion increased 13%to 41.9m(2023:37.1m).The strongest growth came from Software Engineering TCV,up 55%to 13.5m(2023:8.7m)and Delivery TCV up 90%to 40.3m(2023:21.2m)due to the strong conversion of the late-stage pipeline.At 2023 year end we were working with a number of companies in the la
217、te-stage pipeline and whilst we expected the projects to continue as they were not fully contracted,they were not fully included in TCV,hence the very strong growth in the TCV figure.Total TCVDec-22Subscription240220200180160140120100806040200mDec-23+34%Dec-24932030143m165m221m11918281372460Software
218、EngineeringDeliveryOperating profitThe Groups operating profit increased by 4.2m to 34.3m in 2024(2023:30.1m)primarily reflecting the 7.9m increase in revenue offset by cost increases of 3.7m.Headcount numbers were up 6%at 31 December 2024 at 502(2023:475),with average headcount of 485 up 5%on last
219、year(2023:463).Staff retention remained very highat 96%.Expenses netm20242023Movement%Cost of sales39.038.32%Sales,general and administrative expenses36.634.37%Other income0.0(0.7)Total expenses net75.671.95%Cost of sales increased by 0.7m to 39.0m(2023:38.3m)to support the growth in the business.Th
220、is was due to higher headcount and salary costs along with increased hosting costs from the increasing scale of that business,offset by increased capitalised investment into the product as our engineering resources focused on Alfa Systems 6 as opposed to chargeable client work.Sales,general and admi
221、nistrative(SG&A)increased to 36.6m in the year(2023:34.3m).Salary costs were up 9%in the period to 14.1m(2023:12.9m).Profit Share Pay,including employers costs,in the period was 4.2m(2023:3.8m).Share-based payment charges have decreased slightly from last year to 1.4m(2023:1.6m).Foreign currency gai
222、ns/losses were a gain of 0.5m,up from the gain of 0.3m last year.Other costs totalling 17.4m increased 1.1m on last year(2023:16.3m)with,as expected,increased computer costs.In 2023 there were 0.6m of costs related to possible offers forAlfa.Other income reduced from 0.7m last year to 0.0m this year
223、 largely due to the reduction in UK R&D Expenditure Credit(RDEC).Profit before taxOverall profit before tax of 34.1m was up 15%on last year(2023:29.6m).Net finance costs were unchanged at 0.2m(2023:0.2m).Profit for the periodProfit after taxation increased by 2.1m,or 9%,to 25.6m(2023:23.5m).The Effe
224、ctive Tax Rate for 2024 was 24.9%(2023:20.6%).The increase was due to 2024 being the first full year of the increased UK corporation tax rate of25%along with the 2023 rate benefiting from a prior year R&D claim.There is no longer any benefit from R&D on the tax line,with the reduced benefit from the
225、 RDEC scheme being shown in other income.Earnings per shareBasic earnings per share increased by 9%to 8.68 pence(2023:7.99 pence).Diluted earnings per share also increased by 8%to 8.56 pence(2023:7.90 pence).Cash flowAs expected,cash generated from operations was down year on year at 37.3m(2023:39.2
226、m)due to the impact of some receipts received in December 2023 which wewould have expected to receive in January 2024.Net cash generated from operating activities was 28.4m(2023:32.2m)with tax payments of 8.2m up on the 6.5m for 2023 largely due to the increase in corporation taxexpense.Strategic re
227、portAdditional informationCorporate governanceFinancial statements23Financial review continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Cash(including the effect of exchange ratechanges)decreased by 1.3m to 20.5m at31 December 2024,from 21.8m at 31 December 2023.There was 2
228、8.4m of net cash generated from operating activities(2023:32.2m).Total dividends paid in the year,being the ordinary and two special dividends,increased by 12%to 22.1m(2023:19.7m).Purchases of own shares in the period were 0.7m(2023:4.8m)down on last year as they were purely for shares into the Empl
229、oyee Benefit Trust,whereas last year there were also treasury shares purchased in the period.Net capital expenditure of 5.6m was up on last year(2023:3.4m)due to as expected increased investment into the product,up to 5.3m(2023:2.8m)and with other capex of 0.3m(2023:0.6m).Operating free cash flow co
230、nversionm20242023Cash generated from operations37.339.2Adjusted for:Capital expenditure(5.6)(3.4)Principal element of the leasepayments in respect of IFRS 16(1.3)(1.3)Operating free cash flow30.434.5Operating profit34.330.1Operating free cash flow conversion89%115%The Groups Operating Free Cash Flow
231、 Conversion(FCF)of 89%(2023:115%)was down on last year.Cash conversion was impacted by receipts in December 2023 that we would normally have expected tobe received in January 2024.As previously noted,the move away from perpetual licences to a SaaS model will result in cash conversion going forwards
232、averaging between 90%to100%.Balance sheetThe significant movements in the Groups balance sheet,aside from the cash balance which is described above,from 31 December 2023 to 31 December 2024 are detailed below.As expected,trade receivables increased from the very low level at 31 December 2023 of 5.6m
233、,which had benefited from some early payments from customers,to 8.6m at 31 December 2024.They remain extremely tightly controlled with overdue debtors only 0.5m(2023:0.6m)and these are all within 30days overdue.All of the year-end receivables have now been collected.Accrued income was substantially
234、in line with last year end at 4.7m(31 December 2023:4.6m).Corporation tax recoverable of 2.8m(31 December 2023:1.9m)is principally due toamounts expected to be received related toR&D claims.Trade and other payables balance increased by 1.7m to 11.7m(31 December 2023:10.0m)which was driven primarily
235、by an increase in amounts due relating to tax and social security.Contract liabilities relating to software licences was largely unchanged at 8.1m(31 December 2023:8.0m).Contract liabilities from deferred maintenance increased to 7.6m(31 December 2023:6.2m)with the largest factor due to thetiming of
236、 invoicing and receipts on one customer.We expect a 1.8m reversal of this in2025.Going concernThe financial statements are prepared on the going concern basis.This is considered appropriate due to the reasons stated in note 1.1 to the consolidated financial statements.Subsequent events and related p
237、artiesThere have been no subsequent events that require disclosure.Details about related party transactions are disclosed in note 32 to the consolidated financial statements.Duncan MagrathChief Financial Officer12 March 2025Renaming revenue streamsOver the last few years,the company has transitioned
238、 away from selling perpetual licences to a SaaS licence model,in line with wider market trends and shifting customer demand.We have therefore decided to align the terminology of our revenue streams more accurately with theunderlying revenues.Licence income is now largely recognised within the Subscr
239、iption revenue stream and the Software Engineering revenue stream mainly represents revenue generated from our Software Engineering team.Delivery revenue arises from work delivered by ourdelivery teams in the form of new implementations,upgrades or delivery ofother projects.The methodology for which
240、 revenues arerecognised and disclosed within each revenue stream remains unchanged,this is simply a change of name.Software revenue stream is now named Software Engineering;Services revenue stream is now named Delivery;and No change of name for the Subscription revenue stream.Strategic reportAdditio
241、nal informationCorporate governanceFinancial statements24Financial review continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Introduction to our ESG highlightsDoing good isnt just a commitment at Alfa its embedded in every facet of how we operate,innovate and grow.Across ou
242、r global organisation,were integrating Environmental,Social and Governance(ESG)principles into our strategic objectives,daily operations and processes.Our journey is about morethan meeting targets;its aboutcreating lasting value for allourstakeholders our people,thecommunities we touch,and theplanet
243、.This year,were taking a bold step forward in how we share our progress.While the next few pages of this Annual Report provide a snapshot of our achievements,were thrilled to expand on our reporting with the launch of our second Sustainability Progress Report.Introduced in2023,this dedicated report
244、highlights the comprehensive initiatives driving impact across People,Planet and Product at Alfa.From fostering an equitable workplace to reducing carbon emissions and delivering sustainable innovation,it captures the depth and breadth of our global efforts.Here in our Annual Report highlights,youll
245、find:Alignment with the UN Sustainable Development Goals(SDGs)and our continued commitment as a signatory ofthe United Nations Global Compact(UNGC),reaffirming our role as responsible corporatecitizens;Gender Pay Gap reporting,reflecting our ongoing pursuit of equity and inclusion;Progress on carbon
246、 emissions reduction andenergy efficiency,showcasing our determination to combat climate change;and Disclosures in accordance with TCFD(TaskForce on Climate-related Financial Disclosures)and SECR(Streamlined Energy and Carbon Reporting)requirements.Our Sustainability Progress Report will take you ev
247、en deeper,illustrating how these initiatives come to life across Alfa.By sharing adedicated and expanded report for sustainability,we aim to inspire greater impact and innovation in our shared mission to protect and enhance the world around us.Together,we are redefining whats possible because sustai
248、nability isnt just what we do;itswho we are.To view the full Sustainability Progress Report for 2024 please visit: our ESG initiatives align with our five chosen United Nations SDGs.Alfas ESG Steering Committee,comprising colleagues from across the business globally and including our Chief Financial
249、 Officer and Chief People Officer,meets each month to focus on our progress and to support the overall direction of ESG atAlfa.MaterialityIn addition to our chosen UN SDGs,our ESG Steering Group also continues to focus on the key areas identified by SASB as materially impacting the software industry
250、:Energy Management,Customer Privacy,Data Security,Employee Engagement,Diversity and Inclusion,Competitive Behaviour and Systemic RiskManagement.United Nations Sustainable Development Goals and United Nations Global CompactAt Alfa,our five chosen UN SDGs,guiding us in our ESGefforts,are:Achieve gende
251、r equality and empower all women and girls.Promote sustained,inclusive and sustainable economic growth,full and productive employment and decent work for all.Reduce inequality within andamong countries.Ensure sustainable consumption and productionpatterns.Take urgent action to combat climate change
252、and its impacts.Many of our suppliers,customers and charity partners align with the SDGs,alsoproviding a way for us to identify common ground when engaging on ESG-related matters.Strategic reportAdditional informationCorporate governanceFinancial statements25Environmental,Social and GovernanceAlfa F
253、inancial Software Holdings PLC|Annual Report and Accounts 20242024 was the year we went further than aligning with five goals,finding a framework which will support all our ESGinitiatives and give us a formal stamp ofapproval for all the good things we do as standard at Alfa.We were delighted to joi
254、n theUNGC.On signing up,Alfa joined more than 20,000 companies and 3,800 non-business signatories based in over 160 countries.It is the worlds largest corporate sustainability initiative,andbeing part of this collective force will help us to maximise ourimpact.The UN Global Compacts 10 principles pr
255、omote responsible business by upholding human rights,fair labour,environmental sustainability and anti-corruption in all corporate practices.We feel comfortable that we operate well within the UNGC principles atAlfa.Access to resources and support will help us improve our sustainability performance
256、and identify opportunities for innovation and growth.Risk management expertise will support us in identifying and mitigating various risks associated with ESG.The UNGC aligns with emerging regulatory requirements relatedto sustainability and responsible business conduct.By adhering to these principl
257、es,we can stay ahead of regulatory changes and ensure compliance with evolving legal standards.PeopleAt Alfa,investing in our people is at the heart ofeverything we do.In 2024,we expanded our Learning and Development programmes with fresh,dynamic content and new courses,empowering our team with oppo
258、rtunities togrow and thrive.Employee engagement,measured quarterly through our Pulse surveys,stood strong averaging 82%for the year,reflecting our dedication to fostering asupportive and inspiring workplace.Preserving and enriching our culture remains a top priority for 2025.This focus is underpinne
259、d by insights gathered from company-wide research exercises,which we are embedding into our practices to ensure our culture continues to flourish.We were very proud to be winners of the Equity,Diversity and Inclusion(EDI)Trailblazer Award at the 2024 LeasingWorld Gold Awards.2024 marked a significan
260、t milestone for Alfa aswe surpassed 500 colleagues globally.Ourinclusive and rigorous recruitment processes supported this growth,with new hires comprising 50%female,45%male and 5%non-binary colleagues.Retention remained strong at 96%,and we continued to partner with organisations aligned with our d
261、iversitygoals.This year also saw the successful launch of ourenhanced modular Induction programme,piloted by our graduate intake in EMEA in September.New flexibility allows content to betailored to the needs of specific audiences,ensuring new team members feel informed,engaged and ready to contribut
262、e.Looking ahead,well build on these foundations by expanding our induction processes.Well also amplify our efforts to attract diverse talent through strategic employer brand initiatives,ensuring Alfa remains a workplace where everyone can thrive.PlanetOur commitment to achieving net-zero emissions r
263、emains steadfast,guided by SBTi-validated reduction targets.This year,wecontinued our journey by refining our approach to emissions data collection,including the ongoing analysis of our colleague commuting survey to ensure accurate reporting and transparency.As part of our dedication to impactful cl
264、imate action,we transitioned to working with EcoAct for our carbon-offsetting initiatives,selecting abalanced portfolio of reduction and removal options that align with our sustainability goals.Everyday planet-friendly practices are also central to our operations,with initiatives suchas refill stati
265、ons,laptop recycling and other green programmes remaining part of lifeat Alfa.In 2025,were excited to further our commitment to net-zero by leveraging the UNGC Accelerator programmes,continuing to innovate anddrivemeaningful progress in our sustainabilityjourney.Strategic reportAdditional informatio
266、nCorporate governanceFinancial statements26Environmental,Social and Governance continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024ProductIn 2023,we proudly introduced new functionality within Alfa Systems that enables customers to track and report on the Scope 3 greenhouse
267、gas(GHG)emissions associated with their portfolios.This feature originated as an innovative idea during one of our regular Hackathon events,was prioritised for investment and came to life through a close collaboration between our Markets and Products and Product Engineering teams.With input from ove
268、r 20 clients across all markets and regions,this powerful tool is a testament tothecollective drive for innovation andsustainability.As part of 2024s launch of Alfa Systems 6,we emphasised sustainability in our product marketing releases,introducing Sustainability as one of six key pillars.This high
269、lighted how Alfa Systems empowers providers to meet evolving demands for sustainability-focused products and transformative business models.Sustainability in Alfa Systems 6 offers robust capabilities to support key goals,including:Comprehensive asset lifecycle management,from origination to end-of-l
270、ife;Seamless support for subscription-based business models;and Full readiness to facilitate XaaS(Everything-as-a-Service)offerings.With Alfa Systems 6,were driving meaningful progress towards sustainability while equipping our clients with the tools they needto succeed in a changing world.Aligned w
271、ith our commitment to a cloud first approach,Alfa Systems implementations leverage AWS Cloud Computing for hosted services.This partnership not only ensures operational excellence but also delivers environmental benefits,as AWS remains on track to power its operations with 100%renewable energy by 20
272、25.Gender equalityThe analysis provided is based on global data as at 5 April of each year.Gender pay gap%Median Pay GapMean Pay GapPay Gap2023202420232024Alfa17.4%16.4%14.9%13.1%Gender pay gap%in pay quartiles.This displays the%proportion of men and women in each pay quartile.20232024FemaleMale Fem
273、aleMale1st Quartile(Low)46%54%47%53%2nd Quartile27%73%29%71%3rd Quartile 26%74%27%73%4th Quartile(High)24%76%25%75%Total 31%69%32%68%Our global mean gender pay gap has decreased from 14.9%in 2023 to 13.1%in 2024.The global median gap has also decreased from 17.4%to 16.4%.In 2024,the bonus gap mean w
274、as 37.9%and median was 34.5%.89%of women at Alfa received a bonus,compared with 95%of men.Global mean14.9%202313.1%2024Global median17.4%202316.4%2024Understanding the report reasons for the pay gapThe gender pay gap shows differences in the average(median and mean)earnings between different groups
275、of people by gender.We know that a pay gap is likely to persist until there is equal or proportionate gender representation at every level and job role in an organisation.Our gender pay and bonus gap data is influenced by the composition of our workforce,as a result of being a technology organisatio
276、n,as well as changes to our employee population which is impacted by newjoiners,leavers and organisational changes.As a result,we have seen year-on-year fluctuations in our pay gap figures.Our analysis shows that we have more men than women at all levels of the Company,which is reflective of the ove
277、rall challenge faced by the wider UK industry(where,typically,fewer women are drawn to technology and STEM related disciplines).In particular,the Company continues to recognise that there is a higher proportion of women in business and support function roles in comparison to technology roles,a refle
278、ction of the ongoing challenge faced by the technology and STEM industry ingeneral.As has been observed and reported in previous years,the main factor influencing Alfas gender pay gap is the ratio of females versus males across all levels of the organisation,in particular at our more senior grades w
279、here theratio is wider.Strategic reportAdditional informationCorporate governanceFinancial statements27Environmental,Social and Governance continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024There are fewer women in senior leadership roles with associated higher levels of pa
280、y compared to men.Globally,as of 1 November 2024,26%of our most senior leadership positions(grades F,G,H,I)are held by women.This is a slight improvement from the previous year,when 24%of these positions were held bywomen.We are actively hiring more women into the business year on year,and our femal
281、e talent pipeline continues to improve.In 2024 so far(until 1 November),51%of our new joiners globally are women and in the UK,59%are women.This is a positive improvement from 2023,when 43%of new joiners globally and 32%of new joiners in the UK were women.It is important to note,however,that these n
282、ew joiners are often hired into positions at lower grades(e.g.graduates),which therefore makes the gender pay gap more difficult to influence in the shorter term.However,these statistics do demonstrate a positive year-on-year trend.Understanding the report reasons for the bonus gapThe proportion of
283、both women and men who received a bonus in 2024 has increased from 2023(largely as a result of employees becoming eligible for profit share pay-out).The median and mean bonus gap that still exists can largely be attributed to the weighting of women in senior roles compared to men.This is because the
284、re are more males in higher-paying positions than females,which therefore results in a higher overall bonus pay-out for males,because the bonus calculation is a percentage of salary.In addition to this,bonus gap data includes Sales Incentive Plan(SIP)and LTIP share data.There is a much greater propo
285、rtion of men versus women who are eligible for these plans which can also explain the bonus gap.Until there is a greater balance of males and females in senior positions,the bonus gap will continue to exist.Giving backWe have partner charities in each of our regions,voted for by colleagues.In EMEA,T
286、he Food Foundation was our partner charity for the first half of 2024.We then voted in our new charity partner for the next couple of years:Depaul UK,a charity that tackles youth homelessness.In the USA,we continued our partnership with amental health charity.In Australia,we agreed to support a new
287、partner Man Cave,a leading preventative mental health charity for teenage boys and their communities.In New Zealand,we chose Gumboot Friday,an organisation that gives young people free and fast access to qualified counselling.Through a host of activities and events,we raised a combined total of over
288、 20,000 for our partner charities in 2024.Charity donations for all other causes across the year totalled over 50,000.Alfa has been rated by ESG rating agencies including ISS and CDP(formerly the Carbon Disclosure Project).Strategic reportAdditional informationCorporate governanceFinancial statement
289、s28Environmental,Social and Governance continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024Alfa has complied with the requirements of UKLR 6.6.6(8)R by including climate-related financial disclosures consistent with the TCFD recommendations and recommended disclosures.Where
290、we have not adopted TCFD recommendations in full,such as in Strategy(c),we have explained the reasons below.We have based our disclosures on the TCFD Guidance for All Sectors and note that we do not operate in an industry for which the additional supplemental guidance applies.For our TCFD disclosure
291、s,materiality is considered to be the threshold at which ESG issues become sufficiently important to our investors and other stakeholders that they should be disclosed.We believe that the audit materiality(as disclosed on page 114)meets this criteria and it is therefore the materiality we have appli
292、ed.We will continue to assess our approach to ensure we remain relevant in what we measure and disclose.AreaRecommended disclosureAlfa disclosureGovernancea)Describe the Boards oversight ofclimate-related risks and opportunities.The Chief Executive Officer(CEO)has ultimate responsibility to the Boar
293、d for all ESG matters.Climate-related risks and opportunities were presented to the Audit and Risk Committee(made up of Board members)twice in 2024.In these meetings,the Board reviewed and discussed managements assessment of climate risks and opportunities(see page 34),and was also updated on relate
294、d progress on climate-related matters and regulation,such as on the two sustainability reporting standards Disclosure of Sustainability-related Financial Information(IFRS S1)and Climate-related Disclosures(IFRS S2)which are expected to replace TCFD reporting for Alfa in the near future.In general,we
295、 see little impact of climate-related risks and opportunities on our business.This is reflective of our product,which is not significantly impacted by climate,and the fact that we already actively seek to manage and mitigate climate-related risks.Therefore,whilst the Board has received two briefings
296、 in the year on ESG matters,it has not spent significant time considering climate-related risks and opportunities.Management is in currently the process of arranging an ESG-focused training update for the Board which is expected to take place in 2025.b)Describe managements role inassessing and manag
297、ing climate-related risks and opportunities.Climate-related risks and opportunities are embedded across our operational framework,including roles and responsibilities,key policies and processes.The Chief Financial Officer(CFO),who is part of the Company Leadership Team(CLT),is responsible for the Gr
298、oups Environmental Policy and climate change issues.He is supported by the ESG Steering Group and the Environmental Impact team.In 2024,the CFO was closely involved in the climate-related risk assessment,the output of which was then discussed and debated with the rest of the CLT before being updated
299、 in the risk register.The CFO is responsible for overseeing the work being done by the Group towards meeting these commitments,and as a result was closely involved in the supplier engagement exercise carried out in 2024,and also in the Energy Savings Opportunity Scheme(ESOS)Phase 3 audit that was co
300、mpleted in the year.Our ESG Steering Group is made up of key individuals from different areas of the business globally,and it works on the development and delivery of ESG strategy,key policies and material commitments.Senior management,including the CFO and Chief People Officer(CPO),are part of this
301、 Group and brief the CEO and the wider CLT on the status and progress of projects.The ESG Steering Group discussed climate-related issues in various meetings in 2024.The Environmental Impact team,a group of volunteers from all levels of the Group,is responsible for the execution of organised activit
302、ies.Initiatives recommended by this team(and subsequently implemented at Alfa in 2024)include hands-on community clean-ups and planting projects.Management is kept up to date on ESG matters in a number of ways these are tailored by individual and,in 2024,included attending the Net Zero Business Tran
303、sformation series of workshops that were run by the United Nations Global Compact.Strategic reportAdditional informationCorporate governanceFinancial statements29Task Force on Climate-related Financial Disclosures(TCFD)Alfa Financial Software Holdings PLC|Annual Report and Accounts 2024AreaRecommend
304、ed disclosureAlfa disclosureStrategya)Describe the climate-related risksand opportunities the organisation has identified overthe short,medium,andlongterm.Management considered the risks outlined in Table A1.1 of the TCFD Implementation Guidance as part of carrying out this TCFD disclosure review.Co
305、nsideration was also given to the SASB(Sustainability Accounting Standards Board)sector-specific materiality assessment guidance for the Software and IT Services Industry which showed that,from an environment perspective,the key issue for our industry is energy management(which is in line with manag
306、ements current focus).Alfas public commitment of having signed up to the SBTi target reduction programme increases the reputation risk associated with not being able to reduce emissions in line with our commitment however,management is working closely with external advisors on our emissions reductio
307、n journey and is confident that Alfa will meet the targets set.In the short term(2025-2027,which is consistent with our viability assessment period see page 49),a risk that remains is management not keeping up to date with the various climate-related regulations again,we continue to mitigate this ri
308、sk by working closely with external advisors.For example,in 2024 we worked with advisors on our ESOS Phase 3 compliance.During this work we identified that despite being in a modern UK office with energy efficient initiatives already in place(such as motion sensitive lighting),there was an opportuni
309、ty to further improve the energy efficiency by updating certain lights to LED in 2024 we started the process of obtaining quotes for this project and will explore this further in 2025.In the medium(2028-2032)to longer(2033-2050)term,we see more positives for Alfa than negatives.A move towards new lo
310、wer carbon technologies is likely to result inincreasing requirements for asset backed finance solutions(as they are generally more expensive),which will drive growth in our underlying markets.In addition,increasing reporting requirements through the supply chain will require agile systems that can
311、respond to the new reporting requirements,which will increasingly demonstrate the greater flexibility of Alfa Systems over competitor products.b)Describe the impact of climate-related risks and opportunities onthe organisations businesses,strategy,and financial planning.Most of our operations are in
312、 the UK and USA,and therefore these geographies will have the most impact on our climate-related risks and opportunities.We are actively looking to reduce our carbon footprint,including reducing travel to client sites,using renewable energy options in many of our offices,and considering travel dista
313、nces and modes of transport for the location of conferences.For example,our 2024 EMEA company conference was held at a location that employees could travel to by train,instead of by air travel.In 2024 we also announced a new partnership with Octopus Energy to make it easier for eligible employees to
314、 transition to electric vehicles.To enable our systems to respond to increasing demands for multi-modal solutions and emissions reporting,and for Alfa to be viewed as a leader in sustainable financing solutions,we continue to spend time understanding the ESG-related needs of our customers and invest
315、ment required in the product.We hope to recoup this investment through a combination of increased market share,as clients focus more on Scope 3 reporting and turn to ESG-compliant solutions,and increased licence revenue for more value-added,market-leading products.We work closely with our customers
316、to understand their evolving needs around sustainable business models and this collaborative approach has led to the development of powerful solutions that meet their requirements,such as the recent Environmental Accounting module.As part of the Alfa Systems 6 launch in 2024,we emphasised sustainabi
317、lity in our marketing releases,introducing a dedicated Sustainability pillar.Sustainability in Alfa Systems 6 is equipped to address the sustainability goals of our customers,including having new capabilities for managing their entire asset lifecycle.For 2024 our financial planning had factored in c
318、limate-relates costs relating to a supplier engagement exercise and purchase of carbon offsets.For the former,asupplier engagement exercise was carried out in 2024,allowing us to engage with many of our key suppliers to better understand their sustainability maturity and emission reduction targets.T
319、his also allowed us to derive supplier-specific emission factors for those suppliers and to use these to improve the quality of our 2024 emissions reporting.For the latter,our financial planning meant that we were able to purchase carbon offsets of 1,879 tCO2e from Ecologi in the year.Furthermore,as
320、part of our dedication to impactful climate action,at the end of 2024 we have transitioned to working with EcoAct for our carbon-offsetting initiatives,selecting abalanced portfolio of reduction and removal options that more closely align with our sustainability goals.c)Describe the resilience of th
321、e organisations strategy,taking into consideration different climate-related scenarios,including a 2C or lower scenario.We conducted a high-level qualitative climate change risk and opportunity analysis to obtain a better understanding of the climate issues that could impact the business in the futu
322、re.Given the nature of our operations,we do not believe there are material risks to our organisation,other than the overall risk to the world economy.We therefore believe that our strategy as discussed on page 14 is resilient to climate-related factors,though we have not carried out quantitative sce
323、nario analysis as yet aspart of this review.Our focus in 2024 was to get a better understanding of our Scope 3 emissions.A key part of this was to use supplier-specific emission factors for determining our category 1 emissions which(as per page 32)is our largest Scope 3 category.Having been through
324、our supplier engagement exercise in 2024 we are now able to use supplier-specific factors to get more accurate emissions data.In 2025 to 2026,we plan to consider the impact of different climate-related scenarios on our emissions.Strategic reportAdditional informationCorporate governanceFinancial sta
325、tements30Task Force on Climate-related Financial Disclosures(TCFD)continuedAlfa Financial Software Holdings PLC|Annual Report and Accounts 2024AreaRecommended disclosureAlfa disclosureRisk managementa)Describe the organisations processes for identifying and assessing climate-related risks.Our approa
326、ch to identifying,assessing and managing environmental risks,including climate-related risk,is embedded within our approach to risk management.Climate-related risks may present as financial or non-financial risks depending on the extent to which their impacts can be quantified,and how they have been
327、classified.As explained above,we have a risk management process in place which includes a detailed assessment of our climate-related risks,along with a risk ratingassigned to each risk which is then reviewed by management and the Board.The risk rating incorporates the potential size and scope of the
328、 identified risks.b)Describe the organisations processes for managing climate-related risks.In the short term we do not see any material climate-related risks for the organisation.As a consequence,we keep the risks under review,but are not actively managing any at this point in time.We work closely
329、with external advisors on climate-related matters and are therefore confident that this engagement helps mitigate the related risk mentioned above of not keeping up to date with climate-related regulations.We are also actively taking steps,such as the supplier engagement exercise in 2024,to reduce o
330、ur emissions in line with our SBTi commitment(to mitigate the risk of not meeting the commitments made).c)Describe how processes for identifying,assessing,and managing climate-related risksare integrated into the organisations overall risk management.Climate-related risks are an integral part of our
331、 overall risk management and,in particular,are discussed twice a year when considering the corporate level risks.Moredetails on our risk management process can be seen at page 34.We have worked closely with the ESG Steering Group and other senior management to ensure that all climate-related risks a
332、re sufficiently covered in our risk register.Going forwards,the risk register will continue to be reviewed regularly and updated for any changes to climate-related risks.Metrics and targetsa)Disclose the metrics used by the organisation to assess climate-related risks and opportunities inline with i
333、ts strategy and risk management process.The main climate-related data we monitored throughout the year was our energy usage which we obtain from the energy provider and/or facilities manager of our offices.This review was done twice in 2024.We disclose our Carbon Intensity Ratio on page 33,which is a metric used by the Group consistently since 2021,allowing us to compare the year-on-year ratios.It
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
