Stepping into 
our opportunity
Alfa Financial Software Holdings PLC 
Annual Report and Accounts 2021

Find out more online at 
 alfasystems.com
We are all  
about software 
& delivery
Alfa is a leading provider of software and 
services to the global auto and equipment 
finance industries. We deliver our leading-
edge technology with smart, diverse people, 
making our customers future-ready.

Strategic report
1	
Financial highlights
4	
Software
6	
Subscription
8	
Services
10	
At a glance
12	
Chief Executive’s review
16	
Market overview
18	
Business model
20	
Investment case
22	
Company strategy 
24	
Strategy in action
25	
People
26	
Partnering
28	
Strategic Investment 
30	
Alfa iQ
32	
Cloud Hosting 
34	
Alfa Start
36	
Key performance indicators
38	
Financial review 
44	
Risk management 
46	
Principal risks and uncertainties 
52	
Viability statement 
54	
Section 172 statement
58	
Environmental, Social & Governance
Governance
71 
Chairman’s introduction to governance
74	
Board of Directors
76	
Company Leadership Team
77	
Board leadership & company purpose
81	
Division of responsibilities
86	
Composition, succession & evaluation
90 
Nomination Committee Report
94 
Audit & Risk Committee Report
100	 Directors’ Remuneration Report
103 Directors’ Remuneration Policy
112	 Annual Report on Remuneration
122	 Directors’ report
127	 Statement of Directors’ responsibilities
Financial statements
129	 Independent auditor’s report
137 Consolidated statement of profit or loss and 
comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141	 Notes to the consolidated 
financial statements 
173 Company statement of financial position 
174 Company statement of changes in equity 
175 Notes to the company financial statements
Other information
179	 Glossary of terms
180	 Shareholder information
Group revenue (£m)
2021
£83.2m 
£78.9m 
£64.5m 
£71.0m 
2020
2019
2018
Operating profit (£m)
2021
£24.7m 
£23.9m 
£13.7m 
£22.4m 
2020
2019
2018
Cash (£m)
2021
£23.1m 
£37.0m 
£58.8m 
£44.9m 
2020
2019
2018
Operating profit margin
2021
29.7% 
30.3% 
21.3% 
31.5% 
2020
2019
2018
Dividends paid (£m)
2021
£32.7m 
£44.2m 
2020
Number of subscription 
customers 
2021
31 
28 
25 
28 
2020
2019
2018
Employee retention
2021
87% 
93% 
83% 
88% 
2020
2019
2018
Employee engagement*
2021
78% 
74% 
55% 
68% 
2020
2019
2018
Customer concentration (top 5)
2021
38% 
48% 
61% 
59% 
2020
2019
2018
*	
Calculation revised, 2020, 2019 and 2018 
restated, see KPI page 37.
Contents
Financial highlights
Non-financial highlights
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
1
STRATEGIC REPORT

Alfa is an
2
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

IP company
The IP that exists in Alfa Systems 
has been built up over 30 years 
of working and specialising in 
the auto and equipment finance 
industry. It is the core of our 
business and the heart and lungs 
of our customers’ operations.
Key to the success of Alfa today is the 
launch, in 2010, of Alfa Systems v5. This 
was built with the future in mind: 100% 
web-based and 100% Java – making it 
fully digitally enabled and cloud native. 
It is constantly evolving to meet the needs 
of today’s customers.
 Read more about our investment in IP 
on pages 28-29
Big company impact. 
Small company feel.
Vision
To grow our company size naturally, 
but grow our impact rapidly – always 
retaining our underlying culture. Key to 
this is delivering more concurrent Alfa 
implementations, more efficiently, with 
a world-class product. We will have a big 
company impact, but a small company feel.
  For our purpose and identity, turn to 
page 10
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
3
STRATEGIC REPORT

Market-leading 
software
Dec 2020
5.6.3
Dec 2021
5.6.17
Constantly evolving
SOFTWARE
Our Alfa Systems software is at the 
heart of some of the world’s largest 
and most innovative auto and equipment 
finance companies.
4
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REVENUE STREAMS

We develop software that is dedicated to 
the auto and equipment finance industry. 
The software is the heart and lungs of our 
customers’ organisations providing front office, 
middle office and back office functionality all 
in one system, developed ground up in a digital 
environment. The strength of our software 
lies not only in the years of knowledge and 
experience that has been poured into it, but that 
it was designed for the digital environment.
What is included in the software revenue stream?
Software revenues include revenues from recognition of customised licence 
revenue, one-off licence fees and any development fees charged to customers 
on a day rate basis. 
What happened in 2021?
Every four weeks we release a new version of the software, and so there were 
13 new releases in 2021. We also rolled out Mercury, our new User Interface, to 
11 customers, whose users are now benefiting from its built-in accessibility and 
clean and modern environment. We had 27 go-lives during the year including 5 new 
implementations of v5. Of the new v5 implementations, 2 were upgrades from v4, as 
a consequence new licence revenues were relatively low in the year. Offsetting this 
was an increase in the number of development days charged to clients.
Software revenue (£m)
2021
13.6  
20.0 
2020
Software revenue (%)
16%
56%
28%
16%
Front office 
is used to refer 
to the auto and 
equipment finance 
point of sale.
Middle office 
represents everything 
that happens 
between the creation 
of a quote and having 
a live finance schedule 
for a delivered asset.
Back office 
includes all in-life 
contract-management 
transactions such as 
billing and collection, 
and all customer 
services transactions 
such as address 
changes and payment 
reschedules and 
where the complex 
accounting takes place. 
“After very careful evaluation 
and consideration, we selected 
Alfa because we felt it’s a great 
innovative platform for us, and 
so far we have been pleased with 
their product capability. I feel like 
the overall match between our two 
companies and culture, particularly 
around innovation and ESG, really 
helped us make this decision.”
Shamim Mohammad
EVP, Chief Information & Technology 
Officer, CarMax
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
5
STRATEGIC REPORT

Reliable cloud 
hosting
Dec 2020
27
Dec 2021
29
Maintenance customers
SUBSCRIPTION
Our cloud hosting services have grown rapidly 
and the robustness of the built in services 
and the ability to simplify and accelerate 
implementations make them an attractive 
choice for customers.
6
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REVENUE STREAMS

Subscription revenue (£m)
2021
23.5  
18.1 
2020
Subscription revenue (%)
28%
56%
28%
16%
Alfa cloud hosting services
•	 Customised automated task scheduling with monitoring and alerting
•	 Automated patching and deployments of Alfa Systems
•	 Agility to create, destroy and resize environments
•	 Disaster recovery leveraging managed services with annual test
•	 Automated database backup and on-request copying of data 
between environments
•	 24/7 threat monitoring and annual penetration testing
•	 ISO 27001 and SOC2 audited processes
•	 Environment and performance monitoring with automated alerting
We have seen rapid growth in our cloud 
hosting service, particularly as customers have 
moved off v4 onto v5. They have recognised 
the benefits of speed of implementation, the 
strength of the offering and the reliability 
that comes with it. Customers can now take 
a ‘bundled’ service, which for a monthly fee 
incorporates the licence, maintenance and 
hosting services.
What is included in the subscription revenue stream?
Subscription revenues include recurring revenues paid on a monthly or annual 
basis, including subscription licence revenues, maintenance and cloud hosting.
What happened in 2021?
2021 built on the significant progress we made in 2020 in developing our cloud 
hosting services. There were nine go-live events for the hosting team in 2021, three 
of these were for new implementations, with the remainder being upgrade events.
We continue to focus on increasing subscription licence sales both when 
customers are looking to take our hosting services, but even where they 
wish to deploy in their own cloud.
“We needed a system that was fit 
for purpose and fit for the future: 
Alfa v5 met those criteria. Alfa 
v5 will give Close Brothers Asset 
Finance scalability, but also 
nimbleness that’s a prerequisite 
in a changing environment. We 
operate in a number of jurisdictions 
and changes are constant, whether 
that’s regulatory, accounting, or 
just internal reporting, we’re going 
to be in a much stronger position 
to deal with change quickly and 
more economically.”
Neil Davies
CEO, Commercial, Close Brothers
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
7
STRATEGIC REPORT

Quality delivery 
with quality 
people
Dec 2020
19
Dec 2021
28
Services customers (>£0.2m)
SERVICES
The quality of our people, the knowledge 
sharing embedded in the organisation and 
the inherent IP within our software, means 
that our delivery record is second to none.
8
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REVENUE STREAMS

Services revenue (£m)
2021
46.1  
40.8 
2020
Services revenue (%)
56%
56%
28%
16%
Our services revenue comes from selling 
days to customers for implementation and 
for other ongoing services. Fundamental 
to this is the quality of our people, the deep 
knowledge they have of the auto and equipment 
finance industry and commitment to delivering 
a high-quality service.
What is included in the services revenue stream?
Services revenues are revenues from any work done for customers including 
pre-implementation, implementation work, and ongoing services, but 
excludes any revenue from development work.
What happened in 2021?
2021 saw a continuation of our strong delivery record underpinned by the 
growth in our pool of client-facing people and placement of partner resources on 
customer projects. Working 100% remotely we successfully completed five new 
implementations of Alfa v5, continued ongoing implementation and v5 upgrade 
projects, and provided ongoing services across the majority of our existing 
customer base. 
We continue to invest in the development of our people and in the quality and 
efficiency of our delivery model, as well as building and leveraging our partner 
ecosystem to enable more concurrent implementation projects. 
Implementation milestones
1995
Alfa v3  
launched
2003
Alfa v4  
launched
2021
35% of 
customers 
using hosting
2017
Alfa hosting 
launched
2010
Alfa v5  
launched
2020
Alfa Start 
launched
“We’re very pleased with the product, 
we’ve got a very strong team at 
Alfa supporting us. We’ve got 
multiple suppliers, but Alfa are by 
far and away the best performing 
partner that we have, in terms 
of the behaviours they operate 
with as an organisation – they’re 
extremely professional.”
Russ Fitzgerald
Chief Information Officer, 
Hampshire Trust Bank
2019 
4.6m contract  
portfolio  
go-live
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
9
STRATEGIC REPORT

Our purpose and identity
To deliver our leading-edge technology with smart, diverse people, making our 
customers future-ready. We are a software and delivery company.
10
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
AT A GLANCE

7%
58%
35%
56%
28%
16%
24%
17%
59%
What we do
Where we do it
Who we do it for
Services
We performed implementation or ongoing 
services for 28 customers during the year. 
All of our revenues are for the sale of software 
and related services. This split is to help 
understanding of changes in business activity.
EMEA
We had 21 customers based in Europe 
and Africa, as at 31 December 2021. 
Alfa Systems has been implemented 
and is live in 16 EMEA countries, with a 
further expansion underway into additional 
countries over the next few years. 
Original equipment manufacturers
OEMs include both equipment and automotive 
manufacturers, whose main purpose is the sale of 
the asset rather than the provision of financing.
Software
We had 21 customers during the year 
where we provided development services. 
In addition, we had 7 customers where we 
recognised a portion of the customised 
licence in the period, and 6 customers where 
there was point-in-time licence recognition 
in the year.
America
We primarily served customers across the 
US out of offices in Michigan and Texas, 
although US customers are also supported 
from the UK. We have deep experience of 
the USA automotive finance sector and a 
growing presence in equipment finance.
Banks
Customers classified as banking institutions 
are finance entities associated with 
regulated banking groups.
Subscriptions
At 31 December 2021, we had 31 
subscription customers, up from 28 last 
year. Of these, 12 were taking hosting 
services at the end of the year.
Rest of the World
We have operations in Australia and New 
Zealand specialising in both automotive and 
equipment finance. As at 31 December 2021 
we had 26 team members in this region. 
Independents
Independent customers are customers who are 
neither part of a regulated banking group nor 
manufacturers of the asset being financed. 
Independent customers tend to be smaller, 
both in portfolio volumes and personnel using 
Alfa Systems.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
11
STRATEGIC REPORT

Strong performance 
We saw a strong performance throughout 
2021 with good progress across all parts 
of our business. We have continued to deliver 
successful implementations with increased 
usage of our scalable and reliable cloud 
hosting solution, at the same time as 
releasing significant enhancements to 
our software. 
We have seen excellent sales growth 
reflected in our contracted orders with 
Total Contract Value (TCV) of £133m up 
4% since 30 September 2021 and 18% in 
the twelve months since 31 December 2020. 
The pipeline has continued to strengthen 
underpinning our confidence in the future 
growth of the business.
 In another difficult year for our people, with 
the disruption and uncertainty from the 
ongoing impact from COVID-19, we have 
continued to focus on our culture and we are 
pleased to see that translate into high 
employee engagement scores. The resulting 
high retention rates and our ability to 
continue to attract high-calibre people 
into Alfa, supports our ability to grow our 
headcount in a tight labour market. The  
strong conversion of our pipeline and 
continued investment in our product and 
processes have enabled our growing 
workforce to remain fully utilised. 
Financial performance has also been strong. 
Revenue of £83.2m (2020: £78.9m) was up 
5% on last year, or 14% compared with 
2020 revenues of £73.3m, after excluding 
one-off licence revenue from a five year 
contract extension. 
To support the growth in the business 
average headcount in the period was 383 
(2020: 341), a 12% increase which increased 
salary costs. Hosting costs also increased as 
that business grew over last year. Both of 
these were partially offset by a full twelve 
months of reduced travel and office costs 
compared with 2020. 
Overall operating profit up £0.8m to £24.7m 
(2020: £23.9m) with the revenue increase of 
£4.3m partially offset by increased costs of 
£3.5m, whilst maintaining operating profit 
margin at 30% (2020: 30%). 
Cash conversion was strong at 114% 
(2020: 114%) and we finished the period 
with net cash of £23.1m (31 Dec 
2020: £37.0m) after payment of £32.7m 
of dividends in the calendar year.
We have continued to diversify our revenue 
base with our top five customers now 
representing 37% of our revenues in 2021 
compared to 48% in 2020 and 61% in 
2019. We have continued to deepen our 
relationships across our customer base, 
leading to more customers making a 
material revenue contribution to our 
business. We had 14 customers contributing 
revenues of more than £2m in the year, up 
from 10 in 2020 and 7 in 2019. 
“We started 2021 with a strong financial and delivery 
performance and maintained this through the whole of the 
year. With the improving quality of our revenue mix, the 
strategic improvements made across the business, the quality 
of our people and strength of the intellectual property in our 
software, we have great confidence in Alfa’s prospects.”
Andrew Denton
Chief Executive Officer
12
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
CEO’S REVIEW

Alfa’s culture has meant that from the early 
days of forming the business we have 
focused on creating a positive, sustainable 
impact on society. It is pleasing that our 
underlying strength in ESG is now being 
reflected in improved ESG scores, including 
the Carbon Disclosure Project and by 
achieving an ISS ESG ‘Prime’ rating. ISS ESG 
takes an absolute best-in-class approach 
by industry, so companies are categorised 
as ‘Prime’ if they achieve/ exceed the 
sustainability performance requirements 
(the ‘Prime threshold’) defined by ISS ESG 
for each specific industry in the ESG 
Corporate Rating.
Subscription
Subscription revenues have grown rapidly 
over the last couple of years and comprise 
any revenues that are recurring including 
monthly or annual maintenance billing, cloud 
hosting services and bundled licence, 
maintenance and hosting contracts. 
We have transitioned to a ‘cloud first’ 
approach to sales because we see real 
benefits in the speed of implementation 
for customers and they see benefits in the 
reliability of the service and built-in tools, 
including automated monitoring, patching 
and scheduling. We anticipate that the 
majority of new customers will take a hosted 
service and all of the current v4 to v5 
upgrades are moving into a hosted v5 
environment. In addition we expect that 
new customers will increasingly take 
bundled licence, hosting and maintenance 
contracts, further improving the stickiness 
of the customer base. We now have seven 
customers taking cloud hosting services for 
live production environments and have five 
customers taking hosting services during 
design and implementation, most of which 
will become live production customers, to 
give a total of twelve customers taking 
hosting services, up from ten at the end 
of 2020.
The number of customers with ongoing 
maintenance contracts has increased to 
29 from 27 at the end of 2020.
Software 
Our strategy is to continue to develop 
our software, to ensure that we meet 
industry and customer needs as they evolve 
and as the regulatory environment changes. 
We release a new update of Alfa every 
four weeks, each one of which makes 
enhancements available to customers that 
add to their ability to serve their own 
customers. This maintains our edge as a 
leading provider of auto and equipment 
finance software. 
During 2021 we invested in improving the 
efficiency of our software development; all 
part of our continuing drive for simplification. 
We see the focus of development in 
2022 move towards customer facing 
functionality improvements, as customers 
continue to innovate and react to the 
changing demands of the market. We are also 
looking to expand our capacity to deliver new 
developments, and consequently we are in 
detailed planning for creating a new virtual 
development hub in Portugal to augment our 
London development teams.
Our differentiators
This is why our 
customers choose 
Alfa Systems.
Delivery track record
Our best practice methodologies and 
specialised knowledge of auto and 
equipment finance enable us to deliver 
large system implementations and highly 
complex business change projects. 
With an excellent delivery record over 
three decades in the industry, Alfa’s track 
record is unrivalled.
Unify systems
Alfa Systems helps customers reduce 
complexity by consolidating disparate 
legacy systems, integrations and 
workarounds. Alfa Systems removes 
these inefficiencies by using a single 
platform with a single database.
Innovate and challenge 
in multiple markets
Multi-entity, multi-regulatory, 
multi-currency and multilingual. 
We react quickly in a complex and 
changing market and adapt to match 
business requirements and customer 
needs as they evolve.
Create an omnichannel 
experience 
We empower customers, dealers 
and vendors through enhanced 
self-service and omnichannel 
technology. 
Perform through  
leading-edge tech 
Alfa Systems is designed ground-up 
 with the latest technology to allow  
easy integration into other systems and  
to work in a web environment with  
scalable performance, proven for a 
10 million contract portfolio. 
Achieve operational agility 
Streamline operations through process 
automation, across different functions 
and geographies. Achieve greater 
control, connected processes and 
a seamless flow of information.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
13
STRATEGIC REPORT

Despite more of an internal focus on 
development in 2021 we did significantly 
advance our ability to service Wholesale 
customers which is a new and significant 
vertical market for Alfa. These enhancements 
allow support for all asset types, speedier 
access to funds for Wholesale customers 
while tracking and managing contracts 
through the early stages and allowing for bulk 
changes to Wholesale contract curtailment 
schedules. We now have two customers using 
our Wholesale functionality and one of our 
major contract wins in the first half was for a 
Wholesale-only customer. 
We have also delivered improvements in the 
areas of configuration management, credit 
decisioning, business rule creation and 
regulatory support for European markets. 
The new user interface (UI) that we 
launched last year is now in production 
with eight customers and these new UI 
approaches have been used to develop 
collections and curtailments functionality. 
As expected overall software revenue 
reduced compared with last year due to the 
reduction in brand new Alfa implementations 
and consequently there was a reduction in 
licence income, although this was partially 
offset by increased development days for 
existing customers, including those upgrading 
from Alfa Systems v4 to v5.
Services
Services revenues are derived from all of the 
work on implementations and other services 
but exclude development days on new and 
existing customers (which is shown in 
software). We have continued to deliver 
a very high level of service to customers, 
whilst operating remotely during the period. 
In 2021 in the UK we saw go-lives on an 
Alfa Start project, implementing for new 
business following the acquisition by another 
customer and, two v4 to v5 upgrades. 
In Europe we saw the continuation of a 
multi-country implementation across a 
further four European countries, and in the 
US a brand new implementation for an 
automotive client and the launch of three 
new modules for an existing customer.
We have grown our customer-serving team, 
however a greater proportion of their time 
was spent on software development which 
shows in software. Within services there was a 
reduction in new implementation work, offset 
by the implementation of v4 to v5 upgrades.
We have also grown our access to partner 
resources and during the year we had 
partners operating with us for seven 
customers, which is up from four customers 
for the last year. In 2020 there was some 
large systems integration work done by a 
partner which normally would not be within 
the scope of our work, and if this was 
excluded total partner days were up 54%. 
Our partner programme is a key enabler of 
our growth and we will expand this further. 
We will create plans to develop partner-led 
delivery which would be a significant step 
forward from partners simply augmenting 
our existing resources. 
Alfa iQ – putting theory 
into practice
Alfa iQ spent 2021 engaged in prototyping 
work with Alfa customers which successfully 
validated the business benefit of artificial 
intelligence and machine learning 
applications within the asset finance industry. 
Alfa iQ has now been engaged by two leading 
organisations, one providing automotive 
finance and the other business finance, to 
implement artificial intelligence and machine 
learning solutions within their businesses, 
which will generate revenue in 2022.
The projects build on two different 
applications of artificial intelligence and 
machine learning in asset finance: 
improvements to originations and 
workflow optimisation.
Up until now Alfa iQ has relied on using 
resources from Alfa and Bitfount, the joint 
venture partners, however we are now 
actively recruiting into the joint venture. 
In the period Alfa iQ achieved ISO 
27001 certification.
Strong engagement with 
our people
We have balanced the issues of safety along 
with recognising the mental health impacts of 
lockdowns. We have not required anyone to 
come to the offices during the pandemic who 
did not want to, but when allowed, we have 
opened up the office for those who want to 
be there. Each department or team has 
created its own charter for the way it wishes 
to work and we are implementing these now. 
We have continued to arrange remote events 
to keep engagement high, ranging from short 
presentations on work and life topics through 
to Company-wide hackathons, innovation 
days and conferences. 
Engagement and retention have remained 
high, and we continue to be able to attract 
high-quality diverse people to Alfa, however 
we recognise that the market remains tight 
for quality software engineers and so we 
work hard to ensure that we are the 
employer of choice. With this in mind, we 
have a very full agenda in our global HR 
function, where activity has included 
updating our approach to on-boarding and 
to learning and development as well as an 
ongoing review of rewards and benefits. 
Employee share ownership has always been 
important to Alfa and we introduced a Save 
as You Earn (SAYE) share scheme in the UK 
and an Employee Stock Purchase Plan 
(ESPP) share scheme in the USA.
Capital return
We remain a strongly cash generative 
business. We continuously review our 
strategy and assess the funds needed 
to pursue that strategy and then review 
the options for any excess funds. When  
presenting our 2020 results we committed 
to starting a programme of regular 
dividends, and we remain committed to 
doing this through the declaration of a single 
ordinary dividend each year alongside our 
“Engagement and retention has remained high, 
and we continue to be able to attract high-quality 
diverse people to Alfa, however we recognise that 
the market remains tight for quality software 
engineers and so we work hard to ensure that 
we are the employer of choice.”
14
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
CEO’S REVIEW CONTINUED

full-year results. Despite the payment of a 
regular dividend, we expect to continue to 
generate excess cash and so from time to 
time we will also look whether to return it. 
Having made an assessment of our potential 
investment needs and reviewing our internal 
forecasts for the next 12-18 months we 
declared a special dividend of 10 pence per 
share, for a total payment of £30m, which 
means that we will have generated total 
dividends for shareholders over the last 
12 months of 26 pence per share or £77m. 
Looking forwards it remains our intention to 
continue to pay a regular dividend, and to 
grow this progressively, but in addition we 
announced a share buyback programme in 
January 2022 to spend up to £18m over the 
next 18 months to buy back our shares, 
partly to satisfy share option vestings, but 
with the majority to be held in Treasury and/
or cancelled.
Robust market conditions
While the underlying auto and equipment 
finance market did initially see a dip in 
activity following widespread COVID-19 
lockdowns, it has broadly been recovering 
since H2 2020. This continued through 2021 
and we now see generally favourable market 
conditions, recognising that whilst we have 
no direct exposure to events in Ukraine and 
Russia, it is too early to say what the medium 
term impacts on the macroeconomic 
outlook may be.  
 
Regarding the asset finance software 
market, since the initial disruption of the 
uncertainty caused by COVID-19 in H1 
2020, we have seen no adverse impact on 
our market. Indeed, the remote working 
practices that companies have been forced 
to adopt, and are increasingly looking to be 
standard practice going forwards, has 
accelerated moves towards a digital 
strategy, alongside increased focus on 
system flexibility and reliability, and 
increasing regulatory and legacy push 
factors, both of which Alfa is well positioned 
to benefit from. 
Good conversion of late 
stage pipeline
When we announced our 2020 results 
we had a strong late-stage pipeline, but 
highlighted the importance of converting 
this into signed contracts and that 
converting prospects into signed contracts 
was taking longer than normal. During the 
year we have converted seven prospects 
into wins and added an additional five 
prospects, without losing any, so finishing 
the year with eight prospects. This success 
in converting the late-stage pipeline 
demonstrates that we have a compelling 
proposition. Since the end of 2021 we have 
added one additional prospect and 
converted one into a win so that we 
currently have eight prospects in our 
late-stage pipeline. 
It is not only the quality of our software that 
gives us such a strong conversion of 
prospects, but our strong delivery record. 
An increasing trend has been the move 
towards customers looking to implement 
Minimum Viable Product (MVP) solutions 
supported by Alfa Start. This has the 
advantage of getting us on the ground 
faster, demonstrating the quality of our 
software and people.
Outlook 
The market opportunity for Alfa is very 
exciting and we have good visibility of work 
for 2022. We know there is a tight talent 
market at the moment, but assuming we 
continue our excellent recent record of 
attracting and retaining talent, we will see 
good revenue growth in 2022, albeit with 
some additional margin pressure due to 
salary inflation and return to normal costs. 
With the strategic improvements made 
across the business, the quality of our 
people and strength of the intellectual 
property in our software, we have great 
confidence in Alfa’s prospects.
Andrew Denton
Chief Executive Officer
8 March 2022
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
15
STRATEGIC REPORT

Alfa has been at the forefront of the digital revolution in auto and equipment 
finance. Significant investment into our cloud hosted offering means that this is 
also a top-quality proposition and both aspects together mean that we are well 
positioned to meet customer requirements.
MARKET OVERVIEW
Global trends
Global economic recovery continues, with 
the focus shifting to the after-effects of a 
relatively short-lived recession. Supply chain 
disruption and surging demand have 
contributed to global inflation; and used 
assets have soared in value whilst new 
inventory remains low. 
The climate emergency is forcing consumers 
and businesses to look at ways to improve 
their carbon footprint. Auto and equipment 
finance companies play a critical role in this 
change, providing the world with ever 
improving green technologies.
What this means for Alfa today 
The ability to refinance assets or onboard 
used assets provides our customers with 
the ability to thrive in times of low inventory, 
but also provide tools for supporting the 
circular economy. Usage-based billing is 
fully configurable, allowing clients to build 
flexible financing solutions. Our customers 
are also configuring green financing 
products, including local government 
subsidies and recording key emissions 
data against their assets.
Alfa Systems is a highly configurable 
platform which often results in our 
customers being well positioned to 
face such challenges. Demand is strong 
worldwide as finance companies continue 
to look to implement resilient, flexible and 
modern technology landscapes. 
What this means for Alfa tomorrow 
Alfa continues to keep a close eye on trends 
and shifts within the geographies and 
industries in which we operate. Recent years 
have highlighted that, often, these shifts are 
unforeseen. This highlights the importance 
of flexibility and configurability within our 
solution, providing customers with features 
that not only satisfy the requirements of 
today but that can be applied to the 
challenges of tomorrow. 
USA
It was expected that delinquencies in the 
USA automotive finance market would 
spike as forbearance programmes came to 
an end, but this has yet to materialise to the 
anticipated extent.
Supply chain issues and inflation continue 
to disrupt originations, but low rates and 
a trend towards longer terms are keeping 
payments affordable and demand high.
Equipment demand remains high 
with future prospects looking strong 
due to continued industry confidence 
and increased government 
infrastructure spending.
What this means for Alfa today
Alfa supports the largest providers in both 
the equipment and automotive industries, 
supporting their business through periods 
of challenge and opportunity.
The ability for clients to report in real time 
on their portfolio allows them to track 
industry trends as well as portfolio and 
process performance. This allows our 
clients to identify areas of concern and 
opportunity, such as the ability to introduce 
new products or streamline key processes 
ahead of a forecasted spike in volume. 
What this means for Alfa tomorrow
Alfa’s continued focus on automation, 
configurability and connectivity keeps our 
customers prepared for any future 
after-effects of the pandemic. Our internal 
investment process continues to introduce 
key product features required by a number 
of our clients, such as expanding our 
collections and credit offerings. 
Europe
More aggressive sustainability targets 
amongst European captives have presented 
a challenge to provide green assets to the 
mass market.
Usage-based products continue to be an 
area of development as providers react to 
higher demand for more flexible, cost-
efficient and sustainable ways of utilising 
assets while retaining profitability and 
managing residual risk.
Large multinational providers are looking to 
reduce technology overheads by selecting a 
single provider that can support multiple 
countries and an evolving product landscape.
What this means for Alfa today
Alfa Systems provides configurable support 
for usage-based products, allowing clients 
to configure bespoke offerings. 
Reporting and configuration management 
capabilities allow clients to accurately 
monitor the performance of their new 
products and iteratively improve upon 
them. Configurable subsidy management 
allows customers to manage an ever-
changing landscape of green incentives 
across multiple jurisdictions.
Alfa’s product flexibility and delivery 
experience across Europe means it is well 
placed to implement multi-country projects 
successfully. Furthermore, a wealth of 
experience in our home market along with 
our UK Alfa Start offering allows us to 
deliver high-quality solutions at a lower cost.
What this means for Alfa tomorrow
Alfa’s product investment allows our 
customers to stay up to date with product 
and regulatory developments. Furthermore, 
Alfa continues to invest in and innovate its 
delivery methodology, building on an 
already proven delivery track record. 
This places us in the best position to meet 
the needs of our customers as they juggle 
large-scale change in a number of areas, 
such as meeting their sustainability targets.
16
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Australia and New Zealand
Covid-19 has continued to dominate the 
agenda for many organisations, with the 
auto and equipment finance sector being 
no exception. It’s increasingly clear that 
organisations with modern technology and 
processes have been better able to adapt to 
new ways of working. Throughout 2021 Alfa 
has worked with our clients in Australia and 
New Zealand to support both them and 
their end customers. 
While smaller, the market in Australia and 
New Zealand is remarkably diverse. 
Australia in particular has a large equipment 
finance market led by the mining and raw 
materials sector, and automotive finance 
leasing has continued to show strength in 
both countries.
What this means for Alfa today
Strong and long-lasting relationships remain 
key to our success, with our ability to 
support the growing operations of our 
existing clients being a key measure of that 
success. Alfa’s ability to support a broad 
range of agreement types on a single 
platform is an advantage in smaller markets 
with a high level of product diversification, 
and we continue to see strong demand.
What this means for Alfa tomorrow
First and foremost our key objective for 
2022 is the execution of our existing 
projects, alongside the support of our 
existing customers. We expect to see 
business practices driving towards more and 
more automation and process support, 
both areas in which Alfa is very well placed.
Technology trends
Artificial intelligence and machine learning 
remain points of interest, with more possible 
applications being uncovered as new market 
trends and challenges emerge. One example 
is residual value modelling, both as supply 
chain issues continue and customers look for 
more flexible usage models. 
Delivery requirements often drive 
technology requirements too, with agile 
delivery models demanding scalable cloud 
solutions. Our customers are looking to 
decrease the technology footprint 
managed by their internal teams, reducing 
the ongoing overheads that come with 
on-premise deployment.
The emphasis on data only grows stronger 
with more customers realising the value that 
big data provides. Robust API connectivity 
is of paramount importance as auto and 
equipment finance providers look to 
coalesce asset, contract, telematics and 
other data to provide clearer views of 
profitability and efficiency. 
What this means for Alfa today 
Alfa has been at the forefront of the digital 
revolution in auto and equipment finance, 
and Alfa Systems has a rich application 
programming interface (API) allowing 
seamless connectivity. We’ve continued to 
increase the breadth of services available 
and also expanded the integration patterns 
supported by Alfa Systems, such as Amazon 
SQS and HTTP transport types for 
outbound messaging. 
Investment into our cloud hosted offering 
continues. We recognise the importance of 
secure and resilient cloud architectures and 
these are key considerations in the design of 
our service, which we continually monitor 
through client engagement and internal 
procedures, such as disaster recovery tests. 
Alfa’s joint venture, Alfa iQ, continues to 
explore the use of machine learning in auto 
and equipment finance. The industry 
presence of Alfa iQ has increased through 
thought leadership and conference activity, 
driving the adoption of AI in the auto and 
equipment finance market.
What this means for Alfa tomorrow 
The industry continues to focus on utilising 
new technologies in innovative ways and 
Alfa’s investment mirrors this appetite, 
ensuring we are designing solutions that can 
place our customers at the forefront of 
technology trends. 
  More information on Alfa iQ can be 
found on page 30.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
17
STRATEGIC REPORT

BUSINESS MODEL
Markets
See market overview  
 page 16
Culture and values
See more about our  
culture and values  
 page 62
Inputs
Value creation
Leading companies require 
innovation and customer-specific 
enhancements to stay ahead
Auto and equipment finance 
is heavily regulated – 
regulatory change requires 
software changes
New markets and geographies 
require software development
Growing Company provides 
career development and 
rewards for our people
Software
Leading-edge technology and 
innovation attracts smart, 
diverse people
People
Smart, diverse people  
improve our software
18
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Revenue
Subscriptions
Services
Software
Financial returns  
for shareholders
See Financial review  
 page 38
Positive impact 
on society
See ESG section 
 page 58
Outputs
Delivery
Retain for potential  
future needs
Cash
Solutions for leading auto 
and equipment finance 
companies
Our people and partners implement smart solutions for customers
New market entry
Expanding our  
addressable market
Our delivery  
track record and 
market-leading 
software drive 
recommendations 
and additional sales
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
19
STRATEGIC REPORT

1 
INVESTMENT CASE
Purpose-built for auto and equipment enterprises 
globally, developed to meet the current and future 
needs of the industry.
Alfa Systems is a leading auto and 
equipment finance software platform
Strongly positioned 
in a large resilient 
addressable market 
with clear structural 
growth drivers
We have an established position of 
leadership in the auto and equipment 
finance software market, underpinned 
by our experience, our track record of 
delivery, and our in-depth understanding 
of the industry.
Changing regulations (for instance 
risk-free rates), the need for digital 
capabilities (accelerating as a result 
of changes in customer processes due 
to the global pandemic) and the need to 
replace ageing infrastructure and outdated 
systems are driving underlying demand for 
Alfa Systems.
We are committed to growing our market 
share by recruiting the smartest people, 
maintaining and developing our leading-
edge technology, and surpassing customer 
expectations through delivery excellence.
20
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

2 
4
3
Constant innovation 
delivers leading-edge 
technology embedding 
strong long-term 
customer relationships
Alfa has invested significantly in the 
development of its technology platform to 
ensure it is secure, reliable, resilient and scalable 
to grow with our customers’ business ambitions.
Our suite of integrated modules 
can be deployed and configured as a full end-
to-end solution covering the entire auto and 
equipment finance lifecycle or alternatively to 
provide stand-alone support for functional or 
product areas.
Our hosted solution adds further value by reducing 
implementation timescales and provides a single, 
resilient, actively monitored infrastructure.
Our strong, long-term customer relationships 
drive recurring revenues as well as providing 
references for new prospects.
Strong cash generation 
delivering a strong 
balance sheet supporting 
growth plans
We have a clear 
strategy and a cash 
generative model that 
enables us to fund our 
growth internally
A robust 
balance sheet
£23m
of cash (2020: £37m) 
and no bank debt 
(2020: £nil)
An impressive cash 
conversion rate
114%
(2020: 114%)
We have multi-year 
relationships with our 
customers, built on 
our consistent delivery.
Our differentiated 
business model is 
difficult to replicate
30 years and growing
 
With an excellent delivery history over 
three decades in the industry, Alfa’s 
track record is unrivalled.
Our business model typically involves the 
sale and deployment of our auto and 
equipment finance software platform 
into large enterprises, that have highly 
complex and varying requirements.
We are able to leverage 
our understanding of 
these complexities to 
enhance Alfa Systems – 
a significant selling point 
for new prospects.
Our Alfa Start 
methodology 
enables us to deliver 
a subscription-based 
service rapidly to smaller, 
less complex customers.
We have established a partner network that 
extends our sales channel and enables us to 
increase our capacity to implement more Alfa 
Systems, hence leveraging our IP. 
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
21
STRATEGIC REPORT

Our strategy for creating long-term sustainable 
business value
A
Group revenue
B
Operating profit 
C
Operating profit margin
D
Cash
E
Operating free cash 
flow conversion
F
Total contract value (TCV)
G
Headcount
H
Retention rate
I
Employee engagement
J
Greenhouse gas 
emissions (tCO2e)
Key
COMPANY STRATEGY
Strategic priorities
1  Strengthen
Grow our differentiation of market-
leading People, Product and Delivery.
2  Sell
Focus on cloud-hosted, subscription 
sales to our target markets.
3  Scale
Increase our capacity for developing 
and delivering Alfa Systems.
4  Simplify
Simplifying our product, 
implementations and processes 
to enable more concurrent 
Alfa Systems implementations.
5  Synergise
Develop our partner ecosystem, 
to improve our sales opportunities 
and to enable more concurrent 
Alfa Systems implementations.
6  Start
Improve our offering for smaller auto 
and equipment finance providers as 
a platform for innovation and to 
increase our reach.
22
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Description
Our objectives
Link to KPIs
We will continue to offer a supportive, 
diverse and collaborative working 
environment and be considered to 
be an employer of choice.
We will maintain our leading-edge 
technology and ensure its secure, 
effective delivery to make our people, 
and customers, future-ready. Our  
target markets inform and direct our 
product development.
We will maintain our unrivalled track 
record for delivering large system 
implementations and highly complex 
business change projects.
•	 Retain and attract the best people
•	 Support our people through flexible working
•	 Encourage inclusivity and diversity
•	 Provide career development and learning opportunities
•	 Make a positive impact to contribute to a more sustainable future
•	 Foster innovation throughout the company
•	 Reinvest in the product to increase value for customers and prospects
•	 Seize market opportunities for new products
•	 Continue to direct product roadmap by target markets
•	 Integrate Alfa Systems with best-of-breed solutions
•	 Successful delivery of all Alfa implementation projects 
and ongoing services
•	 Maintain strong customer engagement and loyalty
A  B  C  D  
E  
F  G  H  
I  
J
We will retain our market-leading 
position and grow our share of the 
enterprise auto and equipment finance 
sector. Our target markets inform and 
direct our sales and marketing effort.
•	 Grow target market share
•	 Grow cloud-hosted, subscription sales
•	 Grow incremental sales to existing customers
•	 Improve prospect engagement and sales process
A  B  C  D  
E  
F  G  H  
I  
J
We will increase product engineering 
and delivery capacity, enabling 
revenue growth.
•	 Improve product engineering scalability
•	 Increase development capacity
•	 Increase delivery capacity
A  B  C  D  
E  
F  G  H  
I  
J
We will continue to invest in 
simplification to achieve our vision 
of delivering more concurrent Alfa 
implementations, more efficiently 
with a world-class product.
•	 Simplify our supported codesets and platforms
•	 Simplify our product development
•	 Simplify our implementation and upgrade delivery approach
•	 Improve operational efficiency
•	 Improve management information and control
A  B  C  D  
E  
F
We will work with a select group of 
partners to create additional sales 
channel opportunities and increase 
our delivery capabilities whilst 
maintaining quality.
•	 Leverage our partner ecosystem for sales
•	 Scale and leverage our partner ecosystem for delivery
•	 Add to our partner ecosystem
•	 Continuous improvement of Alfa Partner programme
A  B  C  D  
E  
F
We will become a market leader 
in the volume market of the auto and 
equipment finance industry. 
•	 Continuous improvement of Alfa Start delivery
•	 Continuous improvement of Alfa Start product
•	 Win customers in the volume market, based on Alfa Start proposition
•	 Continue investment model for volume market
A  B  C  D  
E  
F
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
23
STRATEGIC REPORT

Initiatives
SERVICES
SOFTWARE
SUBSCRIPTION
Strategic priorities
People
Partnering
Strategic 
Investment
Alfa iQ
Cloud  
Hosting
Alfa Start
1  Strengthen
2  Sell
3  Scale
4  Simplify
5  Synergise
6  Start
 Find out 
more on 
page 25
 Find out 
more on 
page 26
 Find out 
more on 
page 28
 Find out 
more on 
page 30
 Find out 
more on 
page 32
 Find out 
more on 
page 34
STRATEGY IN ACTION
Initiatives underpinning 
our strategy
24
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

We are Alfa
Our talent is our best asset – successful 
project delivery depends on passionate 
people who are engaged and care about 
what they do. We take great pride in the 
strong culture at Alfa, and we work hard to 
look after our colleagues, retaining and 
attracting the best in the business.
Inclusion & Diversity:
A key strategic priority is to attract, develop 
and retain a truly diverse team. Our strong 
Inclusion & Diversity policy helps us recruit 
the best and smartest people.
Diverse cultural perspectives really do 
inspire innovation and creativity at Alfa. 
We make things better and solve problems 
together, so we’re always striving towards 
being as inclusive as we can. 
•	 Our new Transitioning at Work policy, 
launch of Cultural Days and the events 
and initiatives run by our Communities are 
2021 successes we are really proud of.
Delivering the best 
projects & products:
Our smart people deliver great 
implementations to our customers and 
develop class-leading software. We support 
teams with flexibility, invest in wellbeing and 
make sure everyone feels connected. There are 
always Learning & Development opportunities 
for growth and career progression available. 
•	 This year we’ve been preparing for the 
launch of our new Learning Management 
System as well as sharing a suite of tools, 
resources and workshops to support new 
ways of working and to help reach our full 
potential. Wellbeing has been a core focus, 
rolling out new rewards and benefits, 
training up Mental Health First Aiders and 
enhancing paid carer leave allowance.
Culture:
Recruiting and retaining the best people is 
fundamental to our growth. We attract and 
hold on to talent by reinforcing the Alfa 
Culture and ensuring a positive learning 
environment. Underpinned by our Values, the 
Alfa Culture is something often described as 
‘special’. We foster a setting in which everyone 
feels listened to and valued. We also enjoy 
each other’s company and make efforts to 
have fun alongside working hard.
•	 2021 saw us maintain connections and 
team rapport with a variety of virtual 
and real-world events. We seek regular 
feedback from all areas of the business 
and have kicked off projects which focus 
on our Employer Brand, sharing more on 
life at Alfa and getting to know each  
other better.
 Find out more on page 62
Communities –  
inside & outside Alfa:
Our internal Communities are employee-led 
groups – safe spaces for those involved to 
discuss and promote issues, support each 
other and work towards improving policies. 
They focus on: Racial Equity, Inclusion & 
Diversity, LGBTQ+, Parents and Women.
Our Environmental Impact, Social Impact 
and Alfa Communities look after the wider 
communities in which we work (as well as 
internal operations), raising money for 
charities, focusing on sustainability and 
giving back in the form of volunteering, work 
experience schemes and sharing expertise.
•	 Our Communities continue to do fantastic 
work in all their respective areas. We have 
enjoyed a huge variety of events and 
learned from each group this year. We’ve 
raised great sums for charity partners and 
are proud to confirm we reached carbon 
positivity in 2021.
 Find out more on page 65
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
25
STRATEGIC REPORT
SERVICES
People

Partnering
SERVICES
STRATEGY IN ACTION
6
Partner relationships 2
Partner-assisted project 
go-lives in 2021
5
Ongoing partner-
assisted projects
Approach
Partnerships are an important growth 
accelerator, bringing a number of benefits 
to Alfa and our customers. These include:
•	 Increased operational capacity through 
partner staff augmentation of our teams, 
allowing us to deliver more Alfa Systems 
implementations concurrently;
•	 Greater flexibility to change resourcing 
rapidly by leveraging our partners’ size and 
bench strength;
•	 Increased sales opportunities through 
joint business development and access to 
a wider range of customers through our 
partner network;
•	 Faster/less risky implementation projects 
through smoother systems integration by 
skilled Systems Integrator (SI) partner 
resources with Alfa Systems experience;
•	 Extended local market expertise, 
language skills and presence enabling 
more effective sales and implementation;
•	 Client-side resourcing capability through 
our partner network, allowing us to provide 
an additional service to customers; and
•	 Extended product offering and simplified 
implementations through integrating Alfa 
with complementary solutions from 
technology partners.
“We’ve been collaborating with 
Alfa for more than 20 years now. 
The Accenture and Alfa leadership, 
consulting and technology teams 
have an excellent track record of 
working well and delivering business 
benefit together.” 
Cameron Krueger
Managing Director, Accenture
“Deloitte and Alfa have been working together 
to modernise systems and processes and 
deliver compelling digital experiences for 
our clients. Together, our organisations 
complement one another extremely well 
to bring the best solutions and deliver great 
business outcomes for our clients.” 
Andrew Denton
CEO, Alfa Financial Software
26
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Our partner programme is a key part  
of Alfa’s long-term growth strategy
Highlights
This year we have successfully scaled our 
partner relationships, remotely onboarding 
three partner intakes and embedding more 
partners in our project teams, sales activities 
as well as in client-side/SI roles. On the 
delivery side, partner resources have been 
utilised across 7 customer projects in three 
different geographies and we have seen two 
partner-assisted projects go live. This year we 
have benefited from increased sales channel 
opportunities via our partner relationships 
and the extended global reach and credibility 
they provide. We have also continued to 
explore new partnerships in various 
geographies that can help us in 
sales opportunities.
We have grown our partner ecosystem, 
agreeing engagement terms with a notable 
global professional services organisation for 
the combined marketing and delivery of the 
Alfa Systems platform.
We have continued to invest in partner 
training, further developing our training 
programme including course material 
improvements and new Alfa Systems training 
environments automatically synchronised 
with the latest versions of Alfa Start. 
Updates to our partner portal and access to 
additional resources mean that our partners 
have better access to supporting information 
and tooling, bringing increased efficiencies. 
We work with a small, carefully selected 
partner ecosystem of like-minded 
organisations with geographical spread 
and complementary delivery capabilities. 
We utilise three types of partnering – the 
first is staff augmentation, where industry 
expert partner staff augment our teams and 
assist with our standard implementation 
consultancy work with Alfa, priming the 
delivery. Typical roles include configuration, 
training and testing support. 
The second type is working with SI partners to 
perform activities outside of Alfa’s standard 
implementation scope and which are key to the 
successful delivery of the project. Typical roles 
include programme management, integration 
development, test management, document 
production and report creation. 
The third type is working with technology 
partners for out-of-the-box integrations 
with best-of-breed solutions.
Plans – for 2022 
In 2022, we will continue to scale our 
existing partnerships and evaluate 
other potential partners to strengthen 
further our partner ecosystem and 
core market coverage. This will include 
expanding our partner-assisted delivery 
capability in North America to increase 
operational capacity.
As staff augmentation partnerships 
mature and partner resources gain 
expert Alfa Systems implementation 
knowledge and experience, we plan 
to advance them towards a joint 
delivery model, starting with Teamwill. 
In preparation for this, in 2022 we will 
continue to make significant investment 
in our partner programme including:
•	 Extending our partner support team;
•	 Improving partner onboarding, 
including introducing certification / 
accreditation;
•	 Improving partner collaboration 
tooling; and
•	 Opening up more roles for partners 
We will continue sales collaboration 
activities with our partners. This is an 
important aspect of our partnerships, 
with new sales acting as a growth 
accelerator, both for Alfa and for scaling 
our partner relationships further.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
27
STRATEGIC REPORT

Continued investment in our 
leading-edge software to make 
our customers future ready 
As customers drive their businesses harder 
and expect more access to information, Alfa 
Systems’ performance has been improved, 
continuing our journey to an always-
available system. Simple deployment 
models, such as cloud hosting and Docker 
containers, enable us to deliver Alfa Systems 
more efficiently and earlier, allowing our 
customers to focus on their business 
differentiators rather than infrastructure. 
Investing in our whole engineering process, 
including our people, ensures that our 
onboarding, tools and infrastructure enable 
us to scale teams efficiently, whilst 
benefiting more from external expertise and 
leading-edge technology.
Continued system modularisation effort has 
separated further components allowing us 
to use them more easily in more contexts. 
We are also establishing architectural 
guidelines and automated tooling to assist 
Product Engineering teams adopt these 
principles as part of business as usual 
development in their areas.
Product Engineering now benefits from a 
completely new build process and system, 
delivered by the Software Development 
Lifecycle (SDLC) initiative, which keeps an 
always green mainline for Alfa Systems, 
using scalable computing resources. 
This removes significant friction from the 
development experience, providing better 
isolation between parallel enhancements 
and improving the opportunity for 
collaboration. This now opens the 
opportunity to efficiently further scale our 
STRATEGY IN ACTION
Mercury is a modern UI (User Interface) which is accessible to all, which helps users of Alfa Systems 
complete their daily tasks with ease in a modern, clean and uncluttered environment.
11
Clients live with Mercury UI
Strategic 
Investment
SOFTWARE
28
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

engineering team and improve release 
flexibility, which should benefit our 
customers. We are already finding 
improvements from the new approach as 
engineers experiment and leverage this to 
automate other processes.
Business rules, now even better
Powerful Business Rules functionality has 
long been a key differentiator for the Alfa 
Systems product, allowing our clients to 
configure their own business decision logic 
within the system. This can include, for 
example, data validation, company policy 
rules and automation of workflow 
progressions and actions. Because this is 
configuration-based, it allows for rules to be 
added or updated without requiring Alfa 
Systems development effort and a new 
release of the software. 
This year as part of our ongoing product 
investment, we have used functional groups 
to make significant improvements to the 
business rule editor to guide authors when 
creating rules, and to prevent creation of rules 
which would have no effect. These useability 
changes will enable our customers to define 
more rules, more efficiently, shortening the 
time to business benefit realisation.
Improved credit decisioning
In 2021 we extended our credit and middle 
office functionality in Alfa Systems, focusing 
initially on the UK equipment market. This  
investment included: consolidated support for 
credit applications; integration with Experian 
for consumer and commercial searches; more 
efficient decision making by gathering credit 
data only when required; and alignment 
between external and Alfa decision engines. 
This exciting improvement to the product 
will benefit both existing and prospective 
customers and is very timely given the current 
economic outlook with Credit Decisioning 
being a primary focus for the industry in 2022.
Class-leading user interface
Last year we introduced a new user interface 
to Alfa Systems, code-named Mercury, the 
first to be entirely driven by direct end-user 
feedback. This year has seen Mercury rolled 
out to many of our v5 clients and feedback 
has been hugely positive.
Mercury and our future UIs continue to evolve 
via our engagement in regular end-user 
research sessions, watching people use Alfa 
Systems in their day jobs. This year our 
approach to user research has also developed 
significantly. For example, we now have a 
demo application where we can make 
prototype screens available to clients allowing 
them to trial new layouts and components 
before actual development starts. 
We have also been working on a new 
framework for user interface development 
at Alfa (code-named Render), building on 
the success of Mercury. Render will both 
revolutionise and simplify UI development 
at Alfa, as well as providing a host of other 
benefits to areas such as testing and 
application performance. We genuinely 
believe this will be a game-changer for the 
Alfa product and for our users.
Plans – for 2022
Our future investments will continue 
to focus on shortening the cycle from 
requirements to delivery ensuring that 
our customers receive the best service 
and are kept future-ready. We will 
progress our modularisation initiative, 
further focusing on simplification and 
bottlenecks. In parallel, we will 
continue to review and update our 
structure and processes to improve 
team autonomy and individual 
mastery within our engineering teams 
as well as to balance the different 
types of work we do.
2022 will also see an increased 
focus on investment in functional 
improvements to Alfa Systems, 
delivering more strategic roadmap 
items to continue to strengthen our 
market-leading product.
Alfa’s dedicated UI/UX Design team have accessibility 
as part of their core remit. This team recently carried 
out an accessibility audit of our Alfa Systems software, 
part of a major internal investment initiative which 
fundamentally improves the overall UI and UX of Alfa 
Systems. A strand of this work (codenamed Mercury) 
was informed by the Web Content Accessibility 
Guidelines (WCAG) and has gone live at many of 
our clients, with hugely positive feedback from users.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
29
STRATEGIC REPORT

STRATEGY IN ACTION
Alfa iQ
SOFTWARE
30
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Alfa iQ was established to deliver 
intelligence to the world’s auto and 
equipment finance providers.
Artificial intelligence  
and machine learning
2020 saw the formation of our joint venture 
with Bitfount. Alfa iQ was established with a 
mission to employ artificial intelligence (AI) 
and machine learning (ML) techniques to 
deliver the highest quality insights to the 
world’s asset finance providers. AI and ML 
do however require careful implementation 
to yield valuable results. This is why we 
partnered with Bitfount, a team of carefully 
selected experts in AI and ML who are 
pushing the capabilities of such technology, 
not just in terms of the quality of the insights 
gained from their algorithms, but also in the 
way these are designed with data privacy at 
the forefront.
One challenge of these technologies is 
getting enough quality, well-structured data, 
to create robust algorithms, and so this 
collaboration, pairing Alfa’s experts in asset 
finance and data structures, with Bitfount’s 
deep understanding of this emerging 
technology, is uniquely well placed to provide 
consistent and unparalleled benefits to our 
customers. The advantages for our 
customers are as varied as improved 
auto-decisioning with a reduced need for 
manual intervention, improved delinquency 
prediction, exposure and concentration risk 
identification and ultimately more accurate 
lending, leading to a greater return on capital.
Highlights
We have been steadily introducing Alfa iQ to 
selected, leading industry players, including 
but not limited to existing Alfa customers. 
So far testing of our machine learning 
methods is continuing with two customers, 
and we have signed a paid contract with our 
first customer. 
In 2021 Alfa iQ achieved ISO 27001 
and Cyber essentials certifications for 
information security, demonstrating our 
ability to leverage contacts and experience 
to setup strong infrastructure around this 
new venture. 
Alfa iQ also welcomed its first full-time staff 
member this year to augment the existing 
members from Bitfount and Alfa and this 
expansion of the team will continue in 2022. 
Hiring is being managed meticulously to 
recruit only individuals with the expertise 
and high standards we require.
Plans – for 2022
2022 will see iQ grow its customer base 
with both increases in work for existing 
customers, and the onboarding of new 
ones. After finishing testing and 
development with the initial onboarding 
customers, iQ intends to expand their 
products with both ‘software as a 
service’ options and bespoke analysis. 
In order to achieve these goals, we will 
carefully manage the teams expansion, 
utilising the existing wealth of 
experience from the two parent 
companies, as well as new employees. 
Whilst this is ongoing, we anticipate that 
demonstrating the advantages of iQ’s 
products will be increasingly easy as iQ’s 
reputation and portfolio of work grows.
iQ’s core strategy group consisting 
of senior leadership from Alfa and 
Bitfount worked hard throughout 
this year to get the structures and 
processes in place to begin work for 
their first customers and now the focus 
will move toward expanding capacity, 
to facilitate new workloads whilst 
retaining the highest quality.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
31
STRATEGIC REPORT

STRATEGY IN ACTION
Delivery
•	 We are now live for eight customers across 
EMEA, Americas and now Asia Pacific. 
•	 Managed infrastructure for six customers 
currently in the project implementation 
phase and as project accelerators for 
future on-premises customers. 
•	 Seamlessly deployed significant Alfa 
Systems upgrades to our live customers 
allowing our customers to benefit from 
the latest versions of Alfa Systems. 
•	 Provided our customers with timely 
information after the recent Log4Shell 
vulnerability was reported. Our layered 
architecture and software vulnerability 
monitoring process ensured that our 
customers were not impacted. We then 
rolled out the latest patches from AWS 
and our other vendors as soon as they 
were available.
Comparing these numbers to the 2020 
report, many of those customers are now 
live, illustrating how Alfa Hosting can speed 
up implementation projects especially when 
used in tandem with Alfa Start. 
Cloud Hosting
SUBSCRIPTION
Up to
80%
faster for initial deployments
32
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Scalability
•	 Increased the size and geographical 
distribution of the team by onboarding 
additional capacity based in the USA. 
This allowed us to cover more out-of-hours 
requests for our EMEA customers and to 
provide more in-working hours support for 
our US and Asia Pacific customers.
•	 Towards the end of the year we launched 
a closed-beta for our customer portal. 
Customers will be able to self-serve 
important audit documents and view 
up-to-date status information for their 
environments. We will invest in additional 
portal functionality in 2022 with the aim 
of allowing our customers to manage 
features of their deployments whilst 
reducing the load on our team for simple 
and frequently executed tasks. In Q1 
2022 we expect to open the portal as 
generally available to all customers.
•	 2022 will see opportunities to automate 
more of our processes and to continue to 
improve the customer experience 
wherever we can. 
Technology
•	 Delivered comprehensive support for 
running Alfa Systems in Docker containers 
from within the Alfa Hosting service to 
leverage alignment between all Alfa 
Systems. This included support for 
deploying upgrades of the Alfa Digital 
Gateway micro-service with zero 
downtime or service interruption. 
•	 Migrated, with zero downtime, to the 
next generation of our security partner’s 
machine-learning based threat monitoring. 
Alert Logic Managed Detection and 
Response provides best-of-breed 
AI-based intrusion detection, backed by 
a 24x7 team of security experts. This has 
significantly cut the time to deliver new 
infrastructure for our customers whilst 
ensuring that every server is monitored 
24/7 for potential threats.
•	 Delivered a secure and scalable solution 
for moving obfuscated data between 
customer environments as required for issue 
reproduction or business verification testing. 
No more infrastructure delays with 
fully-managed environments from 
Alfa Hosting. Open to users from 
the first day of a project.
Plans – for 2022
We will continue to onboard new clients 
and to provide secure and performant 
infrastructure to our existing clients 
allowing them to focus on delivering 
value to their business throughout every 
stage of a project.
We also plan to further increase 
the size of our team with additional 
members in both the EMEA and USA 
regions to provide expert round-the-
clock support wherever our customers 
are located.
2022 will see increased investment in 
our deployment, monitoring and 
portal platforms to ensure that we 
continue to offer market-leading 
tooling to both our internal teams 
and customers.
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
33
STRATEGIC REPORT

Alfa Start
SUBSCRIPTION
STRATEGY IN ACTION
20weeks
Alfa Start implementations can 
reach live production in as little 
as 20 weeks.
34
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Approach 
Alfa Start offers a preconfigured, hosted 
software solution for the quick and cost-
effective delivery of Alfa Systems. Using a 
predefined, best-practice configuration and 
process catalogue, Alfa Start allows operations 
of all sizes to take full advantage of the 
multi-featured, market-leading Alfa Systems 
platform. The Alfa Start approach is designed 
to accelerate systems change programmes, 
maximising value and minimising risk. 
Lean operations taking on Alfa Start’s best-
practice parameters and processes can  
quickly leverage the proven functionality  
and performance for which Alfa Systems has 
become renowned. For those organisations 
requiring more customisation, Alfa Start 
can act as a project accelerator, enabling 
faster implementations. 
Alfa Start’s rapid implementation model 
benefits both Alfa and our customers. 
Alfa Start is a key enabler of agile delivery, 
allowing clients to confidently and quickly 
establish a first phase go-live, recognising the 
benefits of Alfa Systems earlier and providing 
production experience for future phases. 
Implementations of this nature enable Alfa to 
scale effectively, delivering more concurrent 
projects, providing the same high-quality 
service, but without a corresponding increase 
in the number of implementation consultants.
Through Alfa Start we are increasing the 
number of available customers in key target 
markets, presenting Alfa as a more competitive 
package, especially amongst smaller auto and 
equipment finance providers. This not only 
protects our position as a market leader, but 
also allows us to support growth and 
disruption. Alfa Start is complemented by 
Alfa Hosting, which allows clients to use Alfa 
without having to establish and maintain 
environments. Together, both allow the client 
to go live quicker with an Alfa platform that 
meets both the functional and technical 
requirements, whilst increasing Alfa’s 
subscription revenue stream. 
Highlights
2021 has seen successful go-lives for both 
Alfa Start out-of-the-box and accelerator 
projects, plus the kick-off of numerous other 
projects utilising Alfa Start as an accelerator.
Alfa Start has been fully operationalised 
and embedded in two key target markets. 
All implementations across UK Equipment 
and US Automotive markets now utilise Alfa 
Start either as an accelerator or through the 
out-of-the-box approach. As the number 
of projects has increased, we are realising 
compounding benefits as we gather more 
feedback, build more expertise and increase 
our Alfa Start user group. 
In parallel to project feedback, the ongoing 
internal investment initiatives throughout 2021 
have ensured the continuous development of 
Alfa Start. This includes incorporating new 
product features, expanding functional and 
integration capabilities, establishing more 
client-facing documentation and improving 
internal testing. This has ensured that Alfa 
Start remains the class-leading product and 
implementation approach.
Plans – for 2022
In 2020 we launched Alfa Start 
products covering both the US 
Automotive and UK Equipment 
markets. Alfa Start has proved very 
successful in both markets, and 2022 
will also see a number of existing 
implementations progress and new 
projects begin, ensuring the momentum 
created by Alfa Start continues to build. 
Alfa Start has also proven to be 
successful in adjacent markets, with 
clients using parts of our existing 
offerings. As such, we are looking 
towards implementing new Alfa Start 
offerings for other target markets, in 
particular US Equipment. 
Through broadening the market 
coverage of Alfa Start we will further 
compound the benefits this model offers 
through more rapid implementations. 
A number of key initiatives during 2022 
will ensure that Alfa Start remains 
leading edge. A programme to simplify 
migration will look to enable rapid 
migration of portfolios and facilitate 
low -friction portfolio acquisition, 
supporting our customers’ growth. 
In addition, we are building software 
partnerships to expedite the 
implementation of key integrations 
with common vendors, enabling our 
customers to rapidly incorporate Alfa 
into wider system landscapes. Finally, 
we are broadening the functional 
coverage of existing Alfa Start offerings, 
incorporating key differentiators such as 
automated credit decisioning.
“Alfa Start makes a world-leading product – 
Alfa Systems – available to more companies. 
Our customers can use Alfa Start to simplify and 
expedite complex change programmes, reducing 
risk and enabling them to see benefits earlier. We can 
deliver more projects, in fewer days, but crucially 
without impacting any of the quality for which 
we’re known.”
Sarah Taylor
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
35
STRATEGIC REPORT

KEY PERFORMANCE INDICATORS
Measuring our performance
Alfa measures a range of financial 
and operational metrics to help 
manage business performance
Our strategic priorities
1
Strengthen
2
Sell
3
Scale
4
Simplify
5
Synergise
6
Start
Financial
Group revenue £83.2m
2021
£83.2m 
£78.9m 
£64.5m 
2020
2019
2021 performance
Group revenue grew by 5% from last 
year with strong growth in Services and 
Subscription streams, and a decline in 
Software stream driven primarily by a 
large one-off licence fee in 2020 which 
did not recur. 
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 competitive position through 
differentiation of market-leading People, 
Product and Delivery.
Linked to 
remuneration:Yes
Links to strategic 
priorities:
1  2  3  4   
5  6  
Operating profit £24.7m
2021
£24.7m 
£23.9m 
£13.7m 
2020
2019
2021 performance
Operating profit increased from last 
year as a result of growth in revenues, 
partially offset by increased salary costs, 
as well as higher hosting and internal 
computer costs. 
Why do we measure this?
Operating profit is an indicator of the 
Group’s profitability. It can be used to 
analyse the Group’s core operational 
performance without the costs of capital 
structure and tax expenses impacting profit.
Linked to 
remuneration:Yes
Links to strategic 
priorities:
1  2  3  4   
5  6  
Operating profit margin 30%
2021
30% 
30% 
21% 
2020
2019
2021 performance
Operating profit margin has remained in line 
with last year with revenue growth partially 
offset by increased costs of our growing 
workforce (see comments under Group 
revenue and operating profit above).
Why do we measure this?
Operating profit margin is a measure of 
how effectively we sell Alfa Systems and 
manage our cost base. It also allows 
comparison across different companies 
and sectors.
Linked to 
remuneration:Yes
Links to strategic 
priorities:
1  2  3  4   
5  6  
Cash £23.1m
2021
£23.1m 
£37.0m 
£58.8m 
2020
2019
2021 performance
During 2021 a second special dividend of 
£29.7m was paid, reducing the Group’s 
cash balance. Excluding the impact of the 
dividend payment, cash has further 
improved due to a favourable operating 
free cash flow performance.
Why do we measure this?
Cash is critical to allow the Group to cover 
its expenses, provide funds for investment, 
growth and to meet its long-term needs. 
Cash generation is a good indicator of the 
underlying health of the business.
Linked to 
remuneration:Yes
Links to strategic 
priorities:
1  2  3  4   
5  6  
Operating free cash flow conversion 114%
2021
114% 
114% 
138% 
2020
2019
2021 performance
Operating free cash flow conversion 
performed in line with last year with 
continued focus on cash management. 
Why do we measure this?
A strong unencumbered balance sheet 
position is key to growing the business in 
the future. Our business has always been 
cash generative and this KPI allows us to 
monitor cash flows before investment in 
capital projects.
Linked to 
remuneration:Yes
Links to strategic 
priorities:
1  2  3  4   
5  6  
Total contract value (TCV) £133.1m
2021
£133.1m 
£112.9m 
£80.5m 
2020
2019
2021 performance
Year-on-year total TCV has seen significant 
growth from 31 December 2020 with 
improvements across all revenue streams 
particularly subscription and software. 
See p39 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 p37 for a detailed 
explanation of the calculation.
Linked to 
remuneration:No
Links to strategic 
priorities:
1  2  3  4   
5  6  
36
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Operational
Headcount 382
2021
382 
360 
316 
2020
2019
2021 performance
Headcount has increased due to planned 
recruitment and investment continuing 
across the business together with an 
improved employee retention rate.
Why do we measure this?
Our revenue growth and ability to win 
new business is heavily dependent on the 
number and deep expertise of our people 
and therefore growing our team for the 
future is key to this goal.
Linked to 
remuneration:No
Links to strategic 
priorities:
1  3  
Retention rate 87%
2021
87% 
93% 
83% 
2020
2019
2021 performance
The retention rate has declined during 
the year largely due to the impact that 
the pandemic has had on the recruitment 
market and people’s evaluation of 
future aspirations.
Why do we measure this?
Our deep expertise in the industry and our 
ability to service our customer relationships 
is driven by the quality of our people. 
A higher retention rate demonstrates 
sustained engagement and maintenance 
of key skills and knowledge.
Linked to 
remuneration:No
Links to strategic 
priorities:
1  3  
Employee engagement* 78%
2021
78% 
74% 
55% 
2020
2019
2021 performance
Employee engagement has improved 
during the year, due to the an increased 
focus on this area by senior management, 
as well as the deliberate actions that were 
taken in response to the pandemic. 
Why do we measure this?
Measures levels of employee satisfaction 
and connection to the business. There is a 
positive correlation between employee 
engagement and business performance 
and the metric should be a lead indicator 
for retention rate performance.
Linked to 
remuneration:No
Links to strategic 
priorities:
1  3  
* Calculation revised, 2020 and 2019 restated.
Greenhouse gas emissions (tCO2e) 142
2021
142 
212  
821 
2020
2021 performance
Our emissions have fallen significantly due 
to much reduced travel driven primarily as 
a result of the pandemic combined with a 
review of travel needs generally.
Why do we measure this?
Responsible operations and a commitment 
to a positive Environmental, Social & 
Governance (ESG) agenda. We are 
committed to a position of carbon 
positivity through assessing our carbon 
footprint and emissions.
Linked to 
remuneration:No
Links to strategic 
priorities:
1  3  
Definition and KPI 
calculation method
In 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 not specifically 
defined by IFRS.
We believe that operating free cash flow conversion 
is a 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 conversion is cash flows from 
operations. The measure is not necessarily comparable 
to similarly referenced measures used by other 
companies. As a result, investors should not consider 
this performance measure in isolation from, or as a 
substitute analysis for, our results of operations as 
determined in accordance with IFRS.
The calculation method for each metric is as follows:
(1) Headcount
Represents the number of Alfa employees under 
contracts of employment as at 31 December of 
each year.
(2) Retention rate
Represents the retention of Alfa employees over the 
previous 12-month period, excluding any managed 
staff attrition.
(3) Total contract value (TCV)
TCV is calculated by analysing future contract revenue 
based on the following components:
(i)	
an assumption of three years of subscription 
payments (including maintenance, cloud hosting 
and subscription licence) assuming these services 
continued as planned (actual contract length 
varies by customer);
(ii)	 the estimated remaining time to complete 
services and software deliverables within 
contracted software implementations, and 
recognise deferred licence amounts (which may 
not all be under a signed statement of work); and
(iii)	 Pre-implementation and ongoing services and 
software work which is contracted under a 
statement of work.
The definition of TCV has been aligned with the new 
revenue streams reported, however the underlying 
calculations are consistent with previous periods, and 
accordingly no restatement is required.
Given this KPI is forward looking, in calculating the 
TCV we have used the budget 2022 exchange rates. 
These budget rates are; USD: 1.38, EUR: 1.17, AUD: 
1.88, and NZD: 1.95.
(4) Employee engagement
The overall Employee engagement score is derived 
from bi-monthly 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 calculation of this score has been revised during 
the year to include only these two broad questions, 
which provides a clearer result than the previous 
method which included additional questions relating 
to specific aspects of working at Alfa which meant the 
impact of any specific issues could be duplicated 
within the overall score. Comparative period scores 
have been restated accordingly. 
(5) Operating free 
cash flow conversion 
Operating free cash flow is calculated as cash 
generated from operations, less capital expenditures, 
less the principal element of lease payments in respect 
of IFRS16. Operating free cash flow conversion 
represents operating free cash flow generated as a 
proportion of operating profit.
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
37

FINANCIAL REVIEW
“2021 saw us make further financial progress, 
paying our second special dividend, along with 
our first ordinary dividend, and the launch of a 
share buyback programme in early 2022.”
Duncan Magrath
Chief Financial Officer
Financial results 
£m 
2021
2020
Movement 
%
Revenue
83.2
78.9
5%
Operating 
profit
24.7
23.9
3%
Profit before 
tax
23.8
23.2
3%
Taxation
(4.6)
(2.9)
159%
Profit for the 
period
19.2
20.3
(5)%
Basic earnings 
per share
6.5p
6.9p
(6)%
Revenues increased by 5% or £4.3m to 
£83.2m in the twelve months ended 
31 December 2021 (2020: £78.9m). 
Growth at constant currency was 9%.
Operating profit increased by £0.8m to 
£24.7m (2020: £23.9m), due to the £4.3m 
increase in revenues, partially offset by £3.5m 
increase in expenses, principally due to a 
£1.8m increase in salary costs from pay rises 
and increased headcount, as well as higher 
hosting costs up by £0.8m and other 
computer costs up by £0.8m.
Net finance costs which relate to lease 
expenses of £0.8m (2020: £0.7m) resulted in 
profit before tax of £23.8m (2020: £23.2m). 
The Effective Tax Rate (ETR) for 2021 is 
19.3% ( 2020: 12.5%), the increase reflects 
that the prior year benefited from R&D tax 
relief for the two years 2018 and 2019, 
whereas the current year reflects the R&D 
tax relief for 2020 only. The resulting profit 
for the period was £19.2m (2020: £20.3m). 
Revenue
Revenue –  
by type
£m
2021
2020
(*restated)
Movement
%
Subscription* 
23.5
18.1
30%
Software*
13.6
20.0
(32%)
Services*
46.1
40.8
13%
Total revenue
83.2
78.9
5%
*	
To better reflect the nature and type of 
revenue, changes have been made to the 
classification and allocation of revenue line 
items. The comparative disclosures for the 
2020 reporting period have also been amended 
to reflect a fair base for comparability. These  
changes have had no impact on the total 
revenue or the profit before tax that were 
disclosed for 2020. Software revenues include 
revenues from recognition of customised 
licence revenue, one-off licence fees and any 
development revenues. Subscription revenues 
include recurring revenues paid on a monthly 
or annual basis, including subscription licence 
revenues, maintenance and cloud hosting. 
Services revenues are revenues from any work 
done for customers including pre-implementation 
work, implementation work, and ongoing 
services, but excludes any revenue from 
development work.
38
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Subscription revenues 
Overall subscription revenues increased 30% 
to £23.5m (2020: £18.1m). The increase was 
driven by a 24% increase in maintenance 
revenues with customers increasing to 29 at 
the end of the year, up from 27 at the start of 
the year. Hosting customers increased from 
10 at the end of last year to 12 at the end of 
2021. Revenues from pure hosting alone 
grew strongly, alongside good growth from 
revenues from bundled subscriptions, which 
included not just hosting but also 
maintenance and licence payments. 
Software revenues 
Software revenues of £13.6m were down 
£6.4m or 32% on last year (2020: £20.0m). 
Of this reduction, £5.6m was due to a 
five-year contract extension agreed and 
recognised in 2020 with a customer who had 
previously terminated its licence. In 2021 we 
did recognise £2.1m of revenue across six 
existing customers for additional licence 
payments as a result of going through a 
contractual band or for new modules. 
As previously discussed more of our 
implementation work this year has been for 
v4 to v5 upgrades, which generally do not 
attract additional licence payments, except 
where customers take on additional 
modules and so the income from 
customised licences was down on last year. 
This was partially offset by income from 
increased development work for existing 
customers, including those going through v4 
to v5 upgrades.
Services revenues 
Total services revenue increased by 13% to 
£46.1m (2020: £40.8m) at actual exchange 
rates, driven by higher chargeable days from 
our increased headcount. There was a 
reduction in pre-implementation revenues, 
where last year we had two large customers 
requiring detailed pre-implementation 
work. Revenues from new implementations 
were up, although stronger growth was seen 
with ongoing services work, largely on the 
back of v4 to v5 upgrades. 
Total contract value (TCV)
TCV – by stream
£m
2021 
2020
Movement
%
Subscription
85.8
69.1
24%
Software
14.9
12.8
16%
Services
32.4
31.0
5%
Total TCV
133.1
112.9
18%
Total contract value (TCV) – as defined 
in the definition section on page 37 – 
increased over last year by 18% to £133.1m. 
As expected the subscription TCV has 
increased 24% driven by an increase in the 
number of customers and the significant 
growth in our hosting business. There was 
also a 16% increase in software, from 
secured development work and licences 
from the contracts, and from the strong 
conversion of the last-stage pipeline in the 
year. Growth in services TCV, at 5%, was 
somewhat lower with a number of v4 to v5 
implementations coming to an end.
TCV – by stream 
for next 12 
months
£m
2021
2020
Movement
%
Subscription
26.9
22.4
20%
Software
6.7
6.1
10%
Services
26.2
23.8
10%
Total TCV
59.8
52.3
14%
Of the TCV at 31 December 2021, £59.8m 
(31 Dec 2020: £52.3m) is anticipated to 
convert into revenue within the next 
12 months, assuming contracts continue as 
expected and are not cancelled or delayed. 
This includes £6.7m (2020: £6.1m) of 
software revenues, £26.9m (2020: £22.4m) 
of subscription revenues and £26.2m 
(2020: £23.8m) of services revenues.
Operating profit 
The Group’s operating profit increased 
by £0.8m, or 3%, to £24.7m in 2021 
(2020: £23.9m). This reflected the £4.3m 
increase in revenues, partially offset by an 
increase in the Group’s cost base as we 
continued to invest in the business. 
Increased headcount drove higher costs 
although this was partially offset by reduced 
partner costs, which were high in 2020 due 
to one large pre-implementation project. 
The Group’s operating profit on a constant 
currency basis increased by 10% as sterling 
was stronger against the USD than last year.
Headcount numbers were up 6% at 
31 December 2021 at 382 (31 December 
2020: 360), with average headcount 
increasing more significantly to 383 
(2020: 341) up 12%. Our staff retention rate 
has been strong at 87% over the 12 months 
up to that date, as expected down from the 
unusually high 93% experienced in 2020.
Expenses – net
£m
2021
2020
(restated)
Movement
%
Cost of sales*
29.0
27.0
7%
Sales, general and 
administrative 
expenses*
30.0
28.5
5%
Other income
(0.5)
(0.5)
–
Total expenses 
– net
58.5
55.0
6%
*	
To better reflect the nature and function of 
certain expenses, changes have been made to 
the classification and allocation of expense line 
items. The comparative disclosures for the 
December 2020 reporting period have also 
been amended to reflect a fair base for 
comparability. Costs previously classified as 
implementation and support expenses and 
research and product development expenses 
of £11.9m and £15.1m, respectively, have been 
presented as cost of sales. In addition, £3.4m 
of implementation and support expenses and 
£3.8m of research and product development 
expenses have been reclassified to sales, 
general and admin expenses. The main items 
affected are administrative salary costs, 
computer costs and property related expenses. 
These changes have had no impact on the total 
expenses or the profit before tax that were 
disclosed at the end of December 2020.
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
39

FINANCIAL REVIEW CONTINUED
Cost of sales increased by £2.0m to £29.0m 
(2020: £27.0m) due to higher salary costs 
from the increase in customer-facing 
headcount along with increased hosting 
costs, partially offset by a reduction in 
partner costs.
Sales, general and administrative (SG&A) 
expenses increased by £1.5m to £30.0m in 
the year (2020: £28.5m). This included 
increased salary costs through higher 
headcount although this was somewhat 
offset by the reduction in contractor costs. 
In addition Profit Share Pay increased to 
£3.1m (2020: £2.7m). There has also been 
an unfavourable increase in foreign currency 
differences of £0.7m, which moved from a 
gain of £0.5m in 2020 to a loss of £(0.2)m in 
2021. The above factors were offset by a 
further reduction in travel and conference 
costs, as there was almost no travel for the 
whole of the twelve month period.
Finance costs
Net finance costs which relate to leases of 
£0.8m (2020: £0.7m) remained relatively 
unchanged with a small reduction in finance 
income from reduced cash balances and 
interest rates. 
Profit for the period
Profit after taxation decreased by £1.1m, 
or 5%, to £19.2m in 2021 (2020: £20.3m). 
The Effective Tax Rate (ETR) for 2021 is 
19.3% (2020: 12.5%) with this increase 
reflecting, in part, that the prior year 
benefited from R&D tax relief for the two 
years 2018 and 2019, whereas the current 
year will reflect the R&D tax relief for 
2020 only.
Earnings per share
Basic earnings per share decreased by 6% 
to 6.49 pence in 2021 (2020: 6.93 pence). 
Diluted earnings per share decreased by 6% 
to 6.39 pence (2020: 6.79 pence).
Cash flow
Net cash (including the effect of exchange 
rate changes) decreased by £13.9m to 
£23.1m at 31 December 2021, from £37.0m 
at 31 December 2020. This decrease has 
been driven by strong cash generated from 
operations, offset by the payment of special 
and regular dividends of £32.7m. 
Operating free 
cash flow 
conversion
£m
2021  
2020  Movement
%
Cash generated 
from operations
31.3
30.1
4%
Adjusted for: 
Capital expenditure
(1.3)
(1.0)
30%
Principal element 
of the lease 
payments in 
respect of IFRS16
(1.9)
(1.7)
12%
Operating free 
cash flow
28.1
27.4
3%
Operating profit
24.7
23.9
3%
Operating free cash 
flow conversion
114%
114%
–
40
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Cash generated from operations benefited 
from a continuing strong focus on cash 
performance. The Group’s operating free 
cash flow conversion (FCF) of 114% 
(2020: 114%) was in line with last year due 
to continued focus on cash management. 
This is a very strong result and higher than 
our ongoing trend which will be closer to 
100% conversion.
In addition to the cash generated from 
operations of £31.3m, the Group incurred 
£1.3m on capital expenditure (2020: £1.0m) 
and made net tax payments of £3.8m 
(2020: £3.8m). This included the research and 
development tax credit claim received during 
the period of £1.6m, which was claimed and 
recognised in 2020, resulting in the unusually 
low effective tax rate for FY 2020. The Group 
has no external bank borrowings. 
In the year, net cash outflows of £39.2m 
(2020: £45.9m) from financing activities were 
largely driven by £32.7m (2020: £44.2m) of 
dividends paid, with ordinary dividends of 
£3.0m (2020: nil) along with Special 
Dividends of £29.7m (2020: £44.2m). 
In addition there were principal element 
of lease payments of £1.9m (2020: £1.7m) 
and £4.6m (2020: nil) for funding the 
Employment Benefit Trust for the purchase 
of shares to satisfy current and future LTIPs 
thereby avoiding potential dilution from the 
issue of shares to satisfy vestings. 
Balance sheet
The most significant movement in the 
balance sheet was the change in cash noted 
above. Other balance sheet movements were 
as follows:
Non-current assets of £44.4m were largely 
unchanged from last year (2020: £44.8m).
Current assets, excluding cash, increased 
by £2.8m to £16.5m (2020: £13.7m). Trade  
receivables remain well controlled with 
debtor days at 26 days (2020: 27 days) with 
only £0.1m (2020: £0.1m) more than 90 
days overdue. Provision for impairment 
remains £nil (2020: £nil). Accrued income 
increased in the year by £1.3m to £6.3m due 
to increased revenue, partially offset by the 
unwinding of the accrued income related to 
the one-off licence fee booked in 2020. 
Prepayments increased by £1.1m to £3.2m 
(2020: £2.1m) due to the inclusion of deferred 
costs (offset by a related increase in deferred 
licence contract liabilities). 
Current liabilities of £24.0m (2020: £18.1m) 
were up £5.9m. There was a £1.1m increase 
in trade payables and other payables to 
£9.3m (2020: £8.1m) principally due to 
higher bonus and profit share payments. 
Lease liabilities increased from £1.7m to 
£1.9m due to new leases for the Michigan 
and Sydney offices. Contract liabilities 
increased by £4.0m to £11.0m (2020: £7.0m) 
with deferred licence liabilities increasing 
£3.4m to £5.3m (2020: £1.9m) due to an 
increase in the material right related to 
customised licence implementations, along 
with an increase in deferred maintenance 
liabilities up £0.6m to £5.7m (2020: £5.1m) 
due to growth in the business.
Non-current liabilities reduced slightly, down 
£0.6m to £16.6m (2020: £17.2m) due to a 
reduction in lease liabilities to £15.2m 
(2020: £15.8m) with provisions remaining 
unchanged at £1.4m (2020:£1.4m). 
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
41

FINANCIAL REVIEW CONTINUED
Key financial metrics
The Group uses Operating cash flow 
conversion as a financial metric which 
is not specifically defined by IFRS but 
which management uses as a key 
measure to assess financial performance. 
Operating cash flow conversion is 
calculated as cash generated from 
operations as a percentage of 
operating profit.
This measure is not directly comparable 
to similarly referenced measures used 
by other companies and, as a result, 
investors should not consider this 
performance measure in isolation from, 
or as a substitute analysis for, our results 
of operations as determined in 
accordance with IFRS.
Constant currency
We provide percentage increases or 
decreases in revenue and operating 
profit to eliminate the effect of changes 
in currency values as we believe it is 
helpful to the understanding of 
underlying trends in the business. 
When trend information is expressed 
herein ‘in constant currencies’, the 
comparative results are derived by 
re-calculating non-pound sterling-
denominated revenue and/or expenses 
using the average monthly exchange 
rates of this year and applying them 
to the comparative year’s results, 
excluding gains or losses on derivative 
financial instruments. The average 
rates are as shown in note 1.4 to the 
financial statements.
Capital allocation and 
distributions
The Group’s capital allocation policy takes 
into consideration the need to continue to 
invest in our people and technology whilst 
maintaining strong liquidity and is shown in 
more detail on the opposite page.
Since November 2020 we have paid £74m 
of special dividends and paid the first regular 
dividend of 1.0 pence per share in July 2021, 
amounting to £3m.
In January 2022 we announced a share 
buyback programme of up to £18m over the 
next 18 months.
The Board intends to progressively increase 
the dividend as the Group grows, whilst 
ensuring that we retain a strong balance sheet.
For 2021 we are proposing a dividend of 
1.1 pence per share, amounting to £3.3m. 
If approved by shareholders in the Annual 
General Meeting, this will be paid on 
24 June 2022 to shareholders on the register 
as at 27 May 2022. The ex-dividend date 
will be 24 May 2022.
Related parties
Details about related party transactions are 
disclosed in note 32.
Going concern
The financial statements are prepared 
on the going concern basis. The Group 
continues to be cash generative and the 
Directors believe that the Group has a 
resilient business model. The Group meets 
its day-to-day working capital requirements 
through its cash reserves generated from 
operating activities. The Group’s forecasts 
and projections, taking account of 
reasonably possible changes in trading 
performance, show that the Group has 
sufficient cash reserves to continue to 
operate for a period of not less than 
12 months from the date of approval of 
these financial statements. The going 
concern assessment also includes downside 
stress testing in line with FRC guidance 
which demonstrates that even in the most 
extreme downside conditions considered 
reasonably possible, given the existing level 
of cash held, the Group would continue to 
be able to meet its obligations as they fall 
due, without the need for substantive 
mitigating actions. On this basis, whilst it 
is acknowledged that there is continued 
uncertainty over future economic 
conditions, the Directors consider it 
appropriate to continue to adopt the going 
concern basis of accounting in preparing the 
financial statements.
Viability statement
The Viability statement containing a broader 
assessment by the Board of the Company’s 
ongoing viability is set out in the Strategic 
report on pages 52 to 53.
Subsequent events
On 18 January 2022 the Group announced 
the launch of a share buyback programme. 
Refer to the Company website for more 
details. There have been no other reportable 
subsequent events.
Duncan Magrath 
Chief Financial Officer 
8 March 2022
42
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Cash  
generated
Use of Cash
Reason
Impacts
Stakeholder
2021 
Programme
CAPITAL ALLOCATION FRAMEWORK
Strategic 
Investment
Expands 
functionality of 
product and 
increases 
opportunities for 
sales
Profit
Company 
Employees
Customers
Partners
For further details 
of Strategic 
Investment made 
in the year, see 
pages 28-29
Product 
Maintenance
Ensures product 
remains up to 
date with latest 
technology
Profit
Company 
Employees
Customers
Significant 
investment in 
2021 in providing 
a faster and more 
reliable way of 
releasing new 
product updates
CSR Days
Each employee is 
allowed to spend 
three days on CSR 
activities
 
Profit
Company 
Employees
On average one 
CSR day taken 
per employee 
– we will 
encourage 
greater take-up 
in 2022
Climate 
Positive
Payments to 
offset remaining 
emissions to 
ensure we are 
climate positive
Profit
Environment
We signed up 
with Ecologi in 
2021 to make 
monthly 
payments to be 
climate positive
Profit Share
10% of profits 
generated paid 
out to employees
Profit
Employees
Total cost in 2021 
of £3.1m.
Regular 
Dividend
Gives a steady 
cash return to 
shareholders; 
allows income 
funds to invest
–
Shareholders
1.1 pence per 
share proposed 
amounting 
to £3.3m 
(2020:£3.0m)
Additional 
Capital
Return
Returns excess 
cash to 
shareholders if 
not needed for 
company growth
EPS
Shareholders
Payment of 
second special 
dividend of £30m 
and launch of 
£18m buyback 
programme
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
43

RISK MANAGEMENT
How we monitor risk
Introduction
A theme of 2021, like 2020, has been the continuing 
COVID-19 pandemic, with it’s wide-reaching social 
and macroeconomic impacts across all Alfa regions. 
We have built upon our experience of 2020, and 
have continued to adapt well to the situation, 
shielding our delivery and performance from the 
uncertainty. Our risk management framework has 
played an important role in this, providing us with a 
solid basis for assessing, preparing for and reacting 
to these types of challenges.
As the COVID-19 situation developed in 2021, 
our COVID-19 Incident Response Team 
worked closely with the Company Leadership 
Team (CLT) to identify, control and mitigate risks 
as they developed. This allowed us to take 
proactive action throughout the year, doing our 
part to ensure the safety and wellbeing of our 
employees and customers, and to minimise the 
risk to our operations.
Risk management is integral 
to our strategic objectives
The events of 2021 have again demonstrated 
the interconnectedness of many of the risks and 
opportunities that our business faces. In order 
to deliver our strategy and achieve excellence 
through our business model, both operationally 
and financially, we must make sure that we maintain 
the right balance between safeguarding against 
potential risks, and taking advantage of potential 
opportunities as they arise. Our aim is to foster a 
culture of effective risk management by 
encouraging appropriate and monitored risk-taking 
and innovation, in order to achieve the Group’s 
strategic priorities.
Our strategic priorities as set out on pages 
22 and 23, are to:
•	 Strengthen – Grow our differentiation of 
market-leading People, Product and Delivery.
•	 Sell – Focus on cloud-hosted, subscription sales 
to our target markets.
•	 Scale – Increase our capacity for developing and 
delivering Alfa Systems.
•	 Simplify – Simplifying our product, 
implementations and processes to enable more 
concurrent Alfa Systems implementations. 
•	 Synergise – Develop our partner ecosystem, to 
improve our sales opportunities and to enable 
more concurrent Alfa Systems implementations. 
•	 Start – Improve our offering for smaller auto and 
equipment finance providers as a platform for 
innovation and to increase our reach.
Whilst overall responsibility for risk lies at the Board level, 
the Directors have delegated authority for risk 
identification to the CLT.
A bottom-up approach has primarily been undertaken to 
provide a detailed review of risks by relevant business 
owners and this is led by the Risk Officer, twice a year. 
The output is then reassessed by the CLT to provide 
assurance over completeness of the risk register.
Our systems and processes are designed to manage our 
exposure to risk rather than eliminate the risk completely. 
Therefore the Audit & Risk Committee, with the CLT, will 
reassess the Group’s risk appetite each year with this in 
mind. The Audit and Risk Committee will consider the risks 
associated with the conduct of our business and the 
delivery of our strategy, assessing the risks we are exposed 
to and evaluating whether this exposure is acceptable 
given the likelihood and severity of the risk.
Risks are assessed to understand the likelihood and 
the impact of the risk crystallising. We assess risk across 
our business areas, and we analyse their impact across 
these categories:
•	 Financial
•	 Operational
•	 Reputational
•	 Legal and regulatory
•	 Climate
Each risk is reviewed, twice a year. At each review date, 
the existing controls are reviewed for adequacy and 
effectiveness. Due to the ever-changing business 
landscape and the industry we work in, it is quite possible 
for the control requirements to change and for processes 
and policies to require updating. If this is the case, then a 
business owner is identified and they are responsible for 
implementing changes.
Management monitors progress against the principal risks. 
This is shared with our internal auditor, BDO, to assist 
with forming the internal audit plan for 2022. The Board 
reviews the summary risk register and assesses the 
adequacy of the principal risks identified, as well as the 
mitigating controls and procedures which are in place 
and are operational.
1
Identify risks 
2
Define risk  
appetite
3
Assess and  
quantify
4
Respond, manage  
and mitigate
5
Monitor  
and review
Our aim is to foster a culture of effective risk 
management by encouraging appropriate and 
monitored risk-taking and innovation.
44
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Responsibilities
•	 Defines the risk governance 
framework, risk culture 
and principles
•	 Sets the tone for risk 
management including 
risk appetite
•	 Responsible for an effective 
system of internal controls
•	  Approves risk decisions that 
are beyond delegated 
authorities
Board
•	 Be alert to risks associated with the activities that they perform
•	 Report inefficient, unnecessary or unworkable controls
All employees
•	 Reviews the risk 
management framework 
and the effectiveness of 
internal controls, risk 
management systems 
and major risk initiatives
•	 Reviews and challenges 
the principal risks in the 
risk register, and risk 
scores
•	 Reviews the internal 
audit programme and 
reports
Audit  
& Risk 
Committee
•	 Review the risk 
management framework 
and the effectiveness of 
internal controls, risk 
management systems 
and major risk initiatives 
across the Group
•	 Review the risk profile 
against risk appetite and 
make recommendations 
to Board in relation to 
risk profile, strategy and 
key controls
•	 Review and challenge 
the risk register, and 
risk scores
•	 Review the sustainability 
of risk methodologies, 
metrics and policies
•	 Assess major risk-related 
projects
•	 Assess new commercial 
arrangements through 
participation in the Deal 
Committee
CEO and  
CLT
•	 Assesses for new risks, updates on current risks 
assessment and implements mitigation strategies 
and actions
Operational 
management
Risk Officer 
and CFO
•	 Responsible for collating 
updates, managing the 
risk register and 
presenting principal risks 
and uncertainties to the 
Company Leadership 
Meeting and Audit and 
Risk Committee
•	 The Risk Officer acts as 
an advocate for risk 
management across all 
levels of the business
•	 The Risk Officer reports 
to the CFO in relation to 
risk management 
matters
•	 The CFO has 
responsibility for 
governance and risk 
management review
Our risk management 
framework
Our risk management framework is 
designed to be flexible and proactive, 
and links tightly into our operations and 
decision making, allowing us to react with 
speed and agility to new and evolving risks 
as they arise across all of our business 
areas. This has helped us in 2021 to 
continue to progress our strategic 
objectives, and to identify and pursue 
opportunities as they arose.
We recognise that managing risk effectively 
is integral to executing our strategy. 
We have therefore implemented a 
five-step process for monitoring and 
managing risk throughout our business, 
allowing the Directors to conduct a robust 
assessment of the principal risks facing the 
Group. Risk is not something that should be 
eliminated but, instead, identified, 
assessed and managed in a timely manner.
Creating the right corporate culture 
for effective risk management
Our organisation has an open and accountable 
culture, led by our experienced CLT, whose 
members have many years of experience in 
their areas. The Board and the CLT set the tone 
for our risk management activities, embedding 
risk consideration and assessment into the 
culture within the organisation. Ownership and 
accountability for risks is an integral part of our 
risk management framework.
The Board has overall responsibility for 
the governance of risks, ensuring we have 
adequate and effective systems in place and 
setting the tone for our risk culture. It does 
this in various ways:
•	 Risks are considered by the Board as an 
intrinsic part of our strategic planning, and in 
the consideration of new opportunities, risk 
is recognised as an inherent part of each 
opportunity, and is assessed together with 
the opportunity.
•	 There is a twice-yearly review by the Audit & 
Risk Committee of principal risks, 
their evolution, and consideration of 
emerging risks.
•	 The CLT members are the owners for each 
risk in the Corporate risk register, and they, 
and their teams, are responsible for the 
identification, assessment and treatment of 
the risks in their own areas. Risk management 
is thus embedded into each area of the 
business, which is best placed to progress 
the actions and mitigations.
•	 The Risk Officer coordinates risk 
management activities and collates the risks 
into the Corporate Risk Register. The Risk 
Officer is an advocate for best practice 
across the organisation.
•	 Risk assurance is achieved through our 
external and internal audits as well as 
through our attainment of ISO27001 and 
ISO27018 certifications, and through our 
SOC2 Type 2 audit.
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
45

Risks
Socio-economic and  
geo-political risk
IT security and 
cyber risks
Pandemic outbreak in 
Alfa and/or customer 
geographies
Business interruption 
or continuity
Acceptable risk appetite
Risk to people, skills, 
location and working 
environment
High customer 
concentration risk	
A
B
C
D
E
F
Impact
Probability
B
C
F
E
D
A
PRINCIPAL RISKS AND UNCERTAINTIES
Our risk appetite
Our risk appetite provides us with guidance 
on the levels of risk we are prepared to take 
in pursuit of our objectives, and is considered 
a fundamental part of the planning and 
execution of our strategy. In March 2021, 
the Board, assisted by the Audit & Risk 
Committee and the CLT, assessed and 
updated our risk appetite in light of the 
developing in-year and emerging risks.
We take a cautious approach to risk, aiming 
to operate in a manner that would not put 
the business at risk of significant financial, 
operational or reputational damage. 
This risk appetite has shaped our response 
to the COVID-19 pandemic as it has 
continued to evolve through 2021, forming 
the basis of our approach to protecting our 
employees, our customers and our 
deliverables to our customers.
Focus for 2022
Continuous improvement of risk 
management procedures, including 
training and awareness within the 
Company of our risk management 
best practices.
Risk identification and assessment – 
bi-annual risk reviews including assessing 
actions and control reviews.
Cyber security and data protection – 
maintain SOC2 Type 2 and ISO 
programme compliance, and continue 
to assess and strengthen our cyber 
security defences.
Business continuity and disaster recovery 
– scenario testing exercises.
Internal audits – reviews of the strength 
and effectiveness of our financial and 
IT controls.
Continuing focus and development of 
understanding of climate-related risks.
Principal risks and uncertainties 
in more detail
The Group faces a number of risks that may 
adversely affect our strategic and business 
objectives, operations, liquidity, financial 
position, reputation or future performance, 
not all of which are wholly within our control or 
known to us. Some such risks may currently be 
regarded as immaterial and could turn out to 
be material. We accept that risk is an inherent 
part of doing business.
The Board considers the following matters 
to be the principal risks and uncertainties 
(in no specific order) affecting our business 
at this time.
Principal risk analysis (including mitigating activities) 
46
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Our strategic priorities
Risk A – Socio-economic and geo-political risk
Links to strategic priorities:
1  2  3  6
Movement:
Same level of risk
Impact:
Major
Probability:
Likely 
How does it impact us?
We continue to face uncertainty in the global 
economic outlook, which may impact demand 
for our services, or our customer’s revenues, and 
therefore their budgets to pay for our services. 
The current major components of this risk are: 
•	 At the time of writing, Russian forces are invading 
Ukraine. Alfa does not have customers nor staff 
in Ukraine or Russia, and so our business is not 
directly impacted. However, there will be 
knock-on social and economic impacts of this 
concerning crisis throughout 2022, which may 
impact us. As the situation develops, we will 
assess risks to our business, and determine 
appropriate mitigation.
•	 The COVID-19 pandemic may have short or 
long-term economic impacts on our customers, 
potentially leading to a reduction in our 
addressable market. These economic impacts 
are included under this principal risk, whereas 
the health and wellbeing, and business continuity 
aspects are included in Risk B – Pandemic 
outbreak in Alfa and/or customer geographies.
•	 Inflation has increased in each of our regions, 
leading to increased costs to our business. 
These increases may outpace our revenue 
increases, if we are unable to increase our 
fees in line with costs.
•	 Changes to the trading relationships between 
the EU and the UK following Brexit may impact 
our ability to service customers in the EU, 
although we have not experienced significant 
impacts to date.
The uncertainty in global economic outlook 
introduced by the Ukrainian war leads us to retain this 
risk at the same level as before. The following elements 
of this risk have receded, however: 
•	 The COVID-19 pandemic’s economic impacts 
on our industry has not been damaging to Alfa to 
date, as we and our clients have adapted well as 
the situation has developed. 
•	 Uncertainty around US economic, immigration 
and trade policy has receded in 2021.
What are we doing to manage the risk?
This risk goes hand-in-hand with opportunity, 
as our customers may seek to adapt to the 
changing economic environment, seeking 
operational efficiency, introducing new products 
or reacting to regulatory changes. Alfa is well 
placed to help with the system and process 
changes needed for such adaptation, either 
where Alfa Systems is the incumbent system or 
where a new system is needed.
We have formed a Markets and Products team, 
to further focus our attention on alignment of 
our product roadmap with the needs of our 
target markets. This helps us to be in the best 
position to take on opportunities as they arise.
Despite the uncertain outlook, we have 
attracted continued interest for new work 
from sales prospects and existing customers 
throughout 2021, from diverse geographies 
and sectors within the auto and equipment 
finance industry.
Our strategy includes continuing to build a 
diverse customer base, both geographically and 
by asset type (i.e. automotive, equipment) but 
also by type of customer (i.e. banking, OEM or 
independent) which therefore have different 
and often contrasting risk characteristics. 
This mitigates some of this risk as there is often 
a degree of cyclicality in trends affecting the 
auto and equipment finance industry. 
We ensure that the Group is financially robust 
and resilient to economic downturns, or project 
pauses, by retaining cash reserves and collecting 
maintenance and licence revenues in advance.
Our fees for services are generally increased 
annually, taking consideration of the increases 
experienced in our cost base. 
We have an established presence and customer 
base in the EU, and are committed to this as a 
target market. 
Strengthen – Grow our differentiation of 
market-leading People, Product and Delivery.
1
Simplify – Simplifying our product, 
implementations and processes 
to enable more concurrent Alfa 
Systems implementations.
4
Start – Improve our offering for smaller auto 
and equipment finance finance providers as 
a platform for innovation and to increase our 
reach.
6
Sell – Focus on cloud-hosted, subscription 
sales to our target markets.
Synergise – Develop our partner 
ecosystem, to improve our sales 
opportunities and to enable more 
concurrent Alfa Systems implementations.
5
Scale – Increase our capacity for developing 
and delivering Alfa Systems.
3
2
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
47

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Risk B – Pandemic outbreak in Alfa and/or customer geographies
Links to strategic priorities:
1  2  3  6
Movement:
Decreased level of risk
Impact:
Moderate
Probability:
Possible
How does it impact us?
The COVID-19 pandemic has continued to 
develop throughout 2021, with new variants 
emerging, and Government responses to control 
the spread varying from region to region. 
Whilst the pandemic appears to be nearing its 
end, there is continuing uncertainty around how 
it will develop in 2022. The risks relating to the 
current pandemic are intertwined with other 
principal risks, notably Risk A – Socio economic 
and geo-political risk, and Risk C – Risk to people, 
skills, location and working environment.
We have actively monitored and reacted to this 
situation throughout 2021 and early 2022, and we 
have concluded that the level of this risk to our 
business is reduced from its 2020 position. 
Whilst this pandemic continues to develop, we 
face a number of possible impacts:
•	 The health and wellbeing of our employees, 
their families and other stakeholders may be 
impacted. Mitigating this is of critical 
importance in shaping our response to this risk.
•	 We may experience significant infection 
levels, for example as new variants emerge 
and become dominant. This could 
temporarily reduce the resource capacity of 
our business and our professional services 
fee earning capacity, potentially resulting in 
deferred or lost revenue.
•	 Similarly, customers and potential customers 
may become temporarily resource-
constrained, limiting their capacity to 
manage large-scale IT projects and run sales 
processes, respectively.
•	 Travel restrictions may be reintroduced, 
through our own policy, customer policy and 
government policy, and this may temporarily 
reduce, or be perceived to reduce, our ability 
to operate for some of our geographically 
diverse customer sites.
•	 Remote working relies on third party 
cloud-based services such as video calling 
and chat software. Such services may 
experience problems during peak remote 
working times, impacting the efficiency of 
our employees.
•	 We may experience a slowdown in supply for 
our IT equipment needs.
•	 The pandemic may have short or long- term 
economic impacts on our customers, 
potentially leading to a reduction in our 
addressable market. This is discussed in 
more detail in Risk A – Socio-economic 
and geo-political risk.
What are we doing to manage the risk?
We have continued to adapt our pandemic 
response throughout 2021, and our business 
has become very accustomed to operating in 
this environment. 
Our Incident Response Team (IRT) manages and 
coordinates our actions relating to the pandemic. 
This team is chaired by our Chief People Officer, 
and contains representatives from across our 
business units and geographies.
The IRT monitors expert and Government advice 
in each of our operating regions, and takes timely 
action on that advice.
We made an early move to remote working, 
during March 2020, as part of the activation of 
our pandemic plan, and remote working has 
remained in place ever since. We have re-opened 
offices when possible for those who are better 
able to work in an office environment, and have 
plans in place for transitioning to a Smart Working 
policy once the pandemic dies down. All of our 
consultants and engineers use laptops, remote 
connections and remote working tools. Our  
systems which support remote working have 
functioned well throughout the pandemic.
The IRT and other internal teams communicate 
regular guidance and advice to our employees, 
including on their working location, working 
environment and wellbeing. We have an active 
programme of employee wellbeing events, and 
we recognise the importance of supporting and 
engaging with our employees whilst they are 
working remotely.
We regularly liaise with our customer 
organisations to ensure that we abide by their 
policies – for example, with respect to business 
travel, and to ensure that they are satisfied 
with the service they are receiving from our 
remote teams.
Our essential customer services – Alfa support, 
Alfa Hosting and Technical Operations – are run 
by globally-distributed teams, using cloud 
infrastructure, providing resilience against 
business continuity risks.
The providers of our key remote working tools 
have confirmed and demonstrated that they have 
suitable business continuity and capacity planning 
in place.
We ensure that our sourcing activities for essential 
IT equipment remain ahead of supply chain 
delays, for example by carefully managing the 
stock levels held with our IT supplier, and actively 
monitoring lead times.
48
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Risk C – Risk to people, skills, location and working environment
Links to strategic priorities:
1  3  5
Movement:
Same level of risk
Impact:
Moderate
Probability:
Likely
How does it impact us?
Our business is heavily dependent on our people 
because they are integral to the development and 
delivery of Alfa Systems.
A failure to attract, train and retain high quality 
individuals in our key operating regions may limit 
our ability to deliver implementations, maintain 
product quality and leading-edge functionality, 
manage customer relations and deliver on our 
strategic plan. This element of the risk has 
increased in 2021 and early 2022 (although this 
has not changed the overall Principal Risk level), 
as we are seeing higher competition in 
recruitment markets. 
As our global reach expands and opportunities 
arise in new regions, we may find it difficult to 
provide employees across geographically diverse 
customer sites. This has the potential to have an 
impact on our ability to deliver implementation 
services to our customers.
The health, wellbeing and security of our 
employees is of utmost importance to our 
organisation. We work in geographically diverse 
locations, and our employees may be at risk 
from external factors, such as the impacts of the 
COVID-19 pandemic, and the safety and security 
in each region. This impact is intertwined with 
Risk B – Pandemic outbreak in Alfa and/or 
customer geographies. 
What are we doing to manage the risk?
We have implemented a Smart Working 
approach in order to adapt to the ‘new normal’ 
which will follow the COVID-19 remote working 
model. Teams decide their most effective 
working model, and capture this in a team 
charter. Central to this approach is continuing 
to build our culture, whilst retaining our excellent 
delivery, and enabling employee flexibility. 
Our HR team are very proactive in the area of 
employee wellbeing, with an active programme of 
wellbeing events to support and engage with our 
employees while they are remote working. 
Employee engagement surveys are carried 
out every two months, and allow areas for 
improvement to be identified and acted upon. 
Our employee surveys indicate that our proactive 
response from leadership to the COVID-19 
epidemic has been a significant contributing 
factor in employee satisfaction.
We have continued to have high employee 
retention figures in 2021.
We benchmark our remuneration levels 
against relevant roles in the industry and aim 
to be competitive.
Recruitment of graduates and experienced 
hires is continuing, using a diverse number of 
sources, searching for candidates from varied 
backgrounds and ethnicity and with varied 
core skills.
Alfa Partnering provides a strong and growing 
network of professional services partner 
organisations, with extensive established 
geographical presence. This provides us with 
resourcing flexibility, and wider geographical 
coverage, and is key to our strategy to decouple 
our growth from our own headcount.
Many of our teams are globally-distributed, 
allowing us to cover more regions and time zones 
effectively, and remote working is now common 
and efficient practice. This is an effective 
mitigation against the risk of not being able to 
provide employees in geographically diverse 
customer sites.
We have an established presence in our key 
strategic markets in Europe and the USA. 
We have actively recruited on both continents 
in 2021, and this continues in 2022. 
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
49

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
Risk D – High customer concentration risk
Links to strategic priorities:
2  3  4  5  6
Movement:
Same level of risk
Impact:
Major
Probability:
Possible
How does it impact us?
•	 Alfa specialises in providing software and 
services to the auto and equipment finance 
sector. At the core of our customer base are 
large corporate players in this industry.
•	 We have significant customer concentration 
risk due to the size and duration of the 
software implementation projects for these 
large corporates. If one, or more, of our key 
customers pauses, or terminates their 
implementation activities, there is a risk of a 
material impact on revenue targets.
•	 Such a pause or termination is a possible 
impact of other principal risks, such as Risk A 
– Socio-economic and geo-political risk, or 
Risk B – Pandemic outbreak in Alfa and/or 
customer geographies.
What are we doing to manage the risk?
Reliance on our biggest customers has 
considerably decreased in 2021, with our Top 5 
customers representing 37% of our revenues 
in 2021, compared with 48% in 2020 and 61% 
in 2019. We had twenty five customers 
contributing revenues of more than £1m in 
2021, up from twenty one in 2020 and sixteen 
in 2019. This reduces this risk, but not sufficiently 
to move it down a rating. 
We have continued to progress our strategy 
for building a diverse customer base, both 
geographically and by asset type (i.e. 
automotive, equipment) but also by type of 
customer (i.e. banking, OEM or independent). 
This has reduced our reliance on any one of these 
areas, which have contrasting risk characteristics.
Initiatives such as Alfa Partnering, and Alfa 
Start for smaller organisations allow us to take 
on more concurrent implementations, thus 
reducing this risk. 
Nevertheless, we accept that a significant focus 
on large corporates in our industry is inherent in 
our strategy, and so there is an element of this 
risk which is accepted.
Risk E – IT security and cyber risks
Links to strategic priorities:
1  2  3  
Movement:
Same level of risk
Impact:
Major
Probability:
Possible
How does it impact us?
•	 Our systems, networks and products may be 
subject to cyber attacks, specifically 
designed to disrupt our business, obtain our 
intellectual property or data, or harm our 
reputation. Such a security breach could 
impinge upon our ability to operate our 
business, including our ability to continue 
providing support to our customers.
•	 Our Alfa Hosting offering stores our customers’ 
data on third party cloud hosting platforms. 
A security breach in our Alfa Hosting offering 
could result in compliance violations, identify 
theft, malware infections, diminished customer 
trust and loss of revenue. 
•	 The global trend we saw in 2020 of high 
number of incidents of cyber attacks against 
IT companies has continued in 2021. 
What are we doing to manage the risk?
Our internal IT and cyber security team monitors 
key security and cyber risks, assesses and 
monitors the control framework of our key 
technology suppliers and undertakes day-to-day 
monitoring of IT security incidents.
We implement continual improvements in our IT 
security environment and maintain an annual 
education and training programme for all staff.
We have maintained our SOC2 Type 2, ISO27001 
and ISO27018 compliance in 2021.
We have continuity plans for our Alfa Hosting 
services, where we use third party cloud hosting 
suppliers, including transferring our customers’ 
data to a similar supported environment should 
the services be unavailable.
Our customers perform thorough assessments 
of the security of the Alfa Hosting platform 
during their system selection and implementation 
process, measuring our IT security and data 
protection processes and controls against 
their own, typically stringent, internal policies. 
These compliance checks sit alongside our 
own policies and procedures, and provide 
independent assurance for our customers that 
appropriate security controls are in place.
50
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Risk F – Business interruption or continuity 
Links to strategic priorities:
1  2  3  
Movement:
Same level of risk
Impact:
Major
Probability:
Unlikely
How does it impact us?
We are at risk of disruption to our day-to-day 
operations if there is a disaster incident which 
causes our internal IT systems to fail or we do not 
have access to our office space.
A failure to be able to use key IT systems or access 
our infrastructure could lead to a failure to deliver 
maintenance services to our customers and 
therefore have a negative reputational impact.
Note that the risk that COVID-19 poses to us, 
and our readiness for this, is given specific focus 
as Risk B – Pandemic outbreak in Alfa and/or 
customer geographies.
What are we doing to manage the risk?
We have an established, detailed and tested 
incident management procedure and 
escalation process.
We have a disaster recovery and business 
continuity plan which is reviewed and 
tested annually.
Our SOC2 Type 2 reporting and complete failover 
testing has identified no significant required 
remedial actions.
Where we provide Alfa Hosting services, using third 
party cloud hosting suppliers, we have a continuity 
plan in place to transfer our customers’ data to a 
similar supported environment should the services 
not be available
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
51

VIABILITY STATEMENT
Assessment of prospects 
Alfa is one of the leading providers of 
software to the auto and equipment finance 
industry and it is the Group’s clear focus to 
increase its relatively small market share in 
this space by:
•	 Grow differentiation of market leading 
People, Product, Delivery;
•	 Focus on cloud-hosted subscription sales 
to our target markets; 
•	 Increase our capacity for developing and 
delivering Alfa Systems;
•	 Simplifying our product, implementations 
and processes to enable more concurrent 
Alfa implementations, more efficiently, 
with a higher margin;
•	 Develop partner ecosystem, to improve 
sales opportunities and enable more 
concurrent Alfa implementations; and
•	 Improve our offering for smaller auto and 
equipment finance providers as a platform 
for innovation and to increase reach.
During the year ended 31 December 2021, 
the Group generated profit before tax of 
£23.8 million and, excluding the payment of 
a £29.7m Special Dividend in the year, was 
cash-generative with net cash generated 
from operating activities amounting to 
£26.7 million.
Taking into account the Group’s current 
position and its principal risks and 
uncertainties as described on pages 46 to 51 
of this Annual Report, the Directors have 
assessed the Group’s prospects and viability.
Assessment period and process 
The strategy and business model as set out on 
pages 22 to 35 and 18 to 19 are central to an 
understanding of its prospects. These inputs 
provide a framework for assessing the Group’s 
prospects and viability.
The three-year timeframe for assessing both 
prospects and viability is considered to be 
appropriate because:
•	 It reflects reasonable expectations in 
terms of the reliability and accuracy of 
operational forecasting models; and
•	 Projections looking out beyond three years 
become significantly less meaningful in the 
context of the fast-moving nature of the 
auto and equipment finance industry and 
the software and technology landscape.
The Group’s prospects are assessed 
primarily through its annual planning 
process, led by the CEO with the CLT. 
All relevant functions are involved, including 
finance, sales, recruitment and resourcing, 
and commercial.
The Board participates fully in the annual 
process and has the task of considering 
whether the plan appropriately takes into 
account the external environment, including 
technological, social and macroeconomic 
changes, as well as the risks and 
uncertainties of the business.
The output of the annual review process 
includes the annual financial budget and an 
analysis of the risks which could prevent the 
plan being delivered.
Detailed financial forecasts which include 
profit, cash flow and key financial ratios have 
been prepared for the three-year period to 
December 2024.
The first year of the financial forecasts forms 
the Group’s 2022 budget and is subject to a 
reforecast process each quarter. The second 
and third years are prepared in detail based 
on the Group’s three year strategic planning 
process and are flexed based on the actual 
results in the first year.
Assessment of viability
The Board’s assessment of the Group’s 
prospects, as described on this page, has 
been made with reference to current market 
conditions and known risk factors, as 
described in principal risks and uncertainties 
on page 46.
The Board has considered the Group’s 
financial performance in 2021, particularly 
in the context of the COVID-19 pandemic, 
and the risk factors noted above and 
consider that the key risks which could have 
a major impact the delivery of the Group’s 
financial objectives are as follows:
In accordance with the UK 
Corporate Governance Code, the 
Board has assessed the prospects 
and viability of Alfa.
52
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

•	 Socio-economic or geopolitical risks 
impacting conversion of the sales pipeline 
and/or spending by existing customers;
•	 Loss of significant customers.
Conclusion
It was determined that none of the 
individual risks would, in isolation, 
compromise the Group’s viability. 
The Directors therefore reviewed the 
outputs of the alternative forecasts which 
were produced to model the effect on the 
Group’s liquidity and solvency of severe but 
plausible combinations of the principal risks 
and uncertainties affecting the business. 
Scenario 2 reflects the combination of all 
risk factors identified and is considered a 
‘worst case scenario’. The Directors consider 
that this scenario addresses the key risk 
factors outlined above. 
Based on the current commercial outlook, 
Scenario 2 is considered extremely severe 
and has been prepared for the purpose of 
creating outcomes that have the ability to 
threaten the viability of the Group. 
In the case of such a scenario crystallising 
the Group would be required to take some 
mitigating actions largely related to the level 
of headcount in the business, the level of 
partner usage and discretionary spending. 
In addition there are many other different 
levers that could be pulled to further 
minimise the financial impact and maintain 
liquidity to continue in operation. 
Scenario 1:
This scenario assumes a 20% reduction 
in ongoing services spend by existing 
customers, no conversion of sales pipeline 
and no growth in partner utilisation during 
the forecast period, resulting in a 40% 
reduction from base case revenues by 2024.  
Employee retention rates reduced by 10% 
resulting in a reduction in headcount of 26% 
from base case by the end of 2024.
Direct costs relating to partner usage and 
Cloud hosting services are significantly 
reduced in line with customer activity, and 
the level of salary inflation, bonuses and 
profit share are also reduced.
No other mitigating actions are required in 
this scenario with other costs remaining in 
line with the base case and continued 
payment of dividends and share-buy backs 
as planned.
Scenario 2: 
This scenario assumes a significant loss of 
customers in addition to no conversion of 
the sales pipeline. Includes two major 
implementation projects pausing during 
2022 and significant loss of customers 
resulting in termination of existing 
maintenance agreements and reduced 
ongoing spending by remaining customers. 
This scenario results in a 55% reduction 
from base case revenues by 2024. Employee  
retention declines by 20% in this scenario 
but recruitment continues and no 
redundancies would be required; this results 
in a 46% reduction in headcount from base 
cae by the end of 2024. 
Direct costs are reduced further than in 
Scenario 1 and additional operating cost 
reductions in line with reduced headcount. 
Discretionary share buy-backs would be 
paused in this scenario, however no other 
mitigating actions are required.
Revenue and profitability are clearly 
affected in this alternative scenario, however 
based on the Group’s existing cash reserves, 
combined with incremental cost reduction 
measures, the business would retain 
sufficient cash reserves to continue in 
operation throughout the three-year 
forecast period, with the lowest cash 
balance modelled in this period of £8.2m.
Whilst it is acknowledged that there is 
continued uncertainty over future economic 
conditions, based on the assessment of 
prospects and viability, the Directors 
confirm that they have a reasonable 
expectation that the Group will be able to 
continue in operation and meet its liabilities 
as they fall due over the three-year period 
ending 31 December 2024.
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
53

S172 STATEMENT
Setting the right 
tone from the top
The Board of Directors of Alfa 
has always taken decisions for 
the long term, and collectively 
and individually our aim is always 
to uphold the highest standards 
of conduct.
A broad range of stakeholders are important 
to the Group at local, regional and functional 
levels. Day-to-day engagement with our key 
stakeholders, and other local stakeholder 
groups, is conducted at the business level 
and in a format best suited to the context.
This may be locally, regionally or functionally, 
by the Board or senior management, 
depending on the stakeholder. Where the 
Board does not engage directly with our 
stakeholders, it is kept updated so Directors 
maintain an effective understanding of what 
matters to our stakeholders and can draw 
on these perspectives in Board decision-
making and strategy development. As the 
Board receives presentations and makes 
decisions, we ensure that the long-term 
impact on any of these groups is considered.
We periodically review which are our key 
stakeholder relationships and examine how 
we engage with them. We also consider ways 
to ensure that we maintain open lines of 
communication with those stakeholder 
groups and whether there are ways that the 
Board’s engagement can be improved to 
help us operate more effectively.
Example of s172 considerations in a Board decision
During 2021 the Board was asked to consider and approve taking out a new lease for the 
Michigan Office for seven years with a total cost over that time of $2m. Through the pandemic 
we have demonstrated how we can work remotely and so we needed to decide whether we 
needed an office at all, and if yes how many people should it be able to accommodate.
S172 consideration
Considerations for the Michigan Office
Likely consequences of long 
term impact
Initially the office will be configured for 35 desks, but 
this can be expanded to up to 50 desks, allowing for the 
future growth for the Company.
Interests of the Company’s 
employees
Benefits of an office included maintaining Alfa’s culture, 
facilitating training with a dedicated training space 
and the potential beneficial impact on employee’s 
mental health. 
Foster business relationships 
with suppliers, customer 
and others
Having a physical presence makes it possible to invite 
customers and suppliers to get a feel for Alfa’s culture 
and meet employees.
Impact of the company’s 
operations on the community 
and environment
We decided to stay within the Michigan area although 
we did move a short distance away from the existing 
office to a slightly less expensive area. By having our own 
office, we can chose our energy supplier and we have 
selected a supplier that provides 100% renewable 
energy and we have set aside space in the kitchen 
for recycling.
Desirability of maintaining a 
reputation for high standards 
of business conduct
We believe that a smart, well designed office will project 
the standards that we as a company wish to abide by. 
When the office opens we will source sustainable, ethical 
local suppliers wherever we can.
Need to act fairly as between 
members of the company
We believe the cost of maintaining an office in Michigan 
is outweighed by the benefits of improved retention and 
improved employee welfare.
54
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Maintaining 
high standards 
of business 
conduct
Likely 
consequences 
of long term 
decisions
Interests 
of Alfa
 employees
Board information &
Stakeholder engagement
Board decision
Board strategic 
discussion & Review
Review & Monitor
The need to 
foster business 
relationships with 
suppliers, 
customers and 
others
Impact of Alfa 
operations on the 
community and 
environment
The need to act 
fairly as between 
members of Alfa
Identify priorities
Establishing goals 
and objectives
Finding resources
Allocating funds to 
support the decision 
to be made
Updates and 
information on 
outcomes of decisions
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
55

S172 STATEMENT CONTINUED
The Board is responsible for 
leading stakeholder engagement, 
ensuring that we fulfil our 
obligations to those impacted 
by the business.
Engagement with our shareholders 
and wider stakeholder groups 
plays a vital role in Alfa’s business. 
Alfa’s key stakeholders are set 
out below:
We believe that considering our stakeholders in 
key business decisions is not only the right thing 
to do, but is fundamental to our ability to drive 
value creation over the longer term.
In this section we identify our five key 
stakeholder groups and have provided an 
overview of their interests, their concerns and 
the ways in which the Board acted with regard 
to these groups when taking its key strategic 
decisions throughout the year, and what the 
Board has learned from these interactions, 
having regard (among other matters) to the 
factors set out in section 172(1)(a) to (f) 
of the Companies Act 2006. The Board 
will sometimes engage directly with certain 
stakeholders on particular issues, but the size 
and distribution of our stakeholders and of Alfa 
means that stakeholder engagement often 
takes place at an operational level, within the 
context of the Board’s agreed strategy. In this 
section we show how the Board engaged with 
each of our key stakeholder groups, summarise 
the specific actions we took for stakeholder 
groups in response to the COVID-19 pandemic 
and set out some case studies which give more 
detail of how our stakeholders are considered 
when making specific decisions.
Customers
Our customers are central to our 
business and without them we would not 
exist. We aim to deliver our leading-edge 
technology making our customers 
future-ready.
How the Board engaged
The Board receives an update on existing and 
potential customers throughout the year. 
As part of the two Board strategy sessions 
that were held in the year, the Board looked 
at customer needs and the extension of Alfa 
Systems into adjacent markets that could 
provide a broader offering to our existing 
and future customers. 
Identifying our customers’ needs, alongside 
changing market dynamics and regulations, 
allows us to identify opportunities for 
Company growth and to focus our product 
research and development such that it 
will produce innovative and functional 
solutions for the auto and equipment 
finance industry.
Outcome of engagement
Our customers have direct channels to 
engage with all levels of the organisation, 
including providing feedback via user groups 
in both EMEA and the USA, chaired by a 
customer representative. During the 
pandemic, customers have realized the 
importance of a truly digital environment 
and the flexibility that this provides for 
remote working. This has driven increased 
enquiries for new Alfa Systems and also for 
further development and hosting services 
from existing customers. This has led to 
discussions in the Board as to how use of 
partners can help provide a more flexible 
quicker response to customer needs. 
We continued to build on our long-term 
relationships with our customers. This  
is key to developing our leading-edge 
technology and hosting services, increasing 
customer loyalty, which in turn enables us 
to win new business.
Engagement in 2022 
Looking ahead, the Board is keen to get 
back to in-person engagement with 
customers as pandemic considerations 
allow, including attendance at trade shows. 
We will continue to explore new business 
methods and how we can innovate new 
technologies to improve the customer 
journey and develop our ongoing 
relationships with customers.
Employees
Listening to our talented employees, 
being flexible, supportive and inclusive, 
are our routes to growing and retaining 
Alfa’s talent pool, enabling us to deliver 
against our strategic priorities and 
develop our people.
How the Board engaged
Employee engagement remains a key 
priority for the Board. Vicky Edwards, the 
Chief People Officer, attended Board 
meetings twice in 2021 to provide an 
update on all HR initiatives. Matthew White, 
the COO, updates the Board with a HR 
dashboard, highlighting key statistics and 
reviewing employee survey results at each 
Board meeting. 
In 2021 we continued to hold online events 
for employees to provide feedback, hear 
plans and make suggestions to the 
Company Leadership Team (CLT) and 
the Board, as well as an in-depth ‘In 
Conversation With…’ with two members 
of the CLT. Some in-person events were 
possible in locations where restrictions 
allowed. Outside these forums, feedback is 
always encouraged and communication is 
welcomed by all.
Outcome of engagement
We have a strong culture at Alfa and we are 
proud that our people are highly engaged, 
supportive of each other and of the 
organisation’s aims. We have focused on 
keeping colleagues connected with events 
and communications, enhanced some of 
our family-friendly policies and rolled out 
various wellbeing and career development 
initiatives in response to need and the 
world around us, balancing changing rules 
and periods of working from home with 
offices re-opening. We continued to 
support all employees through 2021, again 
without furlough, and have been able to 
successfully on-board new employees 
remotely, supporting them with funds for 
their home set-up. 
Engagement in 2022 
We will maintain our commitment to 
diversity and inclusion, keeping this front 
of mind when making decisions. Internal  
communications will be enhanced to 
consistently align with Alfa’s strategy and 
core themes, providing clarity and focus. 
We will continue to listen, learn and 
respond as we move to Smart Working.
56
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Communities
We have a responsibility to use our 
expertise and resources to add value to 
the communities in which we operate. 
Our intention is to reduce our impact 
on the environment wherever possible. 
We also have active internal communities 
– employee-led groups that are safe 
spaces for colleagues to promote issues, 
support each other and contribute to 
organisational change.
How the Board engaged
The Board supports employees and 
endorses contributions to wider 
communities with time and expertise. 
Fundraising is matched by the company, 
paid volunteering days are encouraged and 
internal communities are supported and 
given platforms and resources. Events and 
initiatives run by our communities are 
promoted company-wide and attended by 
senior individuals.
Outcome of engagement
Environmental, Social & Governance (ESG) 
is becoming a greater focus with the 
establishment of a Steering Group in 2021. 
Both the CFO and CPO sit on the Steering 
Group and brief the CEO and wider CLT 
on the status and progress of projects. 
The CEO has ultimate responsibility to the 
Board for all ESG matters. Support has 
been given to carbon-offsetting projects 
and investment has been made into 
external consultancy for ESG measurement 
and guidance. We continue to fundraise for 
charities and support causes close to our 
colleagues’ hearts.
Engagement in 2022 
Looking ahead, the Board is committed 
to driving ESG initiatives further forward. 
We will review goals and a formal strategy 
will be developed in 2022. Roles and 
responsibilities for the ESG Steering 
Group and ESG work will be defined 
and communicated. Action will be taken 
to accurately measure Alfa’s carbon 
footprint and strengthen reporting in this 
area. We will continue to support our 
internal and external communities and 
use our corporate voice responsibly 
wherever we can.
Partners
Building trusted partnerships through 
ongoing dialogue helps us to better 
understand the needs of our partners 
and to develop and improve our offering.
How the Board engaged
The Board receives reports on how we have 
worked with our partners throughout the 
year, with a focus on key commercial events, 
which have been mainly virtual events 
due to strict worldwide restrictions on 
large gatherings.
The Board considered how we can build 
and improve on our existing commercial 
partnerships when discussing strategic 
opportunities during the Board Strategy 
sessions in June and October 2021.
Outcome of engagement
Executive Directors are involved directly 
with partner senior management and 
provide regular updates to the Board 
on key partner developments and issues. 
The Board supports the continuing 
development of our partner training and 
learning programme, which aims to deliver 
a comprehensive training schedule 
including Alfa Systems training, our 
delivery methodology and simulation 
based implementation workshops. 
The Board supports continued scaling 
of our existing partnerships as well as 
extending our partner ecosystem to 
strengthen our coverage in core markets.
Engagement in 2022 
We will continue our engagement with 
our commercial partners, ensuring we 
are adapting to their needs in this 
changing environment.
Our partnership programme is an important 
part of Alfa’s long-term growth strategy. 
We aim to develop our partner ecosystem 
to increase Alfa’s operational capacity and 
sales opportunities.
Investors
The Board places great importance on 
having positive relationships with all 
shareholders and seeks to ensure there is 
an appropriate and constructive dialogue 
with investors.
How the Board engaged
We conduct extensive engagement with 
our institutional investors throughout 
the year. Due to on-going COVID-19 
restrictions, the AGM was held as a hybrid 
meeting in 2021 with shareholders invited 
to attend remotely. An invitation was 
included in the Notice of Meeting for 
shareholders to ask questions in advance 
of the meeting.
On 14 October 2021, shareholders 
were invited to view an online investor 
presentation on Alfa’s technology, hosted 
by the CEO and members of the senior 
management team. The event gave an 
in-depth view of the product, the 
technology that underpins it and how 
it is developed to ensure it remains 
the leading software for auto and 
equipment finance. 
The Board receives regular updates on 
investor communication activity, changes 
to the shareholder register, analysis of 
share price performance and particular 
investment themes such as environmental, 
social and corporate governance. 
In addition, the feedback from shareholder/
analyst interactions is shared with the Board 
on a regular basis, via our corporate brokers.
Outcome of engagement
The Board considers information from 
across the Company to help it understand 
the impact of its decisions, and to consider 
the interests and views of our key investors. 
Our Investors understand the strategy that 
underpins our future growth plans and are 
keen to engage with regard to financial and 
operating performance of the business.
Engagement in 2022 
We will continue to engage with our 
shareholders throughout 2022. We are 
provisionally planning to hold another 
investor day in 2022. Due to the ongoing 
uncertainty around COVID-19 restrictions, 
the Board will keep the 2022 AGM 
arrangements under review until there is 
more clarity around the future guidance to 
the ongoing pandemic
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
57

ENVIRONMENTAL, SOCIAL AND GOVERNANCE
United Nations Sustainable 
Development Goals
The United Nations Sustainable 
Development Goals are the blueprint to 
achieve a better and more sustainable future 
for all. They address the global challenges 
we face, including those related to 
inequality, climate change, environmental 
degradation and poverty.
We continue to align with the UN Sustainable 
Development Goals and focus particularly on 
four which fit well with ongoing projects and 
plans for future initiatives. These also tie in 
nicely with the Alfa Values.
From CSR to ESG:
CSR (Corporate Social Responsibility) 
was the precursor to ESG 
(Environmental, Social and Governance), 
ensuring a company’s actions have a 
positive impact on the environment, 
consumers, employees, communities, 
and the public sphere.
ESG builds on CSR, measuring 
performance with metrics which can 
be used by investors, customers and 
employees to have an understanding 
of the company’s ESG performance. 
At Alfa we have adopted the current 
terminology of ESG, which is now in 
common use by organisations. This year 
we formed an ESG Steering Group.
4. Quality Education
 5. Gender Equality
13. Climate Action 
17. Partnerships for the Goals
We’ve been doing a lot of good things in this 
space for many years – it’s a key reason one 
of our formal Company values is ‘Create a 
Positive Impact’.
We know there are many business benefits to 
driving ESG initiatives, but we do this because 
it’s important to us and always has been.
ESG is a core part of the Alfa culture.
We are Alfa
We’re people-powered. We’ve got talent across 
the globe – in fact more than 27 nationalities are 
represented within our 350+ employee base.
Our values underpin efforts to look after each other, 
develop talent professionally and personally, and to 
contribute to wider society in various ways.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

•	 Our Communities
•	 Focus on Learning 
& Development
•	 Culture & 
Engagement
•	 Inclusion & 
Diversity
•	 Onboarding & 
Induction 
processes
•	 Launch Learning 
Management System
•	 Talent Development 
programme
•	 Mentoring, Coaching 
& Buddies programmes
•	 Environmental 
Policy
•	 Commitment 
to educate 
stakeholders
•	 Supplier approval 
process
•	 Partner with more 
clients & suppliers 
•	 Volunteering 
scheme
•	 Dedicated 
volunteering 
month
•	 Charity partners 
in each region
•	 Volunteering 
uptake
•	 Formal partnership with 
Code Your Future
•	 Environmental 
Policy
•	 Reaching carbon 
positivity
•	 Working with The 
Climate Coalition
•	 Partnership with 
KO Cycle, 
recycling IT 
hardware
•	 Measurement
•	 Partnership with The 
Climate Coalition
•	 Calculate detailed 
carbon footprint data
•	 Formalise ESG Strategy
…people
…community
…environment
…customers  
and suppliers
Link to SDG
Strong
Improve
Next year
IMAGES  
TO COME
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
59

ENVIRONMENTAL SOCIAL AND GOVERNANCE CONTINUED
Our people
Our focus on people throughout 2021 
remained a high priority and will always 
be key to Alfa’s commitment to provide 
the best possible service to our clients.
We aim to use our corporate voice responsibly, internally 
and externally, supporting important movements.
Our active communities drive awareness and support 
social causes. We kicked off 2021 with a presentation 
from each of our communities at our global Company 
meeting, where they shared objectives, successes and 
initiatives for the year.
Our Communities are:
•	 Alfa for Racial Equity
•	 Environmental Impact
•	 Inclusion & Diversity
•	 LGBTQ+
•	 Parents’
•	 Social Impact
•	 Women’s
All of these employee-led groups are 
safe spaces for those involved to discuss 
and promote issues, support each other 
and work towards improving policies. 
Their wonderful work includes cookery 
classes, showcasing an array of cultural 
delicacies, running work experience 
programmes aimed at school leavers 
from disadvantaged backgrounds, 
promoting causes with blog posts and 
networks of Champions, involvement in 
external round tables and events, and a 
huge variety of other activities. 
60
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Gender equality
We were proud to have been in a position to 
welcome 69 new joiners across our offices in 
2021, of which 25 (36%) were women. 
In the UK alone, we welcomed 51 new joiners 
in the year, of which 19 (37%) were women, 
which represents a similar level to female 
hires in the UK in 2020. 
Looking at graduate recruitment, we hired 
20 new hires into the UK graduate scheme, 
of which 45% of positions were filled by 
female candidates. 
Throughout the year, we sponsored 
recruitment events such as Bright Network’s 
Women in Tech and Women in STEM events. 
Through our recruitment partners we 
proactively target diverse groups through 
email marketing and campaigning. Of our 
graduate applications in the UK, around 30% 
of the applications we received were from 
female candidates. This ratio is a general 
representation of the gender make-up in the 
early careers STEM and technology sectors 
as a whole. 
We continue to maintain a strong level of 
retention* across the business. As of 
December 2021, retention across the 
business was 87%. 
Breaking this down by gender, retention of 
females stood at 86% and retention of males 
stood at 88%. Of leavers across the business 
in 2021, 34% were women. 
* 	 Retention calculation is as follows: Starting 
Headcount (from 12 months ago) minus 
Leavers over the 12-month period divided by 
Starting Headcount (from 12 months ago).
“Alfa is hiring people that are 
really clever, deep thinkers and 
problem-solvers. They’re looking 
for what you’re going to bring 
to the organisation and how 
you’re going to help it grow and 
get to the next level. Every single 
person is an important part of 
the process. Alfa is big enough to 
have great software and clients, 
but not so big that you’re lost. 
People get heard.”
Caroline Chopra
“What I love is the ability to 
work on different things with 
different people, and the 
diversity and variety of people 
is also very good. You get a lot 
of varied perspectives, from a 
lot of different people all around 
the world, and from diverse 
backgrounds. That never really 
gets dry.”
Ricky Christian
 “At Alfa you get listened to. You 
get nurtured. People here care 
about you. Every company will 
say the same stuff but at Alfa the 
employees say it themselves – 
and it’s real, you can feel it. It is 
great to work here. The people, 
the culture, how receptive we are 
to change… Alfa is special.”
Jack Matthewson
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
61

ENVIRONMENTAL SOCIAL GOVERNANCE CONTINUED
OUR PEOPLE CONTINUED
Inclusion & diversity
Diverse cultural perspectives really do inspire 
innovation and creativity at Alfa. We make 
things better and solve problems together, so 
we’re always striving towards being as inclusive 
as we can. 
In addition to our vibrant Communities, we 
adopt measures to improve things for people 
across the board. We were proud to launch our 
Inclusion & Diversity charter and our 
Transitioning at Work policy this year.
We developed and ran Inclusive Recruitment 
training for everyone involved in our 
recruitment process and there was a diverse 
series of talks, events and activities run by our 
Communities to promote and increase 
awareness on key issues.
In celebration of diversity, we’re launching 
Cultural Days in 2022. Flexible Culture Days will 
allow our people to swap in and out of national 
public holidays that might not match their 
particular values, beliefs or heritage. 
Wellbeing
Wellbeing remains a really important focus 
for Alfa. We haven’t made use of the furlough 
scheme throughout the pandemic, and this 
year we continued to invest in wellbeing. 
 Along with enhanced paid carer leave 
allowance, access to physical, mental and 
financial advice and assistance via our 
employee benefits platform, and working from 
home contributions, we have grown an internal 
network of trained Mental Health First Aiders. 
17 individuals in different regions are now 
available to colleagues for judgement-free 
listening and support. 
We launched Gympass and Peppy health 
(in the UK) which provides support for 
menopause, fertility and new parents. 
2022 will see us launching Peppy’s new 
Peppy Men service. 
We will continue to actively support our 
Communities internally and externally, 
challenge ourselves continually to be more 
inclusive and use our corporate voice for good, 
wherever we can.
 “2021 has been another challenging 
year for everyone, in many ways, 
but we have managed to maintain 
our inimitable positivity and Alfa’s 
special culture remains strong. 
We have lots of ‘People Projects’ on 
the go, but I am particularly focused 
on Culture and Inclusion – making 
Alfa a place where people have a 
voice, where we are all safe to be 
ourselves – being an employer that 
attracts and retains great people.”
Vicky Edwards
Chief People Officer, Alfa Financial Software
Culture
The Culture at Alfa is something we’re 
extremely proud of. It is one of our greatest 
strengths and remains highly valued by 
our people.
This year we’ve continued to keep our 
culture alive, despite the ongoing challenges 
of working remotely much of the time. 
Our Events team has maintained a 
programme of lively and well-attended 
events, ranging from virtual Company 
conferences through to real-world social 
events such as ice skating and boat trips. 
Giveaways across the year helped to spread 
smiles and cement our culture, and included 
branded beanies, hampers, and terrariums 
for home workspaces.
Adapting to restrictions, one of the UK 
Company meetings included sending out 
bamboo picnic utensils to everyone and 
using the intranet to drop pins on maps so 
that colleagues could meet up afterwards in 
smaller, safer groups for the social element 
of the day.
Our US colleagues held their conference in 
person in Miami in November, and Australia 
and New Zealand teams met in December, 
which were important reminders of the 
benefits of face-to-face meetings, albeit 
following rules and safety protocols as required.
We take feedback seriously at Alfa. 
Our culture encourages positive 
conversation and transparency. There’s 
always an opportunity to provide ideas and 
ask questions at all levels. We also seek 
anonymous feedback with regular employee 
surveys – and £5 for each completed survey 
also goes to charity. This year we launched a 
new platform to better measure employee 
engagement, providing more in-depth 
insight to drive action.
In addition to our Pulse surveys, we ensure 
we provide opportunities for two-way 
communication with regular townhall Q&As, 
and this year launched a series of ‘In 
Conversation With...’ where we deep dive 
into a host of subjects.
Alfa’s frequent innovation days and annual 
Hackathon events are a highlight for 
colleagues to get creative, inspire change 
and get to know each other better. 
Teamwork and problem-solving are the 
focus, and the 2021 Hackathon winning 
team featured new joiners from the latest 
graduate scheme intake.
Next year we look forward to more 
opportunities to get together regularly and 
continue to develop effective two-way 
communication channels where everyone 
feels involved, informed and heard.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Statutory gender pay gap (GPG) reporting
Data from April 2021
Gender pay gap
Salary (£k)
2021
2020
Overall mean
38.2 
39.1 
Overall median
35.9 
37.0 
Mean – female
33.9 
34.5 
Mean – male
40.0 
40.7 
Gender pay gap
15.1%
15.3%
Median – female
32.5 
32.7 
Median – male
38.4 
38.3 
Gender pay gap
15.3%
14.7%
We have seen a slight improvement in the year for the mean gender pay gap, however a slight 
deterioration in the median gender pay gap. Like many in the industry our balance towards men 
over women at all levels is reflective of the overall industry. Our female talent pipeline continues 
to improve with 36% of 2021 joiners being female, and 45% of UK graduates, however as these 
are generally into more junior roles in the organisation, it will take some time for this to be 
reflected in improved gender pay gap figures (see page 61 for further details).
Learning & development
This year we invested in a new Learning 
Management System which has been built over 
many months and launches in 2022. This will 
support individual learning and development in 
a way never seen before at Alfa.
A whole new suite of tools and resources 
supporting all facets of life at Alfa has been 
created as part of our new learning and 
development offering.
New Company policies (such as Smart 
Working) have been supported with a 
programme of workshops and training, for 
managers of virtual teams, in a way that has 
really helped smooth transitions.
Our key priorities for 2022 include:
•	 Launch new Learning Management 
System
•	 Focus on our Management Development 
resources and approaches
•	 Mentoring, Coaching & Buddies – we’ll 
define and train people to develop this 
valuable support tool
•	 Following extensive evaluation in 2021, 
we’ll be revamping our Onboarding & 
Induction processes, making us more agile 
and responsive
•	 New Talent Development programme 
across the business will provide more 
opportunities for progression and 
personal ownership of careers
Recruitment & retention
The pandemic fast-tracked Flexible Working 
at Alfa. We took this one step further in 
2021 and introduced Smart Working across 
the organisation. We know employees have 
commitments and lives outside work, which 
is why everyone can now choose, as part of 
their team, where they’re based on work 
days. Be it in the office or at home, we keep 
everyone connected and make sure we’re all 
pulling together. This supports retention 
and also widens the pool of talent we can 
attract. Smart Working will come into full 
operation in 2022, as local COVID-19 
restrictions allow in all our locations.
We have continued to benchmark our total 
packages with strong pay and promotions 
activity and added new benefits, particularly 
in the Wellbeing space. The launch of our 
new employee ShareSave scheme enables 
employees to invest in Alfa and share in 
our success.
This year we have laid the foundations for a 
variety of Employer Brand projects which 
kick off in 2022. We are using employee 
stories in various mediums to give insight 
into life at Alfa both internally and externally 
– we have fascinating, diverse and hugely 
talented people at Alfa and we’ll be shining a 
spotlight on them in order to attract and 
retain the best in the business.
In 2022 we are looking at creating remote 
hubs to further widen our talent pool, we 
will continue to enhance and promote our 
packages to remain competitive and will 
continue to invest in our social and wellbeing 
calendar to support our culture.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
63

ENVIRONMENTAL SOCIAL GOVERNANCE CONTINUED
OUR CUSTOMERS & SUPPLIERS
Alfa’s Environmental Policy includes 
a commitment to engage and educate 
employees and other stakeholders on 
the importance of sustainability.
Our customers  
& suppliers
User groups
We are committed to adopting and applying 
the latest technology, including server 
virtualisation technology, to ensure that our 
customers’ energy consumption is kept to 
a minimum. 
Our product, Alfa Systems, provides 
functionality to enable our customers to charge 
their customers on a usage basis, therefore 
making utilisation of assets more efficient. 
In owned data centres, our provider has 
noted that 94% of our energy utilisation 
was from renewable energy sources. 
Alfa also uses data centres operated by a 
third party, AWS Cloud Computing. 
AWS is committed to powering operations 
with 100% renewable energy by 2025.
Partnering in ESG
Next year we intend to partner with more 
clients and suppliers on ESG initiatives.
We will also review our supplier approval 
process and see how we can embed 
more ESG factors into selection.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Our  
community
We have a passion for using our expertise and 
resources to add value to the communities in 
which we work. 
Volunteering
Alfa offers three days’ paid volunteering 
per year and we have a framework in 
place to help employees choose a 
suitable volunteering opportunity. 
This is a really popular scheme at Alfa 
and one our people are rightly proud of.
Everyone is encouraged to take an 
active part in the schemes offered and 
volunteers range in seniority from junior 
consultant all the way to CEO. It’s 
mutually beneficial and we have 
developed strong partnerships over 
the years.
In June 2021 we had our first dedicated 
Volunteering Month.
Fundraising
We have charity partners in each of 
our regions. In 2021 they were: The 
Climate Coalition in EMEA, Feeding 
America in the USA and Share the 
Dignity and KidsCan in Asia Pacific. 
These charities are nominated and 
voted for by employees. The company 
also matches any funds raised for 
these brilliant causes. 
We raised over £26,000 for our 
charity partners and others 
during 2021.
Employees as individuals also hold 
events and raise funds for many other 
local and national charities throughout 
the year.
A number of Alfa employees have 
volunteered with Code Your Future – which 
utilises our specific technical skills and 
abilities as an organisation.
Code Your Future is a charity which teaches 
code to refugees, asylum seekers and 
otherwise disadvantaged people. This helps 
increase diversity in software development 
as well as improving confidence and 
employment prospects. We’re exploring a 
formal partnership with Code Your Future 
in 2022.
Something else we support each year is ‘The 
Wonderful Xmas Post’, a campaign to send 
crafty and uplifting Christmas cards to 
isolated older people in care homes across 
the world. Matched recipients are always 
delighted to receive cards from us and we 
love to send them!
Our plans for next year include working 
to increase the uptake of volunteering 
allowances across Alfa.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
65

ENVIRONMENTAL SOCIAL GOVERNANCE CONTINUED
ENVIRONMENT
Environmental impact
Our Environmental Impact teams in all regions 
help us to drive change and reduce our impact 
on the planet in lots of ways.
Our Cycle to Work scheme introduced in 
2020 has seen good uptake and this will 
undoubtedly increase as travel and office 
time resumes.
In our energy-efficient offices we ensure 
sustainable, ethical and environmentally 
conscious purchasing for café products, event 
giveaways and other items.
We also recycle waste and coffee grounds, 
compost food waste, have eliminated 
single-use plastics and use eco-friendly 
cleaning products.
Alfa sources electricity in the UK from 
renewable energy provider, Opus. 
Alfa’s Data and Equipment Disposal Policy 
covers off securely and sustainably 
disposing of IT equipment, including 
laptops. We also recycle technical hardware 
and donate to schools.
The Climate Coalition is the UK’s largest 
group of people dedicated to action against 
climate change; a group of over 120 
organisations – including the National Trust, 
Women’s Institute, Oxfam, and RSPB – that is 
22 million voices strong. The Climate 
Coalition’s aim is to bring people from all walks 
of life and organisations with different goals 
together to collectively call for climate action 
and we’ve partnered with them.
We have been raising money for The Climate 
Coalition and, in return, they’ve joined us to 
deliver a variety of social talks on the theme of 
Climate Action. In November they delivered a 
talk on ‘What Happens After COP26?’.
One of the main aims of our Environmental 
Policy is to carry out our business in a 
manner that minimises our impact on 
the environment. 
Our  
environment
66
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Carbon emissions and energy consumption reporting 
2021
2020***
Global 
(inc. UK)
UK
Global
 (inc. UK)
UK
Total electricity use (kWh)
112,333 
93,954 
114,639 
102,748 
Total gas use (kWh)
97 
–  
–  
–  
Total transport fuel (kWh)
131,651 
130,993 
111,600 
109,370 
Total energy from other sources (heating & cooling) (kWh)
53,079 
53,079 
41,166 
41,166 
Total energy use (all sources) (kWh)
297,160 
278,026 
267,405 
253,284 
Total carbon emissions (electricity) (tCO2e)
33 
28 
33 
30 
Total carbon emissions (gas) (tCO2e)
 0 
 0 
 0 
 0 
Total carbon emissions (transport fuel) (tCO2e)
49 
49 
39 
38 
Total carbon emissions (other sources – heating & cooling, flights and taxis) (tCO2e)
60 
14 
140 
46 
Total carbon emissions (tCO2e)
142 
91 
212 
114 
Scope 1 (tCO2e) – gas, heating and company cars
49 
* 
43 
 *
Scope 2 (tCO2e) – electricity and electric cars
44 
* 
38 
*
Scope 3 (tCO2e) – flights, taxis, water taxis
49 
* 
131 
*
Total carbon emissions (tCO2e)
142 
* 
212 
*
Total revenue (£m)
83.2 
– 
78.9 
 –
Carbon intensity ratio (tCO2e per £million)
1.7 
* 
2.7 
*
Total carbon offsets purchased from Ecologi (tCO2e)**
1,231
–
–
–
*	
This information has been calculated at a global level only. 
**	 We compensate for unavoidable emissions by purchasing certified carbon emissions from Ecologi.
***	2020 data has been updated as part of improvements to calculation methodology.
Carbon emissions
One of our Company objectives for 2021 was 
to become a ‘climate positive’ workforce.
This year we have been looking at options for 
our interim carbon offsetting solution in order 
to reach this target and have worked with 
Ecologi for credible and impactful offsetting 
projects to support. Carbon offsetting is only 
a credible tool when used alongside emissions 
reduction strategies, which we are beginning 
to implement where possible.
The next goal is to work with a sustainability 
consultancy to help us calculate more detailed 
carbon footprint data and develop strategies 
to reduce it, before ultimately offsetting what 
cannot be avoided. 
Alfa’s London office has achieved an ‘excellent’ 
rating under the BREEAM In-Use certification 
for 2021/22. 
“Our global Environmental 
Impact team is really looking 
forward to 2022; we have 
lots of ideas and motivation 
to improve Alfa’s carbon 
impact and help to develop a 
formal emissions reduction 
strategy. We’ve had so 
much internal support 
from colleagues and senior 
management and feel we can 
break new ground for Alfa’s 
ESG goals.”
Hannah Coral
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
67

ENVIRONMENTAL SOCIAL GOVERNANCE CONTINUED
ENVIRONMENT
Carbon & energy efficiency actions
We are committed to responsible carbon 
management and will practise energy 
efficiency throughout our organisation, 
wherever it’s cost effective. We recognise 
that climate change is one of the most 
serious environmental challenges currently 
threatening the global community and we 
understand we have a role to play in 
reducing greenhouse gas emissions. We have 
implemented the policies below for the 
purpose of increasing the business’s energy 
efficiency in the relevant financial year:
•	 Moved to remote home working 
due to COVID-19. Will review when 
situation permits. 
•	 Implemented and encouraged use of 
video conferencing.
•	 Travel reduced due to COVID-19.
In 2021, we became carbon positive as our 
offsets purchased from Ecologi exceed our 
emissions (i.e. Scope 1 and Scope 2 
emissions, as well as those Scope 3 
emissions that have been disclosed).
Methodology used in the calculation 
of disclosures
ESOS methodology (as specified in 
Complying with the Energy Savings 
Opportunity Scheme version 6, published 
by the Environment Agency, 21.01.21) 
used in conjunction with Government GHG 
reporting conversion factors. The calculations 
have been approved by a PAS51215 
compliant body.
For carbon only related matters, the SECR 
methodology as specified in ‘Environmental 
reporting guidelines: including Streamlined 
Energy and Carbon Reporting and 
greenhouse gas reporting’ was used in 
conjunction with Government GHG 
reporting conversion factors. 
Estimates made with respect to the 
date include:
•	 Company car annual mileage provided 
and apportioned into months;
•	 Emissions in line with a medium-sized 
engine assumed for one car; and
•	 Assumed all taxi rides are 5 miles.
Note: Emissions data includes WTT 
(well-to-tank) and T&D (transmission and 
distribution). kWh data excludes flights, 
taxis and water taxis.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Taskforce on Climate-Related Financial Disclosures:
Area
Recommended disclosure
Alfa Disclosure
Governance
Describe the Board’s oversight of climate-
related risks and opportunities
Overall responsibility for all ESG matters sits with the Group CEO and 
progress is reported to the Board. Reporting and risk management issues 
are discussed and debated as part of the Audit & Risk Committee. 
Describe management’s role in assessing 
and managing climate-related risks and 
opportunities.
As part of the twice a year detailed risk management process the Company 
Leadership Team reviews and discusses the latest view of all opportunities 
and risks including climate-related and in particular corporate level risks are 
discussed by the Executive Board members.
Strategy
Describe the climate-related risks and 
opportunities the organization has 
identified over the short, medium, 
and long term.
In the short-term we see little impact of climate-related risks and 
opportunities on our business, however we are acutely aware of our 
responsibility to contribute towards the global efforts to mitigate against 
climate change, and therefore we are actively looking to reduce our carbon 
footprint, including reducing travel to client sites, assessing renewable 
energy options for new offices, and considering travel distances for the 
location of conferences. In the medium to longer-term we see more 
positives for Alfa than negatives. A move towards lower carbon new 
technologies is likely to result in increasing requirements for asset backed 
finance solutions, which will drive growth in our underlying markets. In 
addition increasing reporting requirements through the supply chain will 
require agile systems that can respond to the new reporting requirements 
which will increasingly demonstrate the greater flexibility of Alfa Systems 
over competitor products.
Describe the impact of climate-related 
risks and opportunities on the 
organization’s businesses, strategy, 
and financial planning.
To enable our systems to respond to increasing demands for mobile 
solutions and emissions reporting, it may require more investment in 
the product to make the most of these opportunities. The increased 
functionality however is likely to lead to increased licence revenues as 
customers want to access the new modules providing this.
Describe the resilience of the organization’s 
strategy, taking into consideration different 
climate-related scenarios, including a 2°C 
or lower scenario.
As we do not believe there are significant risks to our organisation, other 
than the overall risk to the world economy, we believe our existing strategy 
has a high degree of resilience to different climate-related scenarios.
Risk 
management
Describe the organization’s processes 
for identifying and assessing climate-
related risks.
We have a comprehensive process of risk management which includes a 
detailed assessment of risks twice a year. Included within this process is 
explicit consideration of climate-related risks.
Describe the organisation’s processes 
for managing climate-related risks.
In the short-term we do not see significant climate-related risks for the 
organisation and as a consequence we keep the risks under review, but are 
not actively managing any at this point in time.
Describe how processes for identifying, 
assessing, and managing climate-related 
risks are integrated into the organization’s 
overall risk management.
It is an integral part of our overall risk management, and in particular it is 
discussed when considering the corporate level risks. 
Metrics 
and targets
Disclose the metrics used by the 
organization to assess climate-related 
risks and opportunities in line with its 
strategy and risk management process.
We do not currently use any metrics for assessing climate-related risks 
other than being aware of the growth projections in the underlying auto 
and equipment finance market. We are however intending during 2022 to 
set targets for reduction in emissions to ensure that we play our part in the 
overall journey to a net zero economy. See page 67 for further details.
Disclose Scope 1, Scope 2, and, if 
appropriate, Scope 3 greenhouse gas 
(GHG) emissions, and the related risks.
See page 67.
Describe the targets used by the 
organisation to manage climate-related 
risks and opportunities and performance 
against targets.
We have no specific targets for the management of the risks and 
opportunities because as noted above we do not see any short-term risks 
or opportunities. If and when any risks and opportunities become more 
apparent we will seek to see what targets we could set.
The Strategic Report and the Financial Review are approved by the Board of Directors and signed on its behalf by:
Andrew Denton
Chief Executive Officer
STRATEGIC REPORT
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
69

Corporate 
governance
Section 5: 
Remuneration 
 
 
See 
page
P	 Linking remuneration with 
purpose and strategy
101 to 
102
Q	Remuneration Policy review
104
R	 Performance outcomes 
in 2021 Strategic targets
114
 Read more in the Remuneration 
Committee Report on pages 
100 to 121
Section 4:  
Audit, risk and 
internal controls 
 
See 
page
M	Financial reporting, external  
auditor & internal audit
98 to 99
N	 Review of 2021 
Annual Report
96
O	Internal financial controls 
Risk management
98
 Read more in the Audit & Risk 
Committee Report on pages 94 to 99
Section 1: 
Board leadership 
and Company 
purpose
 
See 
page
A	 Effective Board
77
B	 Purpose, strategy, 
values and culture
77
C	 Governance framework
77
D	 Stakeholder engagement
77
E	 Workforce policies 
and practices
79
Section 2:  
Division of 
responsibilities 
 
See 
page
F	 Board roles
83
G	 Independence
89
H	 External commitments 
and conflicts of interest
84
I	 Board efficiency: key 
activities of the Board
85
Section 3: 
Composition, 
succession and 
evaluation
 
See 
page
J	 Appointments to the Board
86
K	 Board composition
86
L	 Board evaluation
86
 Read more in the Nomination 
Committee Report on pages 90 to 93
70
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

Dear shareholders,
On behalf of the Board, I am pleased to present 
the Group’s corporate governance report for 
the financial year ended 31 December 2021. 
This report outlines how the Board continues 
to make sure that robust and appropriate 
governance procedures are in place to ensure 
effective and prudent management of the 
Company that will deliver long-term 
sustainable success for the benefit of our 
shareholders and broader stakeholders.
In this report, we set out our approach to 
corporate governance and provide detail on 
the role of the Board of Directors, followed by 
more detailed sections on the work of each of 
the three key Board Committees: Audit & Risk 
Committee, Nomination Committee and 
Remuneration Committee. Together, these 
give a clear insight into how we manage 
corporate governance principles and processes 
within the Group.
Board focus areas in 2021
•	 Special dividend of 10 pence per 
ordinary share.
•	 Performance of the business, 
financially and operationally.
•	 2022 budget and long-term 
strategic plan.
•	 Sales pipeline and business 
development.
The UK Corporate 
Governance Code 2018: Our 
compliance
Effective corporate governance provides 
an essential foundation for the long-term 
sustainable success of the Company. 
This report sets out the key elements of 
Alfa’s corporate governance arrangements, 
including how we have sought to apply the 
principles and provisions of the 2018 UK 
Corporate Governance Code (the ‘2018 
Code’) during the year.
A copy of the 2018 Code, issued by the 
Financial Reporting Council can be found 
at www.frc.org.uk. This governance 
statement, including the Nomination 
Committee, Audit & Risk Committee, 
and Remuneration Committee Reports, 
explains how we have applied the 
principles and complied with the 
provisions of the 2018 Code.
Non-compliance with 
Code provisions
The Group has complied with the Code 
provisions during the financial year with 
the exception of Code provision 9: 
The Chairman of the Board was not 
independent on appointment as he 
previously held the position of Chief 
Executive Officer and is the controlling 
shareholder of the Company. On listing, 
the Board unanimously supported, and 
continues to support, the appointment 
of the Chairman to retain his skills and 
experience, and ensure continuity of 
service for Alfa’s customers and 
commercial partners.
“Following the Director appointments made in 
2020, this has been the first full year with the 
new Board and I can say it has been a pleasure 
to be the Chairman of such a progressive and 
knowledgeable team that continues to make 
excellent progress in developing the business.”
Andrew Page
Executive Chairman
CHAIRMAN’S INTRODUCTION
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
71

Continued strong performance 
during 2021
The upheaval of the global COVID-19 
pandemic continued to provide an 
unprecedented challenge to all companies. 
The governance environment that Alfa had in 
place when the COVID-19 crisis unfolded in 
early 2020, supported high-quality decision 
making which ensured that we maintained the 
strong business momentum we had prior to the 
pandemic, whilst at the same time, looking 
after the interests of all our stakeholders, 
particularly our employees. Further detail of 
how the Company continues to respond to 
these unprecedented times is set out 
throughout this report.
During 2021, the Company kept in line with 
forecast, as highlighted in the scheduled 
market announcements, throughout the 
year. As a result of Alfa’s continued strong 
performance despite the pandemic, we were 
delighted to announce a special dividend in the 
amount of 10 pence per share, which was paid 
to shareholders on 5 November 2021.
Additionally and as a result of the continued 
strong performance, CEO Andrew Denton 
and I have elected to forego any future 
remuneration, subject to minimum statutory 
requirements. We feel that as significant 
shareholders of the Company, we wanted to 
fully align our future remuneration with those 
of other shareholders through future dividend 
payments and the growth in the share price. 
Since IPO in 2017 Andrew Denton has elected 
each year to forego participating in Company 
LTIP and bonus schemes for which he would be 
ordinarily be included in, for the same reason.
Environment, Social & Governance
I’m pleased to report that during the year we 
have focused on enhancing the ESG actions 
that we are taking to enable improvement in 
our ESG reporting and ratings with a number 
of agencies.
Details of our ESG commitments and work 
during 2021 can be found on pages 58 to 69. 
Our approach to corporate 
governance
Corporate governance at Alfa takes a 
thoughtful and considered approach involving 
the Board as well as other key personnel to 
identify and apply the principles of good 
corporate governance.
This means balancing the interests of the 
Company’s many stakeholders, such as 
shareholders, employees, customers, 
suppliers, partners and the communities 
we work in. Strong governance helps to 
cultivate a company culture of integrity and 
stakeholder alignment, alongside corporate 
structures that improve leadership, 
accountability and effectiveness.
This brings a sharper focus to strategic 
objectives and translates into better decision 
making which, in turn, drives competitive 
advantage and growth and results in stronger 
corporate performance and a sustainable 
business model. The Board has maintained a 
strong focus during the year on the Company’s 
strategic goals whilst ensuring that the 
Company has the right people in place to 
deliver on its strategy. During this period of 
continued growth, it is vital to ensure that the 
Company’s governance processes are robust in 
order to ensure that the business is protected 
and that all stakeholders’ interests are taken 
into account.
Culture, values and people
Alfa has fostered a strong Company culture 
which is underpinned by a set of values 
which ensure that everyone stays focused 
on delivering our strategy whilst staying true 
to who we are. The Board recognises the 
importance of setting this culture and 
ensuring that the necessary resources are 
in place to allow our people to deliver the 
Company’s strategy.
The Board is kept up to date on employee 
engagement through the inclusion and 
discussion of the Pulse survey results which are 
collected on a bi-monthly basis and presented 
to the Board by the Chief Operating Officer. 
A focus of the Company Leadership Team 
during the year has been to continue to 
ensure the overall welfare of our employees 
throughout the COVID-19 pandemic.
The Board is satisfied that the approach 
towards engagement with colleagues 
described on pages 77 to 79 is robust.
72
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
CHAIRMAN’S INTRODUCTION CONTINUED

External Board evaluation 
Following the Director appointments made in 
2020, this has been the first full year with the 
new Board and I can say that it has been a 
pleasure to be the Chairman of such a 
progressive and knowledgeable team that 
continues to make excellent progress in 
developing the business. 
An external Board evaluation process was 
conducted by Board Effectiveness and 
Governance Services (BE-GS) during the 
summer/autumn following the 2021 AGM. 
The evaluation acknowledged the great 
progress that has been made since the 
appointments in early 2020 with 
recommendations made by BE-GS made upon 
solid best practice. Details of the evaluation 
can be found on pages 86 to 88. 
Finally, I would like to take this opportunity 
to thank all of our stakeholders for 
their continuing support in these 
unprecedented times.
Andrew Page
Chairman of the Board and Founder
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
73
CHAIRMAN’S INTRODUCTION CONTINUED

Andrew Page
Executive Chairman
Appointment to the 
Board: May 2017
Andrew is one of the founding 
Directors of Alfa. Andrew became 
the Chief Executive Officer in 2010 
and the Executive Chairman in 
September 2016. Andrew provides 
commercial oversight and with the 
Board sets the strategic direction 
and goals of the Company.
Key strengths
Andrew has considerable senior 
management experience and a 
deep understanding of the auto 
and equipment finance industry.
Other appointments
Director of CHP Software and 
Consulting Ltd
Andrew Denton
Chief Executive Officer
Appointment to the 
Board: April 2017
Andrew joined Alfa in 1995 and 
became a member of the Board of 
Directors in 2003 as Sales and 
Marketing Director. He was made 
Chief Operating Officer in 2010 
and became CEO in September 
2016. Andrew is also Director 
and joint founder of the Leasing 
Foundation, an organisation that 
supports the leasing and auto and 
equipment finance industry 
through charitable activities, 
research and development.
Key strengths
Computer scientist by training, 
considerable senior management 
experience and significant 
experience in the auto and 
equipment finance industry.
Other appointments
Director of CHP Software and 
Consulting Ltd
Duncan Magrath
Chief Financial Officer
Appointment to the 
Board: April 2020
Duncan started his career at Price 
Waterhouse, and qualified as a 
Chartered Accountant in 1989. 
He joined Ocean Group in 1992, 
and spent 13 years in the UK and 
USA in various finance roles as the 
group transformed into Exel 
Logistics. He joined Balfour Beatty, 
the infrastructure company, in 2006 
and was Group CFO from 2008 to 
2015. In 2016 he joined Rubix, an 
Industrial Parts Distributor, as 
Group CFO and was in that role 
through to 2019.
Key strengths
Extensive experience in senior 
financial positions both in the UK 
and internationally, including a deep 
understanding of investor relations 
and financial strategy
Other appointments
n/a
Matthew White
Chief Operating Officer
Appointment to the 
Board: October 2019
Matthew joined Alfa as a graduate 
in 1999, starting in a software 
development role. In his 20-year 
career delivering software for the 
auto and equipment finance 
industry, Matthew has direct 
experience of everything involved 
in systems implementation, from 
configuration and testing support 
to project management for a 
number of UK and European 
projects. From 2010 to 2016, 
Matthew’s role grew to include 
responsibility for most of the 
operations of the Company, 
before he led Alfa’s IPO in 2017. 
As Chief Operating Officer, a role 
which he assumed in February 
2019, Matthew is accountable 
for the international operations 
of the business, including Alfa’s 
technology platform and 
project delivery.
Key strengths
Considerable senior management 
experience in software 
development and all aspects 
of systems implementation 
and delivery
Other appointments
n/a
N
74
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
BOARD OF DIRECTORS

Steve Breach
Independent  
Non-Executive Director
Appointment to the 
Board: April 2019
Steve is a member of the Institute 
of Chartered Accountants in 
England and Wales, having qualified 
with EY in 1993 where he focused 
on providing corporate finance 
advice to technology businesses 
in the UK and internationally. 
Steve has 17 years’ experience as 
Chief Financial Officer of a number 
of businesses. Between 2010 and 
2016, Steve was CFO of Tribal 
Group PLC, a leading international 
provider of student management 
software to the education market. 
Steve has subsequently pursued a 
portfolio career, acting as adviser to 
a number of privately owned 
companies.
Key strengths
Steve has held a number of CFO 
roles and has extensive experience 
in corporate finance.
Other appointments
Advisor to a number of private 
companies
Adrian Chamberlain
Independent  
Non-Executive Director
Appointment to the 
Board: April 2020
Adrian is a Non-Executive Director 
of Cambridge University Health 
Trust, one of the country’s largest 
NHS Trusts, where he chairs the 
Performance Committee. 
During 2021, Adrian was appointed 
as the Senior Independent Director 
of the Trust. He is also Executive 
Chairman of eConsult Ltd, a leading 
cloud-based medical triage 
company. He previously has held 
senior executive positions in a 
number of private and public 
hi-tech and telecommunications 
companies including Chief 
Executive Officer of Messagelabs 
and Achilles Ltd, a member of the 
Board of Cable & Wireless and 
Bovis Lend Lease, and a member 
of the Operations Board at 
Symantec. He holds an MA in 
History from Trinity College, 
Cambridge and an MBA from the 
London Business School.
Key strengths
Extensive experience 
internationally in both the private 
and public sectors, particularly in 
strategy formulation and execution, 
technology and Software as 
a Service.
Other appointments
Chairman of eConsult Health Ltd 
Senior Independent Director of 
Cambridge University Health Trust 
and Chair of the Performance 
Committee
Charlotte de Metz
Independent  
Non-Executive Director
Appointment to the 
Board: April 2020
Currently Chief People Officer at 
Keyloop which focuses on software 
for the automotive industry where 
she joined in early 2021, after 
serving as Chief People Officer 
at Synamedia where she led a 
large-scale global transformation. 
Prior to that, Charlotte was Global 
Head of Human Resources and 
more recently as Executive Vice 
President at Finastra, a global 
fintech where she was responsible 
for Executive Talent, corporate 
social responsibility, culture and 
values, and inclusion and diversity. 
Prior to joining Finastra in 2012 as 
Global Head of Human Resources, 
Charlotte spent over 11 years at 
Ventyx, a global provider of 
software solutions for the energy, 
utility and other asset-intensive 
businesses. During her tenure at 
Ventyx she held various HR roles, 
latterly as Human Resource 
Manager for Rest of World. 
Key strengths
Strong track record in delivering 
innovative employee development, 
engagement, and retention 
practices. Charlotte has extensive 
experience in managing high-
impact, enterprise-wide 
transformations in challenging, 
fast-paced environments.
Other appointments
CPO, Keyloop Limited
Chris Sullivan
Senior Independent 
Non-Executive Director
Appointment to the 
Board: July 2019
Chris was Chief Executive of the 
Corporate & Investment Bank at 
Santander UK during the years 
2015-2018, and prior to this held 
various CEO roles during a 40-year 
career at The Royal Bank of 
Scotland and NatWest. His 11 
years on the Group Executive 
Committee included leading 
Corporate Banking, Retail Banking, 
Direct Line and Retail Direct and 
culminated in appointment to the 
post of Deputy Group Chief 
Executive in March 2014. 
A recipient of the Leasing Life 
European Lifetime Achievement 
Award, Chris brings expertise in the 
auto and equipment finance 
industry, having spent nearly 30 
years with the Lombard Group 
in a number of directorate roles 
including as CEO.
Key strengths
Extensive experience of corporate, 
investment and retail banking and 
asset financing together with 
general management and listed 
company experience.
Other appointments
Chairman of the Westminster 
Abbey Investment Committee, 
Non-Executive Director of Guild 
Esports PLC, Senior Independent 
Director for DWF Group PLC, 
Non-Executive Director of 
Cannaray Ltd
A
N
R
A
N
R
A
N
R
A
N
R
Committee membership
A Audit
Committee chair
Nomination
N
Remuneration
R
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
75

Richard Raistrick
Chief International 
Officer
Date joined Alfa 
May 1995 
Relevant experience/
previous roles
Richard is responsible for project 
delivery for some of Alfa’s largest 
customers. He has carried out 
consultancy and project 
management engagements around 
the globe, and has worked in the 
auto and equipment finance sector 
since 1995.
James Paul
Chief Delivery Officer
Date joined Alfa 
September 1999
Relevant experience/
previous roles
James is accountable for all EMEA 
implementations and takes global 
responsibility for support, 
resourcing and partnering. 
James has over 20 years’ experience 
implementing in auto and 
equipment finance for 
organisations of all sizes.
Vicky Edwards
Chief People Officer
Date joined Alfa 
March 2020 
 
Relevant experience/
previous roles
Vicky joined Alfa in March 2020, 
bringing 26 years of experience 
in consultancy businesses. A  
commercially focused HR leader, 
Vicky has held leadership roles 
across HR, commercial and 
operations functions, as well as 
C-suite level positions in the 
professional services, technology 
and energy sectors.
Richard Dewire
Chief Revenue Officer
Date joined Alfa 
January 2001
Relevant experience/
previous roles
Richard has over 20 years in the 
auto and equipment finance 
industry and an in-depth 
knowledge of Alfa Systems through 
many years of implementation, with 
extensive knowledge of Alfa’s sales 
and commercial process. He was 
previously Director of Strategy and 
Investment.
Andrew Flegg
Chief Technology 
Officer
Date joined Alfa 
February 2005 
Relevant experience/
previous roles
Andrew brings over 35 years of 
programming experience, over 
25 years in commercial software 
development and over 15 years in 
the auto and equipment finance 
industry. He was previously Alfa’s 
Global Director of Platforms, 
covering internal IT systems, cloud, 
information security and solution 
architecture.
Andrew Denton
Chief Executive Officer
Date joined Alfa 
August 1995
Duncan Magrath
Chief Financial Officer
Date joined Alfa 
March 2020
Matthew White
Chief Operating Officer
Date joined Alfa 
June 1999
76
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
COMPANY LEADERSHIP TEAM

BOARD LEADERSHIP AND COMPANY PURPOSE
Maintaining good governance is essential 
to support the delivery of Alfa’s strategic 
objectives, and to ensure that the business is 
run well for the benefit of all stakeholders and 
for sustainable long-term value. The Board 
continues to monitor the framework so it 
remains appropriate to the business.
The governance framework embeds our 
values into the policies and processes of 
Alfa and therefore helps to strengthen the 
corporate culture.
 Read more about our Company 
Leadership Team on page 76.
During this year and as part of the annual 
review cycle, the Board reviewed, updated 
and approved the Schedule of Matters 
Reserved for the Board and the Terms 
of Reference for each Board Committee. 
The Audit & Risk Committee also reviewed, 
updated and approved other relevant 
Company policies. There is an internal controls 
system in place which allows the Board to 
assess and manage risks to the business.
 Read more about our Risk Management 
on pages 44 to 51 and the Audit & Risk 
Committee Report on pages 94 to 99.
The Board provides support in 
implementing strategic priorities as well as 
oversight and constructive challenge on the 
running of the business. Through reporting, 
including the use of both financial and 
non-financial metrics, the Board is able 
to evaluate and guide the progress and 
performance of the Company. Reports from 
across the business are provided at Board 
meetings to update the Board and enable 
effective discussion.
Defining purpose 
and creating value
During the year, the Company has continued 
to embed across the business the purpose 
and values as set out in the Strategic report 
on pages 1 to 69 of this report.
The Board continues to monitor the 
strategic direction of the Company and the 
key investments we need to make to remain 
in a leading position in an ever-changing 
market, and ensures we have the resources 
and the right people, in the right place 
operationally, to ensure we remain relevant 
to the markets in which we operate.
The Board and Company Leadership Team 
(CLT) embed the Company’s values across 
the business. In order to monitor whether 
our culture is and remains aligned with our 
values, the Company seeks feedback from 
customers and potential customers on how 
the values have been received. Additionally, 
to understand what they experienced during 
the sales process and through the various 
stages of software implementations and 
provision of services.
Governance framework
The Board is made up of a majority of 
independent Directors whose diverse 
experience enables appropriate debate 
and challenge at Board and Committee 
discussions. The Board has an approved 
governance framework of systems and 
controls which enables the effective 
discharge of the Board’s responsibilities.
Directors have a duty to promote the 
success of the Company under section 172 
of the Companies Act 2006. The Company’s 
section 172 statement can be found on 
pages 54 to 55 and this framework supports 
our Directors’ compliance with their duties.
Board engagement
The Board recognises its responsibilities to 
engage with and incorporate the views of 
key stakeholders in strategic planning and 
decision making, and the importance of 
stakeholder trust in building resilience and 
long-term sustainability. Although the Board 
retains overall responsibility for stakeholder 
engagement there is interaction at various 
levels of the business so that it is carried out 
by those most relevant to a particular 
stakeholder group or particular issue.
Our section 172 statement and ‘How we 
engage with our stakeholders’ section on 
pages 54 to 57 sets out the main interests 
of key stakeholders and the ways in which 
Alfa engages with them.
The Board recognises the importance of 
considering all stakeholders in its decision- 
making, although the weight given to each 
stakeholder group may vary depending on 
the subject in question.
Through engagement and greater 
understanding of the interests of 
stakeholders, the Board is able to assess 
the long-term consequences of decisions on 
stakeholders and the business. We continue 
to work on embedding practices across 
Alfa so that consideration of stakeholder 
interests in decisions is second nature at 
all levels of the business.
Workforce engagement
The Board monitors and assesses engagement 
with all stakeholders, with particular attention 
on workforce engagement.
Employee Pulse surveys provide regular 
understanding of wider views and an 
‘open door’ approach to feedback and 
communication also allows for frequent 
two-way conversation and insight. 
The challenges presented by the COVID-19 
pandemic remained throughout 2021, but 
effort was made to maintain culture and 
connections with online events as well as 
in-person social elements to these events 
wherever restrictions allowed. 
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
77

All Board meetings feature updates on 
People matters and engagement levels. 
The Chief People Officer presented at two 
Board meetings in 2021, demonstrating the 
increased importance placed on our people. 
Attendance of Company meetings, social 
and online Town Hall events (including Q&A) 
with the Board as well as Company updates 
and frequent co-ordinated internal 
communications all support engagement 
across the organisation.
Given the Board’s visibility of the 
engagement channels and efforts, as well as 
its accessibility to the workforce through the 
initiatives and events as mentioned, it is 
confident at this time that appropriate 
measures are in place as an alternative to 
Provision 5 of the 2018 UK Corporate 
Governance Code.
The Company actively encourages the 
involvement of employees in the Company’s 
performance and the principal decision in 
2021 with regard to employee interests was 
to launch UK/USA all-employee share plans. 
The Save As You Earn (SAYE) scheme known 
as the ‘Sharesave’ plan in the UK and 
Employee Stock Purchase Plan (ESPP) in the 
USA were launched in November 2021 
allowing employees to become greater 
stakeholders in the business.  
Engagement with shareholders 
Alfa is committed to engaging with 
shareholders and prospective investors to 
inform and aid understanding of its strategy 
and progress. The focus of all communications 
is ensuring transparent, and detailed and 
meaningful information.
The Chairman has overall responsibility for 
ensuring that the Company has appropriate 
channels of communication with its 
shareholders and is supported in this by 
the Senior Independent Director and the 
Executive Directors.
Shareholders are consulted on a variety of 
issues, as appropriate, such as the medium-
to long-term strategy of the Company, 
current trading and market conditions and 
Directors’ remuneration. The Board regularly 
receives feedback from the Group’s brokers, 
advisors and the Executive Directors on the 
views of major shareholders and the investor 
relations programme, and also receives 
reports on significant changes to the 
composition of the Group’s share register.
Due to the ongoing pandemic the usual 
direct engagement mechanisms with 
shareholders have been curtailed but the 
Directors have continued communications 
virtually through one-to-one meetings and 
responding to specific shareholder queries 
and provided digital presentations, including 
for the half-year results announcement. 
Given the restrictions on travel and large 
gatherings, and the guidance available to us 
at the time, we took the decision to hold the 
2021 AGM behind closed doors again. As we 
approach our 2022 AGM, we will continue to 
monitor the situation, and will prioritise the 
health and safety of the Board, our 
colleagues and of course our shareholders. 
Further details will be provided when our 
Notice of AGM is published on 11 April 2022. 
The Group’s investor relations microsite 
www.investors.alfasystems.com is updated 
throughout the year, providing the annual 
and interim reports, presentations given to 
analysts and investors, trading updates and 
other regulatory announcements, and 
up-to-date information on the Group’s 
activities. Shareholders are able to contact 
the Company through the Company 
Secretary, at the Company’s registered 
office, which is shown on the Directors’ 
report on page 122.
 
Shareholder agreement
The relationship between the Board and the 
controlling shareholder of the Company (the 
‘Controlling Shareholder’), CHP Software 
and Consulting Limited, is governed by the 
Relationship Agreement (which was 
executed on 26 May 2017). This agreement 
is a framework under which the Controlling 
Shareholder, and the shareholders of the 
Controlling Shareholder will operate to 
protect the rights of the non-controlling 
shareholders. There have been no changes 
to the Relationship Agreement during 2021, 
or up to the date of this report. Under the 
Relationship Agreement, two Non-
Executive Directors can be appointed to the 
Board for as long as the Controlling 
Shareholder holds 20% or more of the 
voting rights over the Company’s shares:
•	 One Non-Executive Director can be 
appointed to the Board for so long as the 
Controlling Shareholder holds 10% or 
more but less than 20% of the voting 
rights in respect of the Company’s shares; 
and
•	 If none of the Controlling Shareholders 
are members of the Nomination 
Committee, the Controlling Shareholder 
can appoint an observer to the 
Nomination Committee.
Andrew Page is designated as the first 
appointed Director of the Controlling 
Shareholder. Andrew Denton has not been 
appointed as a designated Director by the 
Controlling Shareholder. It has been agreed 
that for as long as the Controlling 
Shareholder has the right to appoint two 
Directors to the Board, and whilst Andrew 
Denton is a Director of the Company, the 
Controlling Shareholder will not exercise its 
right to appoint a second Director to the 
Board. There have been no Board observers 
appointed either under the Relationship 
Agreement, or otherwise.
For further details of the Relationship 
Agreement, see page 124 of the 
Directors’ Report.
 
78
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

Workforce policies 
and practices
Our people bring a diverse range of 
experience, expertise and perspectives that 
contribute to the values and culture of Alfa 
and are essential for the delivery of our 
strategic objectives. A positive environment 
where our people feel valued, motivated and 
able to thrive is essential to Alfa’s continued 
success. The Board recognises the value of, 
and supports, significant investment of time 
and resources in our colleagues to allow Alfa 
to attract and retain talent and develop the 
skills of our employees.
One central policy in creating this 
environment and culture is Alfa’s Ethics and 
Code of Conduct (the ‘Code of Conduct’) 
which clearly sets out a zero-tolerance 
policy for dishonest and corrupt behaviour 
among our employees and seeks to educate 
team members on unlawful and unethical 
conduct. Compliance with the policy 
maintains Alfa’s reputation in the 
marketplace as well as our relationship with 
our colleagues, investors, customers and 
other stakeholders.
The Code of Conduct provides clear 
guidance to employees in respect of legal 
and ethical issues which they may come 
across while conducting Alfa business, 
and what Alfa expects in respect of our 
employees’ behaviour, and provides 
important information on working at Alfa 
to help embed the behaviours and values 
alongside more practical information to 
enable our employees to work effectively 
and efficiently.
The Board is responsible for overseeing the 
Company’s arrangements for the workforce 
to be able to raise matters of concern and 
seeks to foster an environment where 
individuals can be confident about speaking 
up about concerns without fear of retaliation. 
The Board monitors this area through reports 
on the number and types of concerns raised 
through the whistleblowing process and the 
outcomes of the concerns raised.
Employee engagement
The Board monitors and assesses engagement with all stakeholders, with particular 
attention on employee engagement. Employee Pulse surveys provide regular 
understanding of wider views and an ‘open door’ approach to feedback and 
communication also allows for frequent two-way conversation and insight. The challenges 
presented by the COVID-19 pandemic remained throughout 2021, but effort was made 
to maintain culture and connections with online events as well as in-person social elements 
to these events wherever restrictions allowed. 
All Board meetings feature updates on People matters and engagement levels. The Chief 
People Officer presented at two Board meetings in 2021, demonstrating the increased 
importance placed on our people. Online Town Hall events with senior team members as 
well as Company updates and frequent co-ordinated internal communications all support 
engagement across the organisation.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
79
BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

Throughout the year, regular town halls 
and electronic updates to all employees 
from CEO Andrew Denton have proven 
to be a very successful engagement 
mechanism. Andrew Denton and the CLT 
update the workforce on all aspects of the 
business and take direct questions in real 
time from employees.
Alfa is focused on the importance of the 
wellbeing of our workforce and this 
remained heightened during the pandemic 
with additional challenges for our remote 
working employees. We continue to invest in 
wellbeing. In addition to enhanced paid 
carer leave allowance, access to physical, 
mental and financial advice/assistance and 
working from home contributions, we have 
grown an internal network of trained Mental 
Health First Aiders, available to employees 
for judgement-free listening and support. 
In 2021, we have delivered diversity training 
across a number of key groups – Inclusive 
Leadership, Inclusive Recruitment and 
Unconscious Bias training. We continue 
to support our communities to raise 
awareness across the company on issues 
around diversity and expanded our network 
of external bodies and partners that we 
work with and support. As a result of this 
work, 47% of new grads were female and 
47% from a diverse background.
Alfa is fully committed to maintaining 
high standards of ethical and professional 
conduct for the Company and its 
employees. We have a number of policies 
in effect which are designed to create an 
environment and culture where:
•	 Employees’ health, safety, rights and 
wellbeing are placed at the heart of 
the way the Group does business;
•	 Employee diversity and inclusion 
is celebrated;
•	 Employees must act ethically, honestly 
and stand up for what is right; and
•	 Communication across the business 
should be open, honest and responsible.
To support the Code of Conduct and our 
values, Alfa has a number of other workforce 
policies and practices covering:
•	 Business expenses;
•	 Confidentiality;
•	 Health and safety;
•	 Diversity and inclusion;
•	 Harassment;
•	 Share dealing; and
•	 Whistleblowing.
We seek to embed our Code of Conduct 
through continuing communications, 
training and appropriate controls.
The Code of Conduct and all other 
workforce policies and procedures can be 
found and easily accessed by our employees 
through our intranet site.
An Equality, Diversity and Inclusion Policy 
was published in February 2022 which aims 
for our colleagues to be truly representative 
of all sections of society and our customers, 
and for everyone to feel respected and able 
to give their best.
Whistleblowing
We recognise that our people are our 
strongest assets for detecting and avoiding 
legal and ethical failure within our business. 
Our whistleblowing policy and team 
provides a safe environment to report 
concerns regarding illegal, unethical or 
improper behaviour.
The Group’s Whistleblowing Policy clearly 
explains to employees how they can raise 
concerns directly to the Group’s 
Whistleblowing Officer.
All whistleblowing cases are formally 
investigated by the Whistleblowing Officer 
and reported regularly to the Audit & Risk 
Committee and the Board, and the Board is 
responsible for reviewing the effectiveness of 
actions taken in response to concerns raised.
Where necessary, external specialist third 
parties, or other members of staff, with 
appropriate experience, may be appointed to 
help investigate issues that have been raised.
Share dealing code
Alfa has revised and reissued a share dealing 
code during the year. This applies to all 
employees and Directors. It restricts 
dealings by all employees during closed 
periods, dealings by a particular sub-set of 
employees outside of closed periods, and 
provides additional restrictions on the 
Company’s Directors, its other PDMRs and 
certain persons deemed insiders. 
In accordance with the Market Abuse 
Regulation, the Directors and PDMRs have 
confirmed to the Company they are 
responsible for procuring the compliance of 
their respective connected persons with the 
Alfa share dealing code. The share dealing 
code has been published on the Alfa 
intranet and guidance and communication is 
provided to all new starters and the Alfa 
team on an ad hoc basis.
Suppliers and modern slavery
 We do not support any form of slavery, 
human trafficking or child labour and we only 
work with suppliers that have been assessed 
through our internal processes to be ethical 
providers. We have an ethical procurement 
policy and our key procurement personnel 
have been trained in relation to the relevant 
requirements and regulations.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED

Division of responsibilities 
Alfa is led and controlled by the Board which is 
collectively responsible for the long-term and 
sustainable success of the Group. The structure 
of the Board, and management, roles and 
Committees ensures controls and oversight 
with a balanced approach to risk aligned with 
Alfa’s culture. The structure assists the Board 
with carrying out its responsibilities and is 
designed to ensure that the Board focuses on 
strategy, monitoring the performance of the 
Group and governance, risk and control issues.
Responsibility of the Board 
The Board is collectively responsible for the 
long-term success of the Group and for ensuring 
leadership within a framework of effective 
controls. The key roles of the Board are:
•	 Setting the strategic direction of the 
Group;
•	 Overseeing implementation of the strategy 
by ensuring that the Group is suitably 
resourced to achieve its strategic aspirations;
•	 Providing entrepreneurial leadership within 
a framework of prudent and effective 
controls which enables risk to be assessed 
and managed;
•	  Ensuring that the necessary financial 
and human resources are in place for the 
Group to meet its objectives; and
•	 Reviewing the Group’s culture supported 
by its values.
 
Board and Committee 
meetings and attendance 
Board
Audit & Risk 
Committee
Nomination 
Committee
Remuneration 
Committee
Andrew Page
6/6
2/2
Andrew Denton
6/6
Duncan Magrath
6/6
Matthew White
6/6
Steve Breach
6/6
4/4
2/2
4/4
Adrian Chamberlain
6/6
4/4
2/2
4/4
Charlotte de Metz
6/6
4/4
2/2
4/4
Chris Sullivan
6/6
4/4
2/2
4/4
How the Board operates 
During the year, the Board considers a 
comprehensive programme of regular matters 
covering operational and financial performance 
reporting, strategic reviews and updates, and 
various governance reports and approvals.
Board meetings
The Board held six scheduled meetings in 2021 
and two ad hoc meetings, for specific approvals 
and discussions. If Directors are unable to 
attend a meeting, they have the opportunity 
beforehand to discuss any agenda items with 
the Chairman. 
During the year, the Board and its Committees 
conducted most meetings in person but also 
remotely through video calls when necessary, 
enabling the Board to continue to function and 
maintain the integrity of our governance 
structure despite the ongoing pandemic. 
Although not necessary in 2021, if in the event 
that a Director is unable to attend a meeting 
they would receive all the papers for the 
meeting and be updated on matters discussed 
at the next meeting. Non-Executives meet 
without the Chairman at least annually to 
appraise the Chairman’s performance and 
Chairman also holds meetings with the 
Non-Executive Directors without the 
Executive Directors being present. 
The table below records the number of 
meetings held by the Board and each 
Committee during 2021 and the number 
of meetings attended by each member. 
There was 100% attendance at each meeting.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
81
DIVISION OF RESPONSIBILITIES

The following diagram shows the role of the Board and its Committees and Company Leadership Team:
Board of Directors
The Board is collectively responsible for the long-term success of the Company. The business of the Company is managed by the Board who may 
exercise all of the powers of the Company. The Board has a formal Schedule of Matters Reserved for the Board which is available on the Company 
website. Although the Board retains overall responsibility, it delegates certain matters to the Board Committees, and the detailed implementation 
of matters approved by the Board and the day-to-day operational aspects of the business to the Company Leadership Team.
 Audit & Risk Committee
Nomination Committee
Remuneration Committee
Reviews and reports to the Board on the 
Group’s financial reporting, internal control 
and risk management systems. Monitors the 
independence and effectiveness of the 
external auditor and the effectiveness of the 
internal audit function.
Provides succession planning for the Board and 
leads the process for all Board appointments. 
Keeps under review the membership and 
composition of the Board, including the 
combination of skills, experience and diversity, 
and ensures it remains appropriate.
Determines the remuneration, bonuses, 
long-term incentive arrangements, contract 
terms and other benefits in respect of the 
Executive Directors, the Chairman, the 
Company Secretary and senior management. 
Oversees the remuneration and workforce 
policies and takes these into account when 
setting the policy for Directors’ remuneration.
Company Leadership Team
The Company Leadership Team is responsible for the day-to-day running of the business, carrying out and overseeing operational management, 
and implementing the strategies the Board has set.
Executive Committees
These governance committees are chaired by an Executive Director and report to the Executive Group, and the Board or Board Committees 
as appropriate.
Investment Committee
Disclosure Committee
Deal Committee
The Investment Committee determines the 
Strategic Investment initiatives that should 
be undertaken. The Committee provides a 
structure through which effective decisions 
can be made on the priority and scheduling 
of Strategic Investment initiatives. 
The Committee ensures that Strategic 
Investment initiatives align with Alfa’s 
business strategy.
The Disclosure Committee determines 
whether information that is submitted to it 
requires disclosure and determines any other 
issue relating to the application of the 
Disclosure Procedures that are required.
The Deal Committee determines standard 
guidelines for an acceptable deal in terms of 
financial position and key contractual terms.
The Board responsibilities
We have clear and documented roles and separation of duties between the Chairman and the CEO. The Alfa CEO, Andrew Denton, is responsible for 
determining the Alfa strategy and day-to-day operations, and leading the CLT, which assists in the day-to-day delivery of this strategy and general 
operations. Andrew Page, as Chairman, provides oversight and guidance to Andrew Denton on the strategic direction, key commercial and contracting 
decisions in addition to his responsibilities for running an effective Board. All Directors have access to the advice of the Company Secretary.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021

The division of responsibilities between our board members is set out below:
Role
Principal responsibilities
Executive Chairman
Andrew Page
Manages and provides leadership to the Board.
Acts as a direct liaison between the Board and management, working with the CEO to assist the flow of information.
Ensures that the Directors have sufficient information to enable them to form appropriate judgements.
Develops and sets the agendas for Board meetings, working with the CEO and Company Secretary.
Recommends an annual schedule of Board and Committee meetings.
Ensures effective communications with shareholders and other stakeholders.
Chief Executive 
Officer
Andrew Denton
Responsible for the day-to-day management of Alfa.
Responsible for defining the strategy and guiding the CLT on its strategy execution, once this has been agreed by 
the Board.
Creates a framework that optimises resource allocation to deliver strategic objectives over varying timeframes.
Ensures the successful delivery against the strategic plan and other key business objectives, allocating decision making 
and responsibilities accordingly.
Identifies and executes new business opportunities and assesses potential acquisitions and disposals.
Manages the Group with reference to its risk profile in the context of the Board’s risk appetite.
Responsible for Environmental, Social and Governance (ESG).
Chief Financial 
Officer
Duncan Magrath
Overall management of the financial risks of the Group.
Responsible for financial planning and record-keeping, as well as financial reporting to the Board and shareholders.
Ensures effective financial compliance and control, while responding to regulatory developments, including financial 
reporting, effective allocation of capital, management of liquid resources, investor relations and corporate responsibility.
Responsible for the reporting of ESG.
Chief Operating 
Officer 
Matthew White
Responsible for day-to-day operational activities.
Responsible for software development. 
Responsible for systems implementation delivery.
Responsible for delivery of HR resourcing and planning.
Develops key business operational models, monitoring performance against KPIs and ensuring adequate staffing 
recruitment to deliver development and systems implementation.
Senior Independent 
Director
Chris Sullivan
An Independent Non-Executive Director.
Provides a sounding board for the Chairman and CEO.
Serves as an intermediary for the other Directors and shareholders when necessary.
Is available to shareholders if they have concerns.
Non- Executive 
Directors 
Steve Breach
Adrian Chamberlain
Charlotte de Metz
Provide constructive challenge to the Executive Directors. Help develop proposals on strategy.
Scrutinise management’s performance in meeting agreed goals and objectives.
Monitor performance reports.
Satisfy themselves regarding the integrity of financial information, and that controls and risk management systems are 
robust and defensible.
Determine appropriate levels of remuneration for Executive Directors.
Appoint and remove Executive Directors as required and review succession planning.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
83

Matters Reserved for the Board
The Board has a formal Schedule of Matters 
specifically reserved for its decision making 
and approval. The matters that the Board 
considers suitable for delegation are 
contained in the Terms of Reference of 
each Board Committee.
There are certain key responsibilities that the 
Board does not delegate and which are 
reserved for its consideration. The full 
Schedule of Matters Reserved for the Board 
is available under the Corporate Governance 
section on our website.
External commitments and conflicts 
of interest
The Company is mindful of the time 
commitment required from Non-Executive 
Directors in order to effectively fulfil their 
responsibilities on the Board, particularly 
providing constructive challenge and holding 
management to account and utilising their 
diverse skills and experience to benefit the 
Company and provide strategic guidance.
Board
Risk management 
and internal 
controls
Major capital 
commitments
Approval of 
Annual Report and 
Accounts
Company’s 
purpose, values, 
vision and culture
Corporate 
governance 
including Board 
and Committee 
evaluation
Material 
acquisitions 
and disposals
Engagement with 
key stakeholders
Business 
strategy and 
approval of 
long‑term 
aims and 
objectives
Group 
financial 
reporting  
and results 
announcements
Prior to their appointment, prospective 
Directors are asked to provide details of any 
other roles or significant obligations that may 
affect the time available for them to commit 
to the Company. The Chairman and the Board 
are then kept informed by each Director of 
any proposed external appointments or other 
significant commitments as they arise. 
These are monitored to ensure that each 
Director has sufficient time to fulfil their 
obligations and Chairman approval is required 
prior to a Director taking on any additional 
external appointment.
 Each Director’s biographical details and 
significant time commitments outside of the 
Company are set out in the Board biographies 
on pages 74 to 75.
Whenever a Director takes on additional 
external responsibilities, the Director will 
discuss the potential position with the 
Chairman and confirm that, as far as they 
are aware, there are no conflicts of interest.
Each Director is required to disclose conflicts 
and potential conflicts to the Chairman and the 
Company Secretary as and when they arise. 
As part of the induction process, a newly 
appointed Director is asked to disclose any 
conflicts of interest to the Company. Thereafter, 
each Director has an opportunity to disclose 
conflicts at the beginning of each Board and 
Committee meeting and as part of an annual 
review. None of the Directors declared to the 
Company any actual or potential conflicts of 
interest between any of their duties to the 
Company and their private interests and/or 
other duties.
The Companies Act 2006 provides that 
Directors must avoid a situation where they 
have, or can have, a direct or indirect interest 
that conflicts, or possibly may conflict, with the 
Company’s interests.
Boards of public companies may authorise 
conflicts and potential conflicts, where 
appropriate, if their company’s articles of 
association permit.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIVISION OF RESPONSIBILITIES CONTINUED

Key activities of the Board in 2021
Focus area
Key stakeholders
Activities
Link to 
strategic 
priorities
Strategy and 
operations
see pages 1 to 69
Customers
Employees
Partners
Investors
•	 Applying the Board’s strategic understanding of 
principal risks to key challenges and opportunities.
•	 Monitoring the performance of the Company 
against agreed strategic objectives, including key 
financial targets.
1
  2   3  
 4   5   6
Leadership, people 
and culture
see pages 12 to 15 
and 25
Employees
Investors
•	 Receiving updates on employee views and 
engagement levels.
•	 Maintaining and enhancing Alfa’s culture and values.
•	 Continuing to monitor senior executive talent 
management and development plans to provide 
succession for all key positions.
1
  2   3
 6
Finance
see pages 36 to 43
Customers
Employees
Community and 
Environment
Partners
Investors
•	 Reviewing and approving the budget.
•	 Reviewing financial key performance indicators (KPIs).
•	 Approving full-year results, half-year results, trading 
updates and the Annual Report.
•	 Approving a special dividend.
•	 Reviewing the key risks to Alfa and the controls in 
place for mitigation.
•	 Considering and monitoring the Group’s risk appetite 
and principal risks and uncertainties.
•	 Approving the viability and going concern statements.
•	 Developing and monitoring ESG reporting framework.
1
  2   3  
 4   5   6
Governance
see pages 70 to 127
Employees 
Customers
Investors
•	 Monitoring and reviewing the Company’s approach to 
corporate governance, its key practices and its 
ongoing compliance with the 2018 Code.
•	 Reviewing the results from the external Board 
effectiveness evaluation and setting actions.
•	 Approving updated Committees’ Terms of Reference.
•	 Receiving and considering feedback from 
shareholder engagement.
•	 Reviewing and approving the modern 
slavery statement.
1
  4   6  
Our strategic priorities
Strengthen – Grow our differentiation of 
market leading People, Product and Delivery.
1
Simplify – Simplifying our product, 
implementations and processes 
to enable more concurrent Alfa 
Systems implementations.
4
Start – Improve our offering for smaller 
auto and equipment finance providers as 
a platform for innovation and to increase 
our reach.
6
Sell – Focus on cloud-hosted, subscription 
sales to our target markets. 
2
Synergise – Develop our partner 
ecosystem, to improve our sales 
opportunities and to enable more 
concurrent Alfa Systems implementations.
5
Scale – Increase our capacity for developing 
and delivering Alfa Systems.
3
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
85

Appointments to the Board
The Nomination Committee leads the 
process for Board appointments and makes 
recommendations to the Board and also 
ensures that succession plans are in place 
for the Board and senior management. 
The formal procedure for Board 
appointments and succession planning is 
detailed in the Nomination Committee 
Report on pages 90 to 93.
Director re-election
Each Director is required under the Articles of 
Association to retire at every Annual General 
Meeting and submit themselves for re-election 
by shareholders.
At the 2021 Annual General Meeting (AGM) of 
the Company, all of the current Directors stood 
for reappointment, and were duly elected with 
majorities ranging from 99.15% to 100% of the 
votes cast.
All the Directors will retire and seek re-election 
at the 2022 AGM of the Company. This report 
and in particular the Board biographies on 
pages 74 to 75 sets forth the contribution of 
each Director on the Board to the Company 
and on this basis the Board, and specifically the 
Chairman, believes each Director proposed for 
re-election at the AGM should be reappointed. 
The Board has based its recommendations for 
re-election, in part, on its review of the results 
from the Board evaluation process outlined 
from this page, and the Chairman’s review of 
individual evaluations, and whether a Director 
has demonstrated substantial commitment to 
the role (including time for Board and 
Committee meetings noted in this report) and 
other responsibilities, taking into account a 
number of considerations including outside 
commitments and any changes thereof during 
the period.
Board composition
The composition of the Board and Board 
Committees is continually assessed to ensure 
an appropriate balance of skills and experience 
is maintained. The Board takes into account 
various considerations in assessing the 
composition of the Board including length of 
Director tenure, Board diversity, independence 
and the combination of skills and experience of 
the Directors. 
Board evaluation
The Board recognises the benefit of a thorough 
evaluation process to reflect on its strengths 
and the challenges it faces, and to identify 
opportunities to continuously improve its 
effectiveness.
Our Board evaluation process was conducted 
during the summer of 2021: 
1.	 The Board agreed that an externally 
facilitated Board effectiveness review 
should be conducted in 2021.
2.	 Discussions were initiated with three 
reputed external agencies shortlisted for 
conducting the Board effectiveness 
evaluation, and Derek Woodward and 
Mark Peters of Board Effectiveness and 
Governance Services (BE-GS) were 
selected on the basis of their proposed 
approach and Board experience. BE-GS 
does not have any other connections with 
the Company or with individual Directors. 
3.	 The CFO and Company Secretary, having 
liaised with the Chairman, discussed and 
agreed the scope of the evaluation with 
BE-GS.
4.	 BE-GS conducted individual private 
interviews with each of the Directors, 
some members of the Company 
Leadership Team (CLT) and the 
Company’s Brokers to gain insights as 
to how the Board sees itself and how it 
is perceived by others. The interviews 
with the Directors covered composition 
and the diversity of the Board; the 
breadth and depth of work programmes 
for the Board and Committees; and 
Boardroom culture. BE-GS also 
conducted a thorough desk- top review 
of Board and Committee agendas, 
papers, and minutes. 
5.	 BE-GS also conducted a separate 
evaluation of the Chairman against the 
measures identified by the Financial 
Reporting Council (FRC). This included 
interviews with each of the Directors and 
a detailed review with the SID. 
6.	 BE-GS prepared a report of its findings 
from the review and identified 
constructive forward-looking 
recommendations to enhance the 
effectiveness of the Board and 
its Committees.
7.	 The BE-GS report was first shared with 
the Chairman and the SID and was then 
presented to, and discussed by, the 
Board which agreed an action plan for 
the year ahead.
8.	 Progress against the Board’s action plan 
will be monitored by the Chairman with 
the support of the Company Secretary 
and periodic reports will be shared with 
the Board.
9.	 The Board evaluation to be conducted in 
2022 will be conducted internally but will 
reflect on the actions from the 2021 
external review.
Recognising the positive 
progress made 
The Board has made huge progress since 
it was refreshed and strengthened in 
2019/20, despite the challenges of the 
pandemic restrictions.
The Board and Committees have established 
a good rhythm of work, with the new Directors 
bringing a diverse blend of solid experience 
and skills. 
The regular information flows to the Board 
from the CEO, the CFO and the COO are high 
quality, comprehensive and consistent and are 
supplemented with quality communication 
between the Chairman and the NEDs. 
Meetings are well prepared and the cycle of 
CLT updates and separate strategy sessions 
are valued by the NEDs and provide an ongoing 
opportunity for experienced-based debate.
There is mutual respect and trust amongst the 
Board members, with the Executive Directors 
welcoming the rigour and contributions made 
by each of the NEDs. Each Director continued 
to contribute positively and effectively both 
within and outside of Board meetings. 
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
COMPOSITION, SUCCESSION AND EVALUATION

There is a positive culture amongst all the 
Directors and the Board is visible to the wider 
organisation and leads by example. There is 
clarity in the communication cascade, which 
supports understanding by staff of the strategy 
and performance, and sets expectations.
Despite being a very new Board, it worked well 
throughout the restrictions of the pandemic. 
There is a high degree of confidence in the 
Chairman and the Committee Chairs. 
The review did not identify any concerns and 
all recommendations made in the BE-GS 
report build upon a solid base of best 
practice. Based on BE-GS extensive “in the 
Boardroom” experience, all indicators 
suggest that the Board and its Committees 
are operating effectively.
On the Chairman’s evaluation against the FRC 
measures, the conclusion reached was that he 
was effective. The Directors and investors 
agree that the Chairman is seen by all (including 
himself) as being in a stewardship role, not 
exercising any undue control, and allowing the 
Board as a whole and the Executive to run 
the business.
A summary of the key assessment highlights contained in the BE-GS 2021 Board effectiveness review is set out below. 
Key assessment highlights 
Commentary
Board composition and attributes
Unanimous view that this is a high-quality Board; the size, composition and Executive/NED 
mix of the Board is optimum and comprises a solid and diverse range of skills, experience and 
knowledge. The NEDs bring a tremendous range of experience. Good Chair skills on the 
Board and Committees – high standard of technical ability.
Culture-Board and organisation
The Boardroom culture is exemplary – the Directors lead by example. There is a very open 
and equal approach, with everyone sufficiently knowledgeable, experienced and confident to 
challenge; and having the maturity to be challenged and learn.
The positive culture of the organisation shines through everything. There is clarity in the 
communication cascade, which supports understanding by staff of the strategy and 
performance, and sets expectations. The employee communication is two-way and 
encourages open engagement on performance and major decisions. The regular Pulse survey 
is one of many ways the Board keeps in touch with the culture as perceived by employees. 
Stakeholder perceptions
CLT members see the Board as value-adding and welcome the challenge and support 
provided by the external dimensions that the NEDs bring. Investors appreciate the solid 
Executive team under the stewardship of the Executive Chairman. 
Board meetings
The Directors felt there to be a good rhythm and cycle of Board meetings with well-
structured agendas and papers. There was a general feeling that the meetings were run 
efficiently due to comprehensive papers, Chair briefings and good pre-meeting preparations. 
Board information
Information flows to the Board, including a good range of metrics, are of high quality and 
consistent. Stakeholder KPIs are good, but feedback and oversight of feedback mechanisms 
could be improved.
People strategy
Progress has been made in the Board’s oversight of the Group’s people strategy and 
succession. These are recognised as essential elements of the Board’s responsibility and 
should be kept under regular review, along with diversity and the pipeline of talent below 
Board and CLT level.
Individual Directors
Each Director spoke highly of their colleagues, confirming that they brought different 
attributes to the Board’s deliberations.
Committees
The Committees perform well and, following a detailed review of their activities compared 
with their duties within their terms of reference, cover most of what are required of them.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
87

Summary of outputs and Board agreed actions
The following table presents a high-level summary of the outputs from the 2021 Board effectiveness review and the actions agreed by the Board.
A summary of the key assessment highlights contained in the BE-GS 2021 Board effectiveness review is set out below. 
Outputs from the 2021 Board Effectiveness review
Board agreed actions
Increase the focus on below Board level people strategy, talent pipeline, diversity, succession, 
and remuneration to keep pace with the execution of the strategy and organisational evolution.
Deeper dives into our people strategy will 
feature on the 2022 Board agendas.
Continue with and increase the NEDs exposure to the CLT and the wider organisation to 
exchange ideas and reinforce the Board’s presence, explain the matters reserved for decision 
by the Board and the value that it brings; such interaction will support the Board’s role in talent 
management and succession planning.
Increased engagement as opportunities 
to meet up physically open up will 
be scheduled.
The pairing between NEDs and senior managers to be further developed.
More informal interaction between NEDs 
and senior management to be arranged.
Oversight and reporting mechanisms for stakeholder feedback to the Board to be formalised.
This will be addressed as part of a more 
structured ESG reporting framework.
The Board and the Committees should develop a forward programme of work to ensure broad 
coverage, support planning and to make effective use of precious Board/Committee time.
A forward programme of work to be 
developed and agreed.
An annual review of the Committees’ activities gauged against their terms of reference to be 
conducted to ensure they have fully discharged their responsibilities.
Board’s forward programme to reflect this 
recommendation.
The cycle of CLT presentations at Board meetings and the separate programme of strategy 
development meetings to be maintained.
Board’s forward programme to reflect this 
recommendation.
Board papers (where appropriate) to build on the organisation’s culture by more clearly 
referencing the stakeholder factors which had been taken into consideration.
Where a decision is being taken the papers 
will reflect s172 factors.
The Group’s performance management system applies to management at all levels. The individual performance of the Executive Directors is 
reviewed separately by the Remuneration Committee. Further details of the Executive Directors’ performance measures and objectives and 
their achievement against them are disclosed in the Remuneration Report on pages 100 to 121. As a result of the Board Effectiveness review, 
we do not believe there is a need to change the composition of the Board at this time.
BE-GS reviewed the accuracy of the content of this disclosure in relation to their work.
88
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

Board composition 
and diversity 
As required by the Code, at least 50% of 
the Board, excluding the Chairman, are 
Independent Non-Executive Directors. 
As at 31 December 2021, the Board 
comprised the Executive Chairman, three 
Executive Directors and four Independent 
Non-Executive Directors. The Board 
considers that all the Non-Executive 
Directors, on appointment, 
are independent.
It is the Board’s policy that appointments 
to the Board will always be based solely 
on merit without any discrimination relating 
to age, gender or any other matter that has 
no bearing on an individual’s ability to fulfil 
the role of Director. 
The Board is mindful of the aims of 
the Hampton-Alexander Review, an 
independent review body which aims to 
improve women’s representation at Board 
level and in leadership roles. This principle 
of Board diversity is strongly supported by 
the Board, recognising that diversity of 
thought, approach and experience is an 
important consideration as part of the 
selection criteria used to assess candidates 
to achieve a balanced Board.
The Board is also mindful of the aims of the 
Parker Review, an independent review body 
dedicated to improving the ethnic and 
cultural diversity of UK boards to better 
reflect their employee base and the 
communities they serve. The business 
currently has no Director from an ethnic 
minority background either on the Board 
or the Executive Committee.
The Board considers that each Director is able 
to allocate sufficient time to the Company to 
discharge their responsibilities effectively.
Diversity overview
Gender diversity Board
Board composition
Gender diversity 
Company wide
Board tenure
Gender diversity  
Senior manager
Average age of the Board
 Male 
70%
 Female 
30%
 0-1 year 
0%
 1-2 years 
38%
 2-3 years 
38%
 3-4 years 
0%
 4-5 years 
24%
 Male 
87%
 Female 
13%
 40-49 
38%
 50-59 
38%
 60-69 
24%
 Executive Chair 
13%
 Executive 
37%
 Independent 
50%
 Male 
83%
 Female 
17%
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
89
COMPOSITION, SUCCESSION AND EVALUATION CONTINUED

“During 2021, the Committee continued to 
focus on the depth and breadth of the Board, 
the Company Leadership Team and senior 
management succession as a key priority.”
Chris Sullivan
Chair of the Nomination 
Committee
Attendance at meetings 
Name
Meetings 
attended
2021
Chris Sullivan (Chair)
2/2
Steve Breach
2/2
Adrian Chamberlain
2/2
Charlotte de Metz
2/2
Andrew Page
2/2
Principal activities in 2021 
•	 Considered the results of the 2020 
Nomination Committee evaluation.
•	 Reviewed the structure, size and 
composition of the Board and 
its Committees.
•	 Considered wider elements of 
succession planning for the Board and 
the levels below, including how to 
increase diversity.
•	 Evaluation of Directors (all of whom are 
proposed for re-election at the AGM).
Areas of focus for 2022
•	 Monitor Board composition for 
alignment of relevant skills, experience 
and diversity to Company strategy.
•	 Oversight of the CLT’s development and 
succession planning.
Dear shareholders,
I am pleased to introduce the Nomination 
Committee (the ‘Committee’) Report for 
2021 which summarises our key activities 
during the year.
During 2021, the Committee continued to 
focus on the depth and breadth of the Board, 
the Company Leadership Team and senior 
management succession as a key priority.
The Committee maintains a well-defined 
specification for each appointment, with a 
clear understanding of the values required to 
help the effective functioning of the whole 
Board. When considering the composition of 
the Board, we keep under review the skills and 
experience required to fulfil the Board’s 
strategy, to make suitable recommendations 
based on those key attributes.
The Nomination Committee monitored the 
membership of all of the Board’s Committees 
following the appointments in 2020 of Adrian 
Chamberlain and Charlotte de Metz and 
remain satisfied with their composition.
Succession planning
Succession planning for the Executive 
Directors and Company Leadership Team 
(CLT) remains a particular focus of the 
Committee. In addition, the Committee has 
continued to monitor the CLT and senior 
management talent pool to ensure that 
succession planning for business-critical 
roles is proactively reviewed.
The Board considered the implications of the 
requirements relating to the development of a 
diverse pipeline for succession for the Board 
and the CLT contained within the 2018 Code. 
Discussions were held about initiatives taken to 
increase the diversity in the hiring process, 
including drawing on NEDs experience in other 
organisations of attracting diverse talent.
Chris Sullivan
Chair of the Nomination Committee
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
NOMINATION COMMITTEE REPORT

Role of the Committee
The Nomination Committee is responsible for 
ensuring that the Board and its Committees 
have the appropriate balance of skills, 
knowledge and experience to effectively lead 
the Company both now and in the future. 
This is achieved through effective succession 
planning, the identification and development 
of internal talent and a clear understanding of 
the competencies and capabilities required to 
support the delivery of Alfa’s strategy.
The Committee undertakes comprehensive 
reviews of the leadership needs of the 
Company, from both Executives and Non-
Executives, to ensure the continued ability of 
the organisation to compete effectively in the 
marketplace, and keeps informed of the 
strategic issues and commercial challenges 
affecting the Company and the market in 
which it operates.
The Committee regularly undertakes a review 
of its Terms of Reference to ensure that it 
reflects the actual role carried out by the 
Committee and that it is operating effectively. 
The Board reviewed and approved minor 
revisions to the Terms of Reference in 
December 2021.
Appointment of Directors
There is a formal, rigorous and transparent 
procedure for the appointment of new 
Directors under which the Committee is 
responsible for leading this process and making 
recommendations to the Board. The search 
process for new Non-Executive Directors is to 
appoint an external search firm to secure a 
strong and diverse list of candidates. A shortlist 
of candidates is shared with the Committee, 
meetings are scheduled and then, once the 
candidates have been identified, confirmation 
is provided of the time commitment required 
and disclosure of any other business interests. 
If discussions relate to the appointment of a 
Chairman then Chris Sullivan, as Senior 
Independent Director, will lead the recruitment 
process. When the Committee has found a 
suitable candidate, the Chair of the Committee 
makes a proposal to the whole Board, which 
retains responsibility for all such appointments.
The Committee, on behalf of the Board, 
regularly assesses the balance of Executive and 
Non-Executive Directors, and the composition 
of the Board in terms of skills, experience, 
diversity and capacity. 
Diversity
Alfa seeks to have a workforce which reflects 
the world we and our customers live in, whilst 
facilitating the delivery of our strategic goals. 
The Board and the Committee believe that 
diversity is a wider topic than simply gender 
and, in order to achieve the Group’s future 
growth aspirations, Alfa should remain 
committed to building a pipeline of diverse 
talent and regularly reviewing HR processes, 
including recruitment and performance 
management frameworks.
The Committee will take into account a variety 
of factors before recommending any new 
appointments to the Board, including relevant 
skills to perform the role, experience, 
knowledge and diversity. Alfa endeavours to 
achieve appropriate diversity, including gender 
diversity, throughout the Company.
The Committee embraces the importance 
of inclusion and diversity and supports the 
recommendations of the Hampton-Alexander 
Review on gender and the Parker Review on 
ethnic diversity. However, we acknowledge that 
currently our Board does not comply with the 
recommendations and recognise that there is 
always more we can do, and will continue to 
work to build a more inclusive workplace at 
all levels of the Company. It is part of the 
Committee’s remit when making new Board 
appointments to consider the importance of 
diversity on the Board, including gender and 
ethnicity. This is considered in conjunction with 
experience and qualifications in relation to the 
balance of the Board and its Committees.
CORPORATE GOVERNANCE
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91

Board succession
The Committee keeps under review the 
leadership needs of the organisation, both the 
Executive and Non-Executive Directors, with a 
view to ensuring the continued ability of the 
organisation to compete effectively in the 
marketplace. In addition, the Committee 
reviews the succession plans for the Company 
Leadership Team and the senior management 
structure, and employees identified by 
management as having the potential to develop 
in the longer term into future leaders of the 
business, taking into account future challenges 
and opportunities.
Independence
During 2021, the Committee reviewed the 
balance of skills, experience and independence 
of the Board. For Non-Executive Directors 
independence in thought and judgement is vital 
to facilitating constructive and challenging 
debate in the boardroom and is essential to the 
operational effectiveness of the Alfa Board and 
its Committees.
The Committee is satisfied that the external 
commitments of the Board’s Chairman and 
members do not conflict with their duties as 
Directors of the Company. After the year end, 
the Committee also considered the Directors 
proposed for re-election by shareholders at the 
AGM. Following discussion of the skills and 
contribution of each Director, and in 
conjunction with the Board performance 
evaluation, the Committee supports the 
proposed re-election of all Directors standing 
for re-election at the AGM in 2022.
Induction and ongoing 
professional development 
To ensure that each Director receives 
appropriate support on joining the Board, 
there is a comprehensive and tailored induction 
programme, including the provision of 
background material on the Company and 
briefings with relevant CLT members. The  
induction programme will continue to be 
reviewed and updated on a regular basis.
For professional ongoing development, the 
Board receives presentations relevant to the 
Company’s business and updates on any 
changes to markets, or regulations, which may 
affect the Company’s operations. 
The Company Secretary supplies all Directors 
with information on relevant corporate 
governance and best practice. As part of their 
annual performance evaluation, Directors are 
given the opportunity to discuss training and 
development needs. The Committee is 
confident that Board members have the 
knowledge, ability and experience to perform 
the functions required of a Director of a 
listed company.
External directorships
The Board believes, in principle, in the benefit 
of Executive Directors accepting non-executive 
directorships of other companies in order to 
widen their skills and knowledge for the benefit 
of the Company. All such appointments require 
the prior approval of the Board and the number 
of public company appointments is limited to 
one. There were no external appointments in 
relation to the Executive Directors during 2021.
Conflicts of interest
The Board operates a policy to identify and, 
where appropriate, manage any potential 
conflicts of interest that Directors may have. 
It is the role of the Committee to monitor and 
determine actions to address any potential, or 
actual, conflicts that may arise. The Committee 
reviews all potential conflicts of interest on an 
annual basis and when new Directors are 
formally appointed. No conflicts of interest 
were noted in the year and to the date of this 
Annual Report.
Reappointment of Directors 
The reappointment of Directors is subject to 
their continuing commitment to Board 
activities and satisfactory performance. 
All Directors will stand for re-election annually 
in accordance with the provision of the 2018 
Code. The Committee has confirmed to the 
Board that the contributions made by the 
Directors offering themselves for re-election 
at the 2022 AGM continue to benefit the 
Board and the members are invited to support 
their re-election.
Non-Executive Directors are appointed initially 
for three years and Non-Executive Directors 
may, subject to Board approval, remain in office 
for a period of up to six years, or two terms in 
office, with discretion for the Board to extend 
the term for one further three-year term, to a 
maximum of nine years.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
NOMINATION COMMITTEE REPORT CONTINUED

Annual evaluation
The performance of the Committee has 
been assessed as part of the external Board 
evaluation conducted during summer/autumn 
2021 by Board Effectiveness and Governance 
Services (BE-GS). The results of the evaluation 
of the Board and its Committees were 
subsequently discussed in entirety and areas 
identified to develop the effectiveness of the 
Committee further. Information on the process 
can be found on pages 86 to 88.
Focus for 2022
Board membership and succession will 
continue to be high on the agenda moving into 
2022. The Committee will continue to take an 
active interest in the succession planning and 
future leader identification processes for those 
immediately below Board level sitting on the 
CLT, as well as monitoring progress on diversity 
to ensure that any succession plans incorporate 
an appropriate balance of diversity, skills 
and experience.
Chris Sullivan
Chair, Nomination Committee
8 March 2022
CORPORATE GOVERNANCE
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93

“Alfa’s financial control environment and 
governance framework has seen progressive 
enhancements during the year, in particular 
around the timeliness and accuracy of reporting 
and forecasts.”
Steve Breach
Chair of the Audit and 
Risk Committee
Attendance at meetings 
Name
Meetings 
attended
2021
Steve Breach (Chair)
4/4
Adrian Chamberlain
4/4
Charlotte de Metz
4/4
Chris Sullivan
4/4
The Committee’s members are all Independent 
Non-Executive Directors.
Principal activities in 2021 
•	 Reviewed the 2020 year-end financial 
statements and Annual Report.
•	 Reviewed the half-year financial results 
and trading updates.
•	 Approved the Company’s risk 
management framework, risk appetite 
and risk register.
•	 Reviewed key findings from 2021 
internal audits and approval of the 2022 
internal audit plan.
•	 Review of Information and Cyber 
Security governance and organisation.
•	 Tax compliance status review.
•	 Reviewed Internal & External 
Audit effectiveness.
•	 Considered key accounting matters.
Areas of focus for 2022
•	 Continued to monitor legislative and 
regulatory changes that may impact the 
work of the Committee.
•	 Considered the impact of proposed 
audit industry changes.
•	 Continued with oversight of internal 
audit activities and findings. 
•	 Monitored the continued progressive 
enhancements to Alfa’s systems and 
internal controls.
Dear shareholders,
I am pleased to present our Audit and Risk 
Committee Report for the year ended 
31 December 2021. The Report explains the 
work of the Committee during the year, as well 
as setting out expected key areas of focus 
for 2022.
The Committee has an annual work plan linked 
to the Company’s financial reporting cycle, 
which ensures that it considers all matters 
delegated to it by the Board.
We have continued to review and challenge the 
assumptions and judgements made by 
management in the preparation of published 
financial information and to oversee the 
internal control environment, including 
oversight of the external and internal audit 
processes. Throughout the year, the 
Committee’s primary focus has been to 
maintain the integrity and transparency of the 
Company’s internal and external financial 
reporting. We have continued to spend time 
assessing the application of IFRS 15 ‘Revenue 
from Contracts with Customers’, alongside 
careful consideration of the Company’s risk 
management framework, internal controls and 
management information systems.
It has been pleasing to see that the Company 
has continued to make progress during the year 
improving the timeliness and accuracy of 
reporting and forecasts. Importantly, these 
improvements have continued during an 
extended period of remote working which has 
existed since the date of the last report.
Committee members’ skills and experience 
are set out on pages 74 to 75 . The Board is 
satisfied that the Committee meets the 
requirement to have recent and relevant 
financial experience and that, as a whole, its 
members have experience of the auto and 
equipment finance and enterprise software 
sector and corporate governance.
This year the Board undertook an external 
evaluation of the effectiveness of the Board 
and Board Committees, including this 
Committee, in accordance with the 
requirements under the 2018 Code and you 
can read more about this on pages 86 to 88. 
As a result of its work during the year, the 
Committee has concluded that it has acted in 
accordance with its Terms of Reference.
Steve Breach
Chair of the Audit and 
Risk Committee
94
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
AUDIT AND RISK COMMITTEE REPORT

Key responsibilities 
of the Committee
The Board has delegated to the Committee 
responsibility for overseeing financial reporting, 
the review and assessment of the effectiveness 
of the internal control and risk management 
systems and maintaining an appropriate 
relationship with the external auditor. 
The Committee has adopted Terms of 
Reference, which are available to view at 
investors.alfasystems.com. The Terms of 
Reference provided the framework for the 
Committee’s work in the year and key 
responsibilities of the Committee are 
summarised as follows:
•	 Overseeing the relationship with the 
Company’s external auditor, monitoring 
its effectiveness and independence and 
making recommendations to the Board in 
respect of its remuneration, appointment 
and removal. The Committee also reviews 
the findings from the external auditor, 
including discussion of significant 
accounting and audit judgements, 
levels of errors identified and overall 
effectiveness of the audit process.
•	 Reviewing the financial statements of 
the Company, including its annual and 
half-yearly reports and, if applicable, any 
other formal announcements relating to 
its financial performance. The Committee 
will also consider significant financial 
reporting issues, accounting policies and 
key areas of judgement or estimation. 
This review also includes consideration 
of the clarity and completeness of 
disclosures on the information presented 
in the financial statements.
•	 Overseeing the accounting principles, 
policies and practices adopted by 
the Company.
•	 Monitoring and reviewing internal audit 
activities, reports and findings.
•	 Reviewing the effectiveness of the 
Company’s system of internal financial 
controls and internal control systems.
•	 Advising the Board on the Company’s risk 
strategy, risk policies and current and 
emerging risk exposures, including the 
oversight of the overall risk management 
framework and systems.
•	 Assessing the adequacy and security 
of the Company’s arrangements for its 
employees and contractors to raise 
concerns, in confidence, about possible 
wrongdoing in financial reporting or other 
matters and to ensure proportionate and 
independent investigation of such matters.
•	 Making recommendations to the Board 
as it deems appropriate on any area within 
its remit where action or improvement 
is required.
Meetings
During the year, the Committee met four times 
and met privately with the external auditor 
once. The Committee operates to a forward 
agenda linked to the financial calendar which 
ensures that the responsibilities and duties of 
the Committee are discharged in accordance 
with the Terms of Reference and the 
requirements of the UK Corporate 
Governance Code.
In addition to the Committee members, by 
invitation, the meetings of the Committee may 
be attended by the CFO. The Chairman of the 
Board, CEO and COO may also attend 
meetings. The Company’s external auditor and 
the internal audit services provider are also 
present at all Committee meetings, to ensure 
full communication of matters as they relate to 
their respective responsibilities. At the end of 
each Committee meeting, Committee 
members have the opportunity to meet with 
the external auditor (and, where appropriate, 
the internal auditor) for a private discussion 
regarding the audit process and relationship 
with management.
The Chair of the Committee holds regular 
meetings with the external auditor, which has 
an opportunity to discuss matters with the 
Committee without management being 
present and also with the CFO (who has 
responsibility and custody of the internal 
audit function).
Meetings of the Committee are scheduled 
close to the end of the half and full year, as well 
as before the publication of the associated 
half-year and full-year financial reports, so as to 
ensure the Committee is informed fully, on a 
timely basis, on areas of significant risks and 
judgement. The Board has confirmed that it is 
satisfied that Committee members possess an 
appropriate level of independence and depth 
of financial and commercial expertise. For the 
year ended 31 December 2021, Steve Breach, 
the Chair of the Committee, was determined 
by the Board as having recent and relevant 
financial experience.
The Committee is satisfied that it receives 
sufficient information and has access to 
relevant and timely management personnel to 
allow the Committee members to engage in an 
informed debate during Committee meetings 
and to fulfil its responsibilities.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
95

Significant financial 
reporting judgements 
As part of its monitoring of the 
integrity of the financial 
statements, the Committee 
reviews whether suitable 
accounting policies have been 
adopted and whether 
management has made 
appropriate estimates and 
judgements and seeks support 
from the external auditor to 
assess them. The Committee 
considered the following 
significant judgements and 
other areas of audit focus in 
respect of the financial 
statements for the six months 
ended 30 June 2021 and year 
ended 31 December 2021. 
These areas have been 
identified as being significant 
by virtue of their materiality or 
being accounting items which 
are new for the current 
financial year or the level of 
judgement and/or estimation 
involved. In order to ensure the 
approaches taken were 
appropriate, the Committee 
considered reports from both 
management and the external 
auditor. The Committee 
challenged judgements and 
sought clarification where 
necessary. The Committee 
received a report from the 
external auditor on the work it 
had performed to arrive at its 
conclusions and discussed in 
detail all material findings 
contained within the report.
Area of focus
Assessment
Revenue recognition
The Group’s operations include complex software implementation 
programmes and service activities.
The delivery of these contracts typically extends over more than one 
reporting period, and often the original project plans are amended as the 
implementation programme progresses. In addition, from time to time, 
the Company is entitled to one-off licence income uplifts or changes to 
maintenance income entitlements. Contract modifications also occur 
from time to time.
In recognising revenue, management must apply a number of 
judgements to allocate the overall transaction price across the multiple 
performance obligations that have been identified within these projects.
Estimates are applied in this assessment for example when assessing the 
stand alone selling price.
Development costs
The Group continues to invest in the development of the Alfa Systems 
product. The majority of development effort is undertaken in 
partnership with customers and therefore is specific to that 
implementation or customer’s process.
Judgement is required to assess whether any development is 
substantially new in either design or functionality, and whether it would 
be commercially viable in the open market. Therefore, management 
assesses the likelihood of capitalisation of such costs prior to initiation of 
the investment project and also performs bi-annual assessments of the 
development work that has been undertaken to determine if it meets the 
criteria set out in IAS 38 for capitalisation.
Goodwill and carrying value 
of investments
The Group has goodwill on its balance sheet and the Company holds 
investment in subsidiaries. These need to be reviewed annually to 
ensure that the recoverable amount exceeds the book value , and in the 
case of investment in subsidiaries also to see if a previous impairment 
should be reversed.
Going concern and 
viability statement
The Directors must satisfy themselves regarding the Group’s long-
term viability and confirm that they have a reasonable expectation 
that the Group will continue to operate and meet its liabilities as they 
fall due for the foreseeable future.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
AUDIT AND RISK COMMITTEE REPORT CONTINUED

Review of the Committee
Conclusion/Action taken
In advance of the half year and full year the Committee received reports 
from management that outlined the key judgements that were likely to 
be required to be included in the results. These reports were reviewed 
and the key points within them, including key sources of estimation 
uncertainty, were discussed, with the external auditor commenting 
where relevant.
As part of the process of approving the issuing of the half-year and 
full-year results these reports were updated and issued by management 
to the Committee with management’s final positions documented. 
These were considered carefully by the Committee in conjunction with 
input from the external auditor.
The Committee agreed with the revenue judgements adopted by 
management in preparing the results.
The Committee reviewed reports from management detailing the costs 
that had been identified as appropriate for capitalisation.
The Committee noted that the amounts being capitalised remained 
relatively modest compared with the total expenditure on the product 
during the period. The Committee concurred with management’s 
approach on the amounts to be capitalised.
The Committee reviewed and challenged management’s 
impairment assessment.
The Committee agreed that no impairment was required in the current 
year for both goodwill and the carrying value of the investment in 
subsidiaries. In light of the investment’s good performance in the year, 
the Committee agreed that the impairment recognised in 2018 should 
be reversed in the company only financial statements of Alfa Financial 
Software Holdings PLC.
The Committee reviewed management’s budget and forecasts, including 
an overview of the assumptions made in the preparation of the base case 
supporting the going concern and viability statement. This included the 
Group’s 2022 budget and also plans for 2023 and 2024.
The Committee discussed and challenged the budget and forecasts 
before agreeing with the reasonableness of the three-year period. 
The Committee assessed this in light of the principal risks and 
uncertainties, including the impact of COVID-19, as disclosed on pages 
46 to 51 in the Strategic report.
The Committee discussed and challenged the downside scenarios 
modelled as part of the Viability statement as disclosed on pages 52 to 
53 in the Strategic report, the funding headroom available, the feasibility 
of mitigating actions, the dividend policy and share-buy back 
programme, and the speed of implementation of any cost-saving 
measures following future management decision‑making.
The Committee noted the 2018 Code requirement for the Directors to 
state whether they consider it appropriate to adopt the going concern 
basis of accounting for a period of at least 12 months from the date of 
approval of the 2021 financial statements.
Following this evaluation and analysis, the Committee was satisfied 
with the judgements made and that the continued use of the going 
concern basis was appropriate, and the viability statement was 
prepared appropriately.
CORPORATE GOVERNANCE
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97

Fair, balanced and 
understandable
The Committee has undertaken a careful 
review to ensure that the Annual Report is 
‘fair, balanced and understandable’ and 
provides the necessary information for 
shareholders to assess the Company’s 
consolidated position, performance, 
business model and strategy, in line with 
the requirements of the 2018 Code. 
The Committee members were consulted 
at various stages during the drafting process 
and provided input at the planning stage, as 
well as having the opportunity to review the 
Annual Report as a whole and discuss, prior 
to the March 2022 Committee meeting, any 
areas requiring additional clarity or better 
balance in the messaging. In forming its 
opinion and recommendation to the Board 
in respect of the above matters, the 
Committee assessed the following:
•	 A qualitative review of disclosures and 
a review of internal consistency throughout 
the Annual Report and Accounts;
•	 A review by the Committee of all material 
matters, as reported elsewhere in this 
Annual Report and Accounts;
•	 A risk-comparison review, which assesses 
the consistency of the presentation 
of risks, and significant judgements 
throughout the main areas of risk 
disclosure in this Annual Report 
and Accounts;
•	 A review of the balance of good and bad 
news; and
•	 Ensuring it correctly reflects:
•	 the Company’s position and 
performance as described on pages 137 
to 172;
•	 the Company’s business model, as 
described on pages 18 to 19; and
•	 the Company’s strategy, as described 
on pages 22 to 35.
On the basis of this work, together with the 
views expressed by the external auditor, the 
Committee recommended, and in turn the 
Board confirmed, that it could make the 
required statement that the Annual Report 
is ‘fair, balanced and understandable’.
Risk management
The Board has overall responsibility for 
determining the nature and extent of its 
principal and emerging risks and the extent 
of Alfa’s risk appetite, and for monitoring 
and reviewing the effectiveness of the 
Company’s systems of risk management and 
internal control. Further details of the risk 
management objectives and process are 
on pages 44 to 45. The principal risks and 
uncertainties facing the Company are 
addressed in the Strategic report in the table 
on pages 46 to 51. The Board has delegated 
to the Committee the responsibility for 
monitoring the effectiveness of the systems 
of risk management.
Internal control
The Board determines the objectives and 
broad policies of the Company and meets 
regularly, when a set schedule of matters which 
are required to be brought to it for decision is 
discussed. Overall management of the 
Company’s risk appetite, its tolerance to risk 
and discussion of key aspects of execution of 
the Company’s strategy remain the 
responsibility of the Board. The Board has 
delegated to the Audit and Risk Committee 
the responsibility for overseeing the system 
of internal controls to ensure these are 
appropriate to the business environments 
in which the Company operates.
Key elements of this system include 
the following:
•	 A clearly defined organisation structure for 
monitoring the conduct and operations of 
the business.
•	 Clear delegation of authority throughout the 
Company, starting with the matters reserved 
for the Board.
•	 A formal process for ensuring that key risks 
affecting operations across the Company are 
identified and assessed on a regular basis, 
together with the controls in place to mitigate 
those risks. Risk consideration is embedded in 
decision-making processes at all levels and the 
most significant risks are periodically reviewed 
by the Board. The risk process is reviewed by 
the Audit and Risk Committee.
•	 The preparation and review of the 
annual budget.
•	 The monthly reporting of actual results 
and their review against the budget, 
forecasts and the previous year, with 
explanations obtained for all 
significant variances.
•	 Controls in respect of financial reporting 
and the production of the consolidated 
financial statements are well established. 
Group accounting policies are consistently 
applied and review and reconciliation 
controls operate effectively.
•	 The Finance Manual which outlines key 
control procedures and policies to apply 
throughout the Company. This includes 
clearly defined policies and escalating 
authorisation levels for all procurement 
activity including capital expenditure 
and investment.
During 2021 the Board, through the 
Committee, has continued to monitor the 
company’s risk management and internal 
control and it has also reviewed their 
effectiveness. Throughout 2021 Alfa’s financial, 
operational and compliance controls continued 
to operate as intended. 
Internal audit
The Audit and Risk Committee supports the 
Board in fulfilling its responsibilities to review 
the activities, resources, organisational 
structure and operational effectiveness of the 
internal audit activities. Following discussion 
with the Committee Chair and the CFO, BDO 
LLP presents its internal audit plan for approval 
to the Committee before the start of each new 
financial year and will provide an update and 
further plans at the mid-year stage.
The Committee monitored and reviewed the 
scope, extent and effectiveness of the internal 
audit plan in line with the Company’s key risks 
and strategy. Internal audit is a standing agenda 
item at each Committee meeting and BDO 
LLP presents an update on audit activities, the 
progress of the audit plans and the outcomes 
of all audits with action plans to address any 
issues. Activities of internal audit during 2021 
included the following areas of focus:
•	 Post implementation review for US financials 
system change
•	 IT Procurement review
•	 Payroll review
•	 ESG review
•	 Follow up on prior recommendations.
98
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
AUDIT AND RISK COMMITTEE REPORT CONTINUED

The Committee performed an effectiveness 
review of internal audit during the year. 
As part of this review referenced above, and 
considering management’s opinion, the 
Committee was satisfied that the internal audit 
function remains effective and fit for purpose.
External Audit
The Committee oversees the Company’s 
relationship with, and the performance 
of, the external auditor. This includes 
responsibility for monitoring its 
independence, objectivity and compliance 
with ethical and regulatory requirements. 
The Committee is the primary contact with 
the external auditor. The Committee also has 
responsibility for approving the nature of 
non-audit services which the external auditor 
may or may not be allowed to provide to the 
Company and the fees paid for these services 
(subject to de minimis levels).
Independence and performance 
of the external auditor
The Committee is responsible for reviewing 
the independence of the Company’s external 
auditor, RSM, agreeing the terms of 
engagement and the scope of its audit. 
RSM has a policy of partner rotation, 
which complies with regulatory standards, 
and RSM operates a peer review process 
for its engagements, to ensure that its 
independence is maintained. The Committee 
reviewed a report from the external auditor 
describing its arrangements to identify, 
report and manage any conflicts of interest.
Maintaining an independent relationship with 
the Company’s external auditor is a critical 
part of assessing the effectiveness of the 
audit process. The Board has approved a 
policy which is intended to maintain the 
independence and objectivity of the external 
auditor. The policy, which was updated in the 
year, governs the provision of audit, audit-
related services and non-audit services 
provided by the auditor. Committee approval 
is required for any service with an expected 
cost in excess of £10,000. During 2021, the 
external auditor confirmed to the Committee 
that it did not provide any non-audit or 
additional services other than for the 
half-year review that could lead to its 
objectivity and independence being 
compromised on behalf of the Company. 
Details of audit, audit-related fees and 
non-audit fees are included in note 9 to 
the consolidated financial statements.
The Committee notes that audit partner 
rotation every five years facilitates 
independence and objectivity within the 
external audit team. The current External 
Audit Engagement Partner is Graham 
Ricketts, who was appointed to lead the 
audit in July 2020. The Committee is satisfied 
with the performance and effectiveness of 
RSM as external auditor, taking into account 
the Committee’s own assessment and 
feedback. The Committee has concluded 
that RSM displays the necessary attributes 
of independence and objectivity.
Assessment of the audit 
process 
The scope of the external audit is formally 
documented by the auditor. It discusses the 
draft plan with management before it is 
referred to the Committee, which reviews its 
suitability and holds further discussions with 
management and the auditor before final 
approval. The Committee has reviewed the 
quality of the audit plan and related reports for 
the 2021 audit and is satisfied with the quality 
of these documents. 
The Committee discussed the quality of the 
half-year review and audit work since RSM’s 
appointment and considered the performance 
of the external auditor, taking into account 
feedback from various stakeholders across the 
business and the Committee’s own assessment. 
The evaluation focused on: robustness of the 
audit process; quality of delivery; reporting; 
and people and services. The Committee 
reviewed the independence of the external 
auditor and concluded that it complies with UK 
regulatory and professional requirements and 
that its objectivity is not compromised.
The Committee does not intend to put 
the external audit out to tender in the coming 
financial year as the appointment 
of RSM occurred in 2020 and therefore 
the Company has complied with the 
Competitions and Markets Authority 
requirement in relation to audit tenders every 
10 years. The Committee will continue to keep 
this under review as part of its review of 
effectiveness of the external auditor.
Going concern and 
viability statements
The Committee reviewed the updated 
wording of the Company’s longer-term 
viability statement, set out on pages 52 
to 53. To do this, the Committee ensured 
that the financial model used was consistent 
with the approved three-year plan and that 
scenario and sensitivity testing aligned 
clearly with the principal risks of the 
Company. Committee members challenged 
the underlying assumptions used and 
reviewed the results of the detailed work 
performed. The Committee was satisfied 
that the analysis supporting the viability 
statement had been prepared on an 
appropriate basis. The Committee also 
reviewed the going concern statement, 
set out on page 126 and confirmed its 
satisfaction with the testing methodology.
Assessment of the 
effectiveness of the 
Committee
The Committee’s effectiveness in respect 
of 2021 was evaluated as part of the 
external review described on pages 86 to 88. 
The key issues that were identified in the 
Committee evaluation were discussed by 
the Committee to ensure these were 
adequately addressed and the Chair 
provided an update where appropriate.
Focus for 2022
In 2022, as well as the regular cycle of 
matters that the Committee schedules for 
consideration each year, the Committee 
will continue to monitor legislation and 
regulatory changes, including those that 
affect the audit market that may impact the 
work of the Committee. The Committee will 
also continue with oversight of internal audit 
activities and findings as well as monitoring 
the continued progressive enhancements to 
Alfa’s systems and internal controls.
Steve Breach
Chair, Audit and Risk Committee
8 March 2022
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
99

“We want to ensure the overall remuneration 
structure remains fit for purpose in light of 
evolving circumstances, but also aligned with 
the interests of other stakeholder groups, notably 
our employees.”
Adrian Chamberlain
Chair of the Remuneration 
Committee
Attendance at meetings 
Name
Meetings 
attended
2021
Adrian Chamberlain (Chair)
4/4
Chris Sullivan
4/4
Steve Breach
4/4
Charlotte de Metz
4/4
The Committee’s members are all Independent 
Non-Executive Directors. 
Principal activities in 2021 
•	 Working with COO and CPO on developing 
a new structure for Executive Director and 
Leadership personal objectives.
•	 Setting the annual bonus targets for the 
Executive Directors for the financial year 
2021 and measuring performance against 
them (following the year end).
•	 Approving LTIP awards to employees, and 
the targets attached to these.
•	 Reviewing and recommending for 
approval the revised Terms of Reference 
of the Committee.
•	 Launch of all-employee share plans in 
the UK (SAYE) and USA (ESPP).
Areas of focus for 2022
•	 Approval of bonus performance measures 
and targets for 2022.
•	 Approval of performance conditions and 
awards under the Company’s LTIP for 2022.
•	 Review of any issues raised by shareholders 
in relation to remuneration and the 
Remuneration Policy.
•	  Assessment of the ongoing 
appropriateness of the remuneration 
arrangements in light of remuneration 
trends and market best practice.
Dear shareholders,
I am pleased to present our Directors’ 
Remuneration Report for the year ended 
31 December 2021. I would like to thank 
Chris Sullivan, Steve Breach and Charlotte 
de Metz for their contribution to the 
Committee’s work during 2021.
During 2021 COVID-19 continued to have 
an impact on the operating environment. 
The Remuneration Committee took a 
decision to ignore its potential effects in 
2020 when setting short and long-term 
targets; reflecting our belief in the business’s 
robustness and prospects.
In 2021 we continued to believe this approach 
was appropriate. The 2021 bonus and 2021 
LTIP targets were set against this background. 
During the course of 2021 the Committee 
decided not to scale back rewards or adjust 
targets as a result of the pandemic.
 
Like many Remuneration Committees we 
relied on internal and external guidance in 
light of the effects the pandemic had in every 
area of our lives. As is our duty to all Alfa 
stakeholders, we want to ensure that the 
overall remuneration structure remains fit for 
purpose in light of evolving circumstances, 
but also aligned with the interests of other 
key stakeholder groups, notably our 
employees. This included the launch of new 
all-employee share plans in the UK (SAYE) 
and USA (ESPP), designed to encourage and 
widen employee share ownership.
The Committee has spent time ensuring 
that our approach to remuneration 
continues to remain in line with market 
changes and corporate governance 
developments. The Committee continued 
to carry out its usual role in ensuring 
remuneration outcomes and decisions are 
appropriate in the wider business context.
100
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIRECTORS’ REMUNERATION REPORT

Company performance in 2021
The Company saw a strong financial and 
operational performance in 2021. 
Revenues were up 5% on the prior year at 
£83.2m (2020: £78.9m) and operating 
profit increased by £0.8m to £24.7m 
(2020: £23.9m). At constant currency 
revenue grew 9% with operating profit up 
10%. For a comprehensive overview, I would 
direct readers to the Strategic report on 
pages 1 to 69.
During 2021 the Company did not furlough any 
employees or access any Government support. 
We also redirected time and resources to 
develop a programme of wellbeing resources, 
activities and events to support our employees 
through a difficult period.
In November 2021, following Board 
approval, we were once again delighted 
to announce the declaration of a special 
dividend. This returned £29.7m to 
shareholders and was positively received.
Performance outturns for 2021 
The Committee approved the 2021 bonus 
outcomes for the Executive Directors, 
reflecting the company’s strong operational 
and financial performance. Operating profit 
and revenue performance both significantly 
exceeded the ranges set, and the free cash 
flow modifier was achieved, warranting 100% 
pay-out of the bonus’s financial elements.
The Committee also assessed the 
performance of each of the Executive 
Directors against their personal objectives, 
It concluded that pay-outs of between 
target and maximum were warranted for 
the CFO and COO.
The CFO was awarded 70% of maximum, 
the COO 73% of maximum. More  
information on how the annual bonus 
for 2021 was determined is provided 
on page 113.
The Executive Chairman and the CEO have 
separately advised the Committee that, due 
to their significant shareholding in the 
Company, they wish to waive their eligibility 
for a bonus in respect of the performance 
year 2021 and for any Long Term Incentive 
Plan (LTIP) award for the performance 
period beginning January 2022. 
Shareholders will be aware that the 
Executive Chairman and CEO also waived 
any entitlement for all performance years 
since the IPO in 2017. The Committee 
places on record its thanks to the Executive 
Chairman and the CEO for waiving their 
bonus and LTIP entitlements, which helps 
the Committee broaden share ownership 
to selected Company employees.
More broadly, the Committee is satisfied 
with Alfa’s response to the COVID-19 
pandemic and the impact this had on the 
experience of all key Alfa stakeholders 
during the year – including shareholders, 
employees and customers. The Committee 
has therefore not exercised any discretion in 
relation to the outcome of the variable pay 
schemes, or to overall remuneration levels.
The second LTIP awards for Executive 
Directors and members of the Company 
Leadership Team were awarded in April 
2021 and the performance against the 
targets for both relative total shareholder 
return (TSR) and earnings per share (EPS) 
growth over the three years to December 
2023 will be reviewed regularly.
2021 Policy and 
implementation
As required by the reporting regulations, 
the Remuneration Policy was submitted to 
a binding vote at the 2021 AGM, this being 
the third anniversary of its adoption. 
During 2021, the Committee debated 
the existing remuneration arrangements. 
On balance we decided that the current 
approach remained well suited to Alfa’s 
strategic intentions. The Policy that was put 
to shareholders at the 2021 AGM remained 
largely unchanged.
Further details on our Remuneration Policy 
are described on pages 103 to 111. 
At the end of 2021, the Chairman and CEO 
requested that the Committee approve 
their proposal to reduce their salaries, bonus 
and shares to the legal minimum level. 
Both the Chairman and CEO are significant 
shareholders in the Company and expressed 
a desire to align their future remuneration 
with those of the other shareholders.
The Committee members were supportive 
of the proposal and approved it effective 
1 December 2021.
Therefore, for the upcoming year, salaries 
for the Chairman and CEO will reflect the 
National Living Wage. Salaries for the CFO 
and COO will remain unchanged. 
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
101

The opportunities available under the 
annual bonus will be 0% of salary for the 
CEO and remain at 125% of salary for the 
CFO and 100% of salary for the COO. 
The Committee has taken the opportunity 
to review the performance measures for the 
2022 annual bonus and is of the view that 
our existing measures of revenue, operating 
profit and personal objectives, with cash as a 
modifier, continue to be appropriate for 
2022. Further information is provided on 
pages 120 and 121.
We understand from our engagement with 
shareholders that quantifiable non-financial 
objectives are of real importance and, as 
such, the Committee will continue to strive 
to meet these expectations. As in previous 
years, precise financial and non-financial 
targets are commercially sensitive and will 
be disclosed at the end of the performance 
year, per our current practice.
The opportunities available under the LTIP 
have been set at 150% for the CFO and 
100% of salary for the COO. Over the year 
the Committee gave careful thought to the 
measures in the LTIP. We believe that, for 
now, EPS and TSR continue to provide the 
most appropriate means of testing long-
term performance and therefore no changes 
have been made for the 2022 awards, 
though we will continue to review the 
suitability of the measures prior to making 
new awards, as we do currently.
UK Corporate 
Governance Code
To ensure the Committee continues to 
be mindful of wider workforce conditions, 
we have worked to improve the flow of 
feedback and workforce information which 
is provided to the Committee and the Board 
on a regular basis.
Committee evaluation
The Committee’s performance was 
evaluated externally by Board Effectiveness 
and Governance Services (BE-GS). 
Further information on the process 
is summarised on pages 86 to 88. 
The evaluation concluded that the 
Committee was operating effectively. 
All Committee members were found to 
robustly challenge data, proposals, and 
remuneration and variable incentives. It was 
agreed that, given the evolving regulatory 
framework, there would be additional focus 
on training for the Committee in 2022.
Adrian Chamberlain 
Chair of the Remuneration 
Committee
102
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIRECTORS’ REMUNERATION REPORT CONTINUED

Post 
employment Y1
Post 
employment Y2
Y1
Y2
Y3
Y4
Y5
Policy change
Salary &  
benefits 
(£000)
CEO salary waived from 1 
December 2021 (Minimum 
statutory salary only)
Pension
Unchanged
Annual bonus
(Policy max 150%)
Unchanged
LTIP
(Policy max 150%)
Unchanged
Safeguards
(Malus & clawback)
Unchanged
Shareholding  
requirements
(% of salary)
Unchanged
Post-employment 
shareholding
(% of salary)
Unchanged
Directors’ Remuneration Policy and implementation for 2021
CEO
CFO
COO
£310
£288
£230
CEO
CFO
COO
Waived
6%
6%
CEO
CFO
COO
Waived
125%
100%
CEO
CFO
COO
2021 grant 150%
2021 grant 100%
CEO
CFO
COO
CEO
CFO
COO
2-year 
holding period
50% deferred in shares 
for three years
CEO
CFO
COO
100%
100%
100%
200%
200%
200%
200%
200%
200%
Waived
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
103
EXECUTIVE REMUNERATION POLICY OVERVIEW

Fixed elements of remuneration for Executive Directors 
Element of 
remuneration
Purpose and
link to strategy
Operation
Maximum opportunity
Performance
Salary
To attract, retain and 
motivate Executive 
Directors of the 
calibre required to 
deliver the Company’s 
strategy and drive 
business 
performance.
Base salaries will be reviewed at least 
annually, and assessed, taking into account 
the scope and requirements of the role, 
experience of the incumbent and the total 
remuneration package. Any increases will 
typically be effective from 1 January.
Account will also be taken of the 
performance of the business, the salary 
increases awarded to the wider employee 
population, and remuneration arrangements 
in other listed companies of comparable 
scale and sector.
There is no overall maximum for, or 
increase to, salary levels. In awarding 
any increase, the Committee will be 
mindful of the general increase for 
the broader employee population.
In appropriate circumstances the 
Committee may award increases 
outside this range.
These may include:
•	 A change in role and/or 
responsibilities;
•	 Performance and/or development 
in the role of the Executive 
Director; and
•	 A significant change in the 
Company’s size, composition and/
or complexity.
In addition, where an Executive 
Director has been appointed to the 
Board at a starting salary which is 
lower than typical market rate, 
larger increases may be awarded as 
their experience develops, if the 
Committee considers such 
increases to be appropriate.
Personal performance 
will be taken into 
consideration when 
determining any 
salary increases.
Benefits
To provide market- 
competitive benefits 
which drive Executive 
Directors to deliver 
the Company’s 
strategy.
The Committee’s policy is to provide 
Executive Directors with competitive levels 
of benefits, taking into consideration the 
benefits provided to Alfa’s employees and 
those offered by its peers. Benefits are in 
line with those for the broader workforce 
and currently include (but are not limited to) 
a car or cash allowance; private medical 
insurance (individual and family, if 
applicable); and death-in-service life 
assurance. The Company may award 
additional benefits where the Committee 
considers it appropriate (e.g. travel, 
accommodation and subsistence 
allowances). These may include national 
and international relocation benefits such 
as (but not limited to) accommodation, 
family relocation support and travel in line 
with our policy for other employees in 
similar situations.
Given that the cost of benefits 
depends on the Executive Director’s 
individual circumstances, there 
is no prescribed maximum 
monetary value.
The cost of the benefits provision 
will be reviewed by the Committee 
on a periodic basis to ensure it 
remains appropriate. 
Other payments such as legal fees 
or outplacement costs may be paid 
if it is considered appropriate.
There are no 
performance 
conditions.
Pension
To encourage 
and assist with 
responsible, secure 
retirement provisions, 
thereby facilitating 
the recruitment of 
high-calibre Executive 
Directors to deliver 
the Company’s 
strategy.
May be provided by way of contribution into 
a Company pension scheme or receive a cash 
supplement in lieu of pension contributions 
into this scheme (or such other arrangement 
the Committee determines has the same 
economic effect).
The maximum Company 
contribution for Executive 
Directors will not exceed the 
contribution (as a percentage of 
salary) available to the broader 
employee population. The current 
contribution level for Executive 
Directors is 6% of salary, which is 
aligned to the contribution for the 
broader employee population.
There are no 
performance 
conditions.
Shareholders approved the new 
Remuneration Policy at the AGM on 10 May 
2021 and it will apply for a period of up to 
three years. The Committee reviewed the 
remuneration framework during the year to  
 
ensure that it remains fit for purpose and 
is designed to support and drive the 
business strategy.
The Policy is designed to attract, retain and 
motivate our leadership within a framework 
designed to promote the long-term success 
of Alfa and align with our shareholders‘ 
interests. The Policy remained largely 
unchanged from the Remuneration Policy 
approved by shareholders in 2018.
104
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
ALFA FINANCIAL SOFTWARE HOLDINGS PLC
2021 DIRECTORS’ REMUNERATION POLICY

Variable elements of remuneration for Executive Directors 
Element of 
remuneration
Purpose and
link to strategy
Operation
Maximum opportunity
Performance
Annual bonus and 
Deferred Bonus 
Share Plan (DBSP)
Incentivises and 
rewards the 
achievement of annual 
financial and 
non-financial 
objectives integral 
to the Company’s 
strategy.
The part-deferral of 
earned bonus into 
shares provides 
alignment with 
shareholders’ 
long-term interests.
The Committee will set the performance 
measures and their weighting, and targets 
annually to reflect the key financial, strategic 
and personal priorities for the business in the 
relevant year.
Annual bonus outcomes will be determined by 
the Committee, and the Committee may use 
its discretion at the end of the performance 
period to adjust the final bonus outcome if it 
considers that the outcome does not reflect 
the underlying performance of the business 
during the year, or if it considers the payment is 
not appropriate in the context of unforeseen, 
unexpected or exceptional circumstances.
Where exercised, the rationale for this 
discretion will be fully disclosed to shareholders 
in the relevant Annual Report.
Not less than 50% of any bonus will normally 
be deferred into an award of shares under the 
DBSP. Deferred shares will be subject to a 
three-year holding period from the date of the 
award, but no further performance conditions 
will apply. Directors may sell sufficient shares to 
satisfy the respective tax liability but must 
retain the net number of shares until the end of 
this three-year period.
Malus and clawback provisions will apply (see 
explanatory notes).
The maximum bonus opportunity 
may be up to 150% of salary for the 
Executive Directors for each 
financial year.
Annual awards made each year 
to Executive Directors will be set 
out in the Annual Report on 
Remuneration in respect of the 
relevant year.
Performance measures 
will comprise a 
combination of financial 
and non-financial 
objectives and the 
measures may vary 
from year to year. 
At least half of the 
annual bonus will be 
based on financial 
measures. The 
non-financial 
performance measures 
may include a 
combination of 
strategic and/or 
personal objectives.
Further details on, and 
the rationale for, the 
measures used in the 
annual bonus will be 
disclosed in the relevant 
Annual Report (and the 
targets set will normally 
be disclosed 
retrospectively, subject 
to these being 
considered not to be 
commercially sensitive).
Long Term 
Incentive Plan 
(LTIP)
Incentivises and 
rewards the 
achievement of the 
Company’s long-term 
strategic objectives 
for the business, 
through the use of 
share-based awards. 
To encourage 
long-term 
shareholding to retain 
Executive Directors 
and provide greater 
alignment with 
shareholders’ 
interests.
Awards granted under the LTIP vest subject to 
the achievement of applicable performance 
conditions measured over at least a three-year 
period. LTIPs may be made as conditional share 
awards or in other forms (e.g. nil cost options) if 
it is considered appropriate.
The Committee may use its discretion at the 
end of the performance period to adjust the 
final vesting outcomes if it considers that the 
outcome does not reflect the underlying 
performance of the business or participants 
during the performance period, or if it 
considers the payment is not appropriate in 
the context of unforeseen, unexpected or 
exceptional circumstances. Where exercised, 
the rationale for this discretion will be fully 
disclosed to shareholders in the relevant 
Annual Report.
Awards that vest are subject to a further 
two-year holding period after the vesting date. 
Directors may sell sufficient shares to satisfy 
the respective tax liability but must retain the 
net number of shares until the end of this 
two-year period.
The Committee retains the discretion to allow 
dividends to accrue over the vesting period in 
respect of the awards that vest (see 
explanatory notes).
The maximum value of shares (at 
grant) which can be made under an 
award to an individual in respect of 
a financial year is 150% of salary. 
Any awards made in the same year 
under the Company Share Option 
Plan will be taken into account 
when applying these limits. 
In exceptional circumstances 
awards totalling 200% of salary 
may be made in a year.
Performance measures 
will be determined by 
the Committee at the 
time of making each 
award to ensure 
alignment with the 
long-term success 
of the business.
The performance 
conditions may 
include, but are not 
limited to, market 
measures, financial 
measures, and 
strategic long-term 
objectives.
For performance 
between threshold and 
maximum, awards vest 
on a straight-line basis.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
105

Element of 
remuneration
Purpose and
link to strategy
Operation
Maximum opportunity
Performance
Company Share 
Option Plan 
(CSOP)
Incentivises and 
rewards the 
achievement of 
long-term targets 
aligned to encourage 
long-term 
shareholding to retain 
Directors, and provide 
greater alignment 
with shareholders’ 
interests. The CSOP 
also provides flexibility 
in the retention and 
recruitment of 
Executive Directors.
Awards granted under the CSOP become 
exercisable subject to such timings and 
performance conditions as may be set by 
the Committee.
Options are granted at market value or the 
nominal share price if higher.
The Committee may use its discretion at 
the end of the performance period to adjust 
the final vesting outcomes if it considers that 
the outcome does not reflect the underlying 
performance of the business or participants 
during the relevant period, or if it considers 
the payment is not appropriate in the 
context of unforeseen, unexpected or 
exceptional circumstances. Where exercised, 
the rationale for this discretion will be fully 
disclosed to shareholders in the subsequent 
Annual Report.
Maximum value of £30,000 at the 
time of grant, including any existing 
awards under the CSOP. 
Awards vest subject 
to predetermined 
performance 
conditions assessed 
over a minimum period 
of three years.
All-employee share 
plans
 All-employee plans 
are designed to 
encourage share 
ownership within the 
wider workforce.
Executive Directors are eligible to participate 
in any all-employee share plan in place, on 
identical terms to other participants. In the 
case of UK tax qualifying plans, these will be 
operated in line with HMRC guidance.
Participation in any approved 
all-employee share plans will be 
subject to the same limits as for 
other eligible employees and, in the 
case of any UK tax qualifying plan, 
will be subject to the maximum 
limits permitted by the relevant 
tax legislation.
The Committee may 
apply conditions to 
participation in 
all-employee share 
schemes, which will 
apply to all employees.
Shareholding 
requirement
 To drive long-term, 
sustainable decision 
making for the benefit 
of the Company and 
our shareholders.
The Executive Directors are required to build 
up a shareholding equivalent to align with the 
long-term interests of shareholders. Until the 
requirement is met, 50% of any share awards 
vesting (after any sales to cover tax liabilities) 
should be retained.
Executive Directors are required to 
hold shares equivalent to 200% of 
their salary in value. Directors are 
required to continue to hold their 
shareholding requirement, or, if 
their level of shareholding is below 
the requirement, their actual 
holdings, for a period of two years 
after leaving the Company.
There are no 
performance 
conditions.
Non-Executive Director Remuneration 
Element of 
remuneration
Purpose and
link to strategy
Operation
Maximum opportunity
Performance
Fees paid to the 
Non-Executive 
Directors
Fees are set at a level 
to reflect the amount 
of time and level of 
involvement required 
in order to carry out 
their duties as 
members of the 
Board and its 
committees, and to 
attract and retain 
Non-Executive 
Directors of the 
highest calibre with 
relevant commercial 
and other experience.
Fees for Non-Executive Directors will be 
determined by the Chairman and the 
Executive Directors.
Additional fees are payable for acting as 
Senior Independent Director, Committee 
Chairs, or for undertaking other duties. 
Fee levels will be reviewed (though not 
necessarily increased) annually and set with 
reference to the time commitment and 
responsibility of the position as well as 
taking into consideration market data for 
roles in other companies of a similar size 
and complexity.
Details of the current fee levels for 
the Non-Executive Directors are set 
out in the Annual Report on 
Remuneration.
There is no prescribed maximum 
annual increase. Total fees will not 
exceed the maximum amount 
provided in the Company’s Articles 
of Association.
Benefits appropriate 
to the role may be 
provided. The 
Non-Executive 
Directors will have the 
benefit of a qualifying 
third party indemnity 
from the Company and 
appropriate Directors’ 
and Officers’ liability 
insurance. Travel and 
reasonable expenses 
incurred (including any 
tax gross-up) in the 
course of performing 
their duties may be 
paid by the Company 
or reimbursed.
106
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
ALFA FINANCIAL SOFTWARE HOLDINGS PLC
2021 DIRECTORS’ REMUNERATION POLICY CONTINUED

Prior arrangements
The Committee reserves the right to 
make any remuneration payments and/or 
payments for loss of office (including 
exercising any discretions available to 
it in connection with such payments) 
notwithstanding that they are not in line 
with the Policy set out above where the 
terms of the payment were agreed:
i.	 Before the Policy set out above came into 
effect (provided, in the case of any 
payment agreed on or after 24 April 2018, 
it is in line with the Policy approved by 
shareholders on that date); or
ii.	 At a time when the relevant individual (or 
other person to whom this Policy applies) 
was not a Director of the Company and, 
in the opinion of the Committee, the 
payment was not in consideration for the 
individual becoming a Director of the 
Company. For these purposes ‘payments’ 
includes the Committee satisfying awards 
of variable remuneration and, in relation 
to an award over shares, the terms of the 
payment are ‘agreed’ at the time the 
award is granted.
Selection of performance 
conditions
For the annual bonus, the Committee believes 
that a mix of financial and non-financial 
targets is most appropriate for the Company. 
Strategic and personal objectives may be 
included where appropriate to ensure delivery 
of key business milestones. The Committee 
will determine the measures and weightings 
each year, based on the key financial and 
strategic priorities for the Company.
Performance under the LTIP will typically 
be based on a combination of market and 
non-market measures. This is so that the 
Committee can assess the Company’s 
performance with reference to a mix of 
underlying financial and stock market 
performance and encourages a focus on 
long-term financial growth as well as returns 
to shareholders. The Committee will keep the 
measures and weightings under review prior 
to the start of each cycle to ensure that these 
remain effective in driving the Executive 
Directors to deliver long-term success.
Explanatory notes
Awards under any of the Company’s share 
plans referred to in this report may:
a.	 Be granted as conditional share awards or 
nil cost options or in such other form that 
the Committee determines has the same 
economic effect;
b.	 Have any performance conditions 
applicable to them amended or 
substituted by the Committee if an event 
occurs which causes the Committee to 
determine an amended or substituted 
performance condition would be more 
appropriate and not materially less 
difficult to satisfy;
c.	 Incorporate the right to receive an amount 
(in cash or additional shares) equal to the 
value of dividends which would have been 
paid on the shares under an award that 
vests up to the time of vesting (or where 
the award is subject to a holding period, 
time of release). This amount may be 
calculated assuming that the dividends 
have been reinvested in the Company’s 
shares on a cumulative basis;
d.	 Be settled in cash at the Committee’s 
discretion – although the Committee has 
no intention to cash settle any Executive 
Directors’ awards and would do so only in 
exceptional circumstances (such as where 
there was a regulatory restriction on the 
delivery of shares) or to settle tax 
liabilities arising in connection with the 
acquisition of shares; and 
e.	 Be adjusted in the event of any variation 
of the Company’s share capital or any 
demerger, delisting, special dividend or 
other event that may affect the Company’s 
share price.
Discretion, malus and clawback 
Variable pay awards may be made subject to 
adjustment events. At the discretion of the 
Committee, an award may be adjusted before 
delivery (malus) or reclaimed after delivery 
(clawback) if an adjustment event occurs.
Our long-term incentive plans provide the 
Committee with discretion in respect of 
vesting outcomes that affect the actual level 
of reward payable to individuals. 
Such discretion would only be used in 
exceptional circumstances and, if exercised, 
the rationale for this discretion will be fully 
disclosed to shareholders in the relevant 
Annual Report.
Malus will apply to awards under the DBSP 
and LTIP. Clawback will apply to all vested 
awards under the DBSP and LTIP and the 
part of the annual bonus which is paid in 
cash. These provisions may be invoked at 
the Committee’s discretion at any time 
within three years of the payment of cash 
bonuses and six years of the grant of DBSP 
and LTIP awards.
The Committee has the discretion to invoke 
these provisions in the following circumstances:
•	 Where there is a material misstatement 
of any Company financial results;
•	 Where an error in assessing performance 
conditions is discovered;
•	 Where there is misconduct on the part 
of the individual; and
•	 Where a material failure of risk 
management by the Company is 
identified, or in the event of serious 
reputational damage to the Company.
Shareholding requirement
The Executive Directors are required to 
build up a shareholding equal to at least 
200% of salary, to align with the long-term 
interests of shareholders. Until the 
requirement is met, 50% of any share awards 
vesting (after any sales to cover tax 
liabilities) should be retained. In order to 
generate alignment with shareholders 
beyond departure and to drive risk- 
conscious stewardship, a post-cessation 
shareholding requirement will be placed on 
Executive Directors. The post-cessation 
requirement relates to those awards 
awarded through incentive schemes by the 
Company. Executive Directors will typically 
be required to maintain a shareholding equal 
to the lower of their in-post guideline and 
their actual holding, for one year, and 50% 
of that level for the second year.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
107
NOTES TO THE POLICY TABLE

Illustrations of potential remuneration outcomes
The following charts illustrate the remuneration that could be received by each of the 
Executive Directors for varying levels of performance in 2022. The charts are based on the 
following assumptions:
Approach to recruitment
remuneration
The Committee will seek to align a new 
Executive Director’s remuneration package 
with the Policy as set out in the Policy Table.
When determining a remuneration package 
for a new appointment, the Committee will 
take into consideration the size and scope of 
the role, the skills and expertise of the 
candidate, the external market rate for a 
candidate of that experience, as well as the 
importance of securing the preferred 
candidate. Benefits will be limited to those 
outlined in the Policy, with relocation 
assistance provided where appropriate. 
Awards under the LTIP and/or CSOP that 
may be awarded to a new Executive Director 
will not exceed 200% of salary and the bonus 
opportunity will not exceed 150% of salary.
Special consideration may be given in the 
event that incentives accrued at a previous 
employer are due to be forfeited on the 
candidate’s leaving that company, in which 
case the Committee retains the discretion to 
grant awards with vesting on a comparable 
basis to the likely vesting of the previous 
employer’s award; any such award is excluded 
from the maximum value of incentives 
referred to above. For internal candidates, 
long-term incentive awards granted in 
respect of the prior role would be allowed to 
vest according to their original terms.
For the appointment of a new Chairman or 
Non-Executive Director, the fee would be 
set in accordance with the approved Policy 
in force at that time. The length of service 
and notice periods would be set at the 
discretion of the Board, taking into account 
market practice, corporate governance 
considerations and the skills and experience 
of the particular candidate at that time.
Service contracts and 
appointment letters
The service contracts of the Chairman and 
the Executive Directors do not have a 
specific duration but can be terminated by 
not less than six months’ notice in the case 
of the Chairman and the COO and by not 
less than 12 months’ notice for the CEO and 
CFO by either party. 
Pay 
scenario
Purpose and link to strategy
Maximum +50% 
share  price 
growth
Assumes 100% payout under the annual bonus
Assumes 100% payout under the LTIP plus 50% share price growth
Maximum
Assumes 100% payout under the annual bonus
Assumes 100% payout under the LTIP
On-target
Assumes 50% payout under the annual bonus
Assumes 25% payout under the LTIP (aligned with threshold performance)
Minimum 
Fixed elements of remuneration only – base salary, benefits and pension
Andrew Denton, CEO (£000)
Maximum +
50% share 
price growth
100%
100%
100%
100%
Maximum
On-target
Minimum
£23
£23
£23
£23
Duncan Magrath, CFO (£000)
100%
32%
27%
49%
39%
52%
29%
24%
30%
18%
£1,267
£1,061
£580
£305
Maximum +
50% share 
price growth
Maximum
On-target
Minimum
Matthew White, COO (£000)
100%
31%
28%
41%
32%
36%
32%
60%
27%
13%
£797
£687
£412
£247
Maximum +
50% share 
price growth
Maximum
On-target
Minimum
Fixed
Bonus
LTIP
108
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
NOTES TO THE POLICY TABLE CONTINUED

Category A
Voluntary resignation  
and termination 
for cause
Category B
Agreed terms
Category C
Death or cessation by reason of 
ill‑health, disability, injury, redundancy 
or change of control
Fixed pay
Paid only until employment 
ceases.
Paid for the notice period.
Paid only until employment ceases or for notice period 
depending on the reason for cessation.
Annual bonus
There is no contractual 
entitlement to payments under 
the annual bonus.
Bonuses delivered in shares 
represent the bonus the 
Executive Director has already 
earned and carry no further 
performance conditions. 
Awards will normally be released 
in accordance to the usual 
schedule, unless the Committee 
determines that awards should 
be released at the time the 
individual ceases employment. 
Awards will normally be released 
in full unless the Committee 
determines otherwise.
Treatment will normally fall 
between A and C, subject to 
the discretion of the Committee, 
the terms of any termination 
agreement and the reasons for 
the Executive Director’s 
departure.
Cessation during the financial year or after the financial year 
end, but before payment date, may result in bonus being 
payable (pro-rated for the proportion of the financial year 
worked unless the Committee determines otherwise). 
Such bonuses may be settled wholly in cash.
Bonuses delivered in shares represent the bonus the Executive 
Director has already earned and carry no further performance 
conditions. Awards will normally be released in accordance to 
the usual schedule, unless the Committee determines that 
awards should be released at the time the individual ceases 
employment. Awards will normally be released in full unless 
the Committee determines otherwise. If the participant dies, 
awards will normally be released at the time of their death on 
the same basis as for other good leavers.
LTIP awards
Unvested awards will lapse on 
cessation of employment. 
Vested awards subject to a 
holding period will also lapse if the 
Executive Director’s employment 
is terminated for cause.
Treatment will normally fall 
between A and C, subject to the 
discretion of the Committee, 
the terms of any termination 
agreement and the reasons for 
the Executive Director’s 
departure.
Awards will normally vest and be released at the usual time. 
However, the Committee may determine that awards should 
vest at the time the individual ceases employment and be 
released at that time or should be released at some other time 
after cessation and before the ordinary release date – such as 
following the end of the performance period in the case of an 
award to which a holding period would otherwise apply. 
The extent of vesting will take into account the extent to 
which the relevant performance conditions have been met. 
Awards are usually scaled back pro-rata to take account of the 
proportion of the original performance period that has 
elapsed when the individual leaves (but with the Committee 
having discretion not to scale back or to reduce the scaleback). 
If the participant dies, awards will normally vest at the time of 
their death on the same basis as for other good leavers. 
Vested awards subject to a holding period will be released 
from that holding period at the usual time, unless the 
Committee determines the holding period should end when 
the individual leaves employment.
Under the service contracts the Executive 
Directors are entitled to a salary (reviewed 
annually), pension contribution and benefits, 
in addition to reimbursement of reasonable 
expenses incurred by them in the 
performance of their duties.
The service contracts for Executive Directors 
make no provision for termination payments, 
other than for payment in lieu of salary.
The Non-Executive Directors’ appointments 
are for a fixed term of three years and 
are subject to annual re-election by 
shareholders. Under their letters of 
appointment, their appointment is 
terminable by either party on three months’ 
written notice except where the Non-
Executive Director is not reappointed by 
shareholders, in which case termination is 
with immediate effect. The Non-Executive 
Directors are entitled to the reimbursement 
of reasonable business expenses.
Termination of office
If the employment of an Executive Director 
is terminated, any compensation payable 
will be determined by reference to the terms 
of the service contract in force at the time. 
As variable pay awards are not contractual, 
treatment of these awards are determined 
by the relevant rules. The Committee may 
structure any compensation payments beyond 
the contractual notice provisions in the 
contract in such a way as it deems appropriate.
The Company may at its discretion make 
termination payments in lieu of notice and 
contractual benefits. The service agreements 
for the CEO, CFO and COO allow for garden 
leave during their notice period.
The appointment letters for the Non- 
Executive Directors provide that no 
compensation is payable on termination.
The Committee has a policy framework for 
payments for loss of office by an Executive 
Director, both in relation to the service 
contract and incentive pay, which is 
summarised below.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
109

Change of control policy
In the event of a change of control of the 
Company, LTIP and CSOP awards will vest to 
the extent determined by the Committee 
taking into account the extent that the 
Committee determines that the performance 
conditions have been satisfied, and, unless the 
Committee determines otherwise, the 
proportion of the performance period that has 
elapsed. DBSP awards will normally be released 
in full, unless the Committee determines 
otherwise. Alternatively, the Committee may 
permit an Executive Director to exchange their 
awards for equivalent awards over shares in a 
different Company. If the change of control is 
an internal reorganisation of the Company, 
Executive Directors will ordinarily be required 
to exchange their awards (rather than awards 
vesting), and the Committee may also require 
the exchange of awards in other circumstances, 
as it considers appropriate. If other corporate 
events occur such as a winding-up of the 
Company, demerger, delisting, special dividend 
or other event which, in the opinion of the 
Committee, may materially affect the current 
or future value of the Company’s shares, the 
Committee may determine that awards will 
vest on the same basis as set out above for a 
change of control.
Consideration of 
shareholder views 
The Committee consulted and met with the 
Company’s largest shareholders prior to 
finalising this proposed Policy. The Committee 
will continue to monitor shareholder views 
when setting future executive remuneration 
strategy and will consult with shareholders prior
to any significant changes to the Policy. 
The Committee takes full account of 
the guidelines of investor bodies and 
shareholder views in determining the 
remuneration arrangements in operation 
within the Company.
Consideration of employment 
conditions elsewhere in 
the Company
The Committee takes into account the pay and 
employment conditions of the wider employee 
population across the Company when setting 
Executive Director remuneration, and 
considered this as context when reviewing the 
Policy. While the Committee has not consulted 
employees directly on the Remuneration Policy 
for Executive Directors, the Committee is 
made aware of information such as workforce 
demographics, diversity initiatives, training 
programmes, engagement levels and cultural 
initiatives, as well as the remuneration 
principles and policies that apply to the wider 
workforce. It is expected that future salary 
increases for Executive Directors will be in line 
with the general employee population, except 
in exceptional circumstances.
Members of the Company Leadership Team 
are invited to participate in the LTIP, in order for 
there to be alignment between the objectives 
of the Executive Directors and senior 
management. We also continue to encourage 
employees to become investors in the 
Company by retaining legacy share awards and 
through its all-employee share schemes.
External appointments 
Executive Directors may hold external 
directorships if the Board determines that such 
appointments do not cause any conflict of 
interest. Where such appointments are 
approved and held, it is a matter for the Board 
to agree whether fees paid in respect of the 
appointment are retained by the individual or 
paid to the Company.
Category A
Voluntary resignation  
and termination 
for cause
Category B
Agreed terms
Category C
Death or cessation by reason of ill‑health, 
disability, injury, redundancy or change 
of control
Sharesave (SAYE) 
Scheme
Unvested options will lapse and 
savings will be returned on 
cessation of employment.
Vested options not exercised will 
also lapse if the Executive 
Director’s employment is 
terminated for cause.
Treatment will normally fall 
between A and C, subject to the 
discretion of the Committee, 
the terms of any termination 
agreement and the reasons for 
the Executive Director’s 
departure.
Options can be exercised immediately, or up to six months 
of savings can be made before exercising options. 
The Committee may determine that the options should be 
exercised at the time the individual ceases employment and 
be released at that time or should be released at some other 
time after cessation and before the original release date. If the 
participant dies, options will normally vest at the time of their 
death on the same basis as for other good leavers. 
Vested options may be exercised at any time in the six months 
after the date of cessation, after which they will lapse.
Other payment
None.
Possible disbursements 
such as legal costs and 
outplacement services.
Possible disbursements such as legal costs and 
outplacement services.
110
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
NOTES TO THE POLICY TABLE CONTINUED

Alignment of Remuneration Policy with the 2018 UK Corporate Governance Code
Governance in practice
The Remuneration Committee is committed to good corporate governance and as such takes into account a broad range of factors when determining its Directors’ 
Remuneration Policy. The Committee considered both legal and regulatory requirements, associated guidance and the views of shareholders and their representative 
bodies. Below is an outline of how the Committee works to ensure the principles of Provision 40 of the 2018 UK Corporate Governance Code are met.
Clarity
Remuneration arrangements should be 
transparent and promote effective engagement 
with shareholders and the workforce.
Alfa is committed to clear and transparent reporting and communication with its stakeholders. The Committee 
actively engages with our shareholders on key decisions and Policy matters, when required.
The Alfa Remuneration Policy is aligned with longer-term shareholder interests and structured to promote the 
Group’s financial and strategic priorities.
Simplicity
Remuneration structures should avoid complexity 
and their rationale and operation should be easy 
to understand.
Alfa’s approach to its remuneration framework focuses on simplicity. The framework comprises three core 
elements to remuneration:
Fixed pay. This element comprises base pay, taxable benefits and pension.
Short‑term incentives. This element relates to an annual performance-related bonus which incentivises 
delivery against both financial and non-financial measures. In total, 50% of any bonus earned is paid in cash with 
50% deferred into shares.
Long‑term incentives. This element relates to longer-term value creation through the LTIP.
Risk
Remuneration arrangements should ensure 
that reputational and other risks from excessive 
rewards, and behavioural risks that can arise 
from target-based incentives plans are identified 
and mitigated.
The remuneration arrangements are split between short-term and long-term rewards coupled with holding 
periods, deferred elements and malus and clawback provisions to drive the right behaviours to incentivise the 
Executive Directors to deliver long-term sustainability of the business and shareholder returns.
As a wider control, malus and clawback provisions apply to all participants of our long-term incentive plans. 
The Remuneration Committee retains discretion to override formulaic outcomes where these are not 
considered reflective of underlying performance.
Predictability
The range of possible values of rewards to 
individual Directors and any other limits or 
discretions should be identified and explained 
at the time of approving the Policy.
The Remuneration Policy sets out scenario charts illustrating base pay, short-term incentives and longer-term 
incentive outcomes under threshold, target and maximum performance scenarios.
Proportionality
The link between individual awards, the delivery 
of strategy and the long-term performance of the 
Company should be clear. Outcomes should not 
reward poor performance.
The Committee assesses performance against a range of financial and non-financial measures linked to our 
business strategy.
The Committee has the ability to override formulaic calculations and apply discretion.
The Committee regularly reviews pay policies for the wider workforce and is mindful of this when setting 
remuneration for Executive Directors.
Alignment to culture
Incentive schemes should drive behaviours 
consistent with Company purpose, values 
and strategy.
These should include consideration of performance metrics, governance requirements and engagement 
with stakeholders.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
111

This section of the Directors’ Remuneration Report sets out the remuneration paid in 2021 and the proposed remuneration for 2022. 
During the year, the Remuneration Policy operated as intended. The following sections on pages 112 to 115 have been audited by RSM: 
Single figure remuneration, Long-Term Incentive Plan – awards vesting in the year, Pension entitlements, External Appointments, Payments 
for loss of Office, Payments to past Directors.
Context to remuneration decisions
The Committee’s decision making this year has taken into account a range of internal and external factors including Alfa’s ongoing response to 
COVID-19 and the external market performance. The business acted in line with the s172 governance guidelines while continuing to deliver 
exceptional results for shareholders. In particular, the Committee was mindful that: 
•	 Alfa requested no Government support from the Job Retention Scheme and no employee received a pay cut and bonus payments 
were maintained
•	 Shareholder guidance was maintained throughout the period and a special dividend in the amount of £29.7m was paid to shareholders 
Single total figure of remuneration
The following tables set out the total remuneration received by Executive Directors and Non-Executive Directors who served during 2021 and 2020.
£’000s
Salary  
and fees
Benefits1
Pension2 
Total fixed 
remuneration
Annual
bonus3
Long-term
incentives4
Total variable 
pay
Total figure 
remuneration
Executive Directors
Andrew Page
2021
345
12
–
357
–
–
–
357
2020
374
13
–
387
–
–
–
387
Andrew Denton
2021
297
13
–
310
–
–
–
310
2020
322
15
–
337
–
–
–
337
Duncan Magrath5
2021
275
13
16
304
316
–
316
620
(appointed 24 April 2020)
2020
214
7
12
233
217
–
217
450
Matthew White
2021
220
14
13
247
205
–
205
452
2020
220
10
13
243
176
–
176
419
Non-Executive Directors
Chris Sullivan
2021
65
–
–
65
–
–
–
65
2020
65
–
–
65
–
–
–
65
Steve Breach6
2021
65
–
–
65
–
–
–
65
2020
70
–
–
70
–
–
–
70
Adrian Chamberlain
2021
65
–
–
65
–
–
–
65
(appointed 24 April 2020)
2020
45
–
–
45
–
–
–
45
Charlotte de Metz
2021
55
–
–
55
–
–
–
55
(appointed 24 April 2020)
2020
38
–
–
38
–
–
–
38
1.	 Benefits – corresponds to the taxable value of benefits receivable during the relevant financial year and principally include company car (or cash equivalent), 
life assurance, travel insurance and private medical insurance.
2.	 Pension – Andrew Page and Andrew Denton have opted out of the pension scheme. Duncan Magrath and Matthew White receive a cash payment in lieu of a 
pension contribution. 
3.	 Annual bonus – corresponds to the amount earned in respect of the relevant financial year. Details of 2021 targets are set out on page 113. The Executive 
Chairman and the CEO waived any eligibility for a bonus in 2020 and 2021.
4.	 Long-term incentives – corresponds to the amount vesting to the Executive Directors in respect of a performance period ending at the conclusion of the 
relevant financial year. The first awards under the LTIP were granted in 2020, and vest subject to performance to 31 December 2022 (and will accordingly be 
captured, to the extent these vest, in the 2022 Annual Report).
5.	 2020 remuneration for Duncan Magrath was pro-rated from the commencement of his employment.
6.	 A payment of £5,085 was paid in January 2020 to cover work completed on the finance remediation plan in 2019.
112
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
ANNUAL REPORT ON REMUNERATION 2021

Base salary
Executive Directors’ salaries were reviewed in 2021. Andrew Page and Andrew Denton proposed to the Board an adjustment to their base salary to 
minimum legal requirements, effective 1 December 2021. The Board approved this proposal.
The Board also determined that there would be no increase awarded to Duncan Magrath and Matthew White for the period from 1 January 2022 to 
31 December 2022.
2021 annual bonus
The 2021 annual bonus performance measures were selected to reflect the Company’s annual and long-term objectives and its financial and strategic 
priorities, as appropriate. Performance targets are set to be stretching, taking into account a range of reference points, including the Company’s 
budget and third party analyst forecasts, as well as the Group’s strategic priorities.
In respect of the annual bonus, the following measures were approved by the Committee for 2021:
•	 Revenue for the year;
•	 Operating profit;
•	 Operating free cash flow conversion being cash flow generated from operations after deducting the settlement of derivative financial 
instruments and margin calls and capital expenditures as a percentage of EBIT, as defined above; and
•	 Personal performance based on the qualitative assessment of the individual’s performance. Further details on performance outcomes for 
the non-financial measures are shown in the second table.
The Executive Chairman and CEO have waived their entitlement to a bonus for the 2021 performance year.
The table below shows the bonus outturn relating to each measure:
Measure
Weighting
Target 
Threshold
Maximum
Actual
2021 bonus 
pay-out
Revenue
37.5%
£74.6m
95%
110%
£83.2m
100%
Operating profit
37.5%
£13.6m
75%
146%
£24.7m
100%
Cash flow conversion
Modifier
Above 100%
114%
0%
Personal performance
25%
0%
25%
CFO:17.50%
COO:18.25% 
CFO:70%
COO:73%
Total (as a percentage of opportunity)
CFO:92.50%
COO:93.25%
Straight-line vesting occurs between threshold and maximum.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
113

Further commentary on non-financial measures
The personal measures described above are assessed with reference to the following objectives
Objective
Commentary on performance achieved
Achievement
Duncan Magrath
Finance Structure
Created a high performing finance team, delivering timely, 
accurate key data to drive business performance.
70%
ESG Reporting
Improved reporting of ESG to key stakeholders.
Investor Relations
Emphasised strength of IP in Alfa to investors, including focused 
technology day.
Management Information
Improved forecasting accuracy and medium to long term 
strategic modelling, including implementation of a new tool.
Matthew White
People
Built, developed and retained a smart, diverse team. Measured 
by headcount, engagement scores and retention.
73%
Technology
Delivered high quality software to our customers and secure 
technical infrastructure for Alfa. Measured through various 
quality and delivery metrics.
Implementation
Delivered successful Alfa Systems implementation projects. 
Measured by project delivery and profitability.
Maintenance & Hosting
Delivered high quality and highly profitable maintenance and 
hosting services. Measured through issue count, availability and 
profitability.
Strategic Change
Delivery of initiatives to:
•	 Increase systems implementation capacity.
•	 Increase software development capacity.
•	 Simplify the implementation of our software.
•	 Improve our strategic process.
Based on the achievements listed above, the Committee agreed that the final vesting under the 2021 bonus would be 92.50% of the maximum for 
Duncan Magrath and 93.25% of maximum for Matthew White. In confirming this outcome, the Committee took into consideration the broader 
financial and operational performance of Alfa during the year, and the strong and effective leadership demonstrated by the Executive Directors it 
was determined that no adjustments were required to the formulaic outcome.
In accordance with the Remuneration Policy, 50% of these bonus amounts will be paid in cash, with the remaining 50%, after deduction of tax, to be 
deferred into an award of Alfa shares with a minimum holding period of three years.
Executive
Base salary
Maximum 
opportunity
(% salary)
Performance
outcome (% of
maximum 
Bonus outcome
£
of which cash
£
of which
shares
£
Duncan Magrath
£275,000
125%
92.50%
317,969
158,984
158,984
Matthew White
£220,000
100%
93.25%
205,150
102,575
102,575
114
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REMUNERATION COMMITTEE REPORT CONTINUED

Long Term Incentive Plan – awards granted in the year
Share awards were made to the Executive Directors under the LTIP on 30 April 2021 equivalent to 150% of salary for the CFO and 100% of salary for the COO. 
The Executive Chairman and CEO have waived their entitlement to participate in the 2021 LTIP.
Executive
Date of award
Face value (% 
of salary)
Number of
shares granted
Average share 
price at grant
(£)
Award 
value 
 (£)
Threshold 
vesting (% of 
face value)
Performance
period
Duncan Magrath
30 April 2021
150%
300,218 
1.374
£412,500
25%
1 January 
2021 to 31  
December  
2023
Matthew White
30 April 2021
100%
160,116 
1.374
£220,000
25%
1 January 
2021 to 31  
December  
2023
1.	 The share price used to calculate the number of performance shares was £1.374, the average 5-day share price preceding the date of the award 
(30 April 2021). This represents the face value of the share awards.
The LTIP awards are subject to two equally weighted performance metrics: relative total shareholder return and earnings per share:
Measure
Description
Weighting
Threshold/
target
Maximum
target
2021
Total shareholder return (TSR)
Measured with reference to the FTSE Small Cap 
index excluding investment trusts and the Company
50%
Median
Upper 
quartile
Earnings per share (EPS)
Measured with reference to EPS performance in the 
year ending 31 December 2023
50%
5.4p
7.6p
2020
Total shareholder return (TSR)
Measured with reference to the FTSE Small Cap 
index excluding investment trusts and the Company
50%
Median
Upper 
quartile
Earnings per share (EPS)
Measured with reference to EPS performance in the 
year ending 31 December 2022
50%
2.3p
2.8p
Straight-line vesting occurs between threshold and maximum for both TSR and EPS elements of the award.
The three-year period over which performance will be measured begin on 1 January of the year the awards are granted and will end on 31 December 
of the third year. Any awards vesting for performance will be subject to an additional two-year holding period, during which malus and clawback 
provisions will continue to apply.
Long-Term Incentive Plan – awards vesting in the year
No LTIP awards vested in 2021.
Pension entitlements
The only element of remuneration that is pensionable is basic annual salary. A cash payment in lieu of pension contributions are payable to the CFO and 
COO, at a rate of 6% of salary as aligned with the broader workforce, and defined in the 2021 Remuneration Policy.
External appointments
Executive Directors are allowed to accept one appointment outside the Company, with the prior approval of the Board. Any fees may be retained by 
the Director, although this is at the discretion of the Board. During 2021 and up to the date of this report, none of the Executive Directors who held 
office during the year under review held external appointments for which they received a fee.
Payments for loss of office
There were no payments for loss of office during the year or prior year.
Payments to past Directors
There were no payments to past Directors for loss of office during the year or prior year.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
115

Statement of Directors’ shareholdings and scheme interests
Executive Directors are expected to build and hold Alfa shares of at least 200% of their annual salary to align with the long-term interests of 
shareholders, with a requirement to retain 50% of any share awards vesting until the 200% requirement is met. Under the Policy, a post-employment 
shareholding requirement will apply whereby 100% of the shareholding requirement must be held for the first year following departure from Alfa and 
50% for the second year. Shareholding requirements and the number of shares held by Directors during the year and as at 31 December 2021 are set 
out in the table below:
Measure
Shares owned
outright at 31
December 2021
SAYE without 
conditions
Interests in share 
incentive 
schemes without 
performance 
conditions
Interests in share 
incentive 
schemes with 
performance 
conditions
Shares owned
outright at 31
December 2020
Shareholding
requirement
(% of
requirement 
achieved)1
Andrew Page
182,334,041
–
–
–
181,764,821
achieved
Andrew Denton
15,322,107
–
–
–
15,891,327
achieved
Matthew White2
861,866
11,718
–
456,213
552,368
achieved
Duncan Magrath2
182,165
11,718
–
1,040,460
100,000
63% 
Chris Sullivan
–
–
–
–
–
n/a
Steve Breach
43,983
–
–
–
43,983
n/a 
Adrian Chamberlain
14,380
–
–
–
–
n/a
Charlotte de Metz
–
–
–
–
–
n/a
1.	 Calculated using the share price of £1.895 (as at 31 December 2021).
2.	 Duncan Magrath and Matthew White elected to join the Company SAYE share scheme for which an option to acquire 11,718 ordinary shares at an option 
exercise price of £1.536 per ordinary share was granted on 30 November 2021. Subject to certain conditions being satisfied, the entitlement to exercise the 
SAYE option arises during the period 1 January 2025 to 30 June 2025.
No LTIPs were exercised during the year and there were no unexercised vested shares held at 31 December 2021. The Executive Chairman and Chief 
Executive Officer have significant direct or indirect shareholdings in the Company.
Dilution
Awards under Alfa incentive plans may be satisfied by treasury shares or the issue of new shares or the purchase of shares in the market. 
Under Investment Association guidelines, the issue of new shares or reissue of treasury shares under a plan, when aggregated with awards under 
all of a company’s other schemes, must not exceed 10% of the issued ordinary share capital (adjusted for share issuance and cancellation) in any 
rolling 10-year period. As at 31 December 2021 no new shares or reissue of treasury shares had been used to satisfy awards, and so this limit had 
not been exceeded.
Fees for the Non-Executive Directors
The fees were agreed on appointment and have remained unchanged since that time. A summary of current fees is shown below:
£’000s
Basic fees
Audit and
Risk Chair
Remuneration
Chair
Senior
Independent
Director
Chris Sullivan
–
–
–
65
Steve Breach
55
10
–
–
Adrian Chamberlain
55
–
10
–
Charlotte de Metz
55
–
–
–
There is no additional fee payable to the Chair of the Nomination Committee.
All the Non-Executive Directors have letters of appointment, with the Company, for an initial three-year term, subject to annual reappointment at the 
AGM. The appointment letters for the Non-Executive Directors provide that no compensation is payable upon termination. Letters of appointment 
are available for inspection at the Company’s registered office. Details of the appointment terms of the Non-Executive Directors are as follows:
Start of current term
Expiry of initial term
Chris Sullivan
18 July 2019
17 July 2022
Steve Breach
9 August 2019
8 August 2022
Adrian Chamberlain
24 March 2020
23 March 2023
Charlotte de Metz
24 March 2020
23 March 2023
116
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REMUNERATION COMMITTEE REPORT CONTINUED

Total shareholder return performance
The graph below shows Alfa’s TSR performance from Admission in May 2017 to 31 December 2021 against the TSR performance of the FTSE 
small cap index (excluding investment trusts). The graph shows the total shareholder return generated by both the movement in share value and the 
reinvestment over the same period of dividend income. As Alfa is a constituent member of the FTSE Small Cap index, the Committee considers that 
it is the appropriate index for comparative purposes. This graph has been calculated in accordance with the Directors’ Remuneration Reporting 
Regulations and shows total shareholder return from the date of listing to 31 December 2021.
Total shareholder return (for the period from 25 May 2017 to 31 December 2021)
Value (£) (rebased)
May-17
Alfa Financial Software Holdings PLC
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
FTSE Small Capitalisation Index Ex Investment Trusts
£0
£35
£70
£105
£140
£175
CEO single figure of remuneration and variable pay outcome
£’000s
CEO single
figure of
remuneration
Annual bonus 
pay-out (as a % 
of maximum
opportunity1
LTIP vesting (as 
a % of 
maximum
opportunity)2
2021
£310,236
n/a
n/a
2020
£337,174
n/a
n/a
2019
£338,129
n/a
n/a
2018
£337,944
n/a
n/a
2017
£349,478
n/a
n/a
1.	 The CEO waived any eligibility for a bonus in 2021, 2020, 2019, 2018 and 2017.
2.	 The CEO waived any eligibility to participate in the long-term incentive awards in respect of the 2021, 2020, 2019, 2018 and 2017 performance years.
3.	 The CEO agreed to a reduction in salary effective 1 Dec 2021.
Percentage change in CEO remuneration compared with employees
The table below shows the average increase in each component between the CEO and average employee in the Company from Admission to 2021:
% change in base salary % change in bonus earned
% change in benefits
CEO
2021: (8)%
2021: 0%
2021: (13)%
2020: 0%
2020: 0%
2020: (6%)
2019: 0%
2019: 0%
2019: 0%
2018: 0%
2018: 0%
2018: (42%)
2017: 0%
2017: 0%
2017: 87%
Alfa UK employees
2021: 5%
2021: 39%
2021: 7%
2020: 9%
2020: (1%)
2020: 13%
2019: (3%)
2019: (13%)
2019: (42%)
2018: 1%
2018: (37%)
2018: 22%
2017: 2%
2017: (33%)
2017: (11%)
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
117

Percentage change in Executive and Non-Executive Director remuneration
The table below shows the percentage increase/decrease in each Director’s salary/fees, taxable benefits and annual incentive plan between 2019 & 
2020 and 2020 & 2021 compared with the average percentage increase in each of those components of pay for the UK-based employees of the Group 
as a whole.
Disclosure for all Directors in addition to the CEO has been added in 2020 in line with the requirements under the EU Shareholder Rights Directive II 
and over time a five-year comparison will be built up. Alfa Financial Software Holdings PLC employs only the Non-Executive Directors and therefore a 
subset of the Group’s employees has been used.
% change for the end of the comparative period 
to the end of the reporting period
2021 
% change in 
salary/fees
2021 
% change in 
benefits
2021 
% change in 
annual bonus
2020
% change in 
salary/fees
2020 
% change in 
benefits
2020 
% change in
annual bonus
Andrew Page (Chairman)
(8)%
(8)%
n/a
0%
7%
n/a
Andrew Denton (CEO)
(8)%
(12)%
n/a
0%
(6)%
n/a
Duncan Magrath (CFO)
0%
46%
100%
n/a
n/a
n/a
Matthew White (COO)
0%
29%
100%
0%
n/a
n/a
Steve Breach (NED)
0%
n/a
n/a
0%
n/a
n/a
Adrian Chamberlain (NED)
0%
n/a
n/a
n/a
n/a
n/a
Charlotte de Metz (NED)
0%
n/a
n/a
n/a
n/a
n/a
Chris Sullivan (NED)
0%
n/a
n/a
0%
n/a
n/a
Employees
5%
7%
n/a
9%
13%
(1)%
1.	 D Magrath did not receive a bonus in 2020. The first year he received a bonus was in April 2021, in relation to the 2020 financial year.
2.	 M White joined the Board in October 2019 and did not receive any bonus as a Director in 2020. The first year he received a bonus was in April 2021, in relation 
to the 2020 financial year.
3.	 D Magrath, A Chamberlain and C de Metz joined Alfa part way through 2020. In calculating the increase in salaries, the figures for 2020 have been adjusted as 
though they started on the 1 January of that year.
CEO pay ratio
The table below sets out the pay ratios for the CEO in relation to the equivalent pay for the lower quartile, median and upper quartile employees 
(calculated on a full-time equivalent basis). The ratios have been calculated in accordance with the Companies (Miscellaneous Reporting) 
Requirements 2018. The CEO pay ratio data will be built upon annually until a rolling 10-year dataset is produced. Bonuses and the value of any LTIPs 
that have been granted, which are both zero in the case of the CEO, have been excluded from the remuneration figures used.
The methodology adopted for calculating the ratio was ‘Option A’ which entailed calculating the total full-time equivalent (FTE) pay and benefits for 
all UK employees on the 2021 payroll. Employees were then ranked based on their FTE remuneration from low to high in order to identify those whose 
remuneration placed them at the 25th, 50th (median) and 75th percentile points. The CEO’s single total figure of remuneration (STFR) was then 
measured against these percentiles, to produce the three pay ratios.
Option A was chosen because it was deemed to be the most statistically accurate method for this reporting purpose. Having reviewed the analysis, 
the Company believes the median pay ratio to be consistent with the Company’s general employee pay, reward and progression policies. The Company 
carries out annual salary reviews and annual reviews of benefits packages. Salary awards are made with reference to the outputs of annual industry 
benchmarking exercises. As per guidance, data relating to employees who left part way through the year and/or employees on secondment were 
excluded from the data set and analysis. Information calculated as at 31 December 2021.
Year
Method
25th percentile
(lower quartile)
Pay ratio 50th
percentile
(median)
75th percentile
(upper quartile)
2021
A
6.1:1
4.0:1
3.2:1
2020
A
5.7:1
4.3:1
3.2:1
2019
A
5.7:1
4.4:1
3.2:1
118
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REMUNERATION COMMITTEE REPORT CONTINUED

Year
£’000s 25th percentile 50th percentile 75th percentile
2021
Total remuneration
50.9
77.1
96.7
Salary only
46.8
72.2
86.2
2020
Total remuneration
59.5
78.5
106.7
Salary only
55.1
73.2
98.1
2019
Total remuneration
59.0
76.2
106.3
Salary
57.1
71.2
95.7
This is the third financial year in which the Company reported information on ratios between CEO and average staff pay under the amendments to the 
Companies (Miscellaneous Reporting) Regulations in 2018. 
There has been a slight increase to the ratio at the 25th percentile (lower quartile). Meanwhile, the ratio at the 50th percentile (median) has decreased 
slightly and at the 75th percentile (upper quartile)has remained the same. There have been decreases to the median remuneration figures at all 
quartiles, most notably at the 25th percentile. The movement observed in the ratios and total remuneration figures in 2021 compared to the previous 
year(s) can be explained by a number of factors, including: 
1.	 A number of new joiners to the company in 2021 fell into the lower quartile bracket, thus lowering the lower quartile median figure; 
2.	 A number of senior members of staff (who would typically fall into the upper quartile bracket) left part way through the year and were 
therefore excluded from the data set and analysis. This is reflected in the decrease to the upper quartile (median) remuneration figure; and 
3.	 The CEO advised the Committee that due to his holding in CHP Software and Consulting Ltd, the main significant shareholder in the 
Company, he elected to reduce his salary to the minimum statutory level of remuneration with effect from 1 December 2021. 
This resulted in the CEO’s SFTR being lower than in previous years.
Rewarding our people and wider workforce engagement
Alfa’s approach to all-employee reward is focused on providing a competitive package to attract, retain and incentivise our employees to deliver for 
our customers, business and shareholders. The Committee regularly reviews details of the arrangements for the broader workforce and this informs 
decisions on remuneration for the Executive Directors and senior management. Alfa continues to review salaries group-wide to ensure that we remain 
a competitive employer within the local market. Salaries for Executive Directors, senior managers and the rest of the workforce are all determined with 
reference to the same factors such as technical expertise, experience and performance, and increases across these populations are reviewed to ensure 
they are broadly aligned. The Committee also took an active role in determining rewards for the Company Leadership Team. Further information on 
key initiatives for our people and what makes Alfa unique can be found on page 25. In addition to a competitive salary, all employees receive the 
opportunity to earn a performance-related bonus, private medical care, matched contribution pension and death-in-service life assurance. 
The Company Leadership Team and certain employees are eligible to participate in long-term incentive schemes.
During the review of the Directors’ Remuneration Policy, the Committee sought input from the Executive Directors, ensuring that any conflict of 
interest was suitably mitigated. It was concluded that the existing model of base salary; annual bonus; and a three-year LTIP with a two-year holding 
period was well understood by the business, supported Alfa’s culture and continued to be appropriate to drive business performance going forward.
Relative importance of spend on pay
The following table illustrates Alfa’s revenue and operating profit in relation to spend on pay for all employees for the period and last financial year.
2021
2020
Change
Total personnel costs (£m) (note 7 to the consolidated financial statements) 
42.4
39.6
7%
Average number of employees (note 7 to the consolidated financial statements)
383
341
12%
Revenue (£m) (consolidated income statement)
83.2
78.9
5%
Operating profit (£m) (see note 4.2 to the consolidated financial statements)
24.7
23.9
3%
During FY2021, the Company paid dividends to shareholders amounting to £32.7m (FY20: £44.2m). For more information on dividends and 
expenditure on remuneration of all employees, see pages 171 and 158 respectively.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
119

Implementation of the Remuneration Policy in 2022
2022 Executive Directors’ base salaries
At the end of 2021, the Chairman and CEO requested the Committee approve their proposal to reduce their salaries, bonus and shares to the legal 
minimum level. Both the Chairman and CEO are significant shareholders in the Company and expressed a desire to align their future remuneration with 
those of the other shareholders. The Committee members were supportive of the proposal and approved it effective 1 December 2021.
The Committee carried out a review of the CFO‘s and COO’s remuneration packages in late 2021 and determined that there would be no salary 
increase and that the bonus and LTIP opportunities remained appropriate. 
The table below shows the salaries for the Executive Directors as at 1 January 2022 in comparison to base salary at 1 January 2021:
£’000s
1 January 2022 1 January 2021
% change
Andrew Page
23
374
(94)%
Andrew Denton
23
322
(93)%
Duncan Magrath
275
275
0%
Matthew White
220
220
0%
Pension and benefits
For 2022 the CFO and COO, in lieu of a pension contribution, will receive a cash allowance of 6% of salary in line with the pension contribution available 
to the wider workforce. No changes are proposed to the benefits provided.
2022 annual bonus
The Chairman and CEO have waived their bonus opportunity going forward. The COO will be entitled to a maximum annual bonus equal to 100% of 
salary for 2022 with the CFO entitled to a maximum annual bonus of 125% of salary. The following measures have been selected for the 2022 annual 
bonus performance year:
Measure
Weighting
Operating profit
37.5%
Revenue
37.5%
Operating free cash flow conversion
Modifier
Personal performance
25%
The Committee is of the view that our existing measures of revenue, operating profit and personal objectives continue to be appropriate for the business. 
Each bonus measure has a target, failure to meet a minimum percentage of the revenue and operating profit target will result in no bonus being 
awarded for that element. Achieving a maximum percentage of operating profit and revenue target will result in the maximum bonus being awarded 
under the formula (subject to the minimum operating profit target being achieved). The operating profit and revenue bonus elements can be increased 
or decreased by the operating free cash flow conversion modifier depending on cash performance, although the modifier cannot increase them 
beyond their maximum opportunity. As described earlier, the final determination is made by the Committee taking all available factors into account. 
The detailed bonus targets for the coming year are considered to be commercially sensitive. However, the Committee will provide an appropriate 
explanation of the bonus outcomes in the 2022 Directors’ Remuneration Report.
In accordance with the Policy, 50% of any bonus earned will be deferred into shares for a three-year holding period.
120
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
REMUNERATION COMMITTEE REPORT CONTINUED

2022 Long-Term Incentive Plan
The normal maximum LTIP opportunity under the Policy is 150% of salary. For 2022, the CEO has waived their LTIP opportunity. The award 
opportunity will remain at 100% of salary for the COO, and 150% of salary for the CFO. Following vesting, awards will be subject to a subsequent 
holding period of two years, with the entirety of any award vesting released after two years.
The Committee has agreed TSR and EPS measures for the LTIP, with an equal weighting applied to each measure.
The comparator group for the TSR is the constituents of the FTSE Small Cap index, excluding investment trusts. Median performance over the 
three-year performance period will result in 25% vesting, with 100% vesting if upper quartile performance is achieved. The EPS performance 
conditions are being finalised and details will be included in the RNS announcing the awards.
2022 Non-Executive Director remuneration
Non-Executive Directors do not participate in any of the Company’s share incentive arrangements, nor do they receive any benefits. Fees for Non-
Executive Directors are reviewed annually, and are set by the Chairman and the Executive Directors. Following the annual review of Non-Executive 
Director fees, no changes are proposed for the 2022 fees. It was determined that the fees will remain at the following level:
Base fee
£55,000
Additional fee for chairing Audit & Risk Committee or Remuneration Committee (subject to maximum fees of £65,000)
£10,000
Fee for the Senior Independent Director (including chairing Committees)
£65,000
Appointment of external advisors
During the year, the Remuneration Committee and the Company retained independent external advisors to assist on various aspects of the Company’s 
remuneration and share schemes. The Company have continued to retain the services of Ellason LLP as external advisers to the Committee for the 
Executive remuneration incentives and provided updates on market trends and also Tapestry Global Compliance LLP (Tapestry) who continue to act 
as external advisors to the Committee, to provide support and information on our all-employee share schemes, both selected on their expertise and 
quality of their previous advice and originally appointed by the Committee. None of the advisers has any other connection with the Company or its 
Executive Directors. Ellason LLP’s fees for 2021 amounted to £14,688; Tapestry fees were £37,906. The Committee is satisfied that Ellason LLP 
(who is a member of the Remuneration Consultants Group and abides by its Code of Conduct) and Tapestry continued to maintain independence 
and objectivity.
Statement of shareholding voting
The Directors’ Remuneration Policy and FY2020 Director’s Remuneration Report were approved by shareholders at the 2021 AGM which was held on 
10 May 2021. The votes cast were as follows:
£’000s
For
Against
Votes withheld
Directors’ Remuneration Report (FY2020)
99.97%
0.03%
0 
Directors’ Remuneration Policy
98.50%
1.50%
0
Director service contracts
Director service contracts are avaialble for inspection at the Company’s registered office.
Signed on 8 March 2022 on behalf of the Board	
Adrian Chamberlain	
Chair, Remuneration Committee
8 March 2022	
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
121

Statutory information
The Directors of Alfa present their report and the audited financial statements for the year ended 
31 December 2021. This Report includes information required by the Companies Act 2006 and 
the Listing Rules 9.8.4R of the UK Financial Conduct Authority’s Listing Rules and forms part of the 
management report as required by the Disclosure and Transparency (DTR) Rule 4.
Additional information which is incorporated by reference into this Directors’ Report 
can be located by reference the tables below.
As permitted by the Companies Act 2006, the Directors’ Report includes the disclosures in the 
Strategic Report on: 
Location in annual 
report (page)
Performance and future development in the business
1 to 69
Important events affecting the Group since the financial year
171
Climate change emission reporting
 66 to 69
Key Financial Performance indicators
36 to 37
Principal risks and uncertainties
46 to 51
Long-term Viability statement
52 to 53
Employee involvement
25
The Group is required to disclose certain information under Listing Rule 9.8.4R in the Directors’ 
Report or advise where such relevant information is contained. This information can be found 
in the following sections of the Annual Report and Accounts:
Listing rule requirement
Location in annual report (page)
Details of any long-term incentive schemes
169 to 170
Details of waiver of Director emoluments and 
future emoluments
100 to 121
Shareholder waiver of dividends and future 
dividends
125
Details of any contract of significance in which 
a Director is or was materially interested
See section below headed ‘Relationship 
Agreement with Controlling Shareholder’
Board statement in respect of Relationship 
Agreement with the controlling shareholder
See section below headed ‘Relationship 
Agreement with Controlling Shareholder’
Principal activities
The principal activity of the Alfa Group is the 
provision of software and software-related 
services to the auto and equipment finance 
industry. Alfa is a public company limited by 
shares and is incorporated and domiciled in 
England. Its shares are listed on the London 
Stock Exchange. The registered office is Moor 
Place, 1 Fore Street Avenue, London, EC2Y 
9DT, United Kingdom. Alfa’s registration no. 
is 10713517. The principal activity of the 
Company is that of a holding company.
The Company’s registrar is Equiniti Limited 
situated at Aspect House, Spencer Road, 
Lancing, West Sussex, BN99 6DA.
Financial risk management
The financial risk management objectives and 
policies of the company and the exposure of 
the company to price risk, credit risk, liquidity 
risk and cash flow risk are disclosed in note 3 to 
the financial statements.
Subsidiaries and branches 
outside of the UK
The Group has subsidiaries in the United 
States of America, Germany, Australia and 
New Zealand and a subsidiary of the 
Company is registered as a branch of 
an overseas company in South Africa. 
Further details of these can be found in 
note 32.2 to the accounts on page 171.
Contracts of significance
We have no contracts deemed significant other 
than the Relationship Agreement between the 
Company and the Controlling Shareholder, as 
detailed on page 124.
In addition, amounts are capitalised as Other 
intangible assets which are shown in note 15 to 
the consolidated financial statements.
122
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIRECTORS’ REPORT

Research and development 
The Group continued to invest in product 
research and development throughout the 
year. The product is enhanced by both specific 
customer driven requirements, some of which 
are paid for by customers, but also by internal 
development using the skills and knowledge 
from the development teams but also using 
feedback from the implementation teams. 
The amount expensed in the profit and loss 
account for research and development is 
shown in note 6 to the consolidated 
financial statements. 
In addition, amounts are capitalised as Other 
intangible assets which are shown in note 15 to 
the consolidated financial statements. 
Employee involvement 
We place considerable value on the involvement 
of our employees, viewing and treating them as 
valued team members and an integral part of 
our business and our success. We continue to 
keep them informed on matters affecting them 
through both formal and informal meetings and 
the Group intranet, including CEO updates. 
Teams are consulted regularly on a wide range of 
matters affecting their current and future 
interests. We have established share ownership 
schemes for use throughout the Company and 
intend to use them to broaden share ownership 
across the Company. Information on employee 
engagement is available on pages 79 and 80.
Further information on team engagement, as 
monitored by our internal employee surveys, is 
included in the ESG report on pages 58 to 69. 
Employee diversity 
and inclusion
Our policy for the Alfa team and all 
applicants for employment is to match the 
capabilities and talents of each individual to 
the appropriate job. We are committed to 
ensuring equality of opportunity in all 
employee relations. We aim to ensure that no 
employee, potential employee, customer, 
visitor or supplier will receive less favourable 
treatment on the grounds of sex, pregnancy, 
disability, religious beliefs, marital status, 
race, ethnic origin, nationality, age, sexual 
orientation or colour.
Disability
With regard to existing team members and 
those who may become disabled, Alfa’s policy 
is to examine ways and means to provide 
continuing employment under the existing 
terms and conditions and to provide training 
and career development, including promotion, 
where appropriate. 
We endeavour to meet our responsibilities to 
train and employ disabled people. 
Employment applications by people with any 
disability are given full and fair consideration for 
all vacancies and are assessed in accordance 
with their skills and abilities.
Directors 
The names of the persons who, at any time 
during the financial year and up to the date of 
this report, were Directors of the Company are:
Date of appointment
Steve Breach
9 August 2019
Adrian Chamberlain
24 April 2020
Charlotte de Metz
24 April 2020
Andrew Denton
6 April 2017
Duncan Magrath
24 April 2020
Andrew Page
4 May 2017
Chris Sullivan
18 July 2019
Matthew White
9 October 2019
Appointment and removal 
of a Director 
The rules governing the appointment and 
removal of a Director are set out in the Articles 
of Association of the Company. The Articles of 
Association may be amended by a special 
resolution of the shareholders. Specific details 
relating to the Principal Shareholder, CHP 
Software and Consulting Limited, and its right 
to appoint Directors are set out in this report 
on page 124.
All Directors will stand for re-election at the 
AGM on an annual basis, in line with the 
recommendations of the 2018 Code.
The Articles of Association are available 
on the corporate governance page of our 
investor relations website 
www.investors.alfasystems.com.
Powers of the Directors
Specific powers relating to the allotment and 
issuance of ordinary shares and the ability of 
the Company to purchase its own securities 
are also included within the Articles and such 
authorities are submitted for approval by the 
shareholders at the AGM each year.
Since listing and as at 31 December 2021, 
the Directors have not exercised any of their 
powers to issue, or purchase, ordinary shares 
in the share capital of the Company. 
However post year end, a share repurchase 
program commenced on 18 January 2022. 
Further details can be found on p124.
Directors’ interests
The Directors’ interests in and options over 
ordinary shares in the Company are shown in the 
Directors’ Remuneration Report on page 116.
 Since the end of the financial year and to the 
date of this report, there have been no changes 
to such interests.
In line with the requirements of the Companies 
Act, each Director has notified the Company of 
any situation in which they have, or could have, 
a direct or indirect interest that conflicts, or 
possibly may conflict, with the interests of the 
Company (a situational conflict).
These were considered and approved by the 
Board in accordance with the Articles and each 
Director informed of the authorisation and any 
terms on which it was given. All Directors are 
aware of the need to consult with the Company 
Secretary should any possible situational 
conflict arise, so that prior consideration can be 
given by the Board as to whether or not such 
conflict will be approved.
Directors’ indemnities
Each Director of the Company has the benefit 
of a qualifying indemnity, as defined by section 
236 of the Companies Act, and as permitted 
by the Articles, as well as Directors’ and 
Officers’ liability insurance.
No amount was paid under any of these 
indemnities or insurances during the year other 
than the applicable insurance premiums.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
123

Share capital
The Company’s ordinary shares are listed on 
the London Stock Exchange. The authorised 
share capital of the Company as at 
31 December 2021 and 8 March 2022, being 
the latest practicable date prior to the date of 
this Annual Report, comprises 300,000,000 
ordinary shares of 0.1 pence each. Further  
information regarding the Company’s issued 
share capital can be found in note 26 of the 
Company financial statements.
There have been no movements in the 
Company’s issued share capital since 
31 December 2021 through to the date of this 
Report. However, on 18 January 2022, the 
Company announced it had entered into a 
share repurchase programme. More detail can 
be found on this page under ‘Authority to 
purchase own shares’. 
Shareholders’ voting rights
All members who hold ordinary shares are 
entitled to attend and vote at the AGM. 
On a show of hands at a general meeting, every 
member present in person shall have one vote 
and on a poll, every member present in person 
or by proxy shall have one vote for every 
ordinary share held. No shareholder holds 
ordinary shares carrying special rights relating 
to the control of the Company and the 
Directors are not aware of any agreements 
between holders of the Company’s shares that 
may result in restrictions on voting rights.
Restrictions on transfer 
of ordinary shares
The Articles do not contain any restrictions on 
the transfer of ordinary shares in the Company 
other than the usual restrictions applicable 
where any amount is unpaid on a share. All  
issued share capital of the Company at the 
date of this Annual Report is fully paid. 
Certain restrictions are also imposed by laws 
and regulations (such as insider trading and 
market abuse requirements relating to close 
periods) and requirements of the Listing Rules 
whereby Directors and certain employees of 
the Company require Board approval to deal in 
the Company’s securities.
Each of the Executive Directors, and the senior 
executives (each, a ‘Restricted Shareholder’) at 
the time of listing agreed, for a period of one 
year following Admission on the terms and 
subject to the conditions of the Underwriting 
Agreement, were not to dispose of any of the 
ordinary shares they held in the Company (the 
‘Initial Lock-Up Period’). This Initial Lock-Up 
Period expired on 1 June 2018 and, for most of 
the Restricted Shareholders, was followed by 
three further lock-up periods of 365 days, 720 
and 1,095 days. Each of these further lock-up 
periods commenced on the termination of the 
Initial Lock-Up Period and covered on each 
occasion a further 25% of the relevant 
Restricted Shareholder’s holding of ordinary 
shares. The final lock-up period expired on 
1 June 2021.
Authority to purchase 
own shares 
Subject to authorisation by shareholder 
resolution, the Company may purchase its own 
shares in accordance with the Companies Act 
2006. Any shares bought back may be held as 
treasury shares or cancelled immediately on 
completion of the purchase.
At the 2021 AGM, the Company was generally 
and unconditionally authorised by its 
shareholders to purchase in the market up to 
10% of the ordinary shares of the Company 
(30,000,000 ordinary shares). As at 
31 December 2021 the full extent of this 
authority remained in force and unused. 
This authority is renewable annually, and a 
special resolution will be proposed at the 2022 
AGM to request shareholders to renew it. 
The Directors will only purchase the Company’s 
shares in the market if they believe it is in the 
best interests of shareholders in general.
On 18 January 2022, the Company announced 
that it had entered into an arrangement with 
Barclays Bank PLC, acting through its 
investment bank to purchase ordinary shares 
in the Company up to an aggregate purchase 
price of £18m over an 18-month period. 
The purchase of the ordinary shares is made 
independently and uninfluenced by the 
Company and held as treasury shares. 
The purpose of the share purchases is to 
reduce the Company’s share capital and to 
enable the Company to meet obligations 
arising from share option programmes and 
not to issue any new shares to satisfy future 
option exercises.
As at 7 March 2022, being the last practicable 
date prior to the production of this Annual 
Report, the number of ordinary shares held in 
treasury was 388,605. Accordingly, total voting 
rights amounted to 299,611,395 ordinary 
shares as at the same date.
During 2021, the Employee Benefit Trust (EBT) 
purchased 3,415,650 ordinary shares with the 
nominal value of £3,415.65 for a total 
consideration of £4,607,677.18 and to be held 
in the EBT for the purpose of providing shares 
to cover future share option awards.
Transactions with 
related parties 
The only subsisting material transactions which 
the Company has entered into with related 
parties are:
Relationship agreement and the 
controlling shareholder
The Relationship Agreement was entered into 
on 26 May 2017 and regulates the relationship 
between CHP Software and Consulting 
Limited (the ‘Controlling Shareholder’) and the 
Company following listing. Subject to a certain 
minimum shareholding, the Relationship 
Agreement details the rights the Controlling 
Shareholder has to representation on the 
Board and Nomination Committee and to 
appoint observers to the Nomination 
Committee (if not represented on the 
Committee). The Controlling Shareholder also 
undertakes not to operate, establish, own or 
acquire a competing business during the terms 
of the agreement. Any transactions between 
Alfa and the Controlling Shareholder will be at 
arm’s length and on normal commercial terms.
The Relationship Agreement complies with the 
requirements of the LRs, including Listing Rule 
9.2.2AR(2)(a), and Listing Rules 6.1.4DR.
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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIRECTORS’ REPORT CONTINUED

In accordance with the requirements of Listing 
Rules 9.8.4(14), the Board confirms that the 
Company has complied with its obligations 
under the Relationship Agreement, including in 
respect of the independence provisions and, so 
far as the Company is aware, the Controlling 
Shareholder has complied with the provisions 
of the Relationship Agreement (including the 
independence and non-compete provisions set 
out therein), at all times since the Agreement 
was entered into.
Other related party transactions are 
detailed in note 32 to the consolidated 
financial statements.
Profits and dividends
The consolidated profit after tax for the year 
ended 31 December 2021 was £19.2m 
(FY20: £20.3m). The results are discussed in 
greater detail in the Financial review on pages 
38 to 42. Information on dividends is shown in 
note 31 of the Financial Statements and is 
incorporated into this report by reference. 
During the year, the trustee of the employee 
benefit trust which operates in connection with 
the Company’s share plans waived its rights to 
receive dividends on any shares held by it. 
Details of the trust can be found in note 12 
of this report.
Subject to approval at the Annual General 
Meeting on 12 May 2022, a 2021 final dividend 
of 1.1 pence per share will be paid on 24 June 
2022 to holders on the register on 27 May 
2022. The ordinary shares will be quoted 
ex-dividend on 26 May 2022. 
Significant Shareholdings at 31 December 2021 and 25 February 2022 (being the latest 
practicable date of this report)
At the relevant dates, the Company had been notified, in accordance with chapter 5 of the Disclosure Guidance and Transparency Rules, of the 
following voting rights as a shareholder of the Company:
Name of shareholder
No. of ordinary 
shares at 
31 December 
2021
% of total voting 
rights at 31 
December 2021
No. of ordinary 
shares at 25 
February 2022
% of total voting 
rights at 25 
February 2022
Nature of 
holding
CHP Software and Consulting Limited
197,645,649
65.88
197,645,649
65.96
Direct
Aberdeen Investments (Standard Life)
11,642,054
3.88
11,377,726
3.80
Indirect
Blackrock Investment Mgt
9,110,936
3.04
11,423,020
3.81
Indirect
During the period between 25 February 2022 and 8 March 2022 the Company did not receive any notifications under chapter 5 of the Disclosure 
Guidance and Transparency Rules.
The trustees of the Company’s employee share 
scheme (EBT) have a rolling dividend waiver in 
place in respect of shares held in trust.
Amendment of the Articles
The Articles may only be amended by a special 
resolution of the Company’s shareholders in a 
general meeting, in accordance with the 
Companies Act.
Compensation for loss of 
office and change of control
There are no agreements between the 
Company and its Directors or Alfa team 
members providing for additional compensation 
for loss of office or employment (whether 
through resignation, redundancy or otherwise) 
that occurs because of a takeover bid.
The only significant agreement, to which the 
Company is a party to that takes effect, alters 
or terminates upon a change of control of the 
Company following a takeover bid, and the 
effect thereof, is the Relationship Agreement.
The Relationship Agreement with the 
Controlling Shareholder contains a provision 
under which it will terminate upon the earlier 
of: (i) the Controlling Shareholder and its 
associates ceasing to have the entitlement to 
exercise or control the exercise of 10% or more 
of the voting rights in the Company; or (ii) the 
Company’s ordinary shares ceasing to be 
admitted to the listing on the Official List of 
the FCA.
Political donations
The Group made no political donations and 
incurred no political expenditure during the 
year (FY20: £nil). It remains the Company’s 
policy not to make political donations or to 
incur political expenditure.
At the 2021 AGM, the Directors were generally 
and unconditionally authorised by the 
Company’s shareholders to make limited 
political donations of up to £50,000, in order to 
protect against any inadvertent breaches of the 
relevant provisions of the Companies Act 2006 
which are very broad in nature. The Board has 
no intention of using this authority.
Interest capitalised in 
the period 
No interest has been capitalised by Alfa in 
the year ended 31 December 2021 or at 
31 December 2020.
Stakeholder engagement
Details of how the Group has engaged with its 
employees, suppliers, customers and other 
principal stakeholders together with details of 
the key decisions taken by the Group during 
the year are disclosed on pages 54 to 57.
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
125

Going concern
The financial statements are prepared on the 
going concern basis. The Group continues to 
be cash-generative and the Directors believe 
that the Group has a resilient business model. 
The Group meets its day-to-day working 
capital requirements through its cash reserves 
generated from operating activities. 
The Group’s forecasts and projections, taking 
account of reasonably possible changes in 
trading performance, show that the Group 
has sufficient cash reserves to continue to 
operate for a period of not less than 
12 months from the date of approval of these 
financial statements.
The going concern assessment also includes 
downside stress testing in line with FRC 
guidance which demonstrates that even in the 
most extreme downside conditions considered 
reasonably possible, given the existing level of 
cash held, the Group would continue to be able 
to meet its obligations as they fall due, without 
the need for substantive mitigating actions.
On this basis, whilst it is acknowledged that 
there is continued uncertainty over future 
economic conditions, the Directors consider it 
appropriate to continue to adopt the going 
concern basis of accounting in preparing the 
financial statements.
Viability statement
The Viability statement containing a broader 
assessment by the Board of the Company’s 
ongoing viability is set out in the Strategic 
report on pages 52 to 53.
Corporate governance 
statement
The Company’s statement on corporate 
governance can be found on page 71 of the 
Corporate governance report. The report 
forms part of this Directors’ Report and is 
incorporated by cross reference.
Climate risk reporting 
For the first time this year the Company 
has made disclosures consistent with the 
recommendations from the Task Force on 
Climate-related Financial Disclosures (TCFD). 
These disclosures are shown on page 69.
Annual General Meeting 
The Company’s Annual General Meeting 
will be held at 3pm on Thursday, 12 May 2022 
at Alfa’s head office at Moor Place, 1 Fore 
Street, London, EC2Y 9DT. The Notice of 
Meeting setting out the resolutions to be 
proposed at the 2022 AGM, together with 
explanatory notes, will be sent to shareholders 
as a separate document and made available 
on the Company’s website 
www.investors.alfasystems.com.
Disclosure of information to 
the auditor
Each of the Directors of the Company at the 
date the Directors’ Report is approved 
confirms that:
•	 So far as the Director is aware, there is no 
relevant audit information of which the 
Company’s auditor is unaware; and
•	 He or she has taken all the steps that he or 
she ought to have taken as a Director in 
order to make himself or herself aware of 
any relevant audit information and to 
establish that the Group and Company’s 
auditors are aware of that information.
This confirmation is given and should be 
interpreted in accordance with the provisions 
of s.418 of the Companies Act 2006.
RSM UK Audit LLP, the Group’s auditor, has 
indicated its willingness to continue in office 
and, on the recommendation of the Audit & 
Risk Committee and in accordance with section 
489 of the Companies Act of 2006, a resolution 
to reappoint it will be put to the 2022 AGM.
Board approval of the 
Directors’ Report
The Directors’ Report was approved by the 
Board on 8 March 2022 and signed on its 
behalf by:
Andrew Denton 
Chief Executive Officer 
8 March 2022
126
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
DIRECTORS’ REPORT CONTINUED

The Directors are responsible for preparing the 
Strategic Report and the Directors’ Report, the 
Directors’ Remuneration Report, the separate 
Corporate Governance Statement and the 
financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors to 
prepare Group and Company financial 
statements for each financial year. 
The Directors have elected under company 
law to prepare group financial statements in 
accordance with UK-adopted International 
Accounting Standards. The Directors have 
elected under company law to prepare the 
company financial statements in accordance 
with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom 
Accounting Standards and applicable law).
The group financial statements are required by 
law and UK-adopted International Accounting 
Standards to present fairly the financial 
position and performance of the group; the 
Companies Act 2006 provides in relation to 
such financial statements that references in the 
relevant part of that Act to financial 
statements giving a true and fair view are 
references to their achieving a fair presentation.
Under company law the Directors must not 
approve the financial statements unless they 
are satisfied that they give a true and fair view 
of the state of affairs of the Group and the 
Company and of the profit or loss of the Group 
for that period.
In preparing each of the Group and Company 
financial statements, the Directors are 
required to:
a.	 select suitable accounting policies and then 
apply them consistently;
b.	 make judgements and accounting estimates 
that are reasonable and prudent;
c.	 for the Group financial statements, state 
whether they have been prepared in 
accordance with UK-adopted International 
Accounting Standards;
d.	 for the Company financial statements, state 
whether applicable UK accounting 
standards have been followed, subject to 
any material departures disclosed and 
explained in the Company financial 
statements; and
e.	 prepare the financial statements on the 
going concern basis unless it is inappropriate 
to presume that the Group and the 
Company will continue in business.
The Directors are responsible for keeping 
adequate accounting records that are sufficient 
to show and explain the Group’s and the 
Company’s transactions and disclose with 
reasonable accuracy at any time the financial 
position of the Group and the Company and 
enable them to ensure that the financial 
statements and the Directors’ Remuneration 
Report comply with the Companies Act 2006. 
They are also responsible for safeguarding the 
assets of the Group and the Company and 
hence for taking reasonable steps for the 
prevention and detection of fraud and 
other irregularities.
Directors’ statement pursuant 
to the Disclosure and 
Transparency Rules
Each of the Directors, whose names and 
functions are listed on pages 74 to 75 confirm 
that, to the best of each person’s knowledge:
a.	 the financial statements, prepared in 
accordance with the applicable set of 
accounting standards, give a true and fair 
view of the assets, liabilities, financial 
position and profit of the Company and the 
undertakings included in the consolidation 
taken as a whole; and
b.	 the Strategic Report contained in the 
Annual Report includes a fair review of the 
development and performance of the 
business and the position of the Company 
and the undertakings included in the 
consolidation taken as a whole, together 
with a description of the principal risks and 
uncertainties that they face.
The Directors are responsible for the 
maintenance and integrity of the corporate and 
financial information included on the Alfa 
Financial Software Holdings PLC website.
Legislation in the United Kingdom governing 
the preparation and dissemination of financial 
statements may differ from legislation in 
other jurisdictions. 
This responsibility statement was approved by 
the Board of Directors on 8 March 2022 and is 
signed on its behalf by:
Andrew Denton 
Chief Executive Officer 
8 March 2022
CORPORATE GOVERNANCE
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
127
STATEMENT OF DIRECTORS’ RESPONSIBILITIES

128
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
Financial 
statements
Financial statements
129	 Independent auditor’s report
137 Consolidated statement of profit or loss and 
comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements 
173 Company statement of financial position 
174 Company statement of changes in equity 
175 Company notes to the financial statements
129–175
Other information
179	 Glossary of terms
180	 Shareholder information
179–180

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
129
Opinion
We have audited the financial statements of 
Alfa Financial Software Holdings PLC (the 
‘parent company’) and its subsidiaries (the 
‘group’) for the year ended 31 December 
2021, which comprise the Consolidated 
statement of profit or loss and comprehensive 
income, Consolidated statement of financial 
position, Consolidated statement of changes 
in equity, Consolidated statement of cash 
flows, Company statement of financial 
position, Company statement of changes in 
equity and notes to the financial statements, 
including significant accounting policies. 
The financial reporting framework that has 
been applied in the preparation of the group 
financial statements is applicable law and 
UK-adopted International Accounting 
Standards. The financial reporting framework 
that has been applied in the preparation of 
the parent company financial statements is 
applicable law and United Kingdom 
Accounting Standards including Financial 
Reporting Standard 102 “The Financial 
Reporting Standard applicable in the UK and 
Republic of Ireland” (United Kingdom 
Generally Accepted Accounting Practice).
In our opinion: 
•	the financial statements give a true and 
fair view of the state of the group’s and of 
the parent company’s affairs as at 
31 December 2021 and of the group’s 
profit for the year then ended;
•	the group financial statements have been 
properly prepared in accordance with 
UK-adopted International Accounting 
Standards;
•	the parent company financial statements 
have been properly prepared in 
accordance with United Kingdom 
Generally Accepted Accounting Practice; 
and
•	the financial statements have been 
prepared in accordance with the 
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance 
with International Standards on Auditing 
(UK) (ISAs (UK)) and applicable law. Our  
responsibilities under those standards 
are further described in the Auditor’s 
responsibilities for the audit of the financial 
statements section of our report. We are 
independent of the group and parent 
company in accordance with the ethical 
requirements that are relevant to our audit 
of the financial statements in the UK, 
including the FRC’s Ethical Standard as 
applied to listed public interest entities 
and we have fulfilled our other ethical 
responsibilities in accordance with these 
requirements. We believe that the audit 
evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinion.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS 
OF ALFA FINANCIAL SOFTWARE HOLDINGS PLC
Summary of our 
audit approach
Commentary
Key audit matters
Group
•	Revenue recognition – software and services revenue from implementation projects
Parent Company
•	None
Materiality
Group
•	Overall materiality: £1,140,000 (2020: £893,000)
•	Performance materiality: £859,000 (2020: £670,000)
Parent Company
•	Overall materiality: £1,120,000 (2020: £882,000)
•	Performance materiality: £846,000 (2020: £662,000)
Scope
Our audit procedures (excluding analytical procedures at group level) covered 100% of revenue, 
98% of total assets and 99% of profit before tax.

130
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the group and parent 
company financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not 
due to fraud) we identified, including those which had the greatest effect on the overall audit strategy, the allocation of resources in the audit 
and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the group and parent 
company financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 
Revenue recognition – software and services revenue from implementation projects
Key audit 
matter 
description
The 2021 group financial statements disclose the following types of revenue:
•	Software £13.6m (2020: £20.0m)
•	Services £46.1m (2020: £40.8m)
•	Subscription £23.5m (2020: £18.1m)
The Group’s operations include complex software implementation programmes and service activities. The delivery of these 
contracts typically extends over more than one reporting period, and often the original project plans are amended, as the 
implementation progresses. As such, in recognising revenue, management has to apply a number of judgements to allocate 
the overall transaction price across the multiple performance obligations that have been identified within these projects. 
In addition, due to the structure of the Group’s licence and maintenance contractual arrangements, the Group also receives 
one-off licence uplifts or maintenance and right to use termination payments which need to be accounted for in accordance 
with IFRS 15 “Revenue from contracts with customers”.
We consider revenue recognition for software and services revenue for implementation projects to be a key audit matter due to:
•	The level of judgement involved in the identification of distinct performance obligations and subsequent 
measurement of revenue and timing of recognition.
•	The degree of estimation involved in determining some inputs for inclusion in software/services implementation 
revenue calculations. 
•	The potential risk of fraud in revenue recognition.
•	The allocation of audit resources and effort.
Further details on revenue recognition are included in note 1.5 “Accounting policies – Revenue recognition”, note 2 “Critical 
accounting judgements, estimates and assumptions” and note 5 “Revenue from contracts with customers”.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS  
OF ALFA FINANCIAL SOFTWARE HOLDINGS PLC CONTINUED

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
131
How the matter 
was addressed 
in the audit
In response to this key audit matter, the audit procedures we performed included: 
•	Obtaining an understanding of the processes and controls around revenue recognition. 
•	Reviewing the group’s revenue recognition policy, including supporting accounting papers, to assess whether 
performance obligations have been appropriately identified and revenue recognised in line with IFRS 15.
•	For software implementation revenue (software and services) we: 
•	Assessed management’s analysis of the performance obligations within individual contracts and of how the 5 
steps in IFRS 15 should be applied.
•	Audited the revenue recognition calculations for a sample of the most significant contracts to assess whether the 
methodology applied was consistent with the group’s revenue recognition policy and across projects. 
This included testing inputs in the calculations to supporting evidence. 
•	Verified the explanations and data provided by management by holding discussions with project managers 
regarding the key assumptions and judgements made, in particular around the estimates of the projected costs 
to complete and the completeness of any contract arrangements, including any unusual terms and contract 
modifications.
•	Tested the completeness and accuracy of timesheet data as some performance obligations are recognised 
based on days worked.
•	Challenged management on the appropriateness of estimates made in the IFRS 15 calculations. This included 
assessing the results of management’s analysis of the sensitivity of the calculations to these estimates.
•	Assessed key judgements made on specific contracts including management’s treatment of any contract 
modifications and whether these were recognised appropriately in line with IFRS 15.
•	Auditing the disclosures in the financial statements and evaluated whether the policy for revenue recognition is 
appropriately explained and critical judgements and key sources of estimation uncertainty are appropriately disclosed. 
Key 
observations
Disclosure of the impact of the key judgements and estimates applied in respect of revenue recognition are disclosed 
in note 2 to the financial statements. Based on the results of the audit procedures outlined above, we have no 
observations to report.
No key audit matters were identified in respect of the Parent Company.

132
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
Our application of materiality
When establishing our overall audit strategy, we set certain thresholds which help us to determine the nature, timing and extent of our audit 
procedures. When evaluating whether the effects of misstatements, both individually and on the financial statements as a whole, could 
reasonably influence the economic decisions of the users we take into account the qualitative nature and the size of the misstatements. 
Based on our professional judgement, we determined materiality as follows:
Group
Parent company
Overall materiality
£1,140,000 (2020: £893,000)
£1,120,000 (2020: £882,000)
Basis for determining 
overall materiality
5% of profit before tax (2020: 5% of profit 
before tax adjusted to exclude one off 
licence revenue associated with a five-year 
contract extension)
1% of net assets, capped at 99% of group 
overall materiality (2020: 1% of net assets, 
capped at 99% of group overall materiality) 
Rationale for
benchmark applied
As a listed entity, profit before taxation is 
considered the most appropriate benchmark 
for users of the financial statements.
Net assets is considered to be the most 
appropriate benchmark for the parent 
company as it is primarily a holding company.
Performance materiality
£859,000 (2020: £670,000)
£846,000 (2020: £662,000)
Basis for determining 
performance materiality
75% of overall materiality
75% of overall materiality
Reporting of misstatements 
to the Audit Committee
Misstatements in excess of £57,000 and 
misstatements below that threshold that, in our 
view, warranted reporting on qualitative grounds.
Misstatements in excess of £56,000 and 
misstatements below that threshold that, in our 
view, warranted reporting on qualitative grounds.
An overview of the scope of our audit
The group consists of 8 components, located in the following countries;
•	United Kingdom
•	United States of America
•	Germany
•	Australia
•	New Zealand
Full scope audits were performed for 4 components, targeted audit procedures for 2 components and analytical procedures at group level 
for the remaining 2 components. The coverage achieved by our audit procedures was:
Number of 
components
Revenue
Total assets Profit before tax
Full scope audit
4
74%
90%
93%
Targeted audit procedures 
2
26%
8%
6%
Analytical procedures at group level
2
0%
2%
1%
Total
8
100%
100%
100%
Targeted audit procedures were performed on components which are not financially significant by size but include a significant risk. 
The targeted audit procedures included testing of revenue and the associated balance sheet amounts as described in the key audit matter 
section above. 
All audit work was completed by the group audit team and no component auditors were used in our audit.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS  
OF ALFA FINANCIAL SOFTWARE HOLDINGS PLC CONTINUED

FINANCIAL STATEMENTS
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133
Conclusions relating to going concern 
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the 
financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt 
the going concern basis of accounting included:
•	Checking the arithmetic accuracy of the forecasts that form the basis of the directors’ going concern assessment and Viability statement
•	Corroborating the cash balance that is used as the starting point for the forecasts by confirming to bank confirmations
•	Challenging management’s forecasts and comparing the 2022 budget to YTD results and order book
•	Assessing the assumptions made in management’s stress-testing
•	Completing further sensitivity analysis and stress-testing
•	Auditing the disclosures in the financial statements in respect of going concern and viability
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or 
collectively, may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern for a period of at least 
twelve months from when the financial statements are authorised for issue.
In relation to the entity reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw 
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt 
the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report 
thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements 
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of 
assurance conclusion thereon. 
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 
financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such 
material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement 
in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this 
other information, we are required to report that fact. 
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006 
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies 
Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
•	the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements 
are prepared is consistent with the financial statements and those reports have been prepared in accordance with applicable 
legal requirements; 
•	the information about internal control and risk management systems in relation to financial reporting processes and about share capital 
structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules sourcebook made by the Financial 
Conduct Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with applicable legal 
requirements; and
•	information about the company’s corporate governance code and practices and about its administrative, management and supervisory 
bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the 
audit, we have not identified material misstatements in:
•	the Strategic Report or the Directors’ Report; or
•	the information about internal control and risk management systems in relation to financial reporting processes and about share capital 
structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in 
our opinion:
•	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
•	the parent company financial statements and the part of the directors’ remuneration report to be audited are not in agreement with the 
accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit; or 
•	a corporate governance statement has not been prepared by the parent company. 
Corporate governance statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance 
Statement relating to the parent company’s compliance with the provisions of the UK Corporate Governance Code specified for our review by the 
Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance 
Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
•	Directors’ statement with regards the appropriateness of adopting the going concern basis of accounting and any material uncertainties 
identified set out on pages 52 to 53;
•	Directors’ explanation as to their assessment of the group’s prospects, the period this assessment covers and why the period is appropriate 
set out on pages 52 to 53;
•	Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its liabilities 
set out on page 53;
•	Directors’ statement on fair, balanced and understandable set out on page 98;
•	Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 46 to 51;
•	Section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 98; 
and,
•	Section describing the work of the audit committee set out on pages 94 to 99.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 127, the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is 
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to continue as a 
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors 
either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS  
OF ALFA FINANCIAL SOFTWARE HOLDINGS PLC CONTINUED

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
135
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, 
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit 
evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures 
in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that 
may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws 
and regulations identified during the audit. 
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to 
fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing 
and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. 
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s 
operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team: 
•	obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the group and 
parent company operate in and how the group and parent company are complying with the legal and regulatory frameworks;
•	inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, 
including any known actual, suspected or alleged instances of fraud;
•	discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the 
financial statements may be susceptible to fraud.
The most significant laws and regulations were determined as follows:
Legislation/Regulation
Additional audit procedures performed by the audit engagement team included:
UK-adopted IAS, FRS 102 and 
Companies Act 2006
•	Review of the financial statement disclosures and testing to supporting documentation;
•	Completion of disclosure checklists to identify areas of non-compliance.
Tax compliance regulations
•	Inspection of advice received from internal / external tax advisors;
•	Involvement of a tax specialist in the audit of tax;
•	Consideration of whether any matter identified during the audit required reporting to an appropriate 
authority outside the entity.

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
The areas that we identified as being susceptible to material misstatement due to fraud were:
Risk
Audit procedures performed by the audit engagement team:
Revenue recognition
The audit procedures performed in relation to revenue recognition are documented in the key audit 
matter section of our audit report.
Capitalisation of 
development costs
•	Reviewing the Investment Committee meeting minutes for any projects which may indicate the 
understatement of amounts capitalised during the period;
•	Interviewing relevant personnel to understand the projects capitalised in the period and the nature of 
projects not capitalised;
•	Verifying the amounts capitalised during the year by reference to underlying payroll records and 
timesheet data.
Management override 
of controls
•	Testing the appropriateness of journal entries and other adjustments; 
•	Assessing whether the judgements made in making accounting estimates are indicative of a potential 
bias; 
•	Evaluating the business rationale of any significant transactions that are unusual or outside the normal 
course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 
http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters which we are required to address
Following the recommendation of the audit committee, we were appointed by management in July 2020 to audit the financial statements for 
the year ending 31 December 2020 and subsequent financial periods.
The period of total uninterrupted consecutive appointments is 2 years, covering the years ending 31 December 2020 and 31 December 2021.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain 
independent of the group and the parent company in conducting our audit. 
Our audit opinion is consistent with the additional report to the audit committee in accordance with ISAs (UK).
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other 
than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Graham Ricketts
(Senior Statutory Auditor)
For and on behalf of RSM UK Audit LLP, Statutory Auditor 
Chartered Accountants 
25 Farringdon Street London, United Kingdom, EC4A 4AB 
8 March 2022
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALFA  
FINANCIAL SOFTWARE HOLDINGS PLC CONTINUED

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
137
CONSOLIDATED STATEMENT OF PROFIT OR LOSS  
AND COMPREHENSIVE INCOME
£m
Note
2021
2020
(restated)
Continuing operations
Revenue
5
83.2
78.9
Cost of sales*
(29.0)
(27.0)
Gross profit
54.2
51.9
Sales, general and administrative expenses*
(30.0)
(28.5)
Other income
0.5
0.5
Operating profit
6
24.7
23.9
Share of net loss of joint venture
19
(0.1)
–
Profit before net finance costs and tax
24.6
23.9
Finance income
10
–
0.1
Finance expense
10
(0.8)
(0.8)
Profit before taxation
23.8
23.2
Taxation
11
(4.6)
(2.9)
Profit for the financial year
19.2
20.3
Other comprehensive income:
Exchange differences on translation of foreign operations
27
(0.1)
0.1
Other comprehensive (loss)/income net of tax
(0.1)
0.1
Total comprehensive income for the year
19.1
20.4
Earnings per share (in pence) for profit attributable  
to the ordinary equity holders of the Company
Basic 
12
6.49
6.93
Diluted
12
6.39
6.79
Weighted average no. of shares (m) – basic 
12
296.7
293.8
Weighted average no. of shares (m) – diluted
12
301.5
300.1
*	 To better reflect the nature and function of certain expenses, changes have been made to the classification and allocation of expense line items. The comparative disclosures 
for the December 2020 reporting period have also been amended to reflect a fair base for comparability. Costs previously classified as implementation and support expenses 
and research and product development expenses of £11.9m and £15.1m, respectively, have been presented as cost of sales. In addition, £3.4m of implementation and 
support expenses and £3.8m of research and product development expenses have been reclassified to sales, general and administrative expenses. The main items affected 
are administrative salary costs, computer costs and property related expenses. These changes have had no impact on the total expenses or the profit before tax that were 
disclosed at the end of December 2020. 
The above consolidated statement of profit or loss and comprehensive income should be read in conjunction with the accompanying notes.

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
£m
Note
2021
2020
Assets
Non-current assets
Goodwill
14
24.7
 24.7 
Other intangible assets
15
2.4
 2.2 
Property, plant and equipment
16
0.8
 0.9 
Right-of-use assets
17
14.4
 14.8 
Deferred tax assets
18
1.8
 1.8 
Interests in joint venture
19
0.3
 0.4 
Total non-current assets
44.4
 44.8 
Current assets
Trade receivables
20
6.0
 5.8 
Accrued income
21
6.3
 5.0 
Prepayments
21
3.2
 2.1 
Other receivables
21
1.0
 0.8 
Cash and cash equivalents
22
23.1
 37.0 
Total current assets
39.6
 50.7 
Total assets
84.0
 95.5
Liabilities and equity
Current liabilities
Trade and other payables
23
9.3
 8.1
Corporation tax
23
1.8
 1.3 
Lease liabilities
24
1.9
 1.7 
Contract liabilities 
23
11.0
 7.0 
Total current liabilities
24.0
 18.1 
Non-current liabilities
Lease liabilities
24
15.2
 15.8 
Provisions for other liabilities
25
1.4
 1.4 
Total non-current liabilities
16.6
 17.2 
Total liabilities
40.6
 35.3 
Capital and reserves
Share capital
26
0.3
 0.3 
Translation reserve
27
–
 0.1 
Own shares
28
(3.4)
–
Retained earnings 
46.5
 59.8 
Total equity
43.4
 60.2
Total liabilities and equity
84.0
95.5 
The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 
The consolidated financial statements on pages 137 to 172 were approved and authorised for issue by the Board of Directors on 8 March 2022 
and signed on its behalf.
Andrew Denton
Chief Executive Officer
Duncan Magrath
Chief Financial Officer
Alfa Financial Software Holdings PLC – Registered number 10713517

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
139
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
£m
Note
Share capital
Own 
shares
Translation 
reserve
Retained 
earnings
Equity 
attributable to 
owners of the 
parent
Balance as at 1 January 2020 
0.3
–
 –
82.0
82.3
Profit for the financial year
 –
–
 –
20.3
20.3
Other comprehensive income
–
–
0.1
–
0.1
Total comprehensive income for the year
–
–
0.1
20.3
20.4
Transactions with owners in their capacity as owners:
Equity-settled share-based payment schemes
29
–
–
–
1.3
1.3
Equity-settled share-based payment schemes – 
deferred tax impact
18
–
–
–
0.4
0.4
Dividends
31
–
–
–
(44.2)
(44.2)
Balance as at 31 December 2020
0.3
–
0.1
59.8
60.2
Profit for the financial year
–
–
19.2
19.2
Other comprehensive loss
–
–
(0.1)
–
(0.1)
Total comprehensive income for the year
–
–
(0.1)
19.2
19.1
Transactions with owners in their capacity as owners:
Equity-settled share-based payment schemes 
29
–
–
–
1.1
1.1
Equity-settled share-based payment schemes – 
deferred tax impact
18
–
–
–
0.3
0.3
Dividends
31
–
–
–
(32.7)
(32.7)
Own shares issued
28
–
1.2
–
(1.2)
–
Own shares acquired
28
–
(4.6)
–
–
(4.6)
Balance as at 31 December 2021
0.3
(3.4)
–
46.5
43.4
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
£m
Note
2021
2020
Cash flows from operating activities
Profit before tax
23.8
 23.2 
Net finance costs
0.8
 0.7 
Share of net loss from joint venture
0.1
 – 
Operating profit
24.7
 23.9 
Adjustments: 
Depreciation 
6/16/17
2.3
 2.2 
Amortisation
6/15
0.8
 0.8 
Share-based payment charge
29
1.5
1.5 
Loss on disposal of assets
–
 0.1 
Movement in provisions
25
–
 0.5 
Movement in working capital:
Movement in contract liabilities
23
4.1
(1.9) 
Movement in trade and other receivables
20/21
(2.8)
 0.6
Movement in trade and other payables (excluding contract liabilities)
23
0.7
 2.4
Cash generated from operations
31.3
 30.1 
Interest element on lease payments
10/24
(0.8)
(0.8)
Income taxes paid
11
(3.8)
(3.8) 
Net cash generated from operating activities
26.7
 25.5 
Cash flows from investing activities
Purchases of property, plant and equipment
16
(0.3)
(0.2)
Purchases of computer software
15
(0.1)
(0.1)
Payments for internally developed software
15
(0.9)
(0.7) 
Investment in joint venture
19
–
(0.3) 
Loan to joint venture
19
–
(0.1) 
Interest received
10
–
 0.1 
Net cash used in investing activities
(1.3)
(1.3) 
Cash flows from financing activities
Dividends paid to Company shareholders
(32.7)
(44.2) 
Principal element on lease payments
24
(1.9)
(1.7) 
Purchase of own shares
(4.6)
–
Cash used in financing activities
(39.2)
(45.9) 
Net decrease in cash 
(13.8)
(21.7) 
Cash and cash equivalents at the beginning of the year
22
37.0
 58.8 
Effect of foreign exchange rate changes on cash and cash equivalents
(0.1)
(0.1) 
Cash and cash equivalents at the end of the year
22
23.1
 37.0 
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
141
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021
1.	
Summary of significant accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. 
These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group, 
consisting of Alfa Financial Software Holdings PLC (Alfa or the Company), its subsidiaries and joint venture, and are presented to the nearest 
million unless otherwise stated. The change in presentation from thousands to millions has been done to make the financial statements 
clearer for the users.
The principal activity of the Group is to provide software solutions and consultancy services to the auto and equipment finance industry in the 
United Kingdom, United States of America, Europe and Australasia. 
1.1	
Basis of preparation
Compliance with IFRS 
The consolidated financial statements of the Group have been prepared in accordance with UK-adopted international accounting standards 
and Company Law. The change in the basis of preparation from 2020 is required by UK Company Law as a result of the UK’s exit from the EU 
on 31 January 2020 and the cessation of the transition period on 31 December 2020. This change does not constitute a change in accounting 
policy, rather a change in the framework which is required to group the use of IFRS in company law. There is no impact on the recognition, 
measurement or disclosure between the two frameworks in the period reported.
Historical cost convention 
The consolidated financial statements have been prepared under the historical cost convention, other than the revaluation of financial assets 
and financial liabilities recorded at fair value through profit or loss. 
Going concern 
The financial statements are prepared on the going concern basis. The Group continues to be cash-generative and the Directors believe that 
the Group has a resilient business model. The Group meets its day-to-day working capital requirements through its cash reserves generated 
from operating activities. The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, 
show that the Group has sufficient cash reserves to continue to operate for a period of not less than 12 months from the date of these 
financial statements. 
The going concern assessment also includes downside stress testing in line with FRC guidance which demonstrates that even in the most 
extreme downside conditions considered reasonably possible, given the existing level of cash held, the Group would continue to be able to 
meet its obligations as they fall due, without the need for substantive mitigating actions.
On this basis, whilst it is acknowledged that there is continued uncertainty over future economic conditions, the Directors consider it 
appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.
New and amended standards adopted by the Group 
The Group applies for the first time the following new standard: 
•	Amendments to IFRS 16 Leases: COVID 19-Related Rent Concessions (issued on 28 May 2020).
By adopting the above, there has been no material impact on the financial statements.
New standards, amendments and interpretations not yet adopted 
At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRS Standards that have 
been issued but are not yet effective:
•	Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and 
Contingent Assets; and Annual Improvements 2018-2020 (All issued 14 May 2020, effective from 1 January 2022).
The directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements 
of the Group.

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
1.	
Summary of significant accounting policies continued
1.2	
Group structure
Basis of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights 
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. 
Unless otherwise stated, subsidiaries have share capital consisting solely of ordinary shares, and the proportion of ownership interests held 
equals the voting rights held by the Group. The country of incorporation or registration is also each subsidiary’s principal place of business.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation. All subsidiaries have a 31 December year end.
In the current period it was concluded that the Group exercises control over the employee benefit trust because it is exposed to, and has a right 
to, variable returns from this trust and is able to use its power over the trust to affect those returns. Therefore the trust has been consolidated by 
the Group in the current period. The impact of consolidation of the trust in the prior period was immaterial. 
Joint arrangements
A joint arrangement is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; 
that is, when the relevant activities that significantly affect the investee’s returns require the unanimous consent of the parties sharing control.
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly 
affect the arrangement’s returns require the unanimous consent of the parties sharing control. Judgement is required in determining this 
classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as 
either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have 
rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets 
of the arrangement. 
Alfa only has one joint venture, namely Alfa iQ, which was formed in May 2020. The investment in the joint venture is accounted for using the 
equity method. The Group’s share of the joint venture’s net profit/ (loss) is based on its most recent financial statement drawn up to the Group’s 
balance sheet date. The total carrying value of investment in joint venture represents the cost of the investment, including loans which form part 
of the net investment in the joint venture, plus the share of post-acquisition retained earnings and any other movements in reserves less any 
impairment in the value of the investment.
The carrying values of joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred 
as a result of one or more events during the period, the investment is impaired. The Group’s share of the joint venture’s losses in excess of its 
interest in that joint venture is not recognised to the extent that the Group has incurred legal or constructive obligations or made payments 
on behalf of the joint venture. Unrealised gains arising from transactions with joint ventures are eliminated against the investment to the 
extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no 
evidence of impairment.
Loans to the joint venture are measured at fair value on initial recognition, and subsequently carried at amortised cost. Any surplus between 
the nominal and fair value of the loan is recognised as an investment in the joint venture. 
1.3	
Segment reporting 
Operating and reporting segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision 
Maker (CODM). The Group’s Chief Executive Officer (CEO), who is responsible for allocating resources and assessing performance, has been 
identified as the CODM.
The CODM regularly reviews the Group’s operating results in order to assess performance and to allocate resources. The CODM considers 
the business from a product perspective and, therefore, recognises one operating and reporting segment, being the sale of software and 
related services. The Group splits revenue by type of project but reports operating results on a consolidated basis, as presented to the 
CODM, along with the required entity wide disclosure.
The Group discloses revenue split by type of project being Subscription, Software and Services.
a.	 Subscription revenues include recurring revenues paid on a monthly or annual basis, including subscription licence revenues, maintenance 
and cloud hosting.
b. Software revenues include revenues from recognition of customised licence revenue, one-off licence fees and any development revenues. 
c.	 Services revenues are revenues from any work done for customers including pre-implementation, implementation work, and ongoing 
services, but excludes any revenue from development work which is disclosed in Software.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED

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To better reflect the nature and type of revenue, changes have been made in 2021 to the classification and allocation of revenue line items. 
The comparative disclosures for the December 2020 reporting period have also been amended to reflect a fair base for comparability. 
These changes have had no impact on the total revenue or the profit before tax that were disclosed at the end of December 2020. 
See note 1.5 for details of our revenue recognition accounting policy and note 2 for the critical accounting judgements and estimates 
in relation to revenue recognition.
1.4	
Foreign currency translation 
Functional currency 
Items included in the consolidated financial statements of each of the Group’s subsidiaries are measured using their functional currency. 
The functional currency of the parent and each subsidiary is the currency of the primary economic environment in which the entity operates. 
See applicable exchange rates used in 2021 and 2020 below:
2021
2020
Closing
Average
Closing
Average
USD
1.35
1.38
1.37
1.28
EUR
1.19
1.16
1.11
1.13
NZD
1.98
1.95
1.89
1.98
AUD
1.86
1.83
1.77
1.86
Presentation currency 
The consolidated financial statements are presented in pounds sterling. Alfa’s functional and presentation currency is pounds sterling.
Group companies 
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional 
currency different from the presentation currency are translated into the presentation currency as follows:
•	Assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date of that 
consolidated statement of financial position;
•	Income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates 
(unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income 
and expenses are translated at the dates of the transactions); and
•	All resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other 
comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or loss, as part of the 
gain or loss on sale.
Foreign currency transactions 
Transactions in foreign currencies are translated into the respective functional currencies using the exchange rates prevailing at the dates of 
the transactions. Foreign exchange differences arising from the settlement of such transactions and from the translation at the reporting date 
of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. See applicable exchange rates used by the 
Group above.
1.5	
Revenue recognition
The Group derives revenue by type of project being Subscription, Software and Services (as disclosed in note 1.3). 
i	
Subscription revenue which includes the periodic rights to use Alfa Systems, periodic maintenance, subscription (including cloud hosting) and 
one-off revenue relating to catch-up periodic maintenance; 
ii	 Software revenue which includes development revenue (part of the customised licence revenue), options over the right to use Alfa Systems, 
and one-off licence fees; and
iii	 Services revenue which includes software implementation services.
The Group provides the right to use, software development services, core implementation services and ongoing support of its product, 
Alfa Systems. The Group’s contractual arrangements contain multiple deliverables or services, such as the development or customisation 
of the software to the customer’s requirements, implementation services such as migration of data and testing and certain project 
management services.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
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Summary of significant accounting policies continued
Alfa assesses whether there are distinct performance obligations at the start of each contract and throughout the performance of 
the implementation, development and services projects and maintenance period. These performance obligations are laid out below.  
Any one contract may include a single performance obligation or a combination of those listed below:
a. 	Software implementation services 
Where implementation services are considered to be distinct, i.e. when relatively straightforward, do not require additional development 
services and could be performed by an external third party, the implementation services are accounted for as a separate performance obligation 
from any development services. 
When a customer is in the process of implementing the software, the transaction price is allocated to this based on the stand-alone selling prices 
(derived from standard day rates) and is recognised over time based on the effort incurred, limited to the amount to which Alfa has a right to payment. 
For customers under the Group’s subscription based contracts that are undergoing implementation, revenue for software implementation services is 
deemed to be distinct from any other performance obligation and is recognised based on a percentage of completion basis.
When the type of services provided are ongoing services, the transaction price is deemed to be the actual day rate, and revenue is recognised at 
a point in time as the service is provided.
b.	 Development services and licence services (the customised licence)
The second performance obligation is the granting of a right to use Alfa Systems, which includes the delivery of the related software licence 
and any development efforts which change the underlying code. 
During the initial phase of implementing the software, the total revenue attributable to this performance obligation is estimated at the 
outset of the relevant software implementation project and recognised as the effort is expended, on a percentage-of-completion basis, 
limited to the amount of revenue to which Alfa has the right to payment. A percentage-of-completion basis has been used because 
customers obtain the ability to benefit from the product from the start of the implementation project, the development or customisation 
of the asset is tailored to the customer’s specific requirements; and the customer is entitled to the benefits of the efforts as at the date the 
efforts are delivered, so recognition over time is appropriate.
Revenue attributable to development services is valued using the residual value method as there are no stand-alone selling prices which are 
observable as each project is customised. For customers under the Group’s subscription based contracts that are undergoing implementation, 
revenue for development services is deemed to be distinct from any other performance obligation and is recognised based on a percentage 
of completion basis.
Once the customer is already using the software and the services provided are ongoing development, the transaction price is deemed to be 
the actual day rate and revenue is recognised at a point in time as the development service is provided. 
c. 	Option over the right to use Alfa Systems 
In the event that customers have to pay periodic maintenance fees in order to keep using Alfa Systems, a component of these future 
maintenance fees is attributable to the right to use the software. In these circumstances the licence granted by Alfa is considered to renew in 
future periods. There may be a material right in respect of discounts in future periods. In order to ascribe a value to this option, management 
annualise the value of the customised licence performance obligation and compare it to the annual right to use software performance 
obligation post go live.
The value of this option is built up from the start of the implementation project in line with the percentage-of-completion of development 
revenue described in 1.5(b) above. Following the completion of the implementation project, the value of this option is recognised evenly over 
the expected remaining customer life.
d.	Periodic right to use Alfa Systems 
When a customer pays its maintenance fee annually, this performance obligation represents the proportion of this fee which relates to the periodic 
option to renew the right to use Alfa Systems. If there is the right of clawback of the annual right to use, such amounts are recognised throughout 
the annual period. If there is no right of clawback, then the annual right to use amount is recognised in full when there is a right of collection.
When a customer pays for its maintenance fee as part of a subscription contract (see section 1.5f below), it will not be treated as a separate 
performance obligation (and will instead be part of the subscription amount). 
e. 	Periodic maintenance amounts 
This represents the stand-alone selling price of the ongoing support or maintenance of Alfa Systems which is recognised throughout 
the period over which the services are delivered.

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f.	 Subscription amounts 
Certain of the Group’s implementation and service contracts include a subscription payment mechanism. This represents a monthly 
fee charged to the customer covering one or more of the following performance obligations; the provision of monthly hosting services; the 
monthly periodic right to use Alfa Systems and the provision of monthly maintenance services (when this becomes applicable to the 
customer). The monthly payments are recognised as revenue in the period to which they relate. This reflects the underlying performance 
obligations of the Group and termination rights of the customer.
g.	 One-off revenue amounts
From time to time, the Group is entitled to receive one-off licence revenue from its customers as they increase the number of contracts on their 
version of Alfa Systems. Additionally, there are times when catch-up periodic maintenance amounts are entitled to be received by the Group, 
also as a result of the increased number of contracts. Generally this revenue is recognised at the point in time it is invoiced, or becomes 
contractually payable, reflecting the fact that the Group has no remaining performance obligations to satisfy.
Capitalised sales incentive costs
The Group incentivises its sales force for securing sales. In line with IFRS 15, these costs are capitalised and are amortised in line with the 
percentage of completion of the software implementation project.
Costs to fulfil contracts
The Group has recognised an asset of £1.1m in relation to employee costs to fulfil its long-term development contracts. These costs relate 
directly to the contracts, generate or enhance resources to be used to satisfy performance obligations in the future and are expected to be 
recovered. This asset is presented within prepayments in the Statement of Financial Position. These costs are amortised within cost of sales in 
line with the percentage of completion of the development project.
1.6	
Operating expenses
Operating expenses include items such as personnel costs (including training and recruitment), cost of software not capitalised, research and 
development costs and other infrastructure expenses. These items have been grouped into the following categories for disclosure purposes:
•	Cost of sales – This includes salaries and other direct costs associated with satisfying customer contracts and for developing software.
•	Sales, general and administrative expenses – This includes all the residual operating costs.
1.7	
Income tax
Taxation expense for the year comprises current and deferred tax recognised in the reporting period. Tax is recognised in profit and loss, 
except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation 
assets and liabilities are not discounted.
Current tax 
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the 
countries where the Group and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken 
in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where 
appropriate on the basis of amounts expected to be paid to the tax authorities. 
Deferred tax 
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the Group’s consolidated financial statements. However, the deferred income tax is not accounted for if it arises 
from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects 
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or 
substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred 
income tax liability is settled. 
Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the 
temporary differences can be utilised. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset 
current tax assets against current tax liabilities and when the deferred income taxes, assets and liabilities relate to income taxes levied by the 
same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
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1.	
Summary of significant accounting policies continued
1.8	
Leases
Alfa enters into lease contracts in respect of various properties and motor vehicles. These rental contracts are typically made for fixed 
periods of two to ten years, and sometimes have extension options. Lease terms are negotiated on an individual basis and contain a wide 
range of different terms and conditions. In accordance with IFRS 16, leases are recognised as a right-of-use asset with a corresponding 
liability, at the date at which the leased asset is available for use by Alfa. These assets and liabilities are initially measured on a present value 
basis (as set out in more detail below), with each subsequent lease payment allocated between the liability and finance cost. The finance cost 
is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for 
each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Alfa assesses whether a contract is, or contains a lease, at inception of the contract. The Group recognises a right‑of‑use asset and 
a corresponding lease liability, with respect to all lease arrangements in which it is the lessee, except for short‑term leases (defined as leases 
with a lease term of 12 months, or fewer) and leases of low-value assets. For these leases, the Group recognises the lease payments as an 
expense on a straight‑line basis over the term of the lease, unless another systematic basis is more representative of the time pattern in which 
economic benefits from the leased assets are consumed.
Lease liabilities 
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by 
using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
•	Fixed lease payments (including in substance fixed payments), less any lease incentives; 
•	Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; 
•	The amount expected to be payable by the lessee under residual value guarantees; 
•	The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and 
•	Penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. 
The lease liability is presented in separate lines, split between current and non-current liabilities, in the consolidated statement of financial 
position. It is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest 
method) and by reducing the carrying amount to reflect the lease payments made.
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right‑of‑use asset) whenever:
•	The lease term has changed, or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is 
re-measured by discounting the revised lease payments using a revised discount rate; 
•	The lease payments change due to changes in an index, or rate, or a change in expected payment under a guaranteed residual value. 
In these cases, the lease liability is re-measured by discounting the revised lease payments, using the initial discount rate (unless the lease 
payments change is due to a change in a floating interest rate, in which case a revised discount rate is used); and 
•	A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is re-
measured by discounting the revised lease payments using a revised discount rate. 
Right-of-use assets 
The right‑of‑use assets comprise:
•	The initial measurement of the corresponding lease liability;
•	Lease payments made at, or before, the commencement day;
•	Any initial direct costs; and 
•	Restoration cost.

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The right‑of‑use assets are presented as a separate line in the consolidated statement of financial position.
The right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses (if applicable). They are 
depreciated from the commencement date of the lease and over the shorter period of the lease term and useful life of the underlying asset. 
If a lease transfers ownership of the underlying asset, or the cost of the right‑of‑use asset reflects an expectation that the Group will exercise 
a purchase option, the related right‑of‑use asset is depreciated over the useful life of the underlying asset. Currently, the Group does not have 
any leases that include a purchase option, or transfer ownership of the underlying asset.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located, or restore 
the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. 
Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended 
(or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this 
assessment and that is within the control of the lessee. During the current financial period, there have been no changes in such assessments. 
Variable rents that do not depend on an index, or rate, are not included in the measurement of the lease liability and the right‑of‑use asset. 
The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are 
included as an expense in the consolidated statement of profit or loss and comprehensive income.
1.9	
Impairment of assets
Goodwill is tested annually for impairment. The carrying amount is allocated to the cash-generating unit (CGU) that is expected to benefit 
from investment and which represents the lowest level at which the goodwill is monitored for internal management purposes. The carrying 
value of the CGU is then compared to the higher of its fair value less costs of disposal and its value in use. Any impairment attributed to the 
goodwill is recognised immediately as an expense and is not subsequently reversed.
Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might 
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing 
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of 
the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an 
impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
1.10	 Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand as well as short-term deposits with original maturities of three months or less.
1.11	 Financial assets
Recognition and de-recognition 
Financial assets are recognised in the statement of financial position when the Group becomes party to the contractual provision of 
the instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and 
substantially all the risks and rewards are transferred. 
Classification and initial measurement of financial assets 
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price 
in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). 
Financial assets, other than those designated and effective as hedging instruments, are classified into the following categories:
•	Amortised cost;
•	Fair value through profit or loss (FVTPL); and
•	Fair value through other comprehensive income (FVOCI).
In the periods presented, the Group does not have any financial assets categorised as FVTPL or FVOCI. The classification is determined by both:
•	The entity’s business model for managing the financial asset; and
•	The contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or 
other financial items, except for impairment of trade receivables which is presented within sales, general and administrative expenses.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
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1.	
Summary of significant accounting policies continued
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
•	They are held within a business model whose objective is to hold the financial assets and collect their contractual cash flows; and
•	The contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the 
principal amount outstanding. 
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of 
discounting is immaterial. The Group’s trade and most other receivables (notes 20 and 21) and cash and cash equivalents (note 22) fall into 
this category of financial instruments.
Impairment of financial assets
Under IFRS 9 the requirements are to use forward-looking information to recognise expected credit losses – the ‘expected credit loss (ECL) model’. 
The Group considers a broad range of information when assessing credit risk and measuring expected credit losses, including past events, current 
conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. 
In applying this forward-looking approach, a distinction is made between:
•	Financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’); and
•	Financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’).
•	‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.
‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second 
and third categories.
1.12	 Trade receivables
Trade receivables are amounts due from customers for licences sold or services performed in the ordinary course of business. They are generally 
due for settlement within 30 days of the invoice date and are therefore all classified as current. Trade receivables are recognised initially at fair 
value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. An impairment loss is 
recognised when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the 
receivable. The Group considers information developed internally or obtained from external sources that indicates that a debtor is unlikely to 
pay its creditors, including the Group, in full (without taking into account any collateral held by the Group) as an indication that a financial 
asset is not recoverable.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. 
To measure the expected credit losses, trade receivables have been grouped based on days overdue. The expected impairment loss is 
recognised in the consolidated statement of profit or loss and comprehensive income within sales, general and administrative expenses, and 
subsequent recoveries are credited to the same account previously used to recognise the impairment charge. During the current and prior 
period the result of the above was immaterial and no impairment loss has been recognised.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The credit 
qualities of these receivables are periodically assessed by reference to external credit ratings (if available) or to historical information about 
their default rates. The Group does not hold any collateral as security.
As the total carrying amount of the current portion of the trade and other receivables is due within the next 12 months after the reporting 
date, the impact of applying the effective interest method is not significant and, therefore, the carrying amount equals the contractual 
amount or the fair value initially recognised.
1.13	 Property, plant and equipment 
Property, plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly 
attributable to the acquisition of the item. Depreciation on assets is calculated using the straight-line method to allocate their cost over their 
estimated useful lives, as follows:
Fixtures and fittings: 3-10 years
IT equipment: 2-5 years
Motor vehicles: 10 years

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The assets’ residual values and useful lives are reviewed and adjusted if necessary at each reporting date. An asset’s carrying amount is written 
down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Repairs and 
maintenance are charged to the consolidated statement of profit or loss and comprehensive income as incurred. Any gains or losses on 
disposals are recognised within sales, general and administrative expenses in the consolidated statement of profit or loss and comprehensive 
income unless otherwise specified.
Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount 
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount, which is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are 
grouped at the lowest levels for which there are separately identifiable cash flows.
1.14	 Goodwill and other intangible assets
Goodwill
Goodwill arose on the acquisition of subsidiaries in 2012 as part of a group reorganisation and represents the excess of the consideration 
transferred and the amount of any non-controlling interest in the investment over the fair value of the identifiable assets acquired 
and liabilities and contingent liabilities assumed. 
The Group assesses whether goodwill has suffered any impairment on an annual basis in accordance with the accounting policy stated in note 
1.9 above. There is one CGU, being the Group, as its geographical operations do not have separate or distinct cash inflows. The recoverable 
amount of goodwill has been determined based on value-in-use calculations using cash flow projections from financial budgets and forecasts. 
Budgeted cash flow projections are based on the expectation of signing new customers in the Group’s sales pipeline as well as ongoing projects 
with existing customers. Budgeted gross margin is based on historical evidence and the expectations of market development and efficiency 
leverage. Management believes that any reasonable change in any of the key assumptions on which the recoverable amount is based would not 
cause the reported carrying amount to exceed the recoverable amount of the CGU. The discount rate used reflects the Group’s pre-tax 
weighted average cost of capital (WACC), as adjusted for region-specific risks and other factors as required by IFRS.
Intangible assets
Internally generated product development costs only qualify for capitalisation if the Group can demonstrate all of the following:
•	The technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete the intangible 
asset and use or sell it;
•	Its ability to use or sell the intangible asset; including how the intangible asset will generate probable future economic benefits;
•	The existence of a market or, if it is to be used internally, the usefulness of the intangible asset;
•	The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
•	Its ability to measure reliably the expenditure attributable to the intangible asset during development.
Generally, commercial viability of new products, modules or capabilities is not proven until all high-risk development issues have been resolved 
through testing of the specific development. Development expenditure incurred on minor or major upgrades, or other changes in software 
functionality, does not satisfy the criteria, where it is considered that the product is not substantially new in its design or functional characteristics. 
Such expenditure is therefore recognised as an expense. See note 15 for disclosure of development costs which have met the criteria of IAS 38 for 
recognition. The Group continues to assess the eligibility of development costs for capitalisation on a project-by-project basis.
Externally acquired intangible assets are initially recorded at historical cost. Historical cost includes expenditure that is directly attributable 
to the acquisition of the item. 
The Group amortises intangible assets with a limited useful life, using the straight-line method over the following periods:
Computer software: licence period or 10 years as applicable 
Internally generated software: 3-5 years
Amortisation is presented within sales, general and administrative expenses.
Research and development which does not meet the criteria set out above is recognised as an expense as incurred. Development costs 
previously recognised as an expense are not recognised as an asset in subsequent periods.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
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1.	
Summary of significant accounting policies continued
1.15	 Trade and other payables
Trade payables are obligations to pay for goods or services which have been acquired in the ordinary course of business from suppliers. 
Trade payables are recognised initially at fair value and subsequently measured at amortised costs using the effective interest rate method. 
As the total carrying amount is due within the next 12 months from the reporting date, the impact of applying the effective interest method is 
not significant and, therefore, the carrying amount equals the contractual amount or the fair value initially recognised. 
The Group’s financial liabilities include trade and other payables and lease liabilities. Financial liabilities are initially measured at fair value, and, where 
applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, 
financial liabilities are measured at amortised cost using the effective interest method. All interest-related charges and, if applicable, changes in 
an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income. The Group derecognises financial 
liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired.
Trade and other payables and lease liabilities are classified as current liabilities if payment is due within one year or less. If not, they are 
presented as non-current liabilities.
1.16	 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an 
outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. When the effect of the discounting 
is material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. 
1.17	 Employee benefits
The Group provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans.
Short-term benefits 
Short-term benefits, including health cover and other similar non-monetary benefits, are recognised as an expense in the period in which the 
service is received.
Post-employment benefits 
The Group operates various defined contribution plans for its employees. A defined contribution plan is a pension plan where the Group pays fixed 
contributions into a separate independent entity. The Group has no legal or constructive obligation to pay further contributions if the fund does not 
hold sufficient assets to pay all employees the benefits relating to the employee’s service in the current and prior periods.
Employee share scheme expense
The Group makes equity-settled share-based payments to certain employees, which are measured at fair value at the date of grant and expensed on 
a straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest. For those share schemes with market-
related vesting conditions, the fair value is determined using the Monte Carlo model at the grant date. For share options issued with EPS (non-market) 
performance vesting conditions, the fair value of the underlying vehicle is equal to the grant date share price discounted by the expected dividend yield 
to reflect the lack of dividend accrual over the vesting period. For all other share awards, those with pure employment conditions attached, the fair 
value is determined by reference to the market value of the shares at the grant date or (where they have an exercise price) by using the Black Scholes 
model. For all share schemes with non-market vesting conditions, the likelihood of vesting has been taken into account when determining the relevant 
charge. Vesting assumptions are reviewed during each reporting period to ensure they reflect current expectations.
1.18	 Equity
Ordinary shares
Ordinary shares are classified as equity. There are no restrictions on the distribution of capital and the repayment of capital. 
Cumulative translation reserve	
Exchange differences arising on translation of the foreign-controlled entities are recognised in Other Comprehensive Income and accumulated 
in a separate reserve within equity. The cumulative amount would be reclassified to profit or loss if the entity was disposed of.
Own shares
Own shares represent the shares of the parent company Alfa Financial Software Holdings PLC that are held by the employee benefit trust. 
Own shares are recorded at cost and deducted from equity.
1.19	 Earnings per share 
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of Alfa by the weighted average number of ordinary 
shares outstanding during the year (excluding own shares held).

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Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
151
Diluted earnings per share
Diluted earnings per share is calculated in line with the basic earnings per share calculation above except that the weighted average number 
of shares includes all potentially dilutive options granted by the reporting date as if those options had been exercised on the first day of the 
accounting period or the date of the grant, if later. The shares have no right to voting or to dividends while held in trust. 
2.	
Critical accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. 
Management also needs to exercise judgement in applying the Group’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be 
materially adjusted in future periods due to estimates and assumptions turning out to be wrong. Detailed information about each of these 
estimates and judgements is included in other notes, together with information about the basis of calculation for each affected line item in 
the financial statements.
2.1	
Critical judgements in applying the Group’s accounting policies
Revenue recognition – Assessing performance obligations 
The Group is required to make an assessment as to whether the implementation process, which includes customised licence, implementation 
revenue streams as well as any maintenance fees during this phase, forms one or a number of performance obligations. Since the residual 
value method is used for the customised licence revenue (as explained in note 1.5), the estimation of fair value of implementation revenue 
will impact the contract consideration assigned to the customised licence. 
In addition, the Group is also required to make an assessment as to whether each contract contains an expectation to deliver multiple 
separate instances of the customised licence which may form separate groups of distinct performance obligations. In doing the above, 
the Group assesses each software implementation contract as to whether the underlying software requires significant modification 
or customisation by the Group in order to meet the customer’s requirements before Alfa Systems can be utilised by the customer. 
Therefore judgement is required in determining which efforts relate to the implementation process and which efforts could be determined 
to be development services which change or enhance the underlying code. In making this judgement, the Group assesses the contractual 
terms and the original project plan for the implementation but also uses historical evidence of what constitutes core implementation work.
Internally generated software development – Assessing whether a project meets criteria of IAS 38
The Group is required to make an assessment of each ongoing project in order to determine at what stage a project meets the criteria outlined in 
the Group’s accounting policies. Such assessment may, in certain circumstances, require significant judgement. In making this judgement, the Group 
evaluates, amongst other factors, the stage at which technical feasibility has been achieved, management’s intention to complete and use or sell the 
product, the likelihood of success, the availability of technical and financial resources to complete the development phase and management’s ability 
to measure reliably the expenditure attributable to the project. Research and product development expenditure incurred on minor or major 
upgrades, or other changes in software functionality, does not satisfy the criteria where it is considered that the product is not substantially new 
in its design or functional characteristics. Such expenditure is therefore recognised as an expense.
2.2	 Key sources of estimation uncertainty
Revenue recognition – Estimates feeding through to the customised licence 
The customised licence and its associated material right are both impacted by the following estimates:
•	Assigning a stand-alone selling price for implementation services day rates: the Group assesses the value of the implementation services 
delivered by assessing the effective day rate for an implementation contract, taking into account all revenue streams from implementation 
contracts against day rates of similar projects in the same geographies; 
•	Estimating the appropriate life of customer relationship: the Group calculates the material right deferral of the customised licence based 
on the total customer relationship life. This is also the time over which the material right will be spread; and
•	Determining the split of maintenance amount between support efforts and right to use: the Group must estimate what percentage of the 
total maintenance fee relates to the customised licence. 
Management reassesses estimates and applies them to new projects prospectively. A variation of 5% to 10%, or an increase in expected customer 
life by a year, in the above, results in an impact on revenue for the year ranging between an increase / decrease of £0.4m.
2.3	 Other sources of estimation uncertainty
Revenue recognition –Number of forecast implementation and development days
The Group estimates the number of days required to complete the relevant software customisation effort at the outset of each project and on an 
ongoing basis including at each consolidated statement of financial position date. Estimates of total project days required for a relevant project are 
based on historical evidence of past implementations, knowledge of the customer’s systems being replaced and scope of customisation being 
requested. The Group applies the percentage-of-completion method when calculating implementation and development services revenue and 
updates estimates at each quarter end accordingly. Therefore, a significant movement in total planned days would result in volatility in implementation 
and customised licence revenue.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
152
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
3.	
Financial risk management
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the 
Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information 
in respect of these risks is presented throughout these financial statements.
Area
Exposure arising from
Measurement
Management
Market risk – foreign exchange
Contracted revenue and costs 
denominated in a currency 
other than the entity’s 
functional currency; and
Monetary assets and 
liabilities denominated in 
a currency other than the 
entity’s functional currency.
Cash flow forecasting and 
foreign exchange sensitivity
Natural hedging from 
localised cost base and 
prompt conversion of 
foreign currency cash 
balances into pound sterling
Credit risk – cash balances
Cash and cash equivalents
Credit ratings
Diversification of 
bank deposits
Credit risk – customer receivables
Trade receivables and 
accrued income
Ageing analysis
Credit ratings
Credit checks and 
contractual payment terms
Liquidity
Cash and cash equivalents
Cash flow forecasting
Collection of upfront licence 
fees, ageing analysis of 
customer receivables
The Group’s overall risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse 
effects on the Group’s financial performance. The Group has used financial instruments to hedge certain risk exposures in the past. 
Risk management is carried out by the finance function under policies approved by the Chief Financial Officer. The finance function identifies, 
evaluates and mitigates financial risks when deemed necessary. 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can provide 
returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure. 
3.1	
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risks arising from various currencies, primarily with respect to those 
described below. Revenue is predominantly denominated in pounds sterling and US dollars. Operating costs are influenced by the currencies 
of the countries where the Group’s subsidiaries are based and pounds sterling and the US dollars are the currencies in which most operating 
costs are denominated.
The split by currency in relation to trade receivables is set out in note 20.
The Group’s exposure to foreign currency risk in relation to revenue is set out in note 5.4.
The Group has not entered into or utilised any form of hedging against foreign currency exposure during the current or prior period, nor does 
the Group have any outstanding commercial foreign exchange contracts at 31 December 2021 or 31 December 2020. 
A 10% increase in the USD:GBP exchange rate in the year ended 31 December 2021 would have increased revenue and profit by 4% and 
8% respectively.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
153
3.2	 Credit risk 
a.	
Credit risk related to transactions with financial institutions 
Credit risk with financial institutions is managed by the Group’s finance function in accordance with a Board approved policy. Management is 
not aware of any significant risks associated with financial institutions as a result of cash and cash equivalents deposits (including short-term 
investments) and financial derivative transactions. 
b.	
Credit risks related to customer trade receivables 
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, change of strategy 
and default or delinquency in payments are considered indicators that a trade receivable could be impaired. Given the complexity, the size 
and the length of certain software implementation of related projects, a delay in the settlement of an open trade receivable does not 
necessarily constitute objective evidence that the trade receivable is impaired.
The Group’s customer base predominantly consists of large financial institutions that are financially sound. The responsibility for customer 
credit risk management rests with management of the Group. Payment terms are set in accordance with practices in the different 
geographies and end-markets served, typically being 30 days from the date of the invoice. Trade receivables are actively monitored and 
managed. Collection risk is mitigated through the use of upfront payments of licences and maintenance. Historically, there has been a de 
minimis level of customer default as a result of the long history of dealing with the Group’s customer base and an active credit monitoring 
function. Where applicable, credit limits may be established based on internal or external rating criteria, which take into account such factors 
as the financial condition of the customers, their credit history and the risk associated with their industry segment. 
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all 
trade receivables and accrued income. To measure the expected credit losses, trade receivables and accrued income have been grouped 
based on shared credit risk characteristics and the days past due. The accrued income relates to unbilled work in progress and has 
substantially the same risk characteristics as the trade receivables for the same types of contracts, other than where the Group has collected 
upfront payments in the form of licence fees at the start of a software implementation contract. The Group has concluded that the expected 
loss rates for trade receivables are less than the loss rates for the accrued income. 
The expected loss rates of trade receivables are based on the payment profiles of customer invoices over a period of 36 months before 
31 December 2021 or 31 December 2020 respectively and the corresponding historical credit losses experienced within this period. 
The historical loss rates would then be adjusted to reflect current or forward-looking information in relation to any macroeconomic factors 
affecting the ability of the customers to settle the receivables. 
The Group has not identified any current factors or forward-looking information which would be relevant to the historical loss rates 
as all trade receivables have been collected in the past 24 months. Therefore on this basis, the loss allowance as at 31 December 2021 
and 31 December 2020 was immaterial for both trade receivables and accrued income.
See note 20 – Trade receivables for the ageing of trade receivables and significant customer credit risk exposure.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
154
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
3.	
Financial risk management continued
3.3	
Liquidity risk
The Group’s principal objective when managing capital is to safeguard the Group’s ability to continue as a going concern, so that it can 
continue to provide returns for shareholders and benefits for other stakeholders. 
The capital structure of the Group consists of cash and cash equivalents (note 22) and equity attributable to equity holders of the parent.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group manages its exposure to liquidity risk through short and long-term forecasts and by seeking to align the maturity profiles of its 
financial assets with its financial liabilities. The Group’s policy is to maintain an adequate level of liquidity to meet its liabilities expected to be 
settled in the short or near term, under both normal and stressed conditions.
The following table details the remaining contractual maturity of the Group’s financial liabilities. The amounts disclosed in the table are the 
contractual undiscounted cash flows.
31 December 2021
£m
Carrying value
Less than 6 
months
Between 6 to 
12 months
Between 1 to 2 
years
Between 2 to 5 
years
More than 5 
years
Trade and other payables
6.9
6.9
–
–
–
–
Lease liabilities – future lease payments
20.3
1.3
1.4
2.7
7.4
7.5
31 December 2020
£m
Carrying value
Less than 6 
months
Between 6 to 
12 months
Between 1 to 2 
years
Between 2 to 5 
years
More than 5 
years
Trade and other payables
5.6
5.6
–
–
–
–
Lease liabilities – future lease payments
 21.1 
 1.2 
 1.2 
 2.4 
 6.9 
 9.4 
4.	
Segments and principal activities
4.1	
Revenue by stream
The Group assesses revenue by type of activity, being Subscription, Software and Services, as summarised below:
£m
2021
2020
(restated*)
Software
13.6
20.0
Subscription
23.5
18.1
Services
46.1
40.8
Total revenue
 83.2 
 78.9 
* 	 To better reflect the nature and type of revenue, changes have been made to the classification and allocation of revenue line items. The comparative disclosures for the 
December 2020 reporting period have also been amended to reflect a fair base for comparability. These changes have had no impact on the total revenue or the profit 
before tax that were disclosed at the end of December 2020.
4.2	 Operating profit
The following tables reconciles profit for the period attributable to equity holders to Operating Profit for the periods presented:
£m
2021
2020
Profit for the year
19.2
20.3
Adjusted for:
Net income from joint venture
0.1
–
Taxation
4.6
2.9
Finance income
–
(0.1)
Finance expense
0.8
0.8
Operating profit
24.7
23.9

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
155
4.3	 Non-current assets geographical information
Non-current assets attributable to each geographical market:
£m
2021
2020
UK
42.6
44.0
USA
1.2
0.7
Rest of World
0.6
0.1
Total non-current assets
44.4
44.8
Revenue by geographical market is contained within note 5.3.
5.	
Revenue from contracts with customers
5.1	
Customer concentration 
Customers with revenue accounting for more than 10% of total revenue in the current year are as follows:
£m
2021
2020
Customer A
10%
12%
See note 20 for outstanding trade receivables from those customers with revenue accounting for more than 10% of total revenue. 
5.2	 Timing of revenue
The Group derives revenue from the transfer of goods and services as follows over time and at a point in time in the following revenue 
segments:
2021 
£m
Services
Software
Subscription
Total 
revenue
At a point in time – time and materials
 25.2 
 5.6 
 – 
 30.8 
At a point in time – fixed price
 –
 2.1 
 –
 2.1 
Over time – time and materials
 19.8 
 4.1 
 –
 23.9 
Over time – fixed price
 1.1 
 1.8 
 23.5 
 26.4 
Total revenue
46.1
13.6
23.5
83.2
2020 
£m (restated)*
Services
Software
Subscription
Total 
revenue
At a point in time – time and materials
 19.4 
 5.1 
 – 
 24.5 
At a point in time – fixed price
 0.2 
 5.7 
 0.8 
 6.7 
Over time – time and materials
 18.8 
 8.0 
 – 
 26.8 
Over time – fixed price
 2.4 
 1.2 
 17.3 
 20.9 
Total revenue
40.8
20.0
18.1
78.9
All goods and services are sold directly to customers. 
* 	 To better reflect the nature and type of revenue, changes have been made to the classification and allocation of revenue line items. The comparative disclosures for the 
December 2020 reporting period have also been amended to reflect a fair base for comparability. These changes have had no impact on the total revenue or the profit 
before tax that were disclosed at the end of December 2020.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
156
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
5.	
Revenue from contracts with customers continued
5.3	 Revenue geographical information 
Revenue attributable to each geographical market based on where the customer mainly utilises its instance of Alfa, or where the service is 
rendered, is as follows:
£m
2021
2020
UK
 30.0 
 25.8 
USA
 28.9 
 29.2 
Rest of EMEA (excl UK)
 18.7 
 21.3 
Rest of World
 5.6 
 2.6 
Total revenue
 83.2 
 78.9 
5.4	 Revenue by currency 
Revenue by contractual currency is as follows:
£m
2021
2020
GBP
 35.9 
 33.3 
USD
 30.0 
 30.4 
Euro
 11.6 
 12.6 
Other
 5.7 
 2.6 
Total revenue
 83.2 
 78.9 
5.5	 Liabilities from contracts with customers
£m
2021
2020
Contract liabilities – deferred licence
5.3
1.9
Contract liabilities – deferred maintenance
5.7
5.1
Total contract liabilities
11.0
7.0
Contract liabilities – deferred licence
Where a customer purchases a perpetual software licence this is generally invoiced upfront at the commencement of the implementation 
project. Customers generally require additional development efforts over the life of the implementation project in order to customise the 
underlying code within Alfa Systems. Together these two elements form the Group’s customised licence performance obligation. The fair 
value of this performance obligation is determined using the residual method as set out in note 1.5b and this fair value is recognised as the 
development effort is expended, on a percentage of completion basis. 
As such the deferred licence contract liability balance as at 31 December 2021 represents any amounts received in advance for the 
customised licence performance obligation being satisfied (including any unrecognised software licence amounts that were received upfront). 
Additionally, where an option over the right to use Alfa Systems in the future exists, the value of this is also included within the deferred 
licence contract liability. The contract liability relating to the material right value is increased over the life of the implementation project 
in line with the percentage of completion of the development efforts and then released on a straight-line basis over the expected remaining 
customer life post completion of the implementation project.
The deferred licence contract liability balance will increase during the year as a result of:
•		any new upfront software licence payments; 
•		any write back in previously recognised revenue as a result of project extensions or re-plans; and 
•		any additional material right balances that are added during the year.
The deferred licence contract liability balance will decrease during the year as a result of:
•		increasing percentage of completion of development efforts; and
•		any release of material right balances following the completion of the implementation project.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
157
Contract liabilities – deferred maintenance
The majority of the Group’s customers are invoiced annually in advance for the maintenance and support service provided by the Group. 
As such, the deferred maintenance contract liability balance will increase during the year as a result of billing and invoices becoming due, 
and will decrease as the Group satisfies its associated performance obligations. The deferred maintenance contract liability balance as at 
31 December 2021 therefore represents the Group’s unsatisfied period maintenance performance obligation for which the revenue has 
been invoiced in advance.
5.6	 Unsatisfied Performance Obligations
During 2020, the Group entered into a new one-off five-year contract with a customer to renew its software licence and maintenance 
agreements. The total amount of the contract price from this non-cancellable contract that relates to the performance obligations that are 
unsatisfied at 31 December 2021 is £8.4m (2020: £10.6m). We expect to recognise £2.2m in each of the next three financial years and then 
the remaining £1.8m in the final financial year of the contract, being 2025.
In addition, the Group has unsatisfied or partially satisfied performance obligations at 31 December 2021 that relate to the licence 
customisation for those customers that have ongoing implementation projects, or implementation projects that commenced in early 2022 
and for which contracts were agreed prior to 31 December 2021. This performance obligation includes the delivery of the related software 
licence and any development efforts which will change the underlying code. Linked to certain of these ongoing and future projects, and also 
to certain implementation projects completed during 2021, the Group also has unsatisfied or partially satisfied performance obligations at 
31 December 2021 that relate to the option over the right to use Alfa Systems, and in particular any material right in respect of discounts to 
be received by customer in future periods. 
The above includes certain amounts recognised as contract liabilities. The transaction price allocated to these unsatisfied or partially satisfied 
performance obligations as at 31 December 2021 is £11.1m (2020: £9.0m). This amount is expected to be recognised over the remaining life of the 
implementation projects, in respect of the licence and development efforts, and over the expected customer life (following the completion of the 
implementation project) in respect of the option over the right to use Alfa Systems.
These unsatisfied or partially satisfied performance obligations are based on management’s best judgement and may be impacted 
in the future by a number of factors including:
•		any possible contract modifications, 
•		currency fluctuations; 
•		external market factors; and
•	changes to the overall forecast project plan including the overall life of the implementation project and any required development efforts.
The Group applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about the unsatisfied performance 
obligations that have original expected durations of one year or less. This includes those performance obligations linked to ongoing services 
for all project types (i.e. subscription, software and services).
The Group also applies the practical expedient in paragraph B16 of IFRS 15 and does not disclose the amount of the transaction 
price allocated to the unsatisfied contract performance obligations where consideration will be received directly corresponding to the value 
of the performance obligation in the future and this consideration aligns to the value received to date for the corresponding performance 
obligation. This includes those performance obligations linked to our software implementation services.
The Group has variable consideration in the form of contract banding for its licence and maintenance volumes. It is included it in the 
transaction price only to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty 
associated with the variable consideration is subsequently resolved.
6.	
Operating profit
The following items have been included in arriving at operating profit in the table below: 
£m
2021
2020
(restated)
Research and development costs* 
1.6
1.5
Depreciation of property, plant and equipment 
0.4
0.5
Depreciation of right-of-use lease assets 
1.9
1.7
Amortisation of intangible assets 
0.8
0.8
Share-based payments (inc. social security contributions)
1.5
1.5
*	 To better reflect the nature of research and development expenditure and align with capitalised development costs, changes have been made to the classification of expense line 
items. Research and development costs are now primarily made up of costs incurred as part of the Group’s internal research and development activities, where as previously this 
line item included broader costs. The comparative disclosures for the December 2020 reporting period have also been amended to reflect a fair base for comparability.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
158
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
7.	
Personnel related costs
£m
2021
2020
Wages and salaries
 31.8 
 30.0 
Social security contributions (on wages and salaries)
 3.9 
 3.4 
Pension costs
 2.1 
 2.0 
Profit share pay *
 3.1 
 2.7 
Share-based payments **
 1.5 
 1.5 
Total employment costs
 42.4 
 39.6
*	 Profit share pay refers to a pool of money (that equates to approximately 10% of the Group’s pre-tax profits) which is shared amongst the employees, excluding Directors and 
some other senior managers, as a percentage of basic salary. The amount disclosed includes the related social security contributions. 
** This includes the related social security contributions.
Average monthly number of people employed based on location of home office
(including Executive Directors)
2021
2020
UK
282
255
USA
71
66
Rest of World
30
20
Total average monthly number of people employed
383
341
8.	
Key management 
Key management compensation (including Executive Directors):
£m
2021
2020
Wages, salaries and short-term benefits
 3.1 
2.6
Social security contributions
 0.4 
0.3
Post-employment benefits
 0.1 
0.1
Share-based payments *
 0.9 
0.2
Total key management compensation
 4.5 
3.2
*	 This includes the related social security contributions.
Key management personnel consists of the Company Leadership Team and the Executive Directors. Directors’ remuneration is detailed in the 
Remuneration Report.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
159
9.	
Auditor’s remuneration 
The Group obtained the following services from the Group’s auditor as detailed below:
£m
2021
2020
Audit fees 
Deloitte LLP
Audit fees relating to prior year
–
0.1
RSM UK Audit LLP
Audit of the consolidated financial statements
 0.2 
 0.2 
Audit of subsidiaries
 0.2 
 0.2 
Total audit fees
 0.4 
 0.5 
Audit-related assurance fees
RSM UK Audit LLP
0.1
0.1
Total audit-related assurance fees
0.1
0.1
Non-audit services
–
–
Total audit and non-audit-related services
0.5
0.6
10.	 Finance income and expense
£m
2021
2020
Finance income
Interest income on cash or short-term bank deposits
–
0.1
£m
Note
2021
2020
Finance expense
Interest on lease liability
24
(0.8)
(0.8)
Total finance expense
(0.8)
(0.8)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
160
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
11.	 Income tax expense
Analysis of charge for the year
£m
2021
2020
Current tax
Current tax on profit for the year
 4.5 
 4.5 
Adjustment in respect of prior years
(0.5)
(1.4)
Foreign tax on profit of subsidiaries for the current year
 0.3 
 0.6 
Current tax
 4.3 
 3.7 
Deferred tax
Origination and reversal of temporary differences
 (0.1) 
(0.3)
Adjustment in respect of prior years
 0.6
(0.5)
Effect of changes in tax rates
(0.2)
–
Deferred tax
 0.3
(0.8)
Total tax charge in the year
 4.6 
 2.9 
The effective tax rate for the year is higher (2020: lower) than the standard rate of corporation tax in the UK. The effective tax rate for the 
year ended 31 December 2021 was 19.3% (2020: 12.5%). The effective tax rate for the year is impacted by adjustments in respect to prior 
years totalling £0.1m (2020: favourable adjustment of £1.9m), due to increased tax costs for the prior year of £0.2m, an adjustment in 
respect to deferred tax on share awards of £0.5m, less the benefit of the UK R&D tax claim for 2020 of £0.6m (2020: predominately due to 
the benefit of UK R&D tax claims for 2018 and 2019). Excluding the impact of adjustments in respect to prior years, the effective tax rate for 
the year was 18.9% (2020: 20.7%). The overall tax charge for the year is reconciled as follows:
Analysis of charge for the year
£m
2021
2020
Profit on ordinary activities before taxation
 23.8 
23.2
Profit on ordinary activities at the standard rate of corporation tax – 19%
4.5
4.4
Tax effects of:
Effect of different tax rates of subsidiaries operating in other jurisdictions
0.1
0.2
Expenses not deductible for tax purposes
–
0.1
Adjustment in respect of prior years
0.1
(1.9)
Impact of tax rate changes
(0.2)
–
Other
0.1
0.1
Total tax charge for the year
4.6
2.9

FINANCIAL STATEMENTS
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161
12.	 Earnings per share
2021
2020
Profit attributable to equity holders of Alfa (£m)
 19.2 
 20.3 
Weighted average number of shares outstanding during the year 
 296,709,610  293,824,145 
Basic earnings per share (pence per share)
 6.49 
 6.93 
Weighted average number of shares outstanding including potentially dilutive shares
 301,505,177  300,069,048 
Diluted earnings per share (pence per share)
 6.39 
 6.79 
The weighted average number of ordinary shares in issue excludes 3,290,390 (2020: 6,175,855) shares held by employee benefit trust. 
The diluted number of ordinary shares outstanding, including share awards, is calculated on the assumption of conversion of all 5,470,741 
(2020: 6,139,161) potentially dilutive ordinary shares.
13.	 Financial assets and liabilities
£m 
Note
2021
2020
Finance assets
Financial assets at amortised cost:
Trade receivables
20
 6.0 
 5.8 
Other financial assets at amortised cost
21
 7.3 
 5.8 
Cash and cash equivalents
22
 23.1 
 37.0 
Total financial assets
 36.4 
 48.6 
Finance liabilities
Financial liabilities at amortised cost:
Trade and other payables 
23
 6.9 
 5.6 
Lease liabilities
24
 17.1 
 17.5 
Total finance liabilities
 24.0 
 23.1 
14.	 Goodwill
£m
2021
2020
Cost
At 1 January
24.7
24.7
At 31 December
24.7
24.7
The recoverable amount of goodwill has been determined based on value-in-use calculations using cash flow projections from financial 
budgets and forecasts for a five-year period using a pre-tax discount rate of 11% (2020: 11%). Cash flows beyond these periods have been 
extrapolated using a steady 2% (2020: 2%) average growth rate. This growth rate does not exceed the long-term average growth rate for the 
markets in which the Group operates. Management believes that any reasonable change in any of the key assumptions on which the 
recoverable amount is based would not cause the reported carrying amount to exceed the recoverable amount of the CGU.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
162
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
15.	 Other intangible assets
£m
Computer 
software
Internally 
generated 
software
Total
Cost
At 1 January 2020
1.4
1.5
2.9
Additions
0.1
0.7
0.8
At 31 December 2020
1.5
2.2
3.7
Amortisation
At 1 January 2020
0.5
0.2
0.7
Charge for the year
0.3
0.5
0.8
At 31 December 2020
0.8
0.7
1.5
Net book value
At 31 December 2020
0.7
1.5
2.2
Cost
At 1 January 2021
1.5
2.2
3.7
Additions
0.1
0.9
1.0
At 31 December 2021
1.6
3.1
4.7
Amortisation
At 1 January 2021
0.8
0.7
1.5
Charge for the period
0.1
0.7
0.8
At 31 December 2021
0.9
1.4
2.3
Net book value
At 31 December 2021
0.7
1.7
2.4
Significant movement in other intangible assets 
During 2021, Alfa developed new internally generated software at a cost of £0.9m (2020: £0.7m). This software will be amortised over three to 
five years.
The total research and product development expense for the period was £1.6m (2020: £1.5m restated – see note 6).

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
163
16.	 Property, plant and equipment
£m
Fixtures and 
fittings
IT equipment
Total
Cost
At 1 January 2020
1.2
3.2
4.4
Additions
0.1
0.2
0.3
Disposals
(0.1)
(0.1)
(0.2)
At 31 December 2020
1.2
3.3
4.5
Depreciation
At 1 January 2020
0.7
2.6
3.3
Charge for the year
0.1
0.4
0.5
Disposals
(0.1)
(0.1)
(0.2)
At 31 December 2020
0.7
2.9
3.6
Net book value
At 31 December 2020
0.5
0.4
0.9
Cost
At 1 January 2021
1.2
3.3
4.5
Additions
–
0.3
0.3
Disposals
–
(0.1)
(0.1)
At 31 December 2021
1.2
3.5
4.7
Depreciation
At 1 January 2021
0.7
2.9
3.6
Charge for the year
0.1
0.3
0.4
Disposals
 –
(0.1)
(0.1)
At 31 December 2021
0.8
3.1
3.9
Net book value
At 31 December 2021
0.4
0.4
0.8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
164
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
17.	 Right-of-use assets 
£m
Motor vehicles
Property
Total
Cost
At 1 January 2020
0.2
17.9
18.1
Additions
0.1
0.1
0.2
Disposals
(0.1)
(0.1)
(0.2)
At 31 December 2020
0.2
17.9
18.1
Depreciation
At 1 January 2020
0.1
1.6
1.7
Charge for the year
0.1
1.6
1.7
Disposals
(0.1)
 –
(0.1)
At 31 December 2020
0.1
3.2
3.3
Net book value
At 31 December 2020
0.1
14.7
14.8
Cost
At 1 January 2021
0.2
17.9
18.1
Additions
0.2
1.3
1.5
At 31 December 2021
0.4
19.2
19.6
Depreciation
At 1 January 2021
0.1
3.2
3.3
Charge for the year
0.1
1.8
1.9
At 31 December 2021
0.2
5.0
5.2
Net book value
At 31 December 2021
0.2
14.2
14.4
The Group recognised the following amounts in the consolidated statement of profit or loss and comprehensive income in relation to leases 
under IFRS 16:
£m
2021
2020
Depreciation
(1.9)
(1.7)
Interest expense
(0.8)
(0.8)
Short‑term lease expense
(0.2)
(0.2)
Sub-lease rentals
One of the leased properties is sub-leased to tenants under operating leases, with rentals payable quarterly. Minimum lease payments 
receivable on these sub-leases of property are as follows:
£m
2021
2020
Within one year
–
0.4
Later than one year but not later than 5 years
–
–
Later than 5 years
–
–
Total sub-lease payments receivable
–
0.4
Income from sub-lease in the year
0.5
0.5

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
165
18.	 Deferred income tax
The provision for deferred tax consists of the following deferred tax assets/(liabilities) relating to accelerated capital allowances and short-
term timing differences in relation to accruals and share-based payments. 
£m
2021
2020
Balance as at 1 January
 1.8 
 0.6 
Effect of changes in tax rates
 0.2 
–
Adjustments in respect of prior period
(0.6)
 0.5 
Deferred income taxes recognised in the consolidated statement of profit or loss and comprehensive income
0.1
 0.3 
Deferred tax on share-based payments recognised in reserves
0.3
 0.4 
Foreign exchange movements
 –
 –
Balance as at 31 December
 1.8 
 1.8 
Consisting of:
Depreciation in excess of capital allowances
–
(0.1)
Other timing differences
1.8
1.9
Balance as at 31 December
1.8
1.8
Deferred income tax liabilities have not been recognised for the withholding tax and other taxes that would be payable on the unremitted 
earnings of certain subsidiaries as the Group is able to control the timing of these temporary differences and it is probable that they will not 
reverse in the foreseeable future. Unremitted earnings totalled £3.4m at 31 December 2021 (2020: £3.1m).
19.	 Interests in joint venture 
At the beginning of May 2020, the Group formed Alfa iQ, a joint venture established to greatly enhance Alfa’s ability to develop artificial 
intelligence solutions for the auto and equipment finance industry. The joint venture was set up 51:49 between Alfa and Bitfount, a company founded 
by Blaise Thomson. The financial and operating activities of the Group’s joint venture are jointly controlled by the participating shareholders. 
The participating shareholders have rights to the net assets of the joint venture through their equity shareholdings.
The interest in the joint venture consists of part investment and part loan to joint venture accounted for as set out in note 1.2. 
Investment
£m
2021
2020
Carrying amount as at 1 January 
0.3
–
Carrying amount as at 6 May 2020 (i.e. on establishment of the joint venture)
–
0.3
Share of net loss from the joint venture
(0.1)
–
Carrying amount as at 31 December
0.2
0.3
Loan to joint venture	
	
£m
2021
2020
Carrying amount as at 1 January
0.1
–
Carrying amount as at 6 May 2020 (i.e. on establishment of the joint venture)
–
0.1
Interest
–
–
Carrying amount as at 31 December
0.1
0.1
The total loss from interest in joint venture is £0.1m (2020: £0.0m) and the total interest in the joint venture is £0.3m (2020: £ 0.4m).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
166
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
20.	 Trade receivables
£m
2021
2020
Trade receivables
6.0
5.8
Provision for impairment
–
–
Trade receivables – net
6.0
5.8
Ageing of trade receivables
Ageing of net trade receivables £m
2021
2020
Within agreed terms
4.1
5.6
Past due 1-30 days
1.2
0.1
Past due 31-90 days
0.6
–
Past due 91+ days
0.1
0.1
Trade receivables – net
6.0 
5.8
The Group believes that the unimpaired amounts that are past due are fully recoverable as there are no indicators of future delinquency or 
potential litigation. 
Currency of trade receivables
£m
2021
2020
GBP
4.9
1.8
USD
0.9
3.1
Other
0.2
0.9
Trade receivables – net
6.0
5.8
Trade receivables due from significant customers
Customers with revenue accounting for more than 10% of total revenue in the current year have outstanding trade receivables as follows:
£m
2021
2020
Customer A
0.8
0.6
As at issuance of these financial statements, all amounts relating to customers accounting for more than 10% of total revenue had 
been collected. 
Impairment and risk exposure 
Information about the impairment of trade receivables and the Group’s exposure to market risk (specifically foreign currency risk) and credit 
risk can be found in note 3.
21.	 Other receivables held at amortised cost 
£m
2021
2020
Accrued income
6.3
5.0
Prepayments
3.2
2.1
Other receivables
1.0
0.8
Total other receivables held at amortised cost
10.5
7.9
Accrued income represents fees earned but not yet invoiced at the reporting date which has no right of offset with contract liabilities – 
deferred licence amounts. 
Accrued income increased by £1.3m. The current year balance represents unbilled professional fees work in progress, as well as £0.5m in 
relation to subscription and £0.5m of one-off licence revenue items where there is contractual agreement to invoice in subsequent periods.
Prepayments include £1.1m of deferred costs in relation to costs to fulfil contracts – see note 1.5.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
167
22.	 Cash and cash equivalents
£m
2021
2020
Cash at bank and in hand
23.1
37.0
Cash and cash equivalents
23.1
37.0
Currency of cash and cash equivalents 
£m
2021
2020
GBP
14.9
28.5
USD
4.4
4.8
AUD
1.3
1.1
Euro
2.0
2.1
Other
0.5
0.5
Cash and cash equivalents
23.1
37.0
23.	 Current and non-current liabilities
£m
2021
2020
Trade payables
0.8
0.9
Other payables
8.5
7.2
Corporation tax
1.8
1.3
Contract liabilities – deferred licence
5.3
1.9
Contract liabilities – deferred maintenance
5.7
5.1
Lease liabilities (note 24)
17.1
17.5
Provisions for other liabilities
1.4
1.4
Total current and non-current liabilities
40.6
35.3
Less non-current portion
(16.6)
(17.2)
Total current liabilities 
24.0
18.1
Other payables includes amounts relating to other tax and social security of £2.4m (2020: £2.5m).
24.	 Lease liabilities
The following table sets out the reconciliation of the lease liabilities from 1 January to the amount disclosed at 31 December: 
£m
2021
2020
Lease liabilities recognised at 1 January
17.5
19.0
Additions
1.5
0.2
Interest charge
0.8
0.8
Payments made on lease liabilities
(2.7)
(2.5)
At 31 December
17.1
17.5
Additions to lease liabilities include extensions to existing lease agreements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
168
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
24.	 Lease liabilities continued
Below is the maturity analysis of the lease liabilities:
£m
2021
2020
Non-current
15.2
15.8
Current
1.9
1.7
Total lease liabilities
17.1
17.5
No later than one year
2.7
2.4
Between one year and 5 years
10.1
9.3
Later than 5 years
7.5
9.4
Total future lease payments
20.3
21.1
Total future interest payments
(3.2)
(3.6)
Total lease liabilities
17.1
17.5
The group’s net debt is made up of cash and cash equivalents and lease liabilities. The movement during the year in lease liabilities is set out 
above. Movements in cash and cash equivalents are set out in the Cash flow statement. These are the only changes in liabilities arising from 
financing activities in the year.
25.	 Provision for other liabilities
£m
At 1 January 2020
0.7
Provided in the period
0.7
At 31 December 2020
1.4
Provided in the period
0.7
Utilised in the period
(0.1)
Released in the period
(0.6)
At 31 December 2021
1.4
Provisions for other liabilities comprise amounts for office dilapidations, employer taxes on share-based payments and legal matters. It is 
expected that these will be utilised by as follows: £0.5m in 2022, £0.2m in 2030 and £0.7m over various years.
26.	 Share capital
2021
2020
Issued and fully paid
Shares
£m
Shares
£m
Ordinary shares – 0.1 pence 
300,000,000
0.3
300,000,000
0.3
Balance as at 31 December
300,000,000
0.3
300,000,000
0.3
No additional shares have been issued or cancelled in the year ended 31 December 2021.
27.	 Translation reserve
£m
2021
2020
At 1 January
0.1
–
Currency translation of subsidiaries
(0.1)
0.1
At 31 December
–
0.1
28.	 Own Shares
£m
2021 
2020 
Balance at 1 January
–
–
Acquired in the year
4.6
–
Issued on exercise of options
(1.2)
–
Balance at 31 December
3.4
–

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
169
The own shares reserve represents the cost of shares in Alfa Financial Software Holdings PLC purchased in the market and held by the Group’s 
employee benefit trust to satisfy options under the Group’s share options plans (see Note 1.2). The number of ordinary shares held by the 
employee benefit trust at 31 December 2021 was 2,590,260 (2020: 552,783). As at 31 December 2021, the Group held 0.86% (2020: 0.18%) 
of its own called up share capital.
29.	 Share awards
The Group recognised total expenses relating to share-based payment of £1.5m (2020: £1.5m) in the current year. Of this, £1.5m 
(2020: £1.5m) relates to equity-settled LTIP schemes and £0.0m (2020: £nil) relates to Employee Share Save schemes. See further detail 
below. 
The outstanding share schemes are made up of the following:
Grant date
Plan
Expiry date
Exercise
 price
Share options
31 December
2021
Share options 
31 December 
2020
June 2014/2015
LTIP
4 annual tranches from 1 June 2018
0p
–  
1,197,503
June 2018
LTIP
June 2021
0p
–  
1,378,178
November 2019
LTIP
November 2022
0p
1,113,909
1,205,036
June 2020
LTIP
June 2023
0p
2,322,473
2,358,444
April 2021
LTIP
April 2024
0p
1,121,104
–
November 2021
LTIP
October 2024
0p
60,872
–  
November 2021
UK Employee ShareSave
January 2025
 1.536p 
774,659
–  
November 2021
US Employee ShareSave
January 2024
 1.670p 
77,724
–  
The weighted average share price at the date of exercise for share options exercised during the period was 130.4p (2020: 74.3p). The options 
outstanding at 31 December 2021 had a weighted average exercise price of 24.1p (at 31 December 2020: nil), and a weighted average 
remaining contractual life of 1.7 years (2020: 2.3 years). The opening weighted average exercise price at 1 January 2021 was nil (1 January 
2020: nil). The weighted average exercise price of options forfeited and exercised during the year was nil (31 December 2020: nil).
A. LTIPs
The 2019 LTIP awards granted are conditional on employment only; the fair value of these awards has been calculated using the grant date 
share price as a proxy for fair value of the option adjusted for any dividends over the period. There are no market or non-market performance 
conditions attached to the option scheme and, as such, no performance conditions are included in the fair value calculation. 
The 2020 LTIP awards granted are conditional on performance conditions, 50% based on EPS performance (non-market condition) and 50% 
on TSR (market condition) as well as a three-year employment fulfilment. The fair value of these awards has been determined using the 
Monte Carlo model at the grant date.
On 30 April 2021 the Group awarded an LTIP conditional on performance conditions, 50% based on EPS performance (non-market 
condition) and 50% on TSR (market condition) as well as a three-year employment fulfilment. For those share schemes with market-related 
vesting conditions, the fair value is determined using the Monte Carlo model at the grant date. For share options issued with EPS (non-
market) performance vesting conditions, the fair value of the underlying option is equal to the grant date share price. The following table lists 
the inputs to the model used for the awards granted in the year ended 31 December 2021 based on information at the date of grant:
LTIP awards (granted in April)
TSR element
EPS element
Share price at date of grant
136p
136p
Award price
0p
0p
Volatility
60.3%
–  
Embedded TSR
6.9%
–
Average correlation
41.1%
–
Life of award
3 years
3 years
Risk-free rate
0.12%
–  
Fair value per award
73.6p
136.0p

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
170
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
29.	 Share awards continued
On 30 November 2021, the Group awarded to certain employees an LTIP conditional on employment only. The fair value of these awards is 
equal to the closing share price on the date of grant (192 pence), discounted by the expected 12-month dividend yield to reflect the lack of 
dividend accrual over the vesting period (three years). The expected price volatility is based on the historic volatility (based on the remaining 
life of the scheme), adjusted for any expected changes to future volatility due to publicly available information. 
All of these Company schemes, as well as any non-cyclical awards, are equity-settled by award of ordinary shares.
The total share-based payment charge relating to Alfa Financial Software Holdings PLC shares for the year is split as follows:
£m
2021
2020
Employee share schemes – value of services
1.1 
1.3 
Expense in relation to fair value of social security liability on employee share schemes
0.4 
0.2 
Total cost of employee share schemes
1.5 
1.5 
Details of the share options outstanding during the year are as follows:
2021
2020
Outstanding at 1 January
6,139,161
6,482,950
Conditionally awarded in year 
2,034,359
2,358,444
Exercised 
(2,575,681)
(2,592,919)
Forfeited or expired in year 
(127,098)
(109,314)
Outstanding at 31 December
5,470,741
6,139,161
Exercisable at the end of the year
–  
–  
B. Employee ShareSave Scheme
On 30 November 2021, the Group launched an Employee ShareSave Scheme – the Save As You Earn (SAYE) scheme in the UK and Employee 
Stock Purchase Plan (ESPP) scheme in the US. Under these schemes, eligible employees can save up to a set limit each month. At the end of 
the savings period (three years for SAYE and two years for ESPP), employees can choose whether or not they wish to buy the shares at the 
option price or take back their savings as cash. The option price is the share price at the start of the plan with a 20% discount for the UK 
scheme and 15% discount for the US scheme. The fair value of these awards have been determined using the Monte Carlo model at the grant 
date. The expected price volatility is based on the historic volatility (based on the remaining life of the scheme), adjusted for any expected 
changes to future volatility due to publicly available information.
31 December 2021
SAYE
ESPP
Number of 
share options
Exercise 
price
Number of 
share options
Exercise 
price
Outstanding at beginning of year
– 
– 
– 
– 
Granted during the year
774,659
 153.6p 
77,724
 167.0p 
Outstanding at the end of the year
774,659
153.6p
77,724
167.0p
Exercisable at the end of the year
– 
– 
– 
– 
SAYE
31 December
2021
ESPP
31 December
2021
Share price
205.0p
205.0p
Exercise price
153.6p
167.0p
Expected volatility
57.5%
57.2%
Expected life
36 months
24 months
Risk-free rate
0.51%
0.45%
Expected dividend yields
2.45%
2.33%

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
171
30.	 Unrecognised items
30.1	 Contingencies and commitments
The Group has no capital commitments, no material contingent liabilities and no contingent assets. 
30.2	Events occurring after the reporting period
On 18 January 2022 the Group announced the launch of a share buyback programme. Refer to the Company website for more details.
There have been no other reportable subsequent events.
31.	 Dividends 
A 2020 ordinary dividend of 1 pence per share was paid on 2 July 2021 amounting to £3.0m (2020: £nil).
A special dividend of 10 pence per share was paid on 5 November 2021 amounting to £29.7m (2020: £44.2m).
Subject to approval at the Annual General Meeting on 12 May 2022, a 2021 dividend of 1.1 pence per share will be paid on 24 June 2022 to 
holders on the register on 27 May 2022. The ordinary shares will be quoted ex-dividend on 26 May 2022.
32.	 Related parties
32.1	 Controlling shareholder
The ultimate parent undertaking is CHP Software and Consulting Limited (the ‘Parent’), which is the parent undertaking of the smallest and 
largest group in relation to these consolidated financial statements. The ultimate controlling party is Andrew Page.
32.2	 Basis of consolidation
The principal subsidiaries and joint ventures of the Group and the Group percentage of equity capital are set out below. All these are 
consolidated within the Group’s financial statements. 
Registered address and country of 
incorporation
Principal 
activity
Held by 
Company 
2021
Held by 
Group
2021
Held by 
Company 
2020
Held by 
Group
2020
Alfa Financial Software 
Group Limited
Moor Place, 1 Fore Street Avenue, 
London, EC2Y 9DT, UK
Holding 
company
100%
100%
100%
100%
Alfa Financial  
Software Limited
Moor Place, 1 Fore Street Avenue, 
London, EC2Y 9DT, UK
Software 
and services
–
100%
–
100%
Alfa Financial Software Inc
350N Old Woodward Avenue, 
Birmingham, MI 48009, USA
Software 
and services
–
100%
–
100%
Alfa Financial Software 
Australia Pty Limited
Lisgar House, Level 3, 32 
Carrington Street,
Sydney, NSW, 2000, Australia
Services
–
100%
–
100%
Alfa Financial Software 
NZ Limited
Level 1 Building B, 600 Great 
South Road, Greenlane, Auckland 
1051, New Zealand
Services
–
100%
–
100%
Alfa Financial Software GmbH
Bockenheimer Landstraße 20, 
60323 Frankfurt am Main, 
Germany
Software 
and services
–
100%
–
100%
Alfa iQ
Moor Place, 1 Fore Street Avenue, 
London, EC2Y 9DT, UK
Software 
and services
–
51%
–
51%
Alfa iQ was established in May 2020 – see note 19 for more detail.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
172
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
32.	 Related parties continued
32.3	 Transactions with related parties
Full details of the Directors’ compensation and interests are set out in the Directors’ Remuneration Report on pages 100 to 121. 
See note 8 for further detail on monies paid to key management (including Directors). 
Dividends to the amount of £21.7m were paid to the Parent (2020: £29.6m).
Dividends of 1 pence and 10 pence per share were paid to all shareholders in 2021 (2020: 15 pence per share). Directors and other key 
management received dividends based on their beneficial interest in the shares of the Company. Directors’ beneficial interests in the shares 
of the Company are disclosed in the Remuneration Report on page 116.
The balances outstanding from the Parent at 31 December 2021 and 2020 were £nil and £nil respectively. 
In the prior period the Group invested £0.4m in Alfa iQ consisting of: a capital contribution of £0.3m; and an interest-free loan fair valued at 
£0.1m. At 31 December 2021 the value of the investment is carried at £0.2m (2020: £0.3m) and the loan fair valued at £0.1m (2020: £0.1m).
In the current period, the Group entered into a rental agreement with CHP Software and Consulting Limited for rental of a meeting room on 
the 9th floor of Moor Place for £0.03m per annum (2020: £nil) and at 31 December 2021 there was £nil balance outstanding from, or to, the 
Parent (2020: £nil).
There were no other outstanding receivable balances from related parties at the end of the reporting period.
33.	 Offsetting assets and liabilities
Assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position where Alfa currently has a 
legally enforceable right to offset the recognised amounts, and there is an intention to realise the asset and settle the liability simultaneously. 
The following table presents the recognised assets and liabilities that are offset as at 31 December 2021 and 31 December 2020 
in the consolidated statement of financial position.
31 December 2021 
£m
Gross 
amounts
Amounts 
offset
Net amounts 
presented 
Accrued income
14.0
(7.7)
6.3
Contract liabilities – deferred licence
(13.0)
7.7
(5.3)
31 December 2020
£m
Gross
amounts
Amounts 
offset 
Net amounts 
presented 
Accrued income
12.6
(7.6)
5.0
Contract liabilities – deferred licence
(9.5)
7.6
(1.9)

COMPANY STATEMENT OF FINANCIAL POSITION
FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
173
£m
Note
2021
2020
Assets
Non-current assets
Investment in subsidiary companies
4
427.6
348.7
Total non-current assets
427.6
348.7
Current assets
Other receivables
5
0.1
0.2
Cash and cash equivalents
6
0.1
0.1
Total current assets
0.2
0.3
Total assets
427.8
349.0
Liabilities and equity
Current liabilities
Amounts owed to subsidiaries
7
39.9
0.2
Other payables
8
0.7
0.4
Accruals
0.4
0.4
Total current liabilities
41.0
1.0
Non-current liabilities
Amounts owed to subsidiaries
7
–
 –
Provision
8
0.2
 –
Total non-current liabilities
0.2
 –
Total liabilities
41.2
1.0
Capital and reserves
Ordinary shares
9
0.3
0.3
Own shares
10
(3.4)
 –
Retained earnings 
389.7
347.7
Total equity
386.6
348.0
Total liabilities and equity
427.8
349.0
Retained earnings includes a profit of £74.8m for the 2021 financial year (31 December 2020: £79.8m). See the statement of changes 
in equity on the next page for further detail. 
The Company has taken advantage of the exemption under Section 408 of the Companies Act 2006 from presenting its own profit and loss account.
The above Company statement of financial position should be read in conjunction with the accompanying notes. 
The Company financial statements on pages 173 to 178 were approved and authorised for issue by the Board of Directors on 8 March 2022 
and signed on its behalf.
Andrew Denton	
	
	
	
	
Duncan Magrath
Chief Executive Officer	 	
	
	
	
Chief Financial Officer
Alfa Financial Software Holdings PLC 
Registered number 10713517

COMPANY STATEMENT OF CHANGES IN EQUITY
174
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
£m
Note
Called-up share 
capital
Own 
shares
Retained 
earnings
Total equity
Balance as at 1 January 2020
0.3
–
310.7
311.0
Total comprehensive profit for the period
 – 
–
79.8
79.8
Employee share schemes – value of employee services
11
 – 
–
1.4
1.4
Dividends
12
 – 
–
(44.2)
(44.2)
Balance as at 31 December 2020
0.3 
–
347.7
348.0
Total comprehensive profit for the period
–
–
74.8
74.8
Employee share schemes – value of employee services
11
–
–
1.1
1.1
Dividends 
12
–
–
(32.7)
(32.7)
Own shares acquired
10
–
(4.6)
–
(4.6)
Own shares issued
10
–
1.2
(1.2)
–
Balance as at 31 December 2021
0.3
(3.4)
389.7
386.6
As at 31 December 2021 £3.4m (2020: £2.3m) of the retained earnings balance relates to reserves held to settle the Alfa employee share 
schemes, and does not qualify as distributable reserves.
The above Company statement of changes in equity should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
175
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2021
1.	
Summary of significant accounting policies
Alfa Financial Software Holdings PLC is a public company limited by shares and is incorporated and domiciled in England. These financial 
statements are the separate financial statements for the Company. 
The registered office is Moor Place, 1 Fore Street Avenue, London, EC2Y 9DT, United Kingdom. The registered no. of Alfa is 10713517.
The principal activity of the Company is as a holding company. 
1.1	
Statement of compliance and basis of preparation
The financial statements of Alfa Financial Software Holdings PLC have been prepared in compliance with Financial Reporting Standard 102, the 
Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (‘FRS 102’) and the Companies Act 2006. 
The principal accounting policies applied in the preparation of these financial statements are set out above. These policies have been consistently 
applied to the years presented, unless otherwise stated.
These financial statements have been prepared on a going concern basis, under the historical cost convention. The Directors have used the going 
concern principle on the basis that the current profitable financial projections of the Company and its subsidiaries indicate they will continue in 
operation for the foreseeable future. As described in note 1.1 to the Consolidated financial statements, this assessment includes downside stress 
testing in line with FRC guidance. 
The Company financial statements have been prepared in pounds sterling which is the functional and presentational currency of the Company and 
have been presented in £m. 
As permitted by FRS 102 the Company has taken advantage of the disclosure exemptions available under that standard in relation to financial 
instruments, presentation of a Cash Flow Statement, share-based payments, the aggregate remuneration of key management personnel and 
related party transactions with other wholly-owned members of the Group.
The parent company meets the definition of a qualifying entity under FRS 102. Where required, equivalent disclosures are given in the Group 
accounts of Alfa Financial Software Holdings PLC.
In the current period it was concluded that the Company exercises control over the employee benefit trust because it is exposed to, and has a right 
to, variable returns from this trust and is able to use its power over the trust to affect those returns. Therefore the trust has been consolidated by 
the Company. The impact of consolidation of the trust in the prior period was immaterial. 
1.2	
Investments in subsidiaries
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights 
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 
Unless otherwise stated, subsidiaries have share capital consisting solely of ordinary shares, and the proportion of ownership interests held 
equals the voting rights held by the Company. The country of incorporation or registration is also each subsidiary’s principal place of business.
Investments in subsidiary undertakings are stated at cost, including those costs associated with the acquisitions, less provision for 
any impairment in value. Where events or changes in circumstances, including an adverse movement in the share price, indicate that 
the carrying amount of an investment may not be recoverable, an impairment review is performed. An impairment write-down is recognised 
to the extent that the carrying amount of the asset exceeds the higher of the fair value less cost to sell and value in use.
Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control. Where control of a 
subsidiary is lost it is recognised in the profit or loss.
Amounts subsidiaries are unsecured, interest-free and repayable on demand. The carrying amounts of such payables are considered to be 
the same as their fair values due to their short-term nature.
1.3	
Financial assets 
Basic financial assets, including trade and other receivables, cash and bank balances and other receivables, are initially recognised 
at transaction price, unless the arrangement constitutes a financing transaction. 
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset 
is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted 
at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

176
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
NOTES TO THE COMPANY FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED
1.4	
Financial liabilities 
Basic financial liabilities, including trade and other payables and trading balances and loans from subsidiaries are initially recognised 
at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value 
of the future receipts discounted at a market rate of interest. The Company derecognises financial liabilities when, and only when, the 
Company’s obligations are discharged, cancelled or expired.
Other payables are initially recorded at fair value and subsequently measured at amortised cost. As the total carrying amount is due within 
the next 12 months from the balance sheet date, the impact of applying the effective interest method is not significant and therefore the 
carrying amount equals to the contractual amount or the fair value initially recognised. 
Payables are classified as current liabilities if receipt or payment is due within one year or less.
1.5	
Equity
Ordinary shares
Ordinary shares are classified as equity. There are no restrictions on the distribution of capital and the repayment of capital. 
Own shares
Own shares represent the shares of Alfa Financial Software Holdings PLC that are held by the employee benefit trust. Own shares are 
recorded at cost and deducted from equity.
1.6	
Employee share schemes
Grants made to subsidiary employees will not result in a charge recognised in the income statement, any charges for share-based payments 
are recognised as an increase in the cost of investment in subsidiaries (as a capital contribution). For full details of the Group’s share-based 
payments, refer to note 29 to the consolidated financial statements. 
1.7	
Dividends
Dividends are recognised through equity when approved by Alfa’s shareholders or on payment, whichever is earlier.
2.	
Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations 
of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom 
equal the related actual results. There were no critical accounting judgements that would have a significant effect on the amounts recognised 
in the parent company financial statements or key sources of estimation uncertainty at the reporting date that would have a significant risk of 
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
3.	
Financial risk management
The Company’s exposure to financial risks is managed as part of the Group’s financial risk management. Full details about the 
Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance are given in note 3 
to the consolidated financial statements. 
4.	
Investments in subsidiaries
£’000s
2021
2020
Cost
As at 1 January 
348.7
347.4
Capital contributions to subsidiaries
0.9
1.3
Reversal of impairment 
78.0
–
As at 31 December 
427.6
348.7
The carrying amount of the investment is £427.6m at 31 December 2021 (2020: £348.7m). The recoverable amount of the investment was 
determined based on value-in-use calculations using cash flow projections of the Company and its subsidiaries from financial budgets and 
forecasts for a five-year period using a pre-tax discount rate of 11% (2020: 11%). Cash flows beyond these periods have been extrapolated 
using a steady 2% (2020: 2%) average growth rate. This growth rate does not exceed the long-term average growth rate for the markets in 
which the Company and its subsidiaries operate. In addition, the market capitalisation of the Company as at 31 December 2021 was 
£569.0m. As the recoverable amount, and the market capitalisation of the Company, are in excess of the carrying amount of the investment, 
no impairment charge has been recognised during the current financial year. 
As the circumstances that resulted in an impairment charge in 2018 of £78.0m no longer apply, it has been reversed in the current year.

FINANCIAL STATEMENTS
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
177
5.	
Other receivables
At 31 December 2021, other receivables relate to prepayments of £0.0m (2020: £0.2m) and VAT receivables of £0.1m (2020: £0.0m).
6.	
Cash and cash equivalents
£m
2021
2020
Cash and cash equivalents
0.1
0.1
7.	
Amounts owed to subsidiaries
£m
2021
2020
Amounts owed to subsidiaries – current
39.9
0.2
Amounts owed to subsidiaries – non-current
–
–
Total amounts owed to subsidiaries
39.9
0.2
Current amounts owed to subsidiaries of £39.9m relate primarily to cash advanced by Alfa Financial Software Limited to the Company for 
dividend payments (2020: £0.2m). 
8.	
Other payables and provision for other liabilities 
Other payables relate to accruals of social security and other taxes of £0.0m (2020: £0.1m), trade creditors of £0.1m (2020: £0.1m) 
and salary costs of £0.6m (2020: £0.2m). 
Long-term provision relates to the employer national insurance contribution of £0.2m of the 2021 and 2020 share grant expense that relates 
to the employees of the Company (2020: £0.0m).
9.	
Called-up share capital
Each ordinary share has a par value of 0.1 pence. All shares are fully paid and have equal voting rights. 
Issued and full paid 
Shares – 
ordinary
£m
At 31 December 2021
300,000,000
0.3
At 31 December 2020
300,000,000
0.3
10.	 Own Shares
2021 
£m
2020 
£m
Balance at 1 January
–
–
Acquired in the year
4.6
–
Issued on exercise of options
(1.2)
–
Balance at 31 December
3.4
–
The own shares reserve represents the cost of shares in Alfa Financial Software Holdings PLC purchased in the market and held by the 
Company’s employee benefit trust to satisfy options under the Group’s share options plans (see Note 1.2 of the Group accounts). The number 
of ordinary shares held by the employee benefit trust at 31 December 2021 was 2,590,260 (2020: 552,783). As at 31 December 2021, the 
Company held 0.86% (2020: 0.18%) of its own called up share capital.
11.	 Employee share schemes
Under the rules of the Company’s LTIP plans, on 1 June 2018, 1 November 2019, 2 June 2020, 30 April 2021 and 30 November 2021 
selected employees of the Company’s subsidiary were granted awards in the form of nil cost options over ordinary shares in Alfa. 
On 30 November 2021, employees of the Company’s subsidiary that met the set criteria were invited to join a ShareSave Scheme – the SAYE 
scheme for the UK employees and the ESPP scheme for the US employees. Under these schemes, eligible employees can save up to a set limit 
each month and at the end of the vesting period can use these savings to buy ordinary shares in Alfa (at a discount) or take these back as cash. 
Refer to note 29 of the consolidated accounts for more detail on these schemes. The cost of the share-based remuneration is passed to the 
relevant subsidiary.

178
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
12.	 Dividends
A 2020 ordinary dividend of 1 pence per share was paid on 2 July 2021 amounting to £3.0m (2020: £nil).
A special dividend of 10 pence per share was paid on 5 November 2021 amounting to £29.7m (2020: £44.2m).
Subject to approval at the Annual General Meeting on 12 May 2022, a 2021 dividend of 1.1 pence per share will be paid on 24 June 2022 to 
holders on the register on 27 May 2022. The ordinary shares will be quoted ex-dividend on 26 May 2022.
Refer to note 31 of the consolidated accounts for more detail.
13.	 Directors’ remuneration
The Company has no employees other than the Directors. Full details of the Directors’ compensation and interests are set out in the 
Directors’ Remuneration Report on pages 100 to 121. 
14.	 Events occurring after the reporting period
On 18 January 2022 the Group announced the launch of a share buyback programme. Refer to the Company website for more details. 
There have been no other reportable subsequent events.
15.	 Related party and ultimate controlling party
The Company has taken advantage of the exemption under FRS 102:33.1A from disclosing transactions with other members of the Group. 
The immediate and ultimate parent undertaking is CHP Software and Consulting Limited, which is the parent undertaking of the smallest 
and largest group to consolidate these financial statements. The registered office of the immediate and ultimate parent undertaking is 
Moor Place, 1 Fore Street Avenue, London EC2Y 9DT and copies of the financial statements of CHP Software and Consulting Limited can 
be obtained from this address. The ultimate controlling party is Andrew Page.
See a full listing of Company’s subsidiaries and joint venture in note 32.2 of the Group accounts.
NOTES TO THE COMPANY FINANCIAL STATEMENTS  
FOR THE YEAR ENDED 31 DECEMBER 2021 CONTINUED

OTHER INFORMATION
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
179
API: Application Programming Interface. 
AGM: Annual General Meeting.
Alfa: The Group or Alfa Financial 
Software Holdings PLC and its 
subsidiary undertakings (as defined 
by the Companies Act 2006).
APM: Alternative Performance Measure.
Articles: The Articles of Association 
of the Company.
Banks: Customers classified as banking 
institutions are finance entities associated 
with regulated banking groups.
Basic earnings per share: Calculated by 
dividing the profit attributable to equity 
holders of Alfa by the weighted average 
number of ordinary shares outstanding 
during the year.
Board: The Board of Directors of Alfa 
Financial Software Holdings PLC.
Companies Act: The Companies Act 2006 
(as amended).
CEO: Chief Executive Officer.
CFO: Chief Financial Officer.
CGU: Cash-generating unit.
Company: Alfa Financial Software Holdings 
PLC, a company incorporated in England and 
Wales with registered number 10713517 
whose registered office is at Moor Place, 
1 Fore Street Avenue, London, EC2Y 9DT, 
United Kingdom.
CLT: Company Leadership Team.
CODM: Chief Operating Decision Maker.
COO: Chief Operating Officer.
CSR: Corporate Social Responsibility.
Customer concentration: The proportion 
of group revenues made up by the top 5 or 
top 10 customers, in each relevant period 
as stated
DBSP: Deferred Bonus Share Plan.
Directors: The Directors of the Company 
whose names are set out on pages 74 to 75.
Disclosure and Transparency Rules: The 
Disclosure and Transparency Rules made 
under Part VI of the Financial Services 
and Markets Act 2000 (as amended).
EMEA: Europe, the Middle East and Africa. 
ESG: Environmental, Social and Governance.
EPS: Earnings per share.
EU: European Union.
EURIBOR: the Euro Interbank Offer Rate.
FCA: Financial Conduct Authority
FCF: Free cash flow.
FRC: The Financial Reporting Council.
FTE: Full time equivalent.
FVOCI: Fair value through other 
comprehensive income.
FVTPL: Fair value through profit or loss.
GHG: Greenhouse gases.
Group: Alfa Financial Software Holdings PLC 
and its subsidiaries.
HMRC: Her Majesty’s Revenue & Customs.
KPI: Key performance indicator.
IP: Intellectual property.
IRT: Incident Response Team.
I&S: Implementation and Support 
(“I&S”) expense.
LIBOR: London Inter-bank Offered Rate. 
LTIP: Long-Term Incentive Plan. 
ML: Machine Learning. 
OEMs: Original equipment and automotive 
manufacturers.
Operating free cash flow conversion: 
Operating free cash flow is calculated as cash 
from operations, less capital expenditures, 
less the principal element of lease payments 
in respect of IFRS 16. Operating free cash 
flow conversion represents Operating free 
cash flow generated as a proportion of 
Operating profit. 
PDMR: Person Discharging Managerial 
Responsibilities.
PDP: Performance Development Plan.
RFI: Request for information.
R&PD: Research and product development.
SG&A: Sales, general and administrative 
expenses. 
SI: Systems integrator.
SONIA: Sterling Overnight Index Average. 
The effective overnight interest rate paid by 
banks for unsecured transactions in the 
British sterling market.
STFR: Single total figure of remuneration.
TCV: Total contract value.
The Code: The UK Corporate Governance 
Code published by the FRC in July 2018.
TSR: Total shareholder return.
UAT: User acceptance testing 
UI: User interface.
VAT: UK value added taxation.
XaaS: Everything as a service.
GLOSSARY OF TERMS

180
Alfa Financial Software Holdings PLC Annual Report and Accounts 2021
SHAREHOLDER INFORMATION
Alfa Financial Software Holdings PLC
Registered Office 
Moor Place 
1 Fore Street Avenue 
London 
EC2Y 9DT
www.alfasystems.com 
T+44 (0)20 7588 1800 
Registered Number: 10713517 
Stock code: ALFA 
ISIN: GB00BDHXPG30  
LEI: 213800C5UOZHUTNUGA28 
Investor relations
ir@alfasystems.com
Media relations
Tulchan Communications LLP
Auditor
RSM UK Audit LLP
Brokers
Barclays Bank plc 
Investec Bank plc
Corporate lawyer
White & Case LLP
Remuneration advisors
Ellason LLP 
Tapestry Global Compliance LLP
Registrar/shareholder queries 
Equiniti Limited  
Aspect House,  
Spencer Road,  
Lancing, West Sussex  
BN99 6DA
Telephone 0371 384 2030 and outside the UK +44 (0)121 415 7047 
Online: help.shareview.co.uk (from here, you will be able to securely 
email Equiniti with your enquiry.)

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© Alfa Financial Software Holdings PLC, 2021
Moor Place 
1 Fore Street Avenue 
London EC2Y 9DT 
UK
+44 (0)20 7588 1800