U.K.'s Largest Tech IPO of 2017 Tumbles After Currency Warning

(Bloomberg) -- Alfa Financial Software Holdings Plc, whose 2017 debut was the U.K.’s biggest tech offering in two years, fell the most on record in London trading after the company warned on currency headwinds.

Against a backdrop of a weakening dollar, Alfa expects to report “low double-digit top line growth” this year, the London-based company said in a statement on Thursday. The majority of its revenue -- 60 percent -- is denominated in U.S. dollars. Revenue grew 20 percent to 87.8 million pounds ($122 million) last year, in line with estimates, while operating profit more than doubled to 33.8 million pounds.

The shares fell as much as 22 percent to 374 pence. Alfa, which makes software for the finance industry, sold stock at 325 pence apiece last May.

“A full-year 2018 estimate downgrade for any reason is unhelpful given the valuation,” analysts at Investec wrote in a note to clients, “but we see no fundamental issues at play and still view Alfa as a class act.”

The company has increased headcount to 329 and expects to grow by a further 15 to 20 percent over the next year. Alfa’s products are used by companies that provide equipment leasing, structured asset finance, as well as commercial and consumer lending.

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