Preliminary Results for the year ended 28 February 2010
8 June 2010 - Advanced Computer Software Plc (AIM: ASW, “Advanced” or “the Group”), a leading provider of software and IT services to the primary care and commercial sectors, announces unaudited preliminary results for the year ended 28 February 2010.
Financial highlights
- Revenues up 312% to £30.2m (2009: £7.3m)
- Organic growth of 8%
- 55% recurring revenues
- Pro forma* revenues of £91.5m, generating pro forma EBITDA of £21.7m
- Adjusted reported EBITDA** up 249% to £7.2m (2009: £2.1m)
- Profit before tax up 281% to £4.2m (2009: £1.1m)
- EPS of 1.1p (2009: 0.8p)
- Net debt of £41m
- Operating cash conversion 88%***
- Loan facility of £55m agreed with HSBC/ Royal Bank of Scotland comprising £25m term loan and £30m revolving facility
Operational highlights
- Successful acquisition of five companies
- £100m acquisition of COA Solutions (including transaction fees) in February 2010 adds £58m annual revenue of which approximately £30m is from public sector customers in healthcare, emergency services and not-for-profit organisations. Builds Advanced’s product portfolio, improves access to decision makers within the public sector for its broad product portfolio and opens up new markets for cross-selling
- Business Systems Group, now known as Advanced Managed Services and Outsourcing, adds expertise for healthcare and commercial markets and provides BPO and hosting for 66 NHS customers across 100 NHS sites
- StaffPlan and Healthy Software augments the healthcare product portfolio
- Oak Labs India adds off-shore development capability to support all divisions
- Advanced now serves 344 of the 392 NHS Trusts, provides workforce scheduling for 37 police constabularies across the UK and manages more than 5.7m NHS procurement transactions
- Organic growth with new product development
- Launch of iNurse, Summary Care Record and End-of-Life Register
- Entry into NHS Health Checks market
- Partnership with Pfizer provides hosted solution to pharmacies
* Pro forma numbers assumes acquisitions were acquired on 1 March 2009
** Adjusted EBITDA is defined as profit from operations before depreciation, amortisation, one-off restructuring costs and share based payments
*** The operating cash conversion rate is the measure of the cash generated in operations as a percentage of adjusted EBIT (excluding amortisation of intangibles and one-off restructuring costs)
Vin Murria, Chief Executive, said:
“Our strategy to be a leading consolidator of healthcare IT companies is clearly working. From its inception 18 months ago, Advanced has grown to become a group with annualised pro forma revenues of £91.5m generating EBITDA of £21.7m.
“There are many opportunities for the Group to grow, both organically by entering new markets – as demonstrated by the recent contract with Pfizer to provide a hosted solution for NHS vascular health checks in pharmacies – and through carefully selected acquisitions that enhance shareholder value. We look forward to the future with confidence.”
