Trading update for the half year ended 31 August 2010
9th September 2010 - Advanced Computer Software Group plc (AIM: ASW; “Advanced” or the “Group”), a leading provider of software and services to the healthcare and commercial sectors, announces a trading update for the half year ended 31 August 2010
Financial
The Group expects to report first half revenues in line with market expectations at £47.3m (2009: £11m) and adjusted EBITDA* ahead of market expectations at no less than £12m (2009; £3m)
Cross selling contracts worth more than £6m have been signed with new customers, including a fully outsourced managed service incorporating our business management software for the Nursing and Midwifery Council and a full suite of accounting software sold as a managed service to Reader’s Digest.
Operational
More than £2m of annualised cost savings have been achieved since the acquisition of COA Solutions in February 2010, which provided the Group with a robust infrastructure for growth.
Now trading as Advanced Business Solutions, COA’s portfolio of successful and well-established business management products is an ideal complement to Advanced’s market-leading suite of patient management systems, particularly as healthcare funding shifts towards GP consortia.
The Group is strategically positioned to respond to this significant market opportunity by providing front office, back office and clinical systems to the 500 to 1,000 GP consortia that are expected to be established who represent an extension of the GP co-operatives and social enterprise organisations already part of the Group’s traditional client base.
Vin Murria, Chief executive said:
“Advanced offers mission critical products for both the public and private sectors. We believe this diversification will protect the Group from the worst of the anticipated public sector spending cuts.
“NHS budget responsibilities are shifting towards GP consortia and we have exactly the software and services they will need to manage their budgets more effectively on the taxpayer’s behalf.”
The Group expects to publish its interim results in mid November, 2010.
*Adjusted EBITDA is defined as profit from operations before depreciation, amortisation, one-off restructuring costs, aborted transaction costs and share based payments
