Advanced Computer Software delivers 'fantastic' year

Advanced Computer Software Group, which provides healthcare and business management software, has hailed a 'fantastic' half year during what it described as a tough operating environment, with revenues and cash soaring.

Advanced Computer Software Group, which provides healthcare and business management software, has hailed a 'fantastic' half year during what it described as a tough operating environment, with revenues and cash soaring.

The group delivered group revenue of £56.8m, up 20% on the £47.3m seen in the same period the previous year, boosting pre-tax profit from £3.1m to £4.5m year-on-year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose 10% from £12.0m to £13.2m over the same period.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

The company has also turned debt of £25.3m into cash of £1.5m, and was keen to emphasise that this is due to its position as a substantial cash generative business. Cash generated from operating activities during the period totalled £12.3m, while £4.7m was spent on acquisitions.

Looking ahead, the company is becoming increasingly confident about the results for the full year, and said it will continue to maintain its focus on organic growth and cash generation in the second half in addition to completing the integration of acquisitions made earlier in the year.

Advertisement
Advertisement - Article continues below

In an interview with Sharecast and Digital Look, Chief Executive Officer Vin Murria said: "Four years ago we didn't even exist. Since then we have developed a business which delivers annual revenue of more than £100m, with have 1,000 members of staff, and we have a cash generative business. As an indication of our ambition, if we were asked 'Do we think we can do the same again?' The answer would be 'absolutely'.

"In terms of the market, we expect to see a lot more acquisitions come up over the next 12 months - although any acquisitions we make will be very sensible ones that of course fit our profile well".

Divisionally, the Health & Care business saw a 19% increase in revenue to £13.0m (H1 2011: £10.9m), with adjusted EBITDA up 18% to £4.0m (H1 2011: £3.4m). The division is now the preferred supplier for over 80% of the market for the NHS 111 scheme, while the rest remains unallocated.

In Business Solutions, revenue rose 5% to £27.6m (H1 2011: £26.2m) while EBITDA was up 7% to £7.4m (H1 2011: £6.9m).

365 Managed Services delivered a 59% increase in revenue to £16.2m (H1 2011: £10.2m), while EBITDA climbed 14% to £2.7m (H1 2011: £2.2m).

In a statement Murria added: "From this strong operational and financial base, we are confident that we can maintain our momentum throughout the second half and the board anticipates recommending a maiden dividend at the year end."

Advertisement
Advertisement - Article continues below
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/property/601110/house-prices-and-covid-19
Property

House prices and Covid-19

The housing market is in deep freeze – what happens when it thaws out?
5 Apr 2020
Visit/investments/property/601081/three-things-matter-for-the-uk-housing-market-now-and
Property

Three things matter for the UK housing market now – and “location” isn’t one of them

The UK housing market is frozen. And when it does eventually thaw out, the traditional factors that drive prices will no longer apply. The day of reck…
1 Apr 2020
Visit/investments/property/601065/what-does-the-coronavirus-crisis-mean-for-uk-house-prices
Property

What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020
Visit/economy/global-economy/601106/the-moneyweek-podcast-russell-napier-how-much-debt-is-too-much
Global Economy

The MoneyWeek Podcast – Russell Napier: how much debt is too much?

Merryn talks to financial strategist and author Russell Napier about the huge levels of debt embedded in the global economy, the governmental response…
3 Apr 2020