Advanced Computer scales down debt

Healthcare and business management software group Advanced Computer Software (ACS) said it expects to review its dividend policy by the second half of the current year after it moves into a net cash position. The group did not pay a dividend last year.

During the period, the group scaled down its debt to just £1m, compared with £31.2m the year before.

In its year-end trading update, ACS said that full-year revenues from continuing operations increased by 10% to no less than £98m in the 12 months ended February 29th, up from £89.2m the previous year.

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Organic revenues were up 8%, helped by a significant growing interest in its mobile applications for the health and community care markets (now over 13,000 users), expansion of the mobile solutions markets, and increasing demand for cost-effective, cloud-based shared services and outsourcing solutions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9% from £22.1m to no less than £24m.

"Our focus for this financial year was to prove the robustness of the business with solid revenue and EBITDA growth, supported by strong cash generation. Our results demonstrate success in all respects," said Chief Executive Vin Murria.

Shares were up 5.54% at 52.9p in early trading on Tuesday.

BC