Published on: Wednesday 4th June, 2014 Significant revenue growth drives EBITDA up 68%

Advanced Computer Software Group plc (AIM: "ASW", "Advanced", or "the Group"), a leading provider of software and IT services to the UK health, care and business sectors, publishes its audited full year results for the year ended 28 February 2014.  

Financial highlights
  • Revenue up 68% at £203.2m (2013: £120.9m), 7% organic growth
  • Recurring revenue up from 57% to 64% of total revenue
  • SaaS/Subscription revenue of £40.9m (2013: £27.5m), 32% of recurring revenue
  • Adjusted EBITDA** up 68% at £45.3m (2013: £27.0m), 10% organic
  • Adjusted EPS** up 18% to 6.6p (2013: 5.6p)
  • §  Cash conversion strong at 105% (2013: 108%)
  • Dividend up 10% to 0.44p (2013: 0.40p)
  • Double digit order book growth to £209m
  • Compound annual growth over the last five years: revenue 46%, adjusted EBITDA 45%, cash generation 53%
Operational highlights
  • Health & Care: strong organic revenue growth (13%) driven by NHS 111 and Mobile
  • Business Solutions: above-market organic revenue growth (6%)† with growing demand for SaaS/subscription and BI solutions
  • Managed Services: strong growth (15%) in recurring revenues with the division's largest ever contract signed
  • Strategic acquisition of Computer Software Holdings (CSH) Limited for £107m on 7 March 2013, fully integrated and performing as expected

* Excluding CSH, 5% organic including CSH
** Adjusted for one-off acquisition and restructuring costs, share based payments and amortisation of acquired intangibles
† Excluding CSH

Vin Murria, Chief Executive, commented:

"We have had another strong year - our fifth - with EBITDA up 68% and earnings per share up 18%.  We have now delivered a five year compound annual growth rate of 46% on revenues, 45% on EBITDA and 53% on cash generation.

"Over the last five years, we have built a business which is now the second largest UK-based software and IT services provider to the UK market; with more than 2,000 employees serving 20,000 customers across both private and public markets."

"We have started the current year in line with our expectations.  With double digit growth in the order book to £209m, a growing recurring revenue stream, and more customers taking our Software as a Service, we have excellent forward visibility and are increasingly confident about another strong year."

Enquiries

Advanced Computer Software Group plc 

+44 (0) 1932 584000

Vin Murria, Chief Executive Officer

Guy Millward, Chief Financial Officer

Instinctif Partners

+44 (0) 20 7457 2020

Adrian Duffield/Kathy Gordon

N+1 Singer (Nomad & joint broker) Shaun Dobson/Gillian Martin

+44 (0) 20 7496 3000

Arden Partners (joint broker)

+44 (0) 121 423 8900

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