Published on: Tuesday 16th September, 2014

Advanced Computer Software Group plc (AIM: ASW, "Advanced" or "the Group"), a leading provider of healthcare and business management software and IT services, publishes a trading update for the half year ended 31 August 2014.

Financial highlights

The Group expects to report first half results in line with the management's expectations. Revenues will be up 9% to no less than £108.1m (2013: £99.1m) and adjusted EBITDA* up 14% to no less than £25.3m (2013: £22.2m). Cash conversion remains consistently strong at 100%.

At the period end, the Group had net debt of £37.9m (28 February 2014: £49.4m).

Operational highlights

Advanced Business Solutions had a busy period with the successful integration of Computer Software Holdings, the Group's largest acquisition, now completed. There are now clear signs that this business is returning to sustainable growth. The division also completed the implementation of the largest contract in the Group's history for Northern Ireland Department of Health, Social Services and Public Safety. Underlying growth continues, driven by the on-going demand from the public and private sectors for shared services, procurement, budgeting and forecasting solutions.

Advanced Health & Care has continued to show excellent progress in the rapidly evolving, post National Programme for IT, community care and mental health care sectors, where Advanced's systems are now preferred or implemented in ten community and mental health NHS Trusts. The Group has also maintained its position as the number one provider to the urgent and unscheduled healthcare sector, including NHS 111, as well as to the homecare, residential care and hospice sectors. This division is also deploying a significant and growing number of innovative and class-leading solutions for mobile point-of-care delivery.

Advanced 365 Managed Services has once again shown its historically strong growth profile for recurring managed services revenues, whilst continuing to reduce its exposure to lower-margin services and hardware sales. Cross-selling cloud-based services, in conjunction with Advanced Business Solutions, remains a significant differentiator.

Vin Murria, Chief Executive, said:

"We continued to see good growth in the first half year and are well positioned to maintain our progress, and deliver full year results in line with our expectations.

"A wide range of further growth opportunities exist for our products and services in both the public and private sectors, particularly in healthcare - where the use of technology as an enabler of efficiency savings remains key.

"Following the integration of CSH, we now have a very strong platform for long term sustainable growth, both organically and through acquisitions."

The Group expects to publish its interim results in the week commencing Monday 3 November 2014.

*Adjusted EBITDA is defined as profit before interest, taxation, depreciation, amortisation of acquired intangibles, exceptional items and share-based payments.

Enquiries:

Advanced Computer Software Group Plc
Vin Murria, Chief Executive Officer
Guy Millward, Chief Financial Officer

01932 584000
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