Published on: Tuesday 18th March, 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 year end trading update for the 12 months ended 28 February 2014.

The Group has continued to perform strongly across all divisions:

  • Full year revenue expected to be up 67%, to no less than £202.0m (2013: £120.9m)
  • Adjusted EBITDA* up 67%, to no less than £45.0m (2013: £27.0m)
  • Strong cash conversion** maintained at more than 100% (2013: 108%)
  • Year-end net debt was £49.5m (2013: net cash £30.9m), following the introduction of a new banking facility of £105m in March 2013 to fund the acquisition of:
  • Computer Software Holdings (CSH) in March 2013 for £107.0m, providing accounting, HR and business management software to SMEs, law firms and the not for profit sector; and
  • Compass Computer Consultants in January 2014 for £14.5m, a market leading provider of higher education software


Separately today, the Group has also announced that it has been awarded preferred supplier status by Oxford Health NHS Foundation Trust in respect of a multi-year contract to supply a single integrated health record solution, across all the Trust's clinical pathways including mental health, child, community and specialised services

Vin Murria, Chief Executive, commented:

"This has been a strong year, with transformational acquisitions completed and integrating well. We have also continued to deliver strong organic revenue and EBITDA growth underpinned by excellent cash generation.

"The ongoing demand for efficient software and mobile solutions means that we continue to see a wide range of opportunities for further growth, both through strategic acquisitions, organic growth and cross selling."

* Adjusted EBITDA is defined as profit before interest, taxation, depreciation, amortisation of acquired intangibles, acquisition costs and share based payments
** Cash generated from continuing operating activities as a percentage of adjusted EBITA

Operating highlights

Advanced Business Solutions (ABS)

ABS continues to achieve above market organic growth with strong demand for the division's products from both the public and private sector. CSH, acquired in March 2013, is expected to return to growth in the new financial year following the completion of its integration, and the division's enlarged customer base continues to offer good opportunities for the cross-selling of Advanced 365's cloud-based services.

Advanced Health & Care (AHC)

AHC continues to deliver strong organic growth with particularly good results from the NHS 111 market and mobile solutions. Excellent progress has also been achieved in the community care and mental health sector - markets which offer significant opportunities for future growth.

Advanced 365 Managed Services (365)

365 won its largest ever contract in the second half of the year which has contributed to a material increase in recurring managed service revenues. New customers Essex County Council, Supergroup and Norwich and Norfolk University Hospital, highlight that the division continues to differentiate itself from its competitors by successfully combining the Group's managed services capability with market leading products from the wider Group portfolio.

The Group expects to publish its full year results for the year ended 28 February 2014 in the week commencing 2 June 2014.

Enquiries

Advanced Computer Software Group plc +44 (0) 1932 584000
Vin Murria, Chief Executive Officer
Guy Millward, Chief Finance Officer

Instinctif Partners +44 (0) 20 7457 2815
Adrian Duffield/Rozi Morris

N+1 Singer Advisory +44 (0) 20 7496 3000
Shaun Dobson/Matthew Thomas

Arden Partners +44 (0) 121 423 8900
Steve Douglas

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