Advanced Computer Software Ups Dividend As Acquisitions Lift Profit

LONDON (Alliance News) - Advanced Computer Software Group PLC Wednesday raised its total dividend for the year ended February 28, as pretax profit was boosted by its acquisition of Computer Software Holdings in March 2013.

The IT and software company declared a total dividend of 0.44 pence, up from 0.40 pence.

It posted a pretax profit of GBP12.1 million, up from GBP9.2 million, as revenue rose to GBP203.2 million from GBP120.9 million, boosted by the inclusion of CSH, although this was offset somewhat by higher operating costs.

The company's Health & Care division saw revenue rise 17% during the year, boosted by the acquisition of Plain Healthcare in October 2013, and growth in hosting and licence revenues. Following the end of a national programme for IT for healthcare providers, Advanced Computer Software has been snapping up contracts with NHS trusts to provide software.

Over the next year the company plans to launch a new generation of android and IOS operating system based mobile care products, amongst other new developments.

In its Business Solutions division, the integration of CSH saw revenue more than double to GBP136.4 million from GBP59.9 million. Within CSH, revenue was flat, as the company was restructured and Advanced Computer Software invested in CSH's products.

In the 365 Managed Services division, revenue rose 5%, although slower than expected in the first half as a major client was less active. However this was offset by the signing of a large new contract in the second half. The division won new contracts with Essex County Council, Merseyside Fire & Rescue and SuperGroup PLC.

Advanced Computer Software said that it was increasingly confident in seeing "another strong year", as it saw double digit growth in its order book to GBP209 million, and growing recurring revenue underpinning forward visibility.

Shares in Advanced Computer Software were trading up 2.5% at 125.33 pence Wednesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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