Allocate Software's annual profits to beat forecasts

Workforce optimisation software group Allocate Software said that profits for the full year ended May 31st were ahead of market expectations.The AIM-listed firm said it delivered "another strong performance" with annual revenues in line, while operating profits and cash were above analysts' forecasts.Healthcare, the group's main division, performed well, helped by a "significant number of contracts with both new customers and also for new products". Revenues from the unit now account for 86% of group revenues, up from 79% the previous year.UK bookings in the division exceeded revenue, driven by the accelerating deployment of its Allocated Cloud software which was launched last June.Meanwhile, its core application, HealthRoster, continued to grow strongly, maintaining the customer win rates of previous years.In the Defence and Maritime divisions, Allocate said it maintained a strong position in the respective sectors helped by its long-term customers. However, no new customers were secured during the year with the company highlighting that revenues from these two divisions "are harder to predict"."2014 was another strong year for Allocate, underpinned by compelling levels of organic revenue growth and a significant increase in profits and margins," said Chief Executive Ian Bowles."Allocate closes the financial year 2014 with high levels of customer engagement and we remain confident that we are well positioned to continue to meet their needs and deliver on the strategy that we have laid out."The stock was up 4% at 116p in early trading on Monday.BC