Last checked at 16 Dec 2013 07:00
16 December 2013
ALLOCATE SOFTWARE PLC
("Allocate" or "the Company")
First Half Trading Update
Allocate Software plc (AIM: ALL), the leading provider of workforce and compliance optimisation solutions, reports the following update for the six months ended 30 November 2013.
Allocate's performance in the first half year is in line with the Board's expectations, with total revenue, recurring revenue and pipeline growing versus the first half of the prior year, in what remains the seasonally slower period of our financial year.
Closing net cash has risen to £7.4m versus £2.1m at half year end of the prior year.
Healthroster continues to lead our business with a better than expected performance in the period. We secured an additional four new customers, including three new NHS Trusts taking the total to 154. These three wins included two competitive displacements. In addition, we renewed a further ten Healthroster term licence customers, bringing the total now to 43 and maintaining our 100% renewal rate.
The adoption of the Allocate Cloud continues to increase and is in line with our target of doubling the number of Cloud customers by the end of this financial year.
Our latest application, Safe Care, has been well received by NHS Trusts with a number of customers agreeing contracts in the period.
Our Patient Flow and Emergency Department business has not grown at the speed that management expected. Whilst the product has been well received by a number of potential customers, decision cycles are longer than expected.
Our Swedish business continues to perform ahead of management's plans and our Australia business has met expectations, in terms of results and also pipeline. Maritime and Defence had a first half focused primarily on business development activities, as expected.
We are pleased to have concluded the rationalisation of our London premises to a single head office and the relocation of our Swedish subsidiary's main office in the period. An exceptional cost will be recorded in the period in respect of these moves.
The Company's results for the half year to 30 November 2013 will be released on 20 January 2014.
Ian Bowles, Chief Executive Officer of Allocate, commented:
"The first half saw another solid performance from Allocate.
The demand for our productsremains healthy, particularly with respect to HealthRoster, the Allocate Cloud and Safe Care. We exited the half year with a larger pipeline for these solutions than we had at the beginning of this financial year and significantly stronger than at the same time last year.
The focus of the Secretary of State for Health, NHS England and the Care Quality Commission on safe staffing is a key driver of the increasing number of Trusts expressing interest in our solutions, particularly Safe Care.
I expect the positive trend we are seeing to continue through the second half of this year. The transition of our customer base onto V10 is a key requirement for growth in sales of Safe Care and Cloud and I am pleased to report that this program continues to be on track.
Although the timing of our licence and services revenues remains weighted to the latter part of the year, our strong product portfolio, sales pipeline and the improving quality of our revenue streams give us confidence in a strong second half performance."
Enquiries:
Allocate Software plc Ian Bowles - Chief Executive Officer Chris Gale - Chief Financial Officer Martin Jeffries - Marketing Director
| Tel: +44 (0) 20 7355 5555 |
Numis Securities Nominated adviser - Simon Willis / Richard Thomas Corporate Broking - James Black
| Tel: +44 (0) 20 7260 1000 |
FTI Consulting Matt Dixon, Chris Lane | Tel : +44 (0) 20 7831 3113
|
About Allocate Software plc
Allocate Software is the leading workforce and corporate governance software solutions provider for world-wide organisations with large, multi-skilled workforces. With a blue chip client base spanning the public and private sector, its key vertical markets include Healthcare and Defence.
The experience and in-depth knowledge gained in the UK and internationally has enabled Allocate to invest in developing innovative solutions that are relevant to the constantly evolving market needs of its customers. At the core of the business is Allocate's workforce optimisation software, which streamlines the whole workforce management of multi-disciplinary groups, across diverse locations.
Headquartered in London, Allocate provides services and support to its increasing international customer base through regional offices in the UK, Sweden, USA, Australia and Malaysia.
Allocate is quoted on the London Stock Exchange (AIM: ALL).