Last checked at 24 Jun 2013 07:00
24 June 2013
ALLOCATE SOFTWARE PLC
("Allocate" or "the Company")
Full Year Trading Update
Allocate Software (AIM: ALL), the leading provider of workforce and compliance optimisation solutions, announces an update on trading for its financial year ended 31 May 2013. The Company's audited results will be announced in the week commencing 22 July 2013.
Overview
Allocate delivered a very strong second half performance with full year results in line with market expectations for both revenue and EBITA. The Company's cash performance has materially exceeded analysts' expectations due to the continuing transition in the Company's business model to one based more on recurring revenues and due to improvements in working capital.
Business
The Healthcare business achieved another successful year securing a significant number of agreements for both new products and new customers.
UK Healthcare bookings are ahead of revenue because the number of recurring orders secured has been higher than anticipated. The financial effect of this is that cash, deferred revenue and contracted, unbilled orders in hand are higher than anticipated. As a result, this will increase the visibility and predictability of future years' revenue streams.
The number of new HealthRoster customers secured by the Company was slightly fewer than the previous financial year but met management's expectations for the second half of the current year. Several of the new customers secured were competitor displacements and HealthRoster renewals continued at the previously recorded 100% renewal rate.
The Allocate Cloud, launched in July, has exceeded management original plans with new customers entering agreements in addition to existing customers who have already licensed the software, committing to the Cloud service. A further positive impact of this performance is on cash flow, as noted above.
Sales of the Medics products enjoyed a good year with a number of new customers signing contracts and a high renewal rate of annual subscriptions. Multiyear renewals have been secured with substantially more customers than anticipated demonstrating high levels of customer satisfaction. A further beneficial impact of the multiyear renewals is on cash flow, as noted above.
The migration from HealthRoster V9 to V10 continues in line with management plans. Customers that have migrated are located primarily in the UK, along with customers in the USA and Australia.
The Defence business had a productive year securing a major contract with Royal Australian Airforce as well as securing a series of important professional services contract extensions.
The Maritime business had a successful year securing a new offshore services customer in addition to closing a number of important follow on licence and services contract extensions.
Ian Bowles, Chief Executive Officer of Allocate commented: "2012 was a very important year for Allocate. We launched HealthRoster V10, our most important product for many years and we launched the Allocate Cloud, a completely new HealthRoster service that has been extremely well received by our customers and prospects. Sales of our Medics portfolio of applications exceeded management plans and we continued to secure our 100% renewal rate on HealthRoster. Both the Defence and Maritime businesses again performed solidly.
"At the same time as delivering revenue in line with expectations we continued our transition to a business with higher recurring and deferred revenues. Although revenue growth has been masked by both a large order in the prior year and the move to higher recurring and deferred revenues, billings and cash show more significant growth and more fairly reflect the true underlying progress that Allocate has achieved this year.
"We remain well placed to support the broader healthcare market in general and specifically the NHS in its goals of improving patient care whilst driving improvements in efficiency."
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 - Michael Meade / Simon Willis/ Richard Thomas Corporate Broking - James Black
| Tel: +44 (0) 20 7260 1000 |
Gable Communications Justine James / John Bick
| Tel: +44 (0) 20 7193 7463 M: +44 (0) 7525 324431 |
About Allocate Software plc
Allocate Software plc is the leading workforce optimisation software applications 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.
At the core of the business is Allocate's workforce optimisation software, which organisations use to deploy the right people with the right skills, to the right place at the right time. 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). For further information please visit www.allocatesoftware.com.