Advanced Computer Software (ASW), a provider of healthcare and back-office business software, saw nearly every key performance metric rise significantly during the first half. Of course, much was driven by the £107m purchase of Computer Software Holdings (CSH), but there was organic growth of 8 per cent, too, and management expects the full-year will match expectations.
In fact, all three business divisions grew organically in the period. The health and care segment starred with 16 per cent growth and revenue of £15.6m, driving divisional adjusted cash profit up 28 per cent to £5.1m. The CSH acquisition, meanwhile, sent profit at the business solutions unit rocketing 128 per cent to £16.9m and group profit up 68 per cent to £22.2m. Crucially, the positive trends look set to continue into the second half.
Broker finnCap kept its full-year forecasts for adjusted pre-tax profit of £35.6m and adjusted EPS of 6.2p (from £24.1m and 4.7p in 2013) unchanged, although without further acquisitions EPS growth is tipped to moderate the year after to 6.3p.
ADVANCED COMPUTER SOFTWARE (ASW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 88p | MARKET VALUE: | £417m | |
| TOUCH: | 87-88p | 12-MONTH HIGH: | 100p | LOW: 60p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 38 | |
| NET ASSET VALUE: | 34p* | NET DEBT: | 32% | |
| Half-year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 56.8 | 4.5 | 1.2 | nil |
| 2013 | 99.1 | 4.8 | 0.9 | nil |
| % change | +74 | +7 | -25 | - |
*Includes intangible assets of £261m, or 55p a share | ||||
