Software and services group Civica reported full-year profits broadly in line with expectations, with a steady rise in organic growth supplemented by the acquisition of VT Software Solutions. And more purchases seem likely to offset growing budget constraints within the UK public sector, according to chief executive Simon Downing.
Sales of Civica-owned software progressed well, rising 25 per cent to £92.3m. This more than offset a decline in third-party license software sales, which fell from £51.3m last year to £34.6m. Civica performed well in all of its operating divisions, and the forward order book rose from £91m a year earlier to £96.5m, of which around 85 per cent is deliverable in the current financial year. What's more, recurring revenue at £46m now accounts for around half of all owner software-related activities.
In local government, which accounts for 46 per cent of all Civica's business, turnover grew by 13.5 per cent to £57.6m, although most of the 7 per cent organic growth came from overseas. In the UK, softer demand for replacement back office systems restricted growth to just one per cent. Altium is forecasting adjusted pre-tax profits for 2008 of £23.6m and EPS of 25.1p (£18.3m and 20.4p in 2007).
Click for a guide to the terms used in IC results tables
| CIVICA (CIV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 171p | MARKET VALUE: | £108m | |
| TOUCH: | 170-173p | 12-MONTH HIGH: | 288p | LOW: 167p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 57 | |
| NET ASSET VALUE: | 171p* | NET DEBT: | 30% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2004** | 76.0 | -2.06 | -8.7 | 1.80 |
| 2005 | 106 | 2.34 | 0.9 | 1.98 |
| 2006 | 125 | -1.31 | -3.8 | 2.18 |
| 2007 | 127 | 4.98 | 3.0 | 2.40 |
| % change | +2 | - | - | +10 |
*Includes intangible assets of £147m, or 233p a share **45 weeks | ||||
