Half-year figures from healthcare and business software specialist Advanced Computer Software (ASW) revealed robust sales growth and impressive cash-flow generation. Underlying cash profit jumped 10 per cent in the period to £13.2m, while cash generated from operations rose 9 per cent to £12.3m - helping to turn last year's £25.3m net debt pile in a net cash position.
The group's spend and save message on IT investment is proving especially attractive to its cost-conscious clients. The health & care unit's sales increased 19 per cent to £13m and the group has been able to build its position within the NHS's out of hours market following the launch of NHS 111 - the non-emergency telephone number for round-the-clock access to the NHS. Meanwhile, the advanced business solutions unit's sales rose 5 per cent to £27.6m and the Advanced 365 managed services business saw underlying organic sales rise 21 per cent - helped by cross-selling. That business also bought Fabric Technologies in June for £4.6m, which will boost the group's managed cloud services offering. Encouragingly, the group's contracted future revenue has risen 35 per cent to £115.5m and annual recurring revenue accounts for more than half of turnover.
Broker Canaccord Genuity has upgraded its full-year adjusted EPS forecast by 1.4 per cent to 4.5p (4.2p in 2012).
ADVANCED COMPUTER SOFTWARE (ASW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 64p | MARKET VALUE: | £237m | |
| TOUCH: | 64-65p | 12-MONTH HIGH: | 65p | LOW: 46p |
| DIVIDEND YIELD: | nil | PE RATIO: | 18 | |
| NET ASSET VALUE: | 28p* | NET CASH: | £1.5m | |
| Half-year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 50.6 | 3.70 | 0.90 | nil |
| 2012 | 56.8 | 4.50 | 1.20 | nil |
| % change | +12 | +22 | +33 | - |
*Includes intangible assets of £125.7m, or 34p a share | ||||
