www.allocate-software.co.uk
Allocate Software plc is the leading workforce optimisation software applications provider for world-wide organisations with large, multi-skilled workforces. Using MAPS, Allocate Software’s workforce optimisation software application, organisations can deploy the right people with the right skills, to the right place at the right time, allowing Allocate Software’s customers to match operational demands with workforce supply.
With Corporate headquarters in London, regional offices in the UK, Sweden, USA, Australia, Malaysia, Allocate Software provide services and support to an international customer base across Europe, North America and Asia Pacific.
Allocate Software plc is quoted on the London Stock Exchange (AIM: ALL). For further information please visit www.allocatesoftware.com.
Allocate Software “underappreciated” by market, says Numis
Workforce optimisation specialist Allocate Software (LON:ALL) is still underappreciated by the stock market in spite of its strength and long-term growth potential, according to house broker Numis Securities.
In a research note released this morning, Numis highlighted the firm’s robust and improving earnings quality, cross-selling opportunities into its existing customer base and long-term prospects in new international markets.
Earlier this week, Allocate reported that it had managed to increase revenues and operating profits (at the EBITDA level) during the year to the end of May despite tough conditions in its key healthcare markets.
Allocate’s chief executive officer, Ian Bowles, told Proactive Investors that he believes that cost-cutting reforms in the UK’s National Health Service will continue to serve as a boon to the company over the long term. “The predominant reason for these reforms is to save money in the NHS and our software helps it do that,” he said in a phone interview with Proactive Investors on Tuesday.
During the 12 months to May 31, revenue increased 37 per cent to £30.1 million, while EBITDA (earnings before interest, tax, depreciation and amortisation) grew 57 per cent to £5.8 million.
Recurring revenues grew by 68 per cent to £11.6 million, while licence revenue increased 40 per cent to £13 million. Service and support revenue improved 34 per cent to £16.7 million.
The firm’s HealthRoster software gained 26 new NHS Trust customers during the period, making 145 Trusts with HealthRoster in total at the end of the financial year – representing 35 per cent of the 411 Acute, Mental Health and Primary Care Trusts in England and Wales.
Commenting on the results today, Numis said that Allocate had provided two good datapoints for its cross sales successes: the first being 20 key IT customers (acquired in April 2008) having now purchased HealthRoster, “showing that Allocate can up-sell to acquired customers”; the second being 40 HealthRoster customers purchasing the firm’s doctor rostering software since its launch two years ago, “demonstrating the potential for customers to purchase new products developed organically”.
Numis added: “We estimate that of Allocate’s four major products... on average each NHS Trust has approximately 1.2 products. In our view there is scope for this figure to at least double.”
Numis has a target price of 100 pence for Allocate’s shares, which were trading for 67 pence each by midday today.
