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13/12/2011

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Additional Information
Market: AIM
Sector: Software & Computer Services
EPIC: ASW
Latest Price: 53.50p  (0,00%)
52-week High: 58.00p
52-week Low: 30.88p
Market Cap: 190.70M
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Advanced Computer Software Group plc
www.advancedcomputersoftware.com

Advanced Computer Software Plc comprises three main divisions: Business Solutions, Health & Care and Managed Services. Together, these divisions provide a range of software and IT services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies through streamlined processes.

Full Advanced Computer Software Group plc profile here
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Advanced Computer Software: City positive following interims

15th Nov 2011, 12:03 pm by Jon Mainwaring Advanced Computer Software gets 25 per cent of its revenues from the health sector

Two brokers have followed up yesterday’s interim results from Advanced Computer Software (LON:ASW) with positive comments about the company.

Advanced Computer Software announced robust half-year results, in which the firm reported a seven per-cent increase in revenue during the six months to August 31 and 14 per cent growth in adjust pre-tax profit.

Group revenue was £47.3 million (H1 2011: £44.2 million) while adjusted pre-tax profit came in at £10.4 million (H1 2011: £9.1 million). Adjusted earnings per share were up nine per cent at 2.4 pence.

In a note titled “Encouraging set of interims”, independent broker Collins Stewart commented: “Against a backdrop in its core markets that is flat at best, it is clear that ACS is winning market share. Its integrated portfolio of software solutions and service are playing well to the general theme of increased efficiency and cost reduction. We are particularly pleased to see the Business Solutions division recording organic growth in the period as we had previously pencilled in flat revenues for the full year.”

Collins Stewart added that it expects margins “to continue their upwards trajectory on the back of cross-selling and leveraging of its hosting capabilities”.

House broker Singer Capital Markets noted that the firm reduced its net debt to £10 million following the disposal of the non-core Cedar HR Software business. It also noted that opportunities remain both within and outside of the public sector as customers continue to look for ways to improve efficiency and cut costs. “With the strong execution we have seen so far, a good order book, and nearly 60 per cent recurring revenues, we are confident of a positive outturn for the rest of the year,” it said

Collins Stewart forecasts sales of £96.6 million for the year to February 2012, compared to the £95.3 million that Advanced Computer Software generated in its last financial year. EBITDA is estimated at £24.5 million (2011: £24.1 million).

Collins Stewart has set a target price of 56 pence for the shares, which were trading for 44.25 pence each during late-morning trading today.

 

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