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.
Advanced Computer Software making good progress on its strategy - Edison
Advanced Computer Software Group’s (LON:ASW) first-half results provide evidence that the company is making good progress on its strategy to drive growth by promoting cross-selling and product extensions while making acquisitions to broaden the product offering, according to Edison Investment Research.
In a note following the healthcare focused IT systems and software provider’s interims, the research house said the period has shown organic growth from all divisions, a strong order book and revealed a £35 million headroom for acquisitions.
Group revenue was £47.3 million, up from £44.2 million a year earlier while adjusted pretax profit rose to £10.4 million from £9.1 million.
The firm’s Health & Care division grew by five percent, while the Business Solutions and Managed Services divisions saw growth of four percent and nine percent respectively.
Edison believes the valuation is not factoring in ACS’s growth potential.
Management has previously guided to revenue growth of 4-5 percent per year, and first half results show that ACS is on track to achieve this for the full year, it said, adding that consensus forecasts are in line with guidance for full-year 2012 although they factor in lower growth in full-year 2013.
“If management can maintain its target growth rate then we view the stock as attractively priced at current levels,” Edison stated.


















