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 on track to reach full-year targets - UPDATE
---Adds comments from broker Numis Securities---
Workforce optimisation specialist Allocate Software (LON:ALL) said the company’s performance in the first half to end-November 2011 was in line with its expectations and it is on track to achieve its revenue and profit targets for the full year.
The pipeline of business in the UK Healthcare sector is robust and continues at recent levels with Time Care in Sweden performing well and the Australian healthcare business continuing to develop. The performance of the Defence sector is also meeting expectations, the group told investors.
The first half saw two important acquisitions: RosterOn in Australia in July and Zircadian in the UK in August, The integration of both is making good progress.
During the first half, Allocate was awarded 12 new contracts for HealthRoster, its e-Rostering application, of which 11 were for the NHS, increasing the total NHS e-Rostering customer base to 156 Trusts.
In addition, the company won one new HealthRoster contract in Malaysia/Brunei, saw three NHS Trusts extend their HealthRoster licences, won four new customers for Dynamic Change and six new customers for Time Care.
Post half-year end, the Defence business secured a major contract with the Australian Defence Force, a multi-year, multimillion pound license extension to its current license base that will extend the deployment of MAPS to all personnel in the Australian Army.
The Maritime business closed an important new order with engineering, offshore oil and gas company McDermott.
Chief executive Ian Bowles said: "I am pleased with the momentum and performance of Allocate in this half year. We are experiencing great customer support; in addition prospective customers are selecting our applications following competitive tendering processes.
“Ideally, I would prefer to see a faster closure rate on some of the NHS transactions but I am reassured by the number of prospects that are coming to market and that NHS Trusts are increasingly engaging with us to discuss their plans.
"Despite the current environment, I am confident that we remain on track for our full year revenue and profit targets," the CEO added.
Results for the first half will be released in early February 2012.
In a note to clients today Numis Securities analyst David Toms said: “Allocate's H1 trading update indicates a performance in line with management expectations and comments that despite the macroeconomic environment Allocate is ‘on track for our full year revenue and profit targets’.
“We leave our forecasts unchanged, underpinned by a ‘multimillion GBP license extension’ for the
Australian Army which has occurred early in the second half.”
Numis has a ‘buy’ recommendation for the stock with a 100p a share target price. Going forward the analyst reckons the stock may see a re-rating.
“As we draw nearer to the high visibility revenues from contract extensions and international growth continues, we see good scope for a rerating,” he explained.
Today on AIM Allocate was up 1.5p, or 2 per cent, trading at 79p a share.
