Staff rostering specialist () said today underlying revenues grew in its latest half-year despite disruption to its primary care business due to NHS reforms.
Revenues overall rose to £16 million from £15.9 million in the half year to November, with underlying sales up by 15% excluding acquisitions and a £3 million contract in Australia that came through this time in the previous year.
The absence of that contract meant underlying profits fell from £3.8 million to £1.6 million, while the impact of NHS changes on primary care trusts (PCTs) meant Allocate also wrote down the value of its Dynamic Change business by £3.9 million.
That charge, plus costs for acquisitions Zircadian and Rosteron and the absence of the Australian contract meant an overall loss of £6.57 million for the half year.
Chief executive Ian Bowles said: “Our UK Healthcare business is performing at a level that is satisfactory given the continuing debate about restructuring changes in the NHS. We expect this year to secure a similar number of HealthRoster agreements to those contracted last year and the recently acquired Zircadian business is performing in line with our expectation.“
He added that the group had taken a number of initiatives to revitalise Dynanic Change and to leverage its strength in Acute Trusts.
“These initiatives are progressing well, momentum is building and I am confident that this business will continue to recover,” he added.
Allocate’s defence arm also recently secured an extension to its multi-million pound contract with the Australian Defence Force, which will contribute to full year revenues.
Licence revenue in the first half overall was £5.4m (2010: £7.7m), while services and support revenue grew by 29% to £10.6m (2010: £8.2m).
Another eleven NHS trusts took Allocate’s core HealthRoster software in the first half to make 143 in total, with three more extending their contracts.
“The continued organic growth and momentum across the enlarged group makes for a confident outlook for the rest of the year. The broad geographical customer base that Allocate now has enables us to maintain this confidence in our current outlook, notwithstanding the prevailing economic environment,” Bowles added.
