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Advanced Computer Software on course to hit targets

Advanced Computer continues to chuck off cash, giving it the firepower to continue its impressive track record of acquisitions.
Advanced Computer Software on course to hit targets

Advanced Computer Software (LON:ASW) is increasingly confident of hitting full-year targets after a strong first half showing.

Group revenue in the six months ended August 31 shot up 74% to £99.1mln from £56.8mln the year before, thanks in the main to first time contributions from recent acquisitions.

That being said, organic revenue growth was an inflation-beating 8% when the results of the March acquisition of Computer Software Holdings (CSH) are excluded, and was 5% with CSH included.

Contracted recurring revenue is now 65% of total revenue, up from 56% a year earlier, giving greater revenue visibility.

Adjusted pre-tax profit climbed 59% to £18.8mln from £11.8mln in the corresponding period of 2012, while adjusted underlying earnings (EBITDA) surged 68% to £22.2mln from £13.2mln.

Statutory profit before tax, which is adjusted for amortisation of acquired intangible assets, exceptional costs and share-based payments, climbed 7% to £4.8mln from £4.5mln.

The numbers were in line with Advanced Computer's trading statement in mid-September that indicated revenues would be no less than £99.0mln and adjusted EBITDA no less than £22.0m.

The company continues to generate cash at a ferocious rate; cash generated from operating activities was £18.7mln, and cash conversion equalled 100% of adjusted EBITA excluding CSH, and was 93% including CSH.

"Our strong balance sheet and track record puts us in an excellent position to take advantage of acquisition opportunities that are now opening up in a number of our markets," said chief executive officer, Vin Murria.

"CSH is bedding in well and has performed in line with our expectations, with cost savings already coming through," she added.

More to follow ...

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