Allocate Software in rude health

6th Sep 2011 08:53

Allocate Software, which produces software to coordinate large organisations' workforces, notched up its fifth successive year of record results. The group saw revenues jump 37% in the financial year ending in May. Its full year results also show increased operating profit (up 57% to £5.8m) and its operating margin also rising (2.5% to 19.3%).Earnings before interest, tax, depreciation and amortisation leapt 57% to £5.8m from £3.7m once share based payments were stripped out. Reported profit before tax, however, tumbled to £0.75m from £1.25m the year before, as the charge for amortisation of intangible assets increased to £4.43m from £2.09m the year before. Diluted earnings per share fell to 1.24p from 2.31p last year. The group said licence revenue increased 40% to £13.0m from £9.3m the year before. Healthcare revenue jumped 56% to £23.1m from £14.8m while services and support revenue improved by 34% to £16.7m from £12.5m last year.Overall, organic revenue growth was 15% year-on-year while recurring revenue increased by 68% from a year earlier to £11.6m, and represented 39% of total revenue in fiscal 2011. Allocate provides software to organisations such as the NHS. allowing them to track who is working where and at what time. In big organisations this kind of decision is critical because putting people with the wrong skill set on schedule at the wrong time can jeopardise the service.Alongside its UK operations, Allocate supplies 292 Swedish customers while also serving healthcare providers in Australia and NATO in Belgium.Ian Bowles, Chief Executive of Allocate, commented: "We continued to strengthen our position in both the overseas and the UK Healthcare markets notwithstanding difficult trading conditions. The Defence business has also had a very good year with major new orders from NATO and the Commonwealth of Australia Defence Forces. "Allocate's share price rose 3.9% in morning trading.