Microgen shows enterprise growth

24th Feb 2011 16:29

Software provider Microgen produced strong figures thanks to the growth of its enterprise software business. Revenue from continuing operations rose 16% to £33.7m in 2010 but all of the growth came from the Microgen Aptitude Solutions division. The core customer base is in the financial, media and commercial sectors. A number of projects are continuing in 2011. The financial systems software division's revenue fell but it remains the main profit contributor. This part of the group supplies a mature market and there are fewer opportunities for growth. Recurring revenues account for 86% of total revenues for the division and operating margins are 48% - three times those of the Microgen Aptitude business. Underlying pre-tax profit increased from £5.91m to £8.11m. The comparative figure does not include the billing services business that was sold in November 2009. The final divided was bumped up from 1.5p a share to 2.1p a share, making a total of 3p a share for the year. There was a 4p a share special dividend in 2009. The business is strongly cash generative. Net cash was £23.4m at the end of December 2010.