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Interim results for the six months ended 30 November 2013

By January 20, 2014No Comments

Strong strategic progress achieved and quality of earnings continues to improve

Allocate Software plc (AIM: ALL), the leading provider of workforce and compliance optimisation solutions, today announces its half-year results for the six months ended 30 November 2013.

The results demonstrate further successful execution of Allocate’s growth strategy, with doubledigit recurring revenue and subscription revenue growth driven by continued strong sales progress within the healthcare business.

Financial Highlights

  • Total revenue increased by 7% to £17.3m (H1 2012: £16.1m) – Organic revenue increased by 7% – Healthcare revenue up by 13% to £14.4m (H1 2012: £12.7m) – Recurring revenue up by 11% to £9.1m (H1 2012: £8.2m) and to 53% of total revenue (H1 2012: 51%) – Subscription revenue up by 14% to £3.3m (H1 2012: £2.9m)
  • Adjusted EBITDA* up by 17% to £0.7m (H1 2012: £0.6m)
  • Diluted adjusted EPS** was 1.3p (H1 2012: 0.1p loss)
  • Net cash balance increased to £7.4m (H1 2012: £2.1m)
  • Total debt balance of £4.0m repaid in full

* Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments and non-recurring costs. ** Diluted adjusted EPS excludes amortisation of intangible assets, non-recurring costs, impairment charges and share-based payments, adjusted for taxation.

Business Highlights

  • HealthRoster continues to lead our business. We are seeing an increasing demand for our core application, evidenced by a stronger than anticipated performance in the period. We secured four new customers, including three new NHS Trusts, taking the total to 154. These three wins included two competitive displacements. In addition, we renewed a further ten HealthRoster term licence customers, bringing the total to 43 and maintaining our 100% renewal rate.
  • Subscription revenues grew 14% driven by growth in Cloud and in our Medics solutions. We secured nine new Cloud customers and eight new Medics contracts.
  • Our new SafeCare application has received high levels of interest from our customer base due to the focus on safe staffing in the NHS. We secured eight new contracts for SafeCare during the period.
  • Patient Flow (PF) and Emergency Department (ED) applications generated considerable interest from potential customers.
  • The rollout program of HealthRoster V10 continues to meet expectations with 42 customers live on the new architecture at the end of the period

Ian Bowles, Chief Executive Officer of Allocate, said:

“These results demonstrate that our strategy for growth is working and is delivering a real earnings benefit. Our success in transitioning to a model based increasingly on recurring revenues is clearly evidenced by the continued growth in subscription revenues and Cloud customers.

“Allocate now offers a portfolio of solutions that explicitly address the focus brought to safe staffing by the Secretary of State for Health, by NHS England and by The Care Quality Commission. Consequently, our pipelines for HealthRoster, Cloud and SafeCare have grown and are all at a higher level than last year.

“Our international businesses have performed well with Sweden again exceeding expectations.

“Our business remains weighted towards a seasonally busier second half of the year. Given the strength of our performance over the past six months and based on our strong pipeline, we believe we are on track to meet market expectations for the full year.”


Allocate Software Ian Bowles – Chief Executive Officer; Chris Gale – Chief Financial Officer; Martin Jeffries – Marketing Director

Tel: +44 (0) 20 7355 5555

Numis Securities Nominated adviser – Simon Willis / Richard Thomas Corporate Broking – James Black

Tel: +44 (0) 20 7260 1000

FTI Consulting Matt Dixon, Chris Lane
Tel: +44 (0) 20 7831 3113