News Column

Allocate Software Raises Dividend As It Swings To Profit

July 21, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Allocate Software PLC Monday said financial 2015 will be "another significant year" and raised its total dividend as it swung to a profit in the financial year to end-May.

The software and services company declared a total dividend for the recent year of 1.45 pence per share, up from 1.32 pence in the previous year.

It posted a pretax profit of GBP2.9 million, swinging from a pretax loss of GBP2.4 million, as revenue rose to GBP40.0 million from GBP37.1 million. Allocate also posted lower amortisation charges, and impairment costs did not recur. In the previous year the company posted GBP1.9 million in acquisition-related costs.

Allocate said that the National Health Service has been pressed to find cost savings as part of the UK government's Quality, Innovation, Productivity and Performance initiative, which has helped drive growth.

In the UK healthcare, revenue rose 19% during the year as it saw a strong performance from its Allocate Cloud products and its HealthRoster service. HealthRoster was picked by 16 new customers during the year, and 36 NHS trusts renewed their contracts for HealthRoster.

Additionally, Allocate Cloud won 39 customers during the year, taking its total number of customers using the cloud-computing service to 63.

Recurring revenue rose to GBP18.8 million from GBP17.6 million in the previous year. Healthcare revenue rose to GBP34.7 million from GBP29.3 million, driven by growth in repeatable revenues and a strong performance in the Nordic region.

Defence revenues declined to GBP3.6 million from GBP5.0 million, and maritime revenues declined to GBP1.7 million from GBP2.8 million.

The company said that it closed 2014 well, and has carried its strong momentum into 2015. It said it is focused on driving further growth in its healthcare business by accelerating the adoption of both its Cloud and SafeCare products, to support customers as they respond to the NHS's safe staffing agenda.

Operating margin expansion will also be an important priority in 2015, it said.

Shares in Allocate were trading down 0.9% at 116.00 pence Monday morning.

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Source: Alliance News

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