Advanced Computer Solutions (ACS) is confident of reporting a 74 per cent increase in revenue when it posts its FY13 first-half results next month.
The firm issued a trading update which revealed its performance will be ‘in line with management expectations" with revenue up 74 per cent to "no less than" £99m, and adjusted EBITDA up 67 per cent to no less than £22m, compared with £13.2m last year. Its interim trading statement is due on 28 October.
The firm reported net debt of £50.9m on 31 August following the introduction of a new banking facility of £105m to fund the acquisition of Computer Software Holdings Ltd. It claimed its largest division, Advanced Business Solutions (ABS), had continued to achieve above-market organic growth with continued demand from both public and private sectors for shared services, procurement, budgeting and forecasting. Both its specialist healthcare division and its managed services business had also shown positive growth.
Vin Murria, chief executive of ABS, said: “We have seen excellent growth in the first half year and are in a good position to maintain progress, to deliver full-year results in line with board expectations. A wide range of further growth opportunities exists for our products and services in both the public and private sectors, particularly in healthcare.
The use of technology as an enabler of efficiency savings remains key across all sectors. Following the acquisition of CSH, we have a very strong platform to develop and grow the whole group, organically and by acquisitions.”
Tola Sergeant, director at analyst TechMarketView, said: “It is encouraging to see that the integration of Computer Software Holdings is progressing well and that the group is able to report both organic and inorganic growth.
“The CSH acquisition has changed the shape of ACS somewhat,” she added. “The group’s largest division, Advanced Business Solutions, now accounts for close to two thirds of revenue. It delivered 'above-market organic growth' in the first half and is seeing continued demand from the public and private sectors for shared services, procurement, budgeting and forecasting solutions. The 365 Managed Services division, which now brings in around a fifth of group revenue, continues to benefit from cross-selling from ABS with strong growth in recurring managed services revenue, but reduced lower-margin hardware sales.
“All in all, ACS appears to be a solid business that is ticking along nicely. But it is still very much a ‘buy & build’ company and with CSH well on the way to being bedded in, it can only be a question of time before Vin and her team are on the acquisition trail again in a bid to boost growth further,” she added.
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