Outsourcing delivers for fast-growing Civica in FY11

Civica UK Ltd sees top line expand to almost £100m with big revenue and profit growth, while group-wide sales of both product and services enjoy healthy spike

Civica UK Ltd stands on the verge of becoming a £100m player after a double-digit top- and bottom-line spike during its 2011 fiscal year.

Documents filed recently with Companies House reveal the west London-based software and services firm saw sales for the year to 30 September 2011 rise 13.6 per cent annually to £99.6m. Operating profit grew 37.4 per cent to more than £11.5m, equating to operating margins of 11.6 per cent.

During FY11 Civica UK's total assets grew from £87.8m to £101.6m. Average employee numbers rose from 750 to 841 over the course of the year.

The directors' report for FY11 claims that it does not expect demand for technology solutions and outsourcing to dwindle this year.

"Importantly, we are seeing our customers' drive for cost savings result in broader, innovative solutions, where the potential to outsource an entire business process or IT function can result in additional savings and value-add to the customer," it states.

"The company has continued to invest in this capability throughout the year and has had great success in securing some landmark local government business process and IT outsourcing contracts towards the end of the year."

Figures for Civica group parent company Cornwall TopCo Limited show turnover for FY11 stood at £182.7m, an 8.1 per cent rise on 2010.

Software and systems sales grew 10.5 per cent year on year to £71.6m, while support, managed services and outsourcing revenue rose 9.7 per cent annually £62.3m. Implementation and consulting services provided £48.7m to the top line, with sales rising 2.9 per cent.

The UK provided £127.8m of total group revenue, with £51.9m coming from Australia and the Far East and North America contributing £3.6m. Overall operating profit was up 17.3 per cent to £13.2m.