http://www.advancedcomputersoftware.com/


Advanced Computer Software Group plc (Advanced) is the leading supplier of software and IT services to the health, care and commercial sectors with a primary focus on delivering high quality products and services to enable first class delivery of care in the community. Advanced's portfolio for the health and care sector includes IT management and analytics systems for out-of-hospital applications covering urgent and unplanned care, district nursing, hospices, residential care homes, telehealth, end-of-life and long-term-condition management; as well as mobile information systems for community carers.

Advanced additionally delivers back-office systems for NHS trusts, local authorities and care providers and is further strengthening its position in the health checks and pharmacy services markets. Working with partners in the NHS, local government and the private sector, Advanced delivers IT in support of safe and efficient care delivery and greater information for both the commissioner and care provider. The company's unique proposition is the breadth of integrated health and care solutions from patient-facing IT systems through to back-end operational systems and services.

Advanced is also a leading supplier of software and IT services to the commercial sector, which represents 35% of the company's revenues. As the commercial sector typically delivers faster lead times than the health and care sector, this part of the business underpins growth whilst providing opportunities for cross-marketing of products and IT services.











Investment in Avia Health Informatics PLC
RNS
RNS Number : 4406L
Advanced Computer Software Grp PLC
04 September 2012



4 September 2012



Advanced Computer Software Group plc



Investment in Avia Health Informatics PLC



Advanced Computer Software Group plc (AIM: ASW, "Advanced", or "the Group"), a leading provider of healthcare and business management software and services, has invested £350,000 in the AIM listed Avia Health Informatics PLC ("Avia") in the form of a convertible loan note with a term of three years.



The loan note, which attracts zero interest, is secured by a fixed and floating charge over the Company's assets and gives Advanced the right to nominate a non-executive director to the Avia board.



The loan will convert, at the discretion of ACS, into 29.9 per cent. of the Company's issued ordinary share capital immediately following the issue of the new Avia ordinary shares of 0.5p each ("the Loan Conversion Shares") to be issued pursuant to the loan conversion.



Vin Murria, Chief Executive, commented:



"Avia is primarily engaged in developing, building and maintaining the Pathfinder RF and Odyssey clinical decision support systems used by over 100 NHS customers and is a long term partner of Advanced Health & Care.



"This strategic investment will further expand and support Advanced's penetration of the NHS to provide better care for more patients."

Advanced Computer Software: No need to call 111
By John Harrington August 05 2013, 1:49pm Despite results at the end of June that were ahead of market expectations and an upbeat statement around current trading, ASW’s share price has fallen by more than 10% over the past two weeks.Despite results at the end of June that were ahead of market expectations and an upbeat statement around current trading, ASW’s share price has fallen by more than 10% over the past two weeks.

Well-publicised problems with the NHS 111 service may unjustifiably be weighing on the share price of Advanced Computer Software (LON:ASW), broker Arden Partners reckons.

Advanced Computer’s share price has fallen by more than 10% over the last two weeks, and the company’s broker, Arden, thinks this is most likely due to the news that NHS Direct is seeking to withdraw from its contract to run part of the NHS 111 non-emergency helpline.

ASW is the supplier to a number of 111 providers, including NHS Direct, for integrated call handling and its Adastra Out Of Hours software, Arden notes.

“NHS Direct’s problems in implementing the 111 service are publicly documented around its ability to provide trained call handlers – ASW’s software is proven and working well. Therefore, there is no question of a call on the revenue ASW has received to date for software licence and implementation work,” Arden explains.

“Any current uncertainty over future revenue is limited to a total of £1m per annum maintenance and managed services from 111 providers, of which we estimate half to be from NHS Direct. In the context of our £196m forecast for full year revenue from ASW, this is inconsequential,” the broker maintains.

“In addition, the 111 contracts are multi-year, and any impact at all would be unlikely before FY 2015. Finally, we understand that NHS Direct is in discussions with other providers who are users of ASW’s software, to take over their 111 contracts. Such a move would protect ASW’s maintenance stream,” the broker said.

In summary, then, the broker thinks the impact of NHS Direct’s travails is most likely to be zero or, at worst, 0.25% of Advanced Computer’s projected fiscal 2015 revenue.

On that basis, the broker argues, a 10% fall in the share price is an over-reaction and represents a buying opportunity.

Arden has a target price of 121p for Advanced Computer’s shares. Shares were up 2.5% at 82p in lunch-time trading.

10 AIM stocks for your ISA


Advanced Computer Software

"Advanced Computer Software (ASW) reported strong results in June and declared a maiden dividend. The company has continued its acquisition policy and recently bought rival software firm CSH, greatly expanding its client base in the legal service and not-for-profit sectors."



http://www.iii.co.uk/articles/107927/10-aim-stocks-your-isa

Half year trading update

RNS


RNS Number : 1255O

Advanced Computer Software Grp PLC

17 September 2013






17 September 2013



Advanced Computer Software Group plc



Half year trading update



Advanced Computer Software Group plc (AIM: ASW, "Advanced" or "the Group"), a leading provider of healthcare and business management software and IT services, publishes a trading update for the half year ended 31 August 2013.



Financial highlights



The Group expects to report first half results in line with management expectations with revenues up 74% to no less than £99.0m (2012: £56.8m) and adjusted EBITDA* up 67% to no less than £22.0m (2012: £13.2m).



The Group had net debt of £50.9m (28 February 2013: net cash £30.9m) on 31 August 2013, following the introduction of a new banking facility of £105m in March 2013 to fund the acquisition of Computer Software Holdings Limited ('CSH').



Operational highlights



Advanced Business Solutions, the Group's largest division, has continued to achieve above-market organic growth with continued demand from the public and private sectors for shared services, procurement, budgeting and forecasting solutions. The division's large customer base continues to offer opportunities for the cross-selling of Advanced 365's cloud-based services. The integration of the CSH acquisition is progressing well with performance in line with the Board's expectations.



Advanced Health & Care has continued to show strong organic growth with excellent progress in all areas. Advanced's systems now support 85% of the providers to the new NHS 111 market, over 90% of the unscheduled and urgent care sector, a growing and significant number of mobile solutions and is seeing significant opportunities in the emerging community care market.



Advanced 365 Managed Services has achieved strong growth in its recurring managed services revenues and has substantially reduced its exposure to lower-margin hardware sales. Cross-selling, in conjunction with Advanced Business Solutions, remains a significant differentiator.



Vin Murria, Chief Executive, 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."



The Group expects to publish its interim results in the week commencing Monday 28 October 2013.



* Adjusted EBITDA is defined as profit before interest, taxation, depreciation, amortisation of acquired intangibles, exceptional items and share-based payments

Advanced Computer grows in all areas
By Philip Whiterow September 17 2013, 2:59pm




Advanced Computer now has a very strong presence in NHS 111.Advanced Computer now has a very strong presence in NHS 111.

The well-documented problems of NHS 111, the NHS’s non-emergency telephone service, have provided a boost to software provider Advanced Computer Software (LON:ASW).

Advance Computer provides 85% of the software in the 46 regional areas that comprise the NHS 111 service, but it is not a service provider and does not operate any call handlers.

Vin Murria, Advanced Computer’s chief executive, said that NHS 111’s problems have led to more work as service providers take on more licences and need more training, implementation and other services.

Advanced Computer now has a very strong presence in NHS 111, but is also seeing good opportunities elsewhere in healthcare as the national programme for IT comes to an end, she added.

This is particularly true in the emerging community care market, which Murria believes will be worth £400-500 mln over the next three to six years.

Overall, first half sales surged ahead as strong demand continued from both the public and private sectors.

A first contribution from March acquisition Computer Software boosted the figures, but Business Solutions, the group's largest division, had also seen above-market organic growth, said Murria.

Health & Care also saw excellent progress in all areas, said the firm..

Revenues in the half year to August were up by 74% to £99mln (2012: £56.8mln) while underlying profits increased by 67% to £22mln (2012: £13.2mln).

Net debt was £50.9mln at the end of August compared to net cash £30.9mln in February.

Murria said the business remains very cash generative and the strategy will remain to look for sensible strategic acquisitions to support its organic growth plus the occasional bolt-on deal.

If there ever comes a situation where it can’t find those acquisitions, Advanced might consider a special dividend at an appropriate time, she added.

Broker Northland said the acquisition-based strategy has always risks, but the management team has a proven track record of acquiring, integrating but also disposing of businesses.

Shares rose to 0.86p to 84.6p.

LISTEN: Advanced Computer Software Group (ASW) - Acquisition of Avia Health Informatics business

Click hetre

I'm in!... looking for the 1.50p target over the next 3-6months (IMHO)

Shares today - A PE of 18 would put it inline with the sector and implies an 111p share price over the next six months. There is still 30% upside as the re-rating story continues.

Advanced Computer Software is a cash machine
By John Harrington October 14 2013, 9:21am Powerful cash generation has always been an attractive feature of the business, with operating cash conversion historically in excess of 100%, the broker notes.Powerful cash generation has always been an attractive feature of the business, with operating cash conversion historically in excess of 100%, the broker notes.

Panmure Gordon has initiated coverage on fast-growing Advanced Computer Software (LON:ASW) with a ‘buy’ recommendation and 110p price target.

The broker calculates that since the acquisition of CSH – a company senior management knows well – back in March, around 83% of group revenues are recurring and repeated, and some 63% are contracted an recurring. That makes the company a safe cash-generation play, with the money chucked off able to finance further acquisitions or available to crank up the recently introduced dividend pay-out.

“Multiple growth opportunities within healthcare, business solutions and managed services should continue to drive above-market growth. This will enable ACS to keep spinning out impressive amounts of cash, which will either fund the pursuit of additional growth opportunities or potentially turn this into the kind of ‘returns’ stock UK investors so highly value,” said the Panmure team.

“Although investors currently have an appetite for blue-sky growth, ACS’s track record, growth potential and ability to generate cash should not be ignored. A FY 2014 EV/EBITDA [enterprise value/underlying earnings] multiple of 10.3x represent a slight premium to peers, but is worth paying for a business that offers the security of scale and strong market positioning,” Panmure Gordon concludes.

Shares in Advanced Computer Software rose 1.5% to 84.75p in early trading.

Advanced Computer Software's cash machine in full flow
By John Harrington October 30 2013, 2:00pm “We never buy businesses just to milk them,” CEO Vin Murria declared.“We never buy businesses just to milk them,” CEO Vin Murria declared.

According to chief executive Vin Murria, Advanced Computer Software's (LON:ASW) Business Solutions division provides the fuel that keeps the firm motoring.

Speaking to Proactive Investors after the company’s half-year results were announced, Murria said: “It achieved 7% annual [organic] growth, which is double the market average, but more importantly, it is a fantastic engine for everything else, because it throws off masses of cash, huge amounts of recurring revenue, and it supports the growth of the Managed Services area.”

Cross-selling is the name of the game, and Advanced Computer (ASW) is not behind the door when it comes to encouraging its Business Services customers – who typically take accounting, payroll, personnel and document management solutions from ASW – to entrust its information technology systems to ASW's 365 Managed Services division, whether it be ‘in the cloud’ or on the customer’s premises.

“If you own the IP [intellectual property] that the customer runs, and they’re on your hosting structure, they never go away,” Murria said.

There is, perhaps, a bit of hyperbole in that statement, but as any office worker who has had to get to grips with a new system (“Computer says no …”) knows, migrating from one information technology (IT) platform to another is a massive pain.

Managed Services on their own can become a commoditised play, Murria asserts, with customers able to shop around at the end of a five-year contract for a cheaper deal, but the ASW model locks the company in more securely, paving the way to selling them incremental services.

For ASW, cash is definitely king, but virtually all of it gets ploughed back into the business (the company introduced a maiden dividend in its last full-year results), whether through strategic acquisitions or investment in the existing business units.

The recent acquisition of Computer Software Holdings (CSH) is a case in point. The previous owners focused on the cash and the underlying earnings, or EBITDA.

“That’s great, except we’re not just interested in that; we’re interested in growing the business as well,” Murria explains.

So, while the company has made the usual cost savings that you might expect when integrating an acquisition – human resource and payroll functions, for instance – the money gets ploughed back into areas that will grow the top line, such as sales & marketing and research & development.

“We never buy businesses just to milk them,” Murria declared.

The City certainly seems on board with the group’s strategy.

N+1 Singer said the interim results came in ahead of its expectations. Revenues of £99.1mln were ahead of the broker’s forecast of £96.5mln and the adjusted EBITDA of £22.9mln was £1.3mln higher than the City firm had been expecting.

“Cash generation was strong (£18.7mln from operations) with net debt at period end of £50.7mln vs. our expectations of £52.3mln,” the broker added.

N+1 Singer reckons “a strong track record of organic growth as well as identifying and integrating complementary acquisitions make current [share price] levels highly attractive. The group has a strong balance sheet and is highly cash generative which should allow it to continue pursuing its strategy for growth. Management continues to execute well and we believe there is room for further value creation.”

As joint-broker to ASW, N+1 Singer is not an entirely disinterested party, but Panmure Gordon has no affiliation to the company, and it rates the shares a ‘buy’ with a price target of 110p.

“We believe that there is plenty of growth for this business to pursue, with multiple growth opportunities – e.g. shared services deals, cross-selling and mobile solution sales - available to all three operating divisions. Add to this the reassurance of strong management, a high level of recurring revenues (65%) and prodigious cash generation and a FY 2014 enterprise value/EBITDA multiple of 10.7x looks appealing,” the broker said.

Shares in ASW currently trade at around 88p.

looking good today

Advanced Computer Software's Chief Executive Officer, VinMurria, is on the war path. After a big investor forced her into a sale of Computer Software Holding (CSH), her previous company at which she managed to engineer a growth spurt, she vowed never to make the same mistake. Now, as Chief of Advanced Computer Software, she has managed to purchase CSH, and ACS has been going from strength to strength. First half revenue growth was up 74 per cent to 99m pounds and pre-tax profits higher by seven per cent, and it wasn’t all down to non-organic growth. Cash generation remains significant – at £18.7m at the interim stage - and the company now has a war chest of £40m. The shares are trading at a modest 14 times projected earnings and could be due a re-rating. Take a punt, says The Times’ Tempus.

Advanced Computer's Murria picks up another gong

By Philip Whiterow

January 30 2014, 4:03pm
Advanced Computer, which specialises in business, back office and health software, has seen its value grow to more than £500mln over the past 12 months


Advanced Computer Software’s (LON:ASW) Vin Murria was named entrepreneur of the year in the 2014 Quoted Company Awards, topping a short list that included heads of some of AIM’s fastest growing tech companies.

Advanced Computer, which specialises in business, back office and health software, has seen its value grow to more than £500mln over the past 12 months, driven by a share price that has jumped 50% and acquisitions such as the purchase of CSH.

Murria, who joined the company in 2008, was chosen from a short list that included blur’s (LON:BLUR) Philip Letts; Blinkx’s (LON:BLNX) Suranga Chandratillake; William Hindmarch from Best of the Best (LON:BEST); Konstantinos Papadimitrakopoulos from Globo (LON:GBO) and Stephen Streater from Forbidden Techonologies (LON:FBT).

Other winners in the Grant Thornton sponsored event included Plus500 (LON:PLUS), which won IPO of the year, Ithaca Energy (LON:IAT) for deal of the year and finncap, which won broker of the year.

All looking good : 30% increase for me since bought in a few months ago

Acquisition of Compass Computer Consultants

RNS


RNS Number : 0689Z

Advanced Computer Software Grp PLC

03 February 2014




3 February 2014

Advanced Computer Software Group plc



Acquisition of education software provider Compass Computer Consultants for £15m



Advanced Computer Software Group plc (AIM: "ASW", "Advanced", or "the Group"), a leading provider of healthcare and business management software and services, has acquired Compass Computer Consultants Limited ("Compass"), one of the UK's leading market higher education software providers, for a total cash consideration of £14.5m net of £2.6m of cash and a freehold property left in the business.



Compass, based near Chester, provides business solutions for the education sector, including record management and customer relationship ("CRM") software, training and support to more than 80% of UK colleges and higher education establishments.



The business will be integrated into the Group's Business Solutions division, which already has 2,000 local authorities, academies, independent schools and further education providers including 57 universities and colleges using its back office solutions.



Both Compass and Advanced supply public sector customers. The Group has 80 local authority customers creating significant opportunities for the cross-selling of products and services.



In the year ended 31 July 2013, Compass had revenue of £5.7m and generated £3.3m EBITDA. It is expected to be immediately earnings enhancing.



Vin Murria, Chief Executive, commented:



"This earnings enhancing acquisition is complementary to the Group's existing education sector offering. It provides us with greater critical mass and a broader product range for the growing education market in the UK.



"Significantly, in line with previous acquisitions, Compass has high levels of long term recurring revenue and offers considerable opportunity for cross-selling Group products and services."

3 Feb N+1 Singer N/A Corporate
3 Feb Finncap 127.00 Corporate

Year-end trading update

RNS


RNS Number : 5133C

Advanced Computer Software Grp PLC

18 March 2014






18 March 2014



Advanced Computer Software Group plc



Year-end trading update



Advanced Computer Software Group plc (AIM: "ASW", "Advanced" or "the Group"), a leading provider of healthcare and business management software and IT services, publishes a year end trading update for the 12 months ended 28 February 2014.



The Group has continued to perform strongly across all divisions:



· Full year revenue expected to be up 67%, to no less than £202.0m (2013: £120.9m)

· Adjusted EBITDA* up 67%, to no less than £45.0m (2013: £27.0m)

· Strong cash conversion** maintained at more than 100% (2013: 108%)

· Year-end net debt was £49.5m (2013: net cash £30.9m), following the introduction of a new banking facility of £105m in March 2013 to fund the acquisition of:

o Computer Software Holdings (CSH) in March 2013 for £107.0m, providing accounting, HR and business management software to SMEs, law firms and the not for profit sector; and

o Compass Computer Consultants in January 2014 for £14.5m, a market leading provider of higher education software



· Separately today, the Group has also announced that it has been awarded preferred supplier status by Oxford Health NHS Foundation Trust in respect of a multi-year contract to supply a single integrated health record solution, across all the Trust's clinical pathways including mental health, child, community and specialised services



Vin Murria, Chief Executive, commented:



"This has been a strong year, with transformational acquisitions completed and integrating well. We have also continued to deliver strong organic revenue and EBITDA growth underpinned by excellent cash generation.



"The ongoing demand for efficient software and mobile solutions means that we continue to see a wide range of opportunities for further growth, both through strategic acquisitions, organic growth and cross selling."



* Adjusted EBITDA is defined as profit before interest, taxation, depreciation, amortisation of acquired intangibles, acquisition costs and share based payments

** Cash generated from continuing operating activities as a percentage of adjusted EBITA



Operating highlights



Advanced Business Solutions (ABS)



ABS continues to achieve above market organic growth with strong demand for the division's products from both the public and private sector. CSH, acquired in March 2013, is expected to return to growth in the new financial year following the completion of its integration, and the division's enlarged customer base continues to offer good opportunities for the cross-selling of Advanced 365's cloud-based services.



Advanced Health & Care (AHC)



AHC continues to deliver strong organic growth with particularly good results from the NHS 111 market and mobile solutions. Excellent progress has also been achieved in the community care and mental health sector - markets which offer significant opportunities for future growth.



Advanced 365 Managed Services (365)



365 won its largest ever contract in the second half of the year which has contributed to a material increase in recurring managed service revenues. New customers Essex County Council, Supergroup and Norwich and Norfolk University Hospital, highlight that the division continues to differentiate itself from its competitors by successfully combining the Group's managed services capability with market leading products from the wider Group portfolio.



The Group expects to publish its full year results for the year ended 28 February 2014 in the week commencing 2 June 2014.

UPDATE - Advanced Computer confident of more contract wins

By John Harrington and

March 18 2014, 12:20pm
Computer Software Holdings also contributed following its acquisition for £107mln in March.
Computer Software Holdings also contributed following its acquisition for £107mln in March.


---ADDS BROKER COMMENT, CFO COMMENT AND SHARE PRICE---

Advanced Computer Software (LON:ASW) has reported another strong annual performance with both revenues and underlying profits two-thirds higher.

The healthcare and business software specialist expects revenues to climb by 67% to at least £202mln with underlying profit [EBITDA] to be no less than £45mln (£27mln) in the year to February. Consensus forecasts were for around £199mln of revenue and about £44mln of profit.

All of the group’s three legs performed well, said the company, but its work on the NHS 111 emergency service saw particularly good results, while managed services arm 365 won its largest ever contract in the second half of the year.

Computer Software Holdings (CSH) also contributed following its acquisition for £107mln in March and now is expected to grow again this year, having had a flat performance last year.

“We spent most of the last financial year integrating the [csh] business, putting in more sales and marketing resource, putting in development resource to bring some of the products up to speed, and doing a lot of integrations of our processes and back office,” chief financial officer Guy Millward told Proactive Investors.

“All of that’s complete now, and we are already seeing green shoots as regards sales growth,” Millward revealed.

Advanced Computer also announced the award of its third contract in the community and mental health area. It has been named by the Oxford Health NHS Trust as preferred supplier for a health records system that will include all of its mental, child, community and specialist services. A further 68 NHS contracts in community and mental health are expected to be renewed between 2014 and 2016.

Millward said Advanced Computer expects to be involved in most of those contract bids. “We’ve always said that of the 68 contracts that are up in the next two or three years that we would expect to win between 10 and 15 of them,” Millward said, adding that with the third contract in this space in the bag, the company only needs to land another seven to meet its target.

Asked about the company’s win rate in tendering for such bids, Millward explained that it is a case of “horses for courses”, with the company generally winning the contracts that favour its product set.

Vin Murria, chief executive, said: "This has been a strong year, with transformational acquisitions completed and integrating well.

“We have also continued to deliver strong organic revenue and EBITDA growth underpinned by excellent cash generation.

"The ongoing demand for efficient software and mobile solutions means that we continue to see a wide range of opportunities for further growth, both through strategic acquisitions, organic growth and cross selling."

Year-end net debt was £49.5mlm (2013: net cash £30.9m), reflecting the Computer Software purchase.

Panmure Gordon said the headline numbers were “comfortably in line with expectations” but has left its current year and 2015 forecasts unchanged, sorely tempted though it was to increase them. The broker is holding fire on upping its estimates until it gets some “further granularity” on the contribution from CSH, but it believes earnings risk is firmly on the upside.

“Overall, another strong year and further testament to management’s ability to blend organic and acquisitive growth in the delivery of consistently healthy margins and strong cash conversion,” was Panmure Gordon’s verdict as it reiterated its ‘buy’ recommendation and 139p price target.

Shares in Advanced Computer currently trade at 120p, up 2.6%.

Q&A: Advanced Computer Software in good health

By Charlotte Kan

March 27 2014, 10:40am
The healthcare division saw good growth in things like the NHS 111 service



Advanced Computer Software (LON:ASW) revealed in its year end trading update that it expects both full-year revenue and adjusted underlying earnings (EBITDA) to be up 67% as it continues to perform strongly across all divisions.
Charlotte Kan (CK) recently spoke to Guy Millward (GW), chief financial officer, about the results and the group’s latest contract win.

CK: First of all, congratulations, this was a strong set of figures. Where did demand come from and what did you do right?

GM: Thank you very much for that. It came, really, across all our businesses. We’ve seen good growth in business solutions, from selling things like collaborative planning, forecasting tools; from selling our managed services into our existing customer base and from our healthcare division, which saw good growth in things like the NHS 111 service. As you’ve seen, we’ve another contract announcement we’ve done today in the community sector, with a new product set we’ve got there in an area which is going to show a lot of growth going forward in the NHS in the next two or three years.

CK: I was actually going to ask you, will the company enjoy similar growth next year? Where will it come from in 2014?

GM: We’re expecting to see growth both organically and from the acquisitions that we’ve done in the year in very similar areas. We did two sizeable acquisitions in the year; CSH, which was done at the start of the last financial year, provides accounting, HR [human resources] and business management software to SMEs [small/medium enterprises], law firms and the not-for-profit sector. That business is now fully integrated and we expect to see growth coming from the investment we’ve made in sales and marketing in that area.

We did an investment in a company in higher education software, a company called Compass Computer Consultants, a couple of months ago. That’s an already growing business that’s likely to bring growth to the advanced group over the next 12 months. Then we are going to see continued organic growth from our existing businesses, pretty much along the lines as I explained before.

CK: Further to that contract win. It’s your third win in the NHS community and mental health space. You’ve said about 68 NHS contracts are expected to be renewed between this year and 2016. Will you be competing for all of those? If it’s not too commercially sensitive, can you tell us, roughly, what your success rate is when tendering for these contracts?

GM: Yes, sure. We expect to be involved in most of the bids, probably not all of them, it will depend exactly on the requirements of each individual customer. We’ve always said that, of the 68 contracts that are up in the next two or three years that we would expect to win between 10 and 15 of them. This, as you rightly said, is our third one, so, if you like, we’ve seven to nine to go, to achieve that target.

As for win rates, it's still very early days. We have to say that we’ve won the contracts that we expected to win, so those that favoured our product set, if you like. The number that we’ve said, between 10 and 15 to win, should be achievable out of the 68 that are there with our product set as it stands at the moment.

CK: You said in your statement that your March acquisition, Computer Software Holdings, is expected to return to growth this year. What happened last year?

GM: The business was, as we said from the outset, flat year-on-year, so the revenues didn’t go down, but they didn’t go up a great deal either. We spent most of the last financial year integrating the business, putting in more sales and marketing resource, putting in development resource to bring some of the products up to speed and doing a lot of integrating of our processes in back office.

All of that’s complete now and we’re already seeing green shoots as regards sales growth coming into the new financial year. We’d expect to see that add to the organic growth that you’re going to see from the whole group over the next twelve months.

CK: One more question, Guy, please. What can investors expect on the acquisition front in 2014?

GM: I think it’s fair to say, we’ve said in the conference call with the analysts this morning that we intend to carry on doing investments, sensible bolt-ons to our existing product sets in all the areas that we cover, and some bigger ones if they’re available to us. So, more activity is what you can expect. More along the lines of exactly what you’ve seen from us before. We tend to buy things that look like ourselves.

That’s good recurring revenues, good profitability, strong cash generation and areas that we should be able to grow organically over the next few years for us.

UPDATE - Advanced Computer named preferred supplier by more NHS Trusts

By Philip Whiterow

April 08 2014, 11:34am
Some 68 NHS contracts are expected to be renewed between 2014 and 2016 as the NPfIT programme comes to an end.


Advanced Computer Software (LON:ASW) has been awarded preferred software supplier status by two more NHS trusts for their mental and community health services.

The two trusts were coming off the National Programme for IT (NPfIT). Some 68 NHS contracts are expected to be renewed between 2014 and 2016 as the NPfIT programme comes to an end.

Last month, Adanced Computer was granted preferred supplier status for Oxford Health Foundation Trust to add to a growing customer list in the mental and community health sector that includes South London and Maudesley, Calderstones Partnership and Cheshire and Wirral.

Vin Murria, Advanced Computer’s chief executive, said: "These awards strengthen Advanced's growing presence in the NHS community and mental health space and position the group well for the future.“

Broker N+1 added these awards strengthen the group’s presence in the NHS community and mental health space and should position it well for further contract awards.

Advanced Computer has a strong track record of delivery and N+1 said there remain significant prospects for further value creation both through organic progress, as demonstrated by today’s update, and through acquisitions.

The broker forecasts underying profits to rise 58% to £36.1mln in the year to February just ended, to be followed by a jump to £39.4mln in 2015.