As we reported last week, public sector-focused Civica is growing nicely despite tougher conditions in its core market: the UK public sector. According to company figures and our estimates, the privately-held software and services firm grew total revenue by 8% to £182.7m in the year to end September 2011. UK SITS revenue also climbed by 8% (7% organically) to £127.8m. In the same period, Group EBITDA increased by around 5.5% to £34.8m and cashflow from operating activities climbed by 28% to £29m.
CEO Simon Downing believes it is Civica’s combination of people, technology and business process expertise that’s appealing to customers and enabling Civica to outperform the UK public sector market. Civica offers the breadth and depth of a larger company coupled with the flexibility and market knowledge typical of a smaller specialist player, and that’s proving a winning combination in these straightened times. IPR is still core to the business but Civica is stretching its wings in search of growth. It has a growing managed services business and ambitions in IT outsourcing and business process services. It has made progress in these areas this year with a couple of key new contracts (see the UKHotViews archive).
We recently caught up with the management team to learn more about the FY11 performance and their plans for the year ahead. TechMarketView subscribers can read the detail in our UKHotViewsExtra article published today - Civica: Ambitious plans in a tough market.