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As a seasoned software and services provider to the education, election and census sectors, DRS Data and Research Services is used to the performance peaks and troughs that are a natural part of its target markets. FY12 was one of its good years with growth in all three sectors.
Revenue was up 24.6% to £20.1, while PBT showed a 19.4% increase to £1.3m. A trading update released in Christmas Eve heralded profits for the year would be ahead of expectations due to a large order that doubled in size and other orders being delivered earlier than expected. These apparently helped make up for the marginal profits from the London Mayor and Assembly Elections (see here). The business is sensitive to large orders and FY12 was helped by its largest ever order for its PhotoScribe scanning machines, from the National Examinations Council of Nigeria.
The business mix is changing at DRS. Its legacy UK education market is declining but it is making up for it with strong international growth - non-UK revenue increased 70% during 2012 with across-the-board progress in education, census and elections. It cannot avoid the peaky demand of the census and elections sectors but a broader international footprint should help smooth out overall performance.
