Civica delivered market-beating growth across the board in FY13, strengthening its position in all its core UK markets – local government, education & healthcare –despite the distraction of a change of financial backer (see Civica acquired by OMERS private equity) and two acquisitions during the year.
Following our meeting with CEO Simon Downing last week we can reveal that Civica’s turnover increased by 6% to £213m in the year to end September 2013, while UK revenue is up by 9% on last year to £153m. Preliminary results show EBITDA increased by 11% to £42m - a 19.8% margin - and cash conversion is running at 90%. The vast majority of the growth is organic since its larger acquisition, Corero Business Systems, only contributed to FY13 for a couple of months (see Civica extends education presence with Corero buy).
By vertical, the strongest growth came from healthcare, a relatively new market for Civica; UK turnover from this sector was up by 43% to £13m. Education also performed well - wins with Academies and Free Schools supported 6% growth from the sector in the UK in FY13 to £33m. But perhaps more significantly, Civica managed to report a healthy 7% growth from UK local (& regional) government taking its revenue from the sector, which still dominates its business, to £101m in FY13. That’s pretty impressive given that we believe the UK local government SITS market as a whole was essentially flat in 2013 (see UK Public Sector SITS Market Trends and Forecasts 2013 if you’re a PublicSectorViews subscriber).
To read the full story on Civica’s FY13 performance and its ambitious plans for 2014 and beyond – including moves into central government and pensions – eligible TechMarketView subscription clients should read our latest UKHotViewsExtra article, Civica: ambitious plans for growth through 2017, which has just been published.
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