Advanced Computer Software, provider of healthcare and business management software and services, reports ‘in line’ trading for the six months to the end of August. For the first half it expects revenues of ‘no less than £50m’, implying top line growth of c6%, and adjusted EBITDA of no less than £13m (2010: £12.2m). Cash is down to £9m (2010: £13.6m) but net debt has improved to £25m (2010: £33.9m). There’s no detail on like-for-like organic growth from the acquisitive company and we wouldn’t be surprised if, in common with some other providers, ACS is finding the UK healthcare market pretty tough going at the moment.
Nevertheless, according to Vin Murria, CEO, ACS is still seeing “good growth opportunities” in both the public and private sectors. The fact that its products are aimed at reducing costs or improving efficiency and reportedly have a rapid ROI will certainly support sales, and we’re encouraged to hear that Advanced 365 signed orders over £18m in the half for managed services. But we’ll have to wait for the interim results in November to get a clearer idea of the different divisions’ performance.