Trading Update

RNS Number : 6068N

Allocate Software PLC

01 October 2012

 



1 October 2012

ALLOCATE SOFTWARE PLC

("Allocate" or "the Company")

Trading Update

Allocate Software, (AIM: ALL), the leading provider of workforce optimisation and corporate governance, risk & compliance software gives the following update on trading for the first three months of the current financial year ending 31 May 2013.

New licence sales have been lower than expected during the first quarter, which historically is the weakest period due to the summer slowdown, particularly in our UK healthcare business.  This was as a result of delays in contracts closing, not competitive losses, and therefore the current pipeline for new business wins and licence renewals remains strong.  The timing will have a knock-on effect on implementation and support revenues in the current quarter.

Progress in our growing portfolio of subscription-based product lines has been encouraging, with a number of these performing above management expectation, most notably our new Allocate Cloud service which we launched during the first quarter.  It is however a function of the subscription model that the revenues from new business wins, recognised rateably over an extended period, will not significantly offset the impact of reduced licence and services revenues in the first half, though it does provide a more secure basis for the business in the longer term.

As a result of these factors and the changing business mix,  the Board now expects that first half revenues will be lower than its original expectations, albeit broadly in line with the first half of the last financial year, and EBITDA will be below the prior year first half comparable. 

Ian Bowles, Chief Executive, commented: "The Board continues to believe that the Company's new business pipeline and prospects remain strong, and will continue to drive the business towards meeting its financial targets for the full year.  Whilst it is not possible to be certain that the first half revenue shortfall will be fully recouped in the second half, any resulting impact on profits will likely be mitigated by tight control over operating expenditure."

Enquiries:

Allocate Software plc Ian Bowles - Chief Executive Officer Chris Gale - Chief Financial Officer	Tel: [phone]
Numis Securities Limited (NOMAD / Corporate Broker) Nominated adviser - Michael Meade / Simon Willis / Richard Thomas Corporate Broking - James Black	Tel: [phone]
Gable Communications Justine James John Bick	Tel: [phone]        [phone]

About Allocate Software plc

Allocate Software plc is the leading workforce and compliance optimisation software applications provider for world-wide organisations with large, multi-skilled workforces.  With a blue chip client base spanning the public and private sector, its key vertical markets include: Healthcare and Defence.  

At the core of the business is Allocate's workforce optimisation software, which organisations use to deploy the right people with the right skills, to the right place at the right time.  Headquartered in London, Allocate provides services and support to its increasing international customer base through regional offices in the UK, Sweden, USA, Australia and Malaysia.

Allocate is quoted on the London Stock Exchange (AIM: ALL).  For further information please visit www.Allocatesoftware.com.

 

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