PRESS RELEASE
COA Solutions Announces Strong Half-Year Results
24 November 2008 - UK business applications software provider, COA Solutions Ltd. has today reported strong profitable growth for its half-year results ending 30 September 2008. Turnover has increased by 16% to £29.6m with earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing by 27% to £5.1m.
Mark Thompson, Managing Director of COA Solutions says, “COA Solutions has sustained excellent progress during the first half of the financial year despite the volatile economic climate. In recent years, our corporate strategy has focused on making the business as resilient as possible to short-term macroeconomic influences by building a loyal customer base that is spread 50:50 (in terms of revenues) across the public and private sectors.
Whilst we’ve witnessed tightening demand from sectors such as financial services, professional services and transport, there remains sustained levels of activity within health, education and housing.”
Thompson continues, “During the second half of the financial year, cost control and cash collection will remain high priorities. As less financially solid competitors fall victim to the turbulent economy, we are confident that COA Solutions is well placed to continue growing its share of the UK business applications software market and we will seek additional strategic acquisitions to further strengthen our market position.”
Financial half-year highlights include
- Acquisition of HR specialist ASR Computers Ltd. (completed April 08), strengthening COA Solutions’ footprint.
- New software licence sales accounted for 20% of first half revenues.
- Organic revenue growth was 5% during the first six months.
- Recurring revenues (maintenance and support) represented 49% of total revenue, providing COA Solutions with a high quality and predictable revenue stream.
- A strong order book and high backlog has driven utilisation of billable staff to over 70% comparing favourably with averages across the UK software industry.
- Continued investment in offshore development has increased capacity by 70% in the first six months of FY09.
- Strong trading combined with excellent working capital management has increased the operating cashflow to EBITDA ratio to over 100%.