Civica plc - Pre-Close Trading Update
‘Continued progress in profit growth and cash generation’
18 OCTOBER 2007
Civica plc (“Civica” or “the Company”), the software and services group focused on the public sector, today reported on trading for the year to 30 September 2007 prior to entering its close period and ahead of preliminary results to be announced on 4 December 2007.
Profits for the year will be in line with market expectations, underpinned by good cash generation from existing operations and despite the inevitable disruption associated with an aborted bid for the Company. The strategy of focusing on owned software and associated services has continued to support further improvement in operating margins during the period.
Good progress was made in international expansion and with investment to develop capability across the broader UK public sector, including education and social housing, countering softer demand for UK local government back office system replacements.
Highlights during the period included more than 80 new contract wins for, among others, Essex County Council, Stoke-on-Trent City Council and City Building (Glasgow) in the UK, together with the County and District councils in Gloucestershire under their shared working agenda, and internationally for Australia’s fifth largest city council, Fairfield, and for the Malaysian government.
Restructuring costs associated with the VT Software Solutions Limited acquisition and subsequent integration, along with costs related to the aborted bid, will result in a one-off charge for the full year of approximately £2.5 million.
The Civica business has now doubled in size since flotation in March 2004. With increased scale the Company is well placed to respond effectively to changing market requirements, and management is focused on sustaining this momentum over the coming period.
For further information, please contact:
Civica plc 020 7760 2800
Simon Downing, Chief Executive / Mike Stoddard, Finance Director
Buchanan Communications 020 7466 5000
Tim Thompson / Nicola Cronk / Susanna Gale
Notes to Editors
About Civica plc
Civica plc (www.civica.co.uk) is a market leader in software-based solutions that help public sector organisations to improve service delivery to their communities, with particular expertise in local government, social housing, law enforcement, education and regulated markets. Blending consulting, software and managed services, the group supplies more than 1,500 public organisations in the UK, Australia, Singapore and the USA.