Allocate Software 2010 Results Presentation · 2010 Results Presentation . ... Maersk Oil Qatar...
Transcript of Allocate Software 2010 Results Presentation · 2010 Results Presentation . ... Maersk Oil Qatar...
Allocate Software 2010 Results Presentation
4 August 2010
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Disclaimer This document, which comprises a presentation (the "Presentation"), has been issued by Allocate Software plc (the “Company”). This Presentation has not been prepared for the purposes of, or with a view to satisfying, the contents or other disclosure requirements of the Financial Services and Markets Act 2000 insofar as it applies to prospectuses, but has been prepared by the Company merely to inform prospective investors of certain matters relating to the Company and its business. In addition, the Financial Services Authority has not approved this Presentation. This Presentation contains only summary information about the Company and its business and is not, nor is it intended to be, comprehensive. Only very limited due diligence has been undertaken on the Company and its business in preparation for the Placing. In particular, no legal or accounting due diligence review has been undertaken and there has been no review of the Company's future working capital requirements. In addition, certain statements, beliefs and opinions contained in this Presentation, particularly those regarding the possible or assumed future financial or other performance of the Company, industry growth or other trend projections are or may be forward-looking statements, beliefs or opinions and as such involve risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by such statements, beliefs or opinions, depending on a variety of factors and accordingly there can be no assurance that the projected results, projections or developments will be attained. No representation or warranty, express or implied, is given or made by the Company or any of its directors, employees or advisers or any other person as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts or the statements, beliefs and opinions expressed herein and nothing in this Presentation is or should be relied on as a promise or representation as to the future. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing some or all of any money invested. This Presentation is being solely issued to and directed at (a) persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotions Order”), (b) persons of the type specified by Article 49(2) of the Financial Promotions Order (i.e. high net worth companies, unincorporated associations, etc.), and (c) persons certified as sophisticated investors within the meaning of Article 50 of the Financial Promotions Order but (for the avoidance of doubt) not those who are self-certified within the meaning of the Financial Promotions Order. As noted above, this Presentation is exempt from the general restriction on the communication of invitations or inducements to enter into investment activity and has therefore not been approved by an authorised person as would otherwise be required by section 21 of the Financial Services and Markets Act 2000. Any investment to which this document relates is available to (and any investment activity to which it relates will be engaged with) only those persons described in (a) to (c) above, who also fall within the provisions of Article 2.1(e) of the Prospectus Directive. Other persons should not take any action in relation to this document, but should return it immediately to the Company. It is a condition of your receiving this Presentation that: (i) you fall within, and you warrant to the Company that you fall within, one of the categories of person described in (a) to (c) above and the provisions of Article 2.1(e) of the Prospectus Directive; and (ii) if you fall within category (c) above, it is a condition of your receiving this document that: (A) you are a person who has a current sophisticated investor certificate, signed by an authorised person and dated no earlier than 36 months preceding the date of receipt of this document, confirming that, in the opinion of such person, you are sufficiently knowledgeable to understand the risks associated with an investment in a private company; and (B) that within the last 12 months you have signed a statement in the terms set out in Article 50(1)(b) of the Financial Promotions Order.
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2010 Highlights
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2010 Business Highlights Continuing, significant growth
39% compound growth in revenue for the past 4 years to £22.0m in 2010
Geographical evolution
Overseas revenue this year 35% of total revenue and growing
Market mix evolution
Healthcare now represents 67% of the business versus 30% four years ago
Business model evolution
New customer wins and acquisitions have brought higher volumes, thereby reducing the reliance on large, bespoke deals
Customer base larger and more widely spread
Total customers now number over 600 from under 100 four years ago
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2010 Financial Highlights
Revenue increased to £22.0m (2009: £15.8m) 22% increase in licence revenue to £9.3m (2009:£7.6m) 56% increase in services and support revenue to £12.5m (2009:£8.0m) 33% increase in healthcare revenue to £14.8m (2009: £11.1m) 21% increase in organic revenue over 2009
39%
38%
Diluted adjusted EPS increased to 6.44p (2009:5.36p) 20%
Cash generated from operations £4.9m (2009: £1.8m)
Trading profit increased to £3.49m (2009: £2.53m)
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2010 Healthcare: Highlights Fastest growing market sector – at £14.8m revenue in 2010, grew by 33% over 2009 and represented 67% of total revenue
417 Healthcare customers worldwide including 353 NHS Trusts
Won 40 new NHS Trusts for Healthroster in 2010 and 20 new Trusts for Trinity, our new bank product Time Care and Dynamic Change acquisitions have and will increase Healthcare market share through geographic expansion and an important new application for our customer base
Secured largest contract to date (potential total value £5.5m) with the Department of Health, New South Wales, Australia for e-Rostering across the entire state public health system, covering more than 90,000 staff New products launched in the UK: Doctor Rostering and e-Expenses
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2010 Healthcare: Acquisitions
December 2009 - Acquisition of Timecare AB created Europe’s leading provider of workforce management software for the healthcare sector
Provides a strong geographic footprint in the Nordic region with 58 of Sweden’s 90 hospitals and 110 of the 290 municipalities
May 2010 - Acquired Dynamic Change, a provider of regulatory compliance, corporate governance, risk and performance management for the UK healthcare market
Brings a SaaS delivery model with fast growth recurring license revenues from 121 customers including Primary Care Trusts, Acute Trusts and Mental Health Trusts
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2010 Healthcare: Customer Growth
Healthroster is utilised by 29% of the 411 NHS Trusts
BSMS is used by 45% of the 411 NHS Trusts
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2010 Defence: Highlights Defence revenue was £4.5m – up 50% over 2009 and represented 20% of 2010 total revenue
Australian Army awarded a £2 million contract for MAPS Defence suite, building on work with the Royal Australian Navy, the largest Defence contract awarded to Allocate. Won in partnership with CSC
In Europe, NATO has added to its existing contract and MAPS Defence suite is now being deployed in Afghanistan by NATO Special Forces
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2010 Maritime: Highlights Maritime revenue was £1.8m in 2010, 8% of total revenue and reflecting growth of 12% over 2009
The world’s leading family entertainment company went live with Allocate Maritime for its cruise line business
CMA-CGM is the first large scale user of Allocate’s new Onboard product
New software licences and support acquired by Norwegian Cruise line
Maersk Oil Qatar goes live in early 2011 with MAPS Maritime
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Strategy Customer Satisfaction
Deliver the highest quality product and services to our customers Work to ensure every customer is a reference Strong independent user group
Allocate Employees Continue to attract and retain the very best talent who are valued and a key part of our success and growth
Focus on Multiple Growth Drivers / Opportunities Maximise penetration of existing vertical markets Maximising customer value by delivery of multiple applications International expansion in Healthcare Appropriately judged acquisitions to support the strategy Consideration of additional vertical market sectors
Profitability Continue to increase profitable growth and positive cash flow
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2010 Financial Highlights
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Total Revenue Trend £ m
93%
CAGR – 39%
40%
40%
36%
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Trading Profit Trend £ m
NM%
85%
37%
38%
CAGR – 50%
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Cash Generated from Operations £ m
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Research and Development £ m
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2010 - Revenue by Type Trend £ m
Growth Percent of total 2007 2008 2009 2010 2007 2008 2009 2010
Licence revenue 153% 52% 32% 22% 46% 50% 48% 42% Service & support revenue 61% 30% 40% 55% 54% 50% 52% 58% Total revenue growth 93% 40% 36% 40% 100% 100% 100% 100%
8.3
11.6
15.8
22.0
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Revenue by Territory Trend £ m
Percent of total 2007 2008 2009 2010
UK revenue 64% 74% 86% 65% Rest of world revenue 36% 26% 14% 35%
8.3
11.6
15.8
22.0
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Healthcare Revenue Trend £ m
Growth Percent of total 2007 2008 2009 2010 2007 2008 2009 2010
Healthcare revenue 400% 164% 68% 33% 30% 57% 70% 67% All other revenue 53% -14% -6% 54% 70% 43% 30% 33%
8.3
11.6
15.8
22.0
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Outlook Integrate recent acquisitions
Focus on further penetration of new and existing markets
Continue to appraise M&A opportunities to further business development
Continue to grow Healthcare market share, both UK and overseas
Continuing deployments with existing Defence customers
Focus on developing “Offshore” in Maritime
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Appendices
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Key Facts & Major Shareholders Ticker: ALL
Stock Exchange: LSE - AIM
Shares in Issue: 61,195,314
Share Price 72p (3 August ‘10)
Sector: Software & Computer Services
Shareholder %
Herald Investment Management 22.43%
Gartmore Investment Mgt 10.74%
Jupiter Asset Management 10.60%
BlackRock UK Emerging Companies 6.72%
SVG Investment Management Ltd 5.88%
Norges Bank 3.27%
Other Institutional 13.38%
Directors’ shareholdings 6.27%
Other 20.71%
Source: Capita Shareholder analysis as at 30.05.10 amended as per TR1 notifications
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Allocate Overview
Market leader for workforce and business optimisation, enabling organisations to improve efficiency, effectiveness, safety & compliance
Software provider for global organisations with large, multi-skilled workforces
Growth in international markets:
Europe's leading provider of e-rostering to the healthcare sector
Operational in UK, Sweden, US, Malaysia, Australia and New Zealand
Focused on 3 vertical markets:
Healthcare, Defence and Maritime
Highly referencable and rapidly expanding, blue-chip customer base
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2010 Fourth consecutive year of record results
Acquired Time Care AB and Dynamic Change
Chris Gale appointed CFO
2009 Name change to Allocate Software
2008 Acquired Key IT Systems & Baum Hart & Partners
Wins first overseas healthcare contract
2007 Expansion into Offshore Industry
Ian Bowles appointed CEO
1991 - 2004
Established US office in Miami
Expansion into Maritime Sector
Listed on the London Stock Exchange
Delivered First Commercial Version of MAPS to the Market
Delivered First version of MAPS to UK Ministry of Defence (MOD)
Manpower Software founded in UK
History of Allocate
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Executive Management Team
Terry Osborne - Chairman
• 40+ years of industry experience.
• IBM (27 years VP Europe & USA)
• SSA , Dr Solomon’s, Witness, Dendrite
• General Atlantic Partners (7yrs Senior Advisor)
Ian Bowles - CEO
• 28 years of industry experience.
• Rank Xerox, Acer, Oracle
• Prime Response, Interwoven, Clearswift
Chris Gale - CFO 28 years of industry experience Apple Inc (12 years), Cooper and Chyan Technology Inc,
Cadence Design Systems, Interwoven, Clearswift and GFI
Allen Swann - Business Development Director
• 27 years of industry experience.
• Oracle UK founder (86-98).
• Prime Response, floated on NASDAQ, Chordiant, CopperEye
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Partners
PricewaterhouseCoopers
CSC
NHS Professionals
Microsoft Gold Partner
Specialist Computer Centres PLC
MKM Consulting (Australia and New Zealand)
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Allocate’s Applications
Allocate Health Healthroster for e-Rostering e-Expenses BSMS - Bank Software Management System Web Timesheets Dynamic Change – healthcare regulatory compliance TimeCare – self rostering (Nordic region)
MAPS Defence Suite MAPS Maritime Suite
Onboard