Allocate Software is 'one to watch' in UK healthcare

Allocate Software – the ‘workforce optimisation’ software provider formerly known as Manpower Software – has changed considerably since Ian Bowles came on board as CEO nearly four years ago. It has grown rapidly over the last few years (with a significant contribution from recent acquisitions) and looks set to have a turnover of c£29m in FY11, up from just £8.3m in FY07. Its vertical focus has also changed, so that it now derives 80% of its revenues from healthcare (compared to 29% in 2007).

Although Allocate’s bumper FY11 first half is unlikely to be repeated (because it benefitted from the kick-off of a major Australian contract during the period - see Allocate’s bumper H1 sets in-line year), the management team remains confident of achieving ambitious growth targets in the short to medium term. Bowles told us that he hopes to take Allocate’s market cap from around £55m today to £100m in three years time; or an almost 80% increase in turnover of over the same period to around £50m with an operating profit of c£10m. Can this rate of growth really be achievable in a market characterised by tightening public sector budgets and political uncertainty? Subscribers to TechMarketView’s Foundation Service can read our views in our latest research note, Allocate Software: One to watch in UK healthcare, which is available for download from today.

Posted by Tola Sargeant at '15:08' - Tagged: publicsector   health