*UKHotViewsExtra* Civica bounces back with strong growth

Recently published accounts reveal Civica bounced back strongly from last year’s pandemic associated slowdown. Overall revenue for the year ended 30 September 2021 was up 8% to £458.9m (2020: £424.9m), with organic revenue growth in the core software business (accounting for >90% of Group EBITDA, of 8%). Gross profit improved by 9% to £378.7m (2020: £346.4m), and operating profit before amortisation and exceptional items was up 18% to £102.1m (2020: £85.6m). EBITDA also improved—up 19% to a record £110.5m (2020: £93.1m)—and EBITDA margin improved to 24.1% (2020: 21.9%) supported by the continued move away from lower margin software resale and its BPO business. Operating cash inflow increased 33% to £102m improving the conversion from adjusted EBITDA from 84% to 94%.

Growth during the year came from upselling to existing clients (new modules, moving to the cloud); a programmatic approach to cross-selling existing products into different geographies and verticals (Project Endeavour), as well as new business, supported by its ongoing sales improvement programme. The organic software revenue growth of 8% was supplemented by targeted acquisitions, leading to reported software revenue growth of 13%.

Revenue from the UK, which represented 76% of total revenue, grew 7% to £350.7m (2020: £327.6m). Revenue from its APAC business (focused on Australia, New Zealand and Singapore) performed more strongly—up 12%—taking it over the £100m for the first time (2021: £100.9m / 2020: £90.0m), but its smaller North American business declined by 2% to £7.3m (2020: £7.4m).

TechMarketView subscribers, including those signed up to UKHotViewsPremium can read more about Civica's performance and prospects here. If you are not yet a subscriber, please contact Deb Seth to find out how to access this and much more.

Posted by Dale Peters at '07:57' - Tagged: results   software   public+sector