*UKHotViewsExtra* Advanced advances in cloud, acquisitively and internationally

Advanced is now the fourth largest UK-headquartered software supplier in the UK. A mid-market specialist boasting a mix of horizontal and vertical capabilities and customers spread across the public and private sectors, it performed well in FY22 (to end February) with revenues up by more than 16% to £320m. We caught up with CEO Gordon Wilson and CMO Sally Scott for a deeper dive into how Advanced is evolving, and what the future holds for the PE-backed business. TechMarketView subscription clients and UKHotViews Premium subscribers can read the full analysis here.

Overall, Advanced’s UK revenues climbed by 11.5% to £281m in FY22 with UK software revenues up by c13% to £247m in the same period, securing it the No. 15 spot in our UK Enterprise Software provider rankings. Cloud revenues continue to grow strongly, such that almost three-quarters of Advanced’s revenue is now recurring. SaaS revenue increased by some 51% in FY22 to £86.7m.

Advanced, which started out as a buy-and-build business in the UK healthcare sector (see here, for example, for a trip down memory lane), now derives more revenue from the private sector than the public sector. Both sides of the business are growing, but in FY22 the private sector was the star of the show. With demand returning to pre-pandemic levels and interest in HCM solutions particularly high, UK private sector revenue grew by nearly 15% to £162m, or 58% of total UK revenues. 

In the public sector, where UK revenues climbed by nearly 8% in FY22 to c£120m, Advanced saw particularly strong growth in its Education business, boosted by the bksb and Smart Apprentices acquisitions in May 2021. 

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Posted by Tola Sargeant at '15:43' - Tagged: saas   software