*UKHotviewsExtra* Civica makes solid progress in 2022

Recently published accounts show Civica delivered a strong financial performance and made significant strategic progress in the year ended 30 September 2022. Total revenue for the year was up 3.8% to £476.5m (2021: £458.9m), but this included the impact of exiting legacy business process outsourcing (BPO) contracts. Within its core software divisions—a far better indicator of Civica’s prospects—turnover increased by 10.3% (9% organically) to £398.9m (2021: £361.7m).

For the Group, gross profit was up 3.0% to £272.2m (2021: £264.2m), operating profit before amortisation and exceptional items down 1.6% to £100.5m (2021: £102.1m) and EBITDAE up 1.0% to £111.6m (2021: £110.5m). Again, performance was much improved in its core software business, with gross profit up 6.1% to £242.6m (2021: £228.7m), operating profit before amortisation and exceptional items up 4.2% to £103.3m (2021: £99.1m) and EBITDAE up 6.4% to £112.8m (2021: £105.9m). The volume of major software sales (£100k+ contracts) increased by 46% year-on-year.

Civica made good progress in its strategy of sharpening its focus on providing cloud software and associated services, with six BPO contracts handed back to customers in 2022. This strategy was further strengthened by the divestment of its third-party software licensing business in February 2022.

The company completed five acquisitions during the year for a combined total consideration of £77.8m, including a strategic move into the Canadian healthcare market with Momentum Healthware.

Civica appointed Lee Perkins as Group CEO during the year and has just announced two further senior appointments, with Shambhavi taking on the newly created role of Chief Revenue Officer and Derek Wise appointed as Chief Product & Technology Officer.

We are not expecting to see any radical departure from Civica’s existing strategy in 2023; it will continue to invest heavily in its people, products and acquisitions. Under the new management team, we expect to see Civica build on its track record of profitable growth, continue to capitalise on cross-selling and upselling opportunities across its large customer base, and enhance its go-to-market strategy.

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Posted by: Dale Peters at 09:00

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