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2005
| 12 May 2005 | ||||||||||||||||||||
Trading update | ||||||||||||||||||||
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In its regular period-end trading update, iSOFT Group plc ("iSOFT") announces that performance in the financial year ended 30 April 2005 was in line with market expectations. As anticipated, revenues in the second half were substantially stronger than in the first half due in particular to the seasonality in the UK business. The UK business was also characterised by a reduced proportion of low margin pass-through revenue, consequently, total revenue for the full year is expected to be at the lower end of the £261m–£277m range of market estimates. Operating margin performance has been good, benefiting from the improved revenue mix, an increased use of offshore resource and cost synergies realised from the successful merger integration. As a result, the Company expects profit before tax, pre goodwill amortisation, to be at the upper end of the £64m–£68m range of market estimates. Cash conversion continued to be strong in the second half of the year and the Company expects to report cash generated from operations in excess of 100% of operating profit. As previously indicated, the level of earned income recorded on the year end balance sheet is expected to fall in absolute terms from the level reported at the half year. In addition to this strong operational performance, the business performed well strategically with good progress continuing to be made in establishing the Company’s LORENZO product across a number of international markets. Further details of progress in the international business will be provided with the preliminary results for the year, which will be announced on 21 June 2005. Commenting, Tim Whiston, Chief Executive of iSOFT, said: "We are pleased with how the business is performing both in the UK and internationally. The UK remains an important market for iSOFT and we continue to trade in-line with our expectations across the business. In terms of international expansion, a key driver of future revenue growth, we are currently engaged in a number of exciting opportunities which give us confidence with respect to the current financial year and beyond." For more information please contact: |
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