System C sees profit up 32pc

City A.M. Reporter
HEALTH and social care solutions provider System C Healthcare yesterday reported a 32 per cent rise in pre-tax profit to £5.4m from £4.1m for the year to 31 May.

Revenue surged by 75 per cent to £38.3m from £21.9m. Excluding new acquisitions, revenue increased by 44 per cent to £31.5m. Meanwhile, earnings per share were up nine per cent at 4.07p from 3.72p.

System C said its strong cash generation had been strong, with a net position at the year-end of £18.6m, up from £14.7m. Final dividend was increased to 0.50p from 0.44p, with total dividend up 14 per cent to 0.75p.

The acquisition of Liquidlogic in July 2009 for £10.2m had given System C entry into the social care IT market, while acquisition of Conscia Enterprise Systems in October for £0.8m had strengthened the group’s expertise in web-based technologies.

Chief executive Ian Denley said: “This is a time of great upheaval for the NHS, in both policy and economic terms, with changes under way that are generating both risks and opportunities.

“At System C, we are completing our five-year strategic investment in our Medway software and bringing the products to market at a time when NHS Trusts have been newly freed from central purchasing obligations.

“We are now experiencing a surge in procurement activity and have already achieved strategic contract wins, including The Royal Devon & Exeter NHS Foundation Trust.”

Denley added that services revenues were down but holding steady and the sales pipeline for Medway had “never been stronger”.