COA Solutions’ Half-Year Results Buck Industry Trend with 24% Increase in New Business Licence Orders

UK business applications software provider, COA Solutions (www.coasolutions.com), today reports solid financial results for the six months ending 30 September 2009. Revenue of £28.6m [2008: £29.6m] was on budget and earnings before interest, taxes, depreciation and amortisation (EBITDA) were 18% ahead of budget at £6.4m [2008: £5.1m].

In contrast to the general trends that have depressed sales across the business software sector, total orders increased by 6% and licence orders increased 13% with orders from new customers increasing by 24% over the same period last year.

Mark Thompson, Managing Director of COA Solutions says, “The recessionary climate has caused the business applications software market to plateau with the impact being most severe on new business opportunities as a result of potential customers locking-down capital expenditure. To have bucked the industry trend with a considerable increase in new business licence orders is therefore highly encouraging.” 

Thompson continues, “Recurring revenues have increased by 3%, accounting for 53% of total revenue. This is as a direct result of the success of our COA Solutions On Demand managed and bureau service offerings. The performance of our company over the first-half of the year is further testimony to the resilience of our business model against a backdrop of continued economic volatility.”

Financial half-year highlights include:
• Revenue on budget at £28.6m with EBITDA 18% ahead of budget at £6.4m
• EBITDA of £6.4m increased 25% over the same period in 2008
• EBITDA grew from 17% to 23% of revenue
• Revenue mix: 22% licence, 53% recurring and 25% services [2008: 20%: 49%: 31%]
• Total orders up by 6%
• Licence orders up by 13%
• 24% increase in new business licence orders
• 3% increase in recurring revenues due to COA Solutions on Demand gaining momentum
• Gross margin increased by 4% points to 61%
• Undelivered services orders increased by 2% and provides 6 months backlog
• Research and development headcount increased from 25% of worldwide headcount to 33%

About COA Solutions www.coasolutions.com    

COA Solutions is the UK's leading supplier of integrated business management and information systems to public, private and not-for-profit organisations in the service sector. COA Solutions prides itself on getting close to its customers by understanding their businesses and responding to their business needs.

COA Solutions' award-winning Smart Business Suite combines core financial management, procurement, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions. COA Solutions also provides managed service and bureau service options. Its systems and services extend the value and effectiveness of the finance, HR and payroll departments across the organisation and enable managers in the business to monitor, analyse and continually improve corporate performance.
 
COA Solutions has more than 500 experienced and professional staff supporting and servicing over 4,000 clients across the UK service sector including Companies House, Newcastle City Council, WHSmith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS, RSPB and Great Ormond Street Hospital for Children NHS Trust.

COA Solutions Contact:
Liz Ebbrell, COA Solutions
Liz.ebbrell@coasolutions.com  
+44 (0)1625 856505 or 07917 634 705