Annual Review

The Group continued to expand and evolve in 2015, maintaining our track record of growth with a strong UK performance.

Including acquisitions following the end of the financial year, Civica added close to 400 employees during the year, and increased the scale of involvement with customers.

We maintained our financial and operational track record with a strong UK performance, increasing our scale of involvement with customers organically and through acquisition. We also expanded our capability and resources, adding more than 400 people once TUPE transfers following the end of the financial year were completed.

The Group provides a leading portfolio of critical software applications, digital solutions and outsourcing. These are widely used to streamline, automate and improve everyday activities for our customers and, ultimately, to transform service delivery and efficiency.

During the year we continued to make good progress including expansion of digital solutions and business process services which help organisations re-design their services in response to substantial change and increasing expectation.

Group revenues in the year to 30 September increased to £234.1 million (2014: £220.1 million), led by a market-beating performance in the UK and a growing position in business process outsourcing. EBITDA* increased to £46.8 million (2014: £43.6 million) supported by strong cash generation which has enabled continued investment in our products and skills.

Underpinned by deep domain expertise, a strong cultural fit with customers and a clear strategy, the business made progress in all areas including software, cloud-based services and outsourcing. New proprietary software revenues including project services increased by 20 percent while revenues from business process services grew to over £27 million.

We continued to enhance Civica’s software and services portfolio, with excellent customer retention and good business momentum including more than 100 new contracts. The Group maintained a strong record in delivering core requirements, together with the development of innovative new products in areas such as digital and mobile services.

Our track record of delivery within these partnerships along with the continued financial and service delivery pressures on our customers has also provided a strong pipeline of further opportunities, and we expect to see further significant growth.

The Group continued to benefit from a resilient business model. The UK remains Civica’s largest market with revenues increased 10 percent in the year to £187.3 million (2014: £170.5 million). Within this the business continued to strengthen its position in Northern Ireland through major contracts such as the innovative NI Direct programme. Actions to enhance performance in the international business, which remains a core part of Group activity, began to take effect with good progress despite adverse currency translation.

Advances in technology and automation, proliferation of devices and channels and greater availability of data for a 24/7 on-demand culture are all driving greater expectation for technology-based transformation. Given our distinctive combination of people, technology and business process expertise together with investments made in capability and resources, we believe the Group is very well placed to respond and we continue to see a very positive outlook for the business.