In 2008 Civica delivered a good financial and operating performance across the group as a whole during a period which saw the development of a more difficult environment for customers. While the impact of economic conditions on public sector organisations remains unclear, the sustained requirement for organisations to achieve greater efficiency continues to drive demand for IT-enabled process and service improvement.
In the year to 30 September 2008 group turnover increased by 6 per cent over the previous year to £134.2 million. The proportion of revenues derived from owned software related activities continued to increase in line with group focus, with turnover from these activities up to £101.5 million. This increase in owned software related activities together with a 9 per cent growth in services across the Group resulted in an increase in gross profit of 7 per cent to £88.0 million. Adjusted operating profit before goodwill amortisation and share option charges rose by more than 10 per cent to £21.0 million, and cash generated from operating activities continues to be healthy.
Operational and financial reliability is of vital importance to our customers. Civica continues to build on a strong financial track record and on our history of helping organisations to deliver technology-based change programmes with a clear return on investment. The combination of a strong investment partner in 3i with the resource and commitment to support the organic and acquisitive development of the business has enabled the group to sustain its strategic development, with a broader capability supported by the expansion of Civica’s international business and improvement in operating margins.