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Microgen reports higher revenues and profits as Microgen Aptitude beats expectations

Microgen (AIM: MCGN) said its Microgen Aptitude Solutions Division (MASD) would continue to deliver growth in 2010 after posting a 55% revenue increase in 2009 to help drive up group revenues 9% to £29.1 million, while the group transitioned into being fully software-based after the disposal of the billing services division.

Operating profits climbed from £4.1 million to £5.9 million, while earnings per share increased from 3.4 pence to 5 pence, while £9.8 million of cash was generated from operations with year end cash of £24.2 million.

The group proposed a 1.5 pence dividend for a total of 2.3 pence for the year on top of the special dividend of 4 pence paid in December.

The billing services division was disposed of in November for £7.5 million, allowing the group to return £3.5 million to shareholders, bringing the total of funds returned over the past three years to £17.2 million. The balance sheet at the end of the year had £24.2 million cash and £22 million net funds.

The group said that the success of MASD validated its considerable investments in the business as forecasts for Microgen were upgraded twice during 2009 as demand for the products offered by the division and associated consultancy services increased resulting in the division beating the board’s expectations for the full year profit.

The financial systems division produced margins of 48% in 2009 after posting 47% margins in 2008 with strong cash flow and high recurring revenues with the board anticipating this performance to carry on into the current year.

Shares in Microgen climbed 3% on the news.

Disclosure: The author holds no positions in the company