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Allocate Software wins 14 new contracts in Q4 and anticipates ‘better-than-expected’ FY figures

Alongside its Q4 interim statement, Allocate Software plc (LON:ALL) told investors that it has won a further 14 new contracts with NHS trusts to provide its e-Rostering application, Healthroster. The company now provides ‘e-Rostering’ software to 119 NHS Trusts.

At the close of the fourth quarter, the company looked ahead positively to it full-year results, stating: “Allocate ended the financial year strongly and as a result the board expects to report results for the financial year ended 31 May 2010 ahead of its previous expectations”. The full-year results are expected to be announced on 2 August.

"This has been another significant period of activity for Allocate. We have demonstrated further strong organic growth in our key vertical sectors”, Allocate Chief Executive Ian Bowles commented.

 
The company’s healthcare e-Rostering software, developed in conjunction with the NHS, is designed to streamline the workforce process, “from modelling the demand, through to rostering and payroll”. According to Allocate, Healthroster can improve the effectiveness of nursing and other clinical staff to better meet patient demand.

During the quarter, Allocate won key e-Rostering contracts with the following NHS trusts: Colchester University Hospital Foundation Trust; the Stockport Foundation Trust; Mid Staffordshire Foundation Trust; Guys and St Thomas's Foundation Trust; the Taunton and Somerset NHS Foundation Trust; Barnsley Primary Care Trust; The Nuffield Orthopeadic Centre Trust; Southport and Ormskirk Hospital NHS Trust; Hull Teaching Primary Care Trust; Oxford Radcliffe Hospitals Trust; the Greenwich Teaching Primary Care Trust; the North Bristol Trust; Durham and Darlington Primary Care Trust and Bedfordshire Community Healthservices.

Also the company won a new contract with the Birmingham East and North Primary Care Trust, for the temporary-staff management system for Bank Nurses - BSMS Trinity. It also won a contract to provide its SAPPS financial modelling product to the London Ambulance Service. The company highlighted that it now supplies SAPPS to a total of 65 NHS healthcare organisations.

Another significant piece of business in the quarter saw Allocate land a major contract in the international marketplace, with a significant contract in the Australian healthcare market. The contract with the State Government of New South Wales (NSW), worth A$6m (£3.3m) plus a potential service contract of up A$4m (£2.2m), is Allocate's largest single contract to date.

"Healthroster from Allocate provides a solution which is considered one of the best rostering programs in the world ... Healthroster was developed with the health environment specifically in mind. It is intuitive and easy to use, and most importantly doctors, nurses and allied health professionals who use it overseas report it takes the hard work out of rostering", NSW Health Director General Prof Debora Picone stated.

The contract win marks a considerable expansion in the company’s reach in Australia, following Allocate’s first Healthcare contract win in the country in Q3. The e-Rostering specialist also landed its first Healthcare contract in New Zealand in the third quarter.

“Healthroster and BSMS are now the most commonly used applications for e-Rostering and temporary staff management in the NHS. The recent selection of Allocate and Healthroster by the Department of Health, New South Wales, validates our international expansion strategy”, Bowles added.

The company expanded its SaaS (Software as a Service) portfolio during Q4 with the acquisition of Dynamic Change Ltd. The Staffordshire-headquartered Dynamic Change provides regulatory compliance, corporate governance, risk and performance management for the UK healthcare market.

Dynamic Change’s principal software is the ‘Performance Accelerator’ SaaS platform, a single platform accessed via a web browser. The platform incorporates all applicable regulatory standards and obligations for Dynamic Change's healthcare customers, and as such content is maintained by Dynamic Change on an on-going basis.  

The ‘Performance Accelerator’ is used to monitor and manage regulatory compliance, corporate governance, business objectives, risks and controls, performance indicators and financial targets. According to Allocate, it has conducted detailed technical due diligence, and it believes that the technology architecture is robust and scalable for significant organic growth.

Elsewhere among its other businesses, Allocate has also added a considerable amount of new business during the quarter. In the defence sector the company won a £2m contract for the Allocate Defence Suite, signed with the Australian Army. The newly-integrated Time Care AB business won 15 new contracts in the period, 8 of which were new license deals.

Disclosure: The author holds no positions in the company