Microgen Increases Dividend After Strong Performance In 2017

7th Mar 2018 13:07

LONDON (Alliance News) - Business software and services provider Microgen PLC reported on Wednesday good profit and revenue growth in 2017, with its dividend lifted accordingly.

Pretax profit for 2017 increased to GBP10.8 million compared to the GBP7.9 million recorded in 2016, on the back of revenue rising to GBP62.6 million from GBP43.0 million.

On an adjusted basis, which strips out various exceptional items, pretax profit jumped to GBP13.3 million from GBP9.2 million.

Organic revenue growth was 37%, Microgen said, with both divisions, Aptitude Software and Microgen Financial Systems, contributing to an "excellent" overall performance in 2017.

Microgen, in light of its performance, is paying a 4.25 pence final dividend, taking its total to 6.25p, up 25% year-on-year.

Aptitude Software's revenue rose 68% to GBP44.3 million, and 58% excluding the acquisition of RevStream Inc in August last year. The business has started 2018 well, it said, and has already made a strategically important sale.

Microgen Financial Systems revenue increased 10% to GBP18.3 million, with trust & fund administration revenue up 27% to GBP11.3 million. This revenue stream now makes up 62% of the division's revenue.

Chairman Ivan Martin said: "Aptitude Software has achieved continued new business success with its specialised financial management software applications, with the product offering broadened by the launch in the year of the Aptitude Lease Accounting Engine and the acquisition of RevStream's cloud-enabled revenue management software."

"Microgen Financial Systems has continued to grow its core trust & fund administration business successfully, both organically and via strategic add-on acquisitions, highlighted by the February 2017 acquisition of Primacy. The group enters 2018 well positioned with good revenue visibility and an encouraging pipeline of opportunities."

Microgen shares were up 1.2% on Wednesday at 506.00p each.

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