Allocate Software plc
LSE : ALL

Allocate Software plc

January 29, 2010 02:00 ET

Interim Results

29 January 2010
                                               Allocate Software plc
                                      ("Allocate Software" or "the Company")
                                                         
                             Interim Results for the six months ended 30 November 2009

Allocate  Software  (AIM:  ALL),  the  leading  provider  of  workforce  optimisation  software  applications   to
organisations world-wide, today announces strong interim results for the six months ended 30 November 2009.

Financial Highlights

    o       Revenue increased by 38% to £9.0m (2008: £6.5m)
              -    Licence revenue increased by 14% to £3.5m (2008: £3.0m)
              -    Services revenue increased by 59% to £5.5m (2008: £3.4m)
              -    Healthcare revenue increased by 36% to £6.1m (2008: £4.5m)
    o       Trading profit* increased by 43% to £1.12m (2008: £0.78m)
    o       Trading profit* margin of 12.5% (2008: 12.1%)
    o       Diluted adjusted EPS (excluding share-based payments and amortisation of intangibles) increased by 10% to
            1.9p (2008: 1.8p), reflecting an increase in the effective taxation rate
    o       Cash balances as at 30 November 2009 of £4.7m (2008: £2.8m)

    * Trading profit defined as profit before amortisation, share-based payments, interest and tax

Business Highlights

    o       MAPS  Healthroster gained 17 new NHS Trust customers (total at period-end stands at 98)  with  strong
            pipeline for H2
    o       The customer base for all rostering and bank staff products combined is now 242 Trusts
    o       The first two sales of our new NHS e-Expenses solution were achieved within 30 days of launch
    o       The first stand alone sale of BSMS Trinity, the Company's new bank management solution, taking the total
            bank management customer base to 146 NHS Trusts
    o       The first sales of our solution for electronic rostering of junior doctors and medical staff
    o       Announced a major strategic partnership with NHS Professionals ("NHSP"), the largest provider of flexible
            staff managed services to the NHS
    o       MAPS Maritime Suite selected by the world's leading family entertainment company for its cruise  line
            business

Post Period Events

    o       The acquisition of Time Care AB, a leading Swedish-based software provider, to create Europe's leading
            provider of workforce management software to the healthcare sector
    o       Raised £8.3m through a cash placing of 15.1m new ordinary shares at 55 pence per share - the placing was
            substantially over subscribed
    o       Geographic expansion continues into Australasia with first sale of MAPS Healthroster into New Zealand


Ian  Bowles,  Chief Executive Officer commented: "Allocate Software continues to grow at a significant  rate.   We
remain  focussed  on  strong organic growth through the expansion of the addressable  market  within  the  UK  and
internationally, and the integration of the acquired businesses.  The Company achieved a robust set of results  in
the  first  half  of  the  fiscal  year and all sectors of the business continue to  have  a  strong  pipeline  of
opportunities  entering the second half of the year.  As a result, the Directors are confident that the  company's
performance for the full year will be in line with their expectations."

Enquiries:

Allocate Software                                                   Tel: +44 (0) 20 7355 5555
Ian Bowles - Chief Executive Officer

Numis Securities                                                    Tel: +44 (0) 20 7260 1000
Nominated adviser: Michael Meade / Brent Nabbs                      
Corporate broking: James Black

Hansard Communications                                              Tel: +44 (0) 20 7245 1100
Justine James                                                       Tel: +44 (0) 7525 324431
Kirsty Corcoran                                                     



Chairman's Statement

Introduction

I  am  pleased  to report continuing success for the group in the first six months of the current financial  year.
Allocate Software continues to achieve strong growth as well as broadening its addressable markets within  the  UK
and internationally.

In 2008, the Company made its first acquisitions when it purchased Key Information Technology Systems Ltd ("KITS")
and  Baum  Hart  &  Partners ("BHP").  These acquisitions established our position in the NHS  temporary  staffing
solutions market and enabled us to offer a fully integrated e-rostering and bank staffing solution to both our own
customers and those of KITS and BHP.  These acquisitions also delivered a significant, recurring revenue stream in
the form of support and maintenance, hosting and transaction-based services.

In  December 2009, the Company made its third acquisition when it purchased Time Care AB ("Time Care"), a Swedish-
based provider of workforce management software with a strong focus on the healthcare market.  The acquisition has
transformed Allocate Software into the leading provider of workforce management software for the healthcare sector
in  Europe.  To finance the acquisition, the Company successfully raised approximately £8.3 million through a cash
placing of 15.1m new ordinary shares.  The placing was substantially over-subscribed.

Overall,  the  Company  continues to deliver on its strategy to be the leading supplier of workforce  optimisation
solutions in its chosen markets.

Results

Revenue  in the first half of the financial year was £8.97m (2008: £6.48m), an increase over the same period  last
year  of 38%.  Trading profit for the period, before adjustments for share-based payments and the amortisation  of
intangible  assets,  was £1.12m (2008: £0.78m), an increase over last year of 43%.  The resulting  trading  profit
margin  was  12.5%  (2008:  12.1%).   Diluted adjusted EPS (excluding share-based  payments  and  amortisation  of
intangibles) increased by 10% to 1.9p (2008: 1.8p).

Licence revenue grew by 14% to £3.5m in comparison to the first half of 2008 (£3.0m), while Services revenue  grew
by  59%  to  £5.5m  (2008: £3.4m).  By sector, Healthcare revenue in the period increased by 36% to  £6.1m  (2008:
£4.5m),  reflecting the Company's continuing expansion within the NHS and its position as the supplier  of  choice
for  nurse  rostering products.  Defence revenues in the period were flat at £1.4m (2008: £1.4m)  as  the  Company
continued to deliver services to its existing customer base in this market sector.  Maritime revenues increased by
86%  to £1.2m (2008: £0.6m), reflecting the sale of new licences to two existing customers and one new customer  -
the world's leading family entertainment company.

Cost  of  sales  in  the period increased from £4.6m to £6.2m, reflecting the acquisition of BHP,  growth  of  our
Services  business,  strengthening of our sales capability and increased investment in research  and  development.
Administrative costs in the period rose from £1.0m to £1.6m, reflecting the acquisition of BHP, the relocation  of
the  Company's  head  office  and an increase in administrative headcount needed to  support  the  growth  of  the
company's operating activities.

Cash  balances at the period-end were £4.7m (2008: £2.8m).  Compared with the cash balance of £3.7m at the end  of
the  previous  financial year, 31 May 2009, the net increase of £1.0m substantially reflects cash  generated  from
operations.

Organic growth

Excluding the acquisition of BHP made in December 2008:

o       Revenue in the first half of the financial year was £8.2m (2008: £6.5m), an increase over the same period
        last year of 27%;
o       Licence revenue grew 7% in comparison to the first half of 2008;
o       Services revenue grew by 44%; and
o       Healthcare revenue increased 27%.
        
BHP  is  now  an  integral  part of the Company's business.  As a result, the costs  of  BHP  are  not  identified
separately  and  it  is  not possible to state how much of the period's trading profit and margin  are  separately
attributable to BHP.

Significant activity in the period

The following significant activity occurred during the six month period ended 30 November 2009:

o   Healthcare.  We added 17 new NHS Trusts to our e-Rostering customer base, making a total at the period-end
    of  98.  This represents a 66% increase against the number of NHS Trusts who were customers 12 months ago  (30
    November 2008: 59) and it continues the sequential growth reported in prior periods.  The addressable market for
    MAPS Healthroster is Acute, Mental Health and Primary Care NHS Trusts for nurses, junior doctors, consultants and
    ancillary staff.  Key to choosing MAPS Healthroster is its ability to provide a better understanding of demand
    versus supply of all hospital staff groups, how this is balanced against efficient use of available budgets and
    how it helps reduce the administrative burden for HR, clinical and payroll staff, thereby improving patient care.
    Overall, MAPS Healthroster reduces costs significantly and enhances Clinical Governance.
    
    In  October  2009,  we launched our new temporary staffing solution, BSMS Trinity, which  combines  the  three
    existing  temporary staffing solutions - our own MAPS Bank, BSMS which came with the acquisition of  KITS  and
    StaffBank  which  came  with  the  acquisition of BHP - to provide a best of breed  solution  for  bank  staff
    management  in  NHS  Trusts.   BSMS  Trinity automates the planning of  bank  and  agency  staff.   It  offers
    innovative  high  performance,  is  simple to use ("one screen, one click")  and  is  interoperable  with  ESR
    (electronic staff records).  The solution improves the continuity of care, ease of reporting, saves  time  and
    reduces  errors, while promoting regulatory compliance and enhancing financial returns.  Three sales  of  BSMS
    Trinity were made in the interim period, taking the total bank management customer base to 146 NHS Trusts.
        
    In  November  2009,  we  announced  the launch of our new e-Expenses module.   The  module  was  developed  in
    partnership  with existing customers to respond to a specific NHS problem, the need to ease the administrative
    burden  for  staff  entering,  approving and processing expense claims, whilst delivering  more  accurate  and
    timely  payment of expenses.  This module enables staff to efficiently prepare and submit their expense claims
    and  streamlines the approval and payment process for managers and payroll.  Two customers chose  the  new  e-
    Expenses module within 30 days of its launch to the market.
    
    We  also  announced in November 2009 a strategic partnership with NHS Professionals ("NHSP") to deliver  long-
    term  integrated  services  to  NHS  Trusts.  NHSP is a Special Strategic Health  Authority  and  the  largest
    provider of flexible staff managed services to the NHS.  Following a competitive tendering process for  an  e-
    Rostering  partner, NHSP chose Allocate Software to deliver these services exclusively.  By adding e-Rostering
    to  its  core  offering  of  managed flexible staff services, NHSP will be able to offer  a  complete  managed
    workforce service.  The partnership is significant because it will deliver tangible benefits to NHS Trusts  by
    helping  them  to achieve major cost savings across their substantive and flexible clinical and administrative
    workforce,  while  continuing  to maintain optimum standards of clinical care.  The  partnership  promises  to
    reduce and in some cases eliminate the paperwork involved in rostering and timesheets through to payroll.
    
    
    
    In  the  interim period, we also achieved the first sales of our solution for electronic rostering  of  junior
    doctors  and  consultants.  The management of the rotas of junior doctors and consultants is a highly  complex
    process, which has been complicated still further by the new legislative requirements of the European  Working
    Time  Directive  ("EWTD").   The  solution  enables Trust Management to  make  objective  staffing  decisions,
    refocusing  the  delivery  of  services  to meet patient needs, to monitor  and  track  annual  leave  through
    increased transparency of the rotas, and ensure more equitable management of staff.  Trusts are also  able  to
    achieve 100% compliance with the EWTD.
    
    
    
    Also  in  the  interim  period,  we added additional Location Based Rostering ("LBR")  functionality  to  MAPS
    Healthroster.   LBR  enables  staff to be rostered across multiple locations in  a  single  roster,  which  is
    critical  for more complex areas such as theatres, clinics and medical staff rotas.  It is often  referred  to
    by  our  clients as "3D rostering", since it adds an extra dimension - not just who is working  and  when  but
    also  where they are working.  When staff work in multiple locations, such as one of many theatres or clinics,
    this view of where staff are working and, as importantly, which locations are not fully staffed, is critical.
    
    
    
    These  new  product  and  additional  functionality introductions enable  us  to  significantly  increase  our
    addressable market, to further service the requirements of our installed base of  242 NHS customers  and  four
    Private Healthcare customers and, therefore, to drive shareholder value.
    
o   Defence.   During  the period we continued to enjoy success providing services to  our  UK  and  overseas
    customers.
   
    HQ  Land  Forces now use the enhanced MAPS Defence Suite products across their integrated business  processes,
    from  Distributed Individual Training for Reserves, through to Collective Training with resource and cost data
    capture,  feeding  into  the Operational Commitments Plot.  Substantial savings have been  identified  in  the
    Training  budgets through improved efficiency using MAPS and further developments to the product  are  planned
    to support this goal.
    
    The  Royal  Navy  successfully  completed  its  "Global Squad  Pooling  Trial",  which  demonstrated  enhanced
    effectiveness in manpower utilisation in a representative sample of the Fleet.  Discussions are now under  way
    to widen the benefits realised.
    
    The  Royal Fleet Auxiliary now uses the latest MAPS Defence Suite V6 product to support all its required  ship
    and  shore-side  business  processes, resulting in the ability to achieve far greater  throughput  with  fewer
    admin staff.
    
    In  Europe,  NATO  uses MAPS Defence Suite for its Force Generation process and this capability  has  recently
    been  extended  to  provide access by all NATO Allies.  MAPS Defence Suite is the single authoritative  system
    that  holds  current  data  on all national contributions for NATO operations and the  NATO  Response  Forces.
    Through  MAPS  Defence Suite, NATO Allies can monitor the assignment of all force offerings and  manage  their
    own  contributions to ensure equitable, transparent burden sharing.  NATO also uses MAPS Defence Suite  as  an
    HR  system  to  manage  its  Peacetime establishment.  In addition, MAPS  Defence  Suite  is  used  to  manage
    operations  and training at the NATO Special Forces Headquarters, based at Supreme Headquarters  ("SHAPE")  in
    Mons, Belgium, for Operations Planning and Training Management.
    
    In  Australia, the Royal Australian Navy continues with the successful roll out of MAPS Defence  Suite  across
    its entire Fleet; the project is proceeding on time and within budget.
        
o   Maritime.  In August 2009, the world's leading family entertainment company selected MAPS Maritime  Suite
    for its cruise line business to better manage its shore-side crew operations over the coming years and to provide
    an effective crew rostering solution for both current and future ships.  The requirement included an effective job
    scheduling solution for both current and future new ships.  Key to choosing MAPS Maritime Suite was its "out-of-
    the-box" functionality, the flexibility to customise the solution to meet precise business processes  and  the
    strength of Allocate Software as a reliable, professional and solid supplier.
    
    Our  existing customer, Norwegian Cruise Line, purchased new software licences and support for its  ship,  the
    Norwegian Epic.
        
o   Service and Support.  Client Services continued to focus on delivering value and return on investment  to
    the customer base.  Revenues grew 59%, driven both by deliveries to new customers and by growth in the installed
    base.  At the same time as managing the expansion of our client base, we have maintained high levels of client
    satisfaction with regards to our staff, products and effective approach to implementation.  There remains a strong
    pipeline of work to be delivered across all market sectors.
        
    The  Healthcare installed base provides a significant source of on-going services work.  Currently,  over  100
    NHS  Trusts  have  signed contracts for the implementation of MAPS Healthroster in wards, theatres,  intensive
    care  and  other specialty areas.  Our portfolio has expanded to include Location Based Rostering  and  Doctor
    Rostering,  where we have delivered several successful projects, achieving excellent results.  Location  based
    rostering  gives  us  greater flexibility to cover a plethora of healthcare disciplines  and  specialties,  in
    particular  within Primary Care Trusts.  Doctor Rostering has been extremely well received.  It  is  compliant
    with  the  requirements  of the European Working Time Directive and has significantly enhanced  the  time  and
    capacity  management  of Consultants and Junior Doctors.  We commenced delivery of a new product,  e-Expenses,
    which  ensures  that  Healthcare Managers are able to make informed decisions for Payroll  and  Budgets.   Our
    Roster Administrator training course for nursing staff has been officially accredited by the Royal College  of
    Nursing  as  an  achievement towards their continuous professional development.  Completion of  the  four  day
    course counts as 24 hours Post Registration Education and Practice.
    
    The  Defence  sector has many installations throughout the British Armed Forces, where there  are  over  6,000
    users  of MAPS Defence Suite.  Other worldwide installations include NATO and the Royal Australian Navy, which
    is supported from our new office in Sydney.
    
    The  MAPS  Maritime  Suite continues to be used by some of the world's largest shipping companies  and  cruise
    lines  to  manage the workforce planning and associated costs of over 100,000 personnel operating on over  500
    vessels  throughout the world.  It is also used in the Offshore Oil and Gas Exploration and Production  sector
    by  companies such as Acergy and Maersk Oil Qatar.  We are now delivering our software to the world's  largest
    family entertainment company.
        
Significant activity since the period-end

The following significant activity has occurred since the period-end:

o  On  15 December 2009, we completed our third acquisition, that of Time Care, a Swedish-based provider  of
   workforce management software, with a strong focus on the healthcare market, for a net consideration of SEK 100
   million (approximately £8.7 million).  To help fund the acquisition, we successfully raised approximately  £8.3
   million (approximately £8.0 million net of expenses) through a cash placing of 15.1m new ordinary shares at 55.0
   pence per share, with the balance being satisfied from the Company's existing cash resources.
   
   The  acquisition  of  Time  Care provides Allocate Software with a strong geographic footprint  in  the  Nordic
   region.   In  Sweden, Time Care has customer relationships with some 57 of Sweden's 115 hospitals  and  110  of
   Sweden's  290  municipalities,  all of which are attributable to the delivery  of  healthcare  into  the  local
   market.   Time  Care  is  the  largest provider of workforce optimisation software in  the  Swedish  healthcare
   market.
   
o  After  a twelve month extensive evaluation of suppliers of e-rostering software products, the NHS  London
   Procurement Programme ("LPP"), acting as a procurement hub on behalf of all NHS Trusts in London, announced that
   Allocate  Software  has  achieved the status of top ranked supplier for both e-Rostering  and  Temporary  Staff
   Management solutions.  A framework for the procurement of e-Rostering and Temporary Staff Management software has
   been agreed for use by all Trusts in the London Strategic Health Authority.  It will also be adopted in the North
   West Strategic Health Authority.
   
o  We  are  delighted to announce our first contract in New Zealand with Capital and Coast  District  Health
   Board  ("CCDHB").   CCDHB is the leading provider of specialist health services in the central  region  of  New
   Zealand.   It  operates  Wellington Hospital, Kenepuru Hospital and the Kapiti Health Centre,  in  addition  to
   contracting hundreds of services from community-based health professionals.  It serves about 250,000 people living
   in Wellington City and its suburbs, as well as providing specialist tertiary-level care to a wider population of
   approximately 900,000.  CCDHB employs 3,600 full time equivalent staff with an annual payroll of more than NZD 300
   million.  The contract is for the provision of MAPS Healthroster across all the Tertiary and Secondary services
   including  Mental Health services.  The contract was achieved following an intense two week on-site assessment,
   which was undertaken in conjunction with our strategic alliance partner PricewaterhouseCoopers.  Significantly,
   the implementation of MAPS Healthroster will replace CCDH's existing e-rostering solution and interface with their
   existing payroll.

Acquisitions
        
The  Company  has now made three acquisitions in the past two years.  Each acquisition has been made against  well
defined criteria that support our strategic objectives.  The acquisition of KITS established our position  in  the
NHS  temporary staffing solutions market and enabled us to offer a fully integrated e-rostering and bank  staffing
solution  to  both  our  own  customers and those of KITS.  The acquisition of assets from  BHP  consolidated  our
position  in  the  NHS temporary staffing solutions market and brought with it a substantial source  of  recurring
revenue.   The  acquisition of Time Care has made Allocate Software the leading provider of  workforce  management
software  for the healthcare sector in Europe.  Time Care will be used as the platform from which the  group  will
sell its software applications into Scandinavia and Northern Europe.

While  we remain focused on strong organic growth, the directors of Allocate Software believe that an acquisition-
led  strategy to enter certain new geographic markets is beneficial, particularly where the target companies  have
significant existing customer bases, as was the case with BHP and Time Care.  It is therefore the intention of the
directors to supplement the strategy of organic growth with a policy to make further acquisitions which  meet  our
long standing criteria and enable us to drive long term shareholder value.

Strategy

We  continue  to  combine  a  resolute focus on the four core financial and structural elements  of  a  successful
software business with rapid commercial development:
        
o   Consistency  of  revenue  growth through consecutive periods.  The volume of licence  revenue  contracts,
    combined with recurring support revenues and long term services revenue agreements, gives excellent visibility for
    future periods.  A strong forward pipeline exists for the second half of the current financial year.
        
o   Strong margins in service and support revenues.  Revenues from services and support accounted for 61%  of
    total group revenues and grew by 59% compared with the first half of FY09, delivering strong operating margins
    across the financial year as well as significant recurring revenue.
        
o   Investments in high productivity activities.  The close monitoring of performance and use of  appropriate
    incentive structures throughout the Company have helped drive investment that achieves customer satisfaction and
    secures revenue growth in areas that can support high operating margins.  In addition, the acquisitions of KITS,
    BHP and Time Care provide an additional source of recurring revenue and growth prospects.
    
o   Diligent  expense  management.   The Company has established long-term  targets  for  all  categories  of
    expenditure.  Investments in sales and marketing, services and support, and research and development are carefully
    managed to enable revenue growth and margin improvements, whilst fulfilling the criteria which the Board believes
    are  appropriate for a world class software company.  We are currently undertaking an accelerated  development
    programme to enhance our product platform.  This will increase scalability, improve productivity and quality, and
    enable wider and faster product development to support future growth.  Additional development costs incurred in
    relation to this programme during the interim period amounted to £0.2m (2008: £0.04m).  These costs have  been
    written off in full in accordance with our accounting policies.  We expect to incur further costs in this respect
    during 2010 amounting to £0.3m (compared with £0.3m in the second half of last year) and £0.7m in the year ended
    31 May 2011.  These are one-time costs above our normal levels of expenditure on development.
    
Achievements with each of these important structural aspects have ensured the company's profitability  across  all
parts of its business, while also achieving exceptionally high levels of customer satisfaction.

Directorate changes

The  Directors  are  pleased  that the three year strategy defined in 2007, which focussed  on  profitable  growth,
leadership  in the Healthcare Industry, increased opportunity via new products, acquisitions and partnerships,  and
targeted  international  markets has been successful.  Today, the Company's skills  and  capabilities  are  greatly
enhanced  as  we enter the next strategic period and our opportunity is that much greater.  However,  to  meet  the
Company's  ambitious  plans  over the next strategic period, the Board recognises the  need  for  a  wider  set  of
financial  management skills allied with experience of international acquisitions.  Accordingly, Simon Thorne  will
step  down  as  chief  financial officer and from the Board of Allocate Software with immediate  effect,  and  will
instead take up a new role as group financial director where he will continue to make a major contribution  to  the
Company's success, as he has done over the last 11 years.

The  Board is pleased to announce the appointment of Chris Gale as chief financial officer, who will join the Board
and  the  top  management team effective 15 February 2010.  Chris has held senior financial roles in  international
public  companies within the IT industry including:  Apple Inc (in USA & European HQ), Cooper and Chyan  Technology
Inc  (USA),  Cadence Design Systems (USA & Europe), Interwoven and Clearswift (UK).  In his most  recent  corporate
role, Chris was CFO and acting CEO of GFI, a global software and hosted solutions company.

The  information  that the Company is required to disclose under schedule 2(g) of the AIM rules for  companies  in
relation  to  the appointment of Chris Gale as a director of Allocate Software is set out in Appendix  1  to  this
announcement.

Outlook
We  are  passionate  about our customers and their success.  By assisting our customers  to  meet  their  business
objectives, improve their internal processes and achieve proven return on investment, we aim to create a long-term
mutually beneficial relationship that delivers sustainable value.

In  the  first  half  of this financial year, there has been a particularly strong performance  in  the  Healthcare
sector.   While  we  remain focused on strong organic growth and the full integration of the  recent  acquisitions,
further acquisition opportunities are being considered against the well defined criteria that support our strategic
objectives.  All sectors of the business have a strong pipeline of opportunities entering the second half and, as a
result,  the  Directors are confident that the Company's performance for the full year will be in line  with  their
expectations.

Finally,  I  would  like to thank and recognise all Allocate Software's people for their total  commitment  and
contribution to the Company's continuing success.

Terry Osborne
CHAIRMAN
29 January 2010




Condensed Consolidated Income Statement

                                                              6 months to         6 months to       Year to
                                                              30 November         30 November        31 May
                                                                     2009                2008          2009
                                                                    £'000               £'000         £'000
                                                              (unaudited)         (unaudited)
                                                     Note                                                  
                                                                                                           
Revenue                                                             8,968               6,481        15,774
                                                                                                           
Selling and operational expenses                                  (6,245)             (4,648)      (10,702)
                                                                                                            
Gross profit                                                        2,723               1,833         5,072
                                                                                                            
Administrative expenses                                           (1,605)             (1,049)        (2,541)
                                                                                                            
Profit before amortisation, share-based payment,                                                      2,531
interest and tax                                                    1,118                 784
                                                                                                            
Amortisation of intangible assets                                   (406)               (145)          (678)
Share-based payment                                                  (39)                (52)           (97)
                                                                                                            
Total administrative expenses including share-                                                       
based payments                                                    (2,050)              (1,246)        (3,316)
                                                                                                            
Operating profit                                                      673                 587          1,756
                                                                                                            
Finance income                                                          4                  71             80
Finance charge                                                        (3)                   -            (6)
                                                                                                           
                                                                                                           
Net finance income                                                      1                  71             74
                                                                                                            
Profit for the period before taxation                                 674                 658          1,830
                                                                                                            
Tax on profit for the period                                        (191)                (23)          1,217
                                                                                                            
Profit for the period                                                 483                 635          3,047
                                                                                                            
Earnings per share                                    4                                                     
Basic (pence per share)                                              1.1p                 1.4p         6.8p
Diluted (pence per share)                                            1.0p                 1.3p         6.5p
                                                                                                           
Consolidated statement of comprehensive income                                                             
for the 6 months ended 30 November 2009
                                                              6 months to          6 months to       Year to
                                                              30 November          30 November        31 May
                                                                     2009                 2008          2009
                                                                    £'000                £'000         £'000
                                                              (unaudited)          (unaudited)
                                                                                                           
Income per the income statement                                       483                 635          3,047
Other comprehensive income:                                                                                 
Exchange differences on translation of foreign                                                             
operations                                                           (11)                  14             21
                                                                     (11)                  14             21
Total comprehensive profit for the period                                                                  
                                                                      472                 649          3,068


Condensed Consolidated Balance Sheet

                                                                                                              
                                                                    30 November     30 November         31 May
                                                                           2009            2008           2009
                                                                          £'000           £'000          £'000
                                                                    (unaudited)     (unaudited)               


Non-current assets
Intangible assets                                                         2,317             650          2,723
Property, plant and equipment                                               652             566            673
Trade and other receivables                                                   -             102              -
Deferred tax asset                                                        1,199               -          1,386
Total non-current assets                                                  4,168           1,318          4,782
                                                                                                              
Current assets                                                                                                
Trade and other receivables                                               5,676           4,288          5,939
Cash and cash equivalents                                                 4,655           2,842          3,664
                                                                                                              
Total current assets                                                     10,331           7,130          9,603
                                                                                                              
                                                                                                              
Total assets                                                             14,499           8,448         14,385
                                                                                                              
Equity and liabilities                                                                                        
Equity                                                                                                        
Share capital                                                             2,236           2,235          2,235
Share premium account                                                         2           6,493          6,493
Shares to be issued                                                           -             159            213
Share-based payment reserve                                                 367             365            328
Foreign exchange reserve                                                     73              77             84
Retained earnings                                                         5,091         (4,464)        (1,885)
                                                                                                              
Total equity                                                              7,769           4,865          7,468
                                                                                                              
Non-current liabilities                                                                                       
Borrowings                                                                  181             185            180
                                                                                                              
Total non-current liabilities                                               181             185            180
                                                                                                              
Current liabilities                                                                                           
Trade and other payables                                                  6,502           3,351          6,690
Corporation tax                                                              47              47             47
                                                                                                              
Total current liabilities                                                 6,549           3,398          6,737
                                                                                                              
Total liabilities                                                         6,730           3,583          6,917
                                                                                                              
Total equity and liabilities                                             14,499           8,448         14,385
                                                                                                              


Condensed Consolidated Statement of Changes in Equity

                                        Share      Share    Shares       Share     Foreign    Retained    Total
                                      capital    premium     to be       based    exchange    earnings   equity
                                                            issued     payment     reserve
                                                                       reserve
                                        £'000      £'000     £'000       £'000       £'000       £'000    £'000
                                                                                                               
At 31 May 2008                           2,235     6,493       159         314          63     (5,099)    4,165
                                                                                                               
Exchange differences on opening                                                                                
reserves                                                                                14                   14
Net income recognised directly in                                                                              
equity                                                                                  14                   14
Result for the period                                                                              635      635
                                                                                                               
Total recognised income and                                                             14         635      649
expense
                                                                                                               
Equity settled share options                                                51                               51
                                                                                                               
At 30 November 2008                     2,235      6,493       159         365          77     (4,464)    4,865
                                                                                                               
Exchange differences on opening                                                                                
reserves                                                                                 7                    7
Net income recognised directly in                                                                              
equity                                                                                   7                    7
Result for the period                                                                            2,412    2,412
Total recognised income and                                                              7       2,412    2,419
expense
Options transfer on exercise                                              (83)                      83        -
Deferred consideration                                          54                                           54
Share based payment deferred tax                                                                               
recognised directly in equity                                                                       84       84
Equity settled share options                                                45                               45
At 31 May 2009                          2,235      6,493       213         328          84     (1,885)    7,468
                                                                                                               
Exchange differences on opening                                                                                
reserves                                                                                                       
                                                                                      (11)                 (11)
Net income recognised directly in                                                     (11)                     
equity                                                                                                     (11)
Result for the period                                                                              483         
                                                                                                            483
Total recognised income and                                                                        483         
expense                                                                               (11)                  472
Deferred consideration                                       (213)                                        (213)
Issue of shares                             1                                                                  
                                                       2                                                      3
Share premium transfer                           (6,493)                                         6,493         
Equity settled share options                                                39                                 
                                                                                                             39
At 30 November 2009                     2,236          2         -         367          73       5,091    7,769
                                                                                                               
                                                                                                               


Condensed Consolidated Cash Flow Statement

                                                              6 months to    6 months to         Year to
                                                              30 November    30 November          31 May
                                                                     2009           2008            2009
                                                                    £'000          £'000           £'000
                                                              (unaudited)    (unaudited)                 
Cash flow from operating activities                                                                     
Profit for the period                                                 483            635           3,047
Adjustments for:                                                                                        
Finance charges                                                       (1)           (71)            (74)
Income tax charge                                                     191             23              85
Deferred tax                                                          188              -         (1,302)
Depreciation                                                          115             71             169
Amortisation                                                          406            145             678
Share-based payment                                                    39             52              97
Decrease / (increase) in trade and other receivables                   50        (1,723)         (3,271)
(Decrease) / increase in trade and other payables                   (187)          (541)           2,381
                                                                                                        
Net cash generated from / (used in) operations                      1,284        (1,409)           1,810
                                                                                                        
Interest expense                                                      (3)              -             (6)
Income tax (expense)                                                (191)           (23)            (85)
                                                                                                        
Net cash generated from / (used in) operating                       1,090        (1,432)           1,719
activities
                                                                                                        
Cash flows from investing activities                                                                    
Interest received                                                       5             71              80
Payment for intangible assets                                           -              -         (2,136)
Payments for property, plant and equipment                           (88)          (114)           (318)
                                                                                                        
Net cash used in investing activities                                (83)           (43)         (2,374)
                                                                                                        
Cash flows from financing activities                                                                    
Repayment of borrowings                                                 -           (11)            (16)
Proceeds from the issue of equity shares                                2              -               -
                                                                                                        
                                                                                                        
Net cash generated by / (used in) financing                             2           (11)            (16)
activities
                                                                                                        
Net increase / (decrease) in cash and cash                          1,009        (1,475)           (671)
equivalents
Foreign exchange differences                                         (18)             11              18
Cash and cash equivalents at the start of the period                3,664          4,317           4,317
                                                                                                        
Cash and cash equivalents at the end of the period                  4,655          2,842           3,664
                                                                                                         


Notes to the Interim Financial Information

1.    Legal status and activities

The  principal  activities of the group are the sale and support of workforce optimisation solutions, and  the
provision of related IT services to major government, industrial and commercial customers.

The  principal  trading subsidiaries of the group are: Allocate Software Worldwide Limited, Allocate Software
Technology  Systems  Limited  and  Allocate  Software Sdn Bhd,  companies  which  are  involved  in  the  sale,
implementation and support of workforce optimisation solutions, and Allocate Software Inc, a company  which  is
involved in the sale and support of workforce optimisation solutions.

The company is a public limited liability company, incorporated and domiciled in England and Wales.  The address of
its registered office is 180 Piccadilly, London W1J 9ER.

The company has its listing on the Alternative Investment Market ("AIM") of the London Stock Exchange.

2.    Basis of preparation

These unaudited interim condensed consolidated financial statements are for the six month period ended 30 November
2009.  They do not include all the information required for full annual financial statements and should be read
in  conjunction with the consolidated financial statements of the group for the year ended 31 May  2009,  which
were prepared under IFRS as adopted by the European Union (EU).

The accounting policies adopted in this report are consistent with those of the annual financial statements for the
year ended 31 May 2009 as described in those financial statements except for the adoption of IAS 1 Presentation
of Financial Statements (Revised 2007).

The following new accounting standards and amendments to existing standards are effective for the annual period
beginning on or after 1 January 2009 and have not been early adopted by the group:

IFRS 8 'Operating Segments'
IAS 23 (Revised) 'Borrowing Costs'
IFRS 3 (Revised) 'Business Combinations'

The  interim  financial statements have not been audited, nor have they been reviewed under ISRE 24/10  of  the
Auditing  Practices  Board.   The  financial information presented does not constitute  statutory  accounts  as
defined  by  section 434 of the Companies Act 2006.  The group's statutory accounts for the year ended  31  May
2009  have been filed with the Registrar of Companies.  The auditors, Grant Thornton UK LLP reported  on  these
accounts and their report was unqualified and did not contain a statement under section 237(2) or 237(3) of the
Companies Act 1985.

3.    Segmental reporting

The group's primary reporting analysis is by business stream.  The group's principal activities are:

a) the provision of software under a licence agreement; and
b) the provision of services such as installation, consulting, training and product support.

                                                                           Revenue
                                                         30 November      30 November          31 May
                                                                2009             2008            2009
                                                               £'000            £'000           £'000
                                                                                                   
Licences                                                       3,471            3,043           7,599
Services                                                       5,472            3,438           7,984
Hardware and consumables                                          25                -             191
                                                               8,968            6,481          15,774
                                                                                        

Attributable  expenses cannot be allocated on a reasonable basis to the revenue streams above.  As a  result,  the
segmental  analysis  is  limited to the group revenue and the group is unable to show  operating  profit  for  the
primary segmental analysis.

In addition to the above the directors present a schedule of revenue analysed by vertical business sector:

                                                                           Revenue
                                                         30 November      30 November         31 May
                                                                2009             2008           2009
                                                               £'000            £'000          £'000
                                                                                                   
Healthcare                                                     6,090            4,467         11,073
Defence                                                        1,361            1,371          3,007
Maritime                                                       1,196              643          1,555
Local Government and Education                                   321                -            139
                                                               8,968            6,481         15,774
                                                                                        

The internal reporting of the group's performance does not require that balance sheet information is gathered on
the  basis of the business streams 'Licenses' and 'Services' reported above.  This information is therefore not
accessible and as a result the segmental analysis does not include balance sheet details.


4.     Earnings per share

                                                             30 November      30 November         31 May
                                                                    2009             2008           2009
                                                                   £'000            £'000          £'000
                                                                                                        
                                                                                                   3,047
Profit for the year                                                  483             635
                                                                                                        
Earnings per share                                                                                      
Basic (pence per share)                                             1.1p            1.4p            6.8p
Diluted (pence per share)                                           1.0p            1.3p            6.5p
                                                                                                        
Weighted average number of shares                                 Number          Number          Number
                                                               of shares       of shares       of shares
                                                                                                        
Shares in issue at opening                                    44,702,625       44,702,625      44,702,625
Shares issued during the period                                   23,000               -               -
                                                                                                        
Shares at closing                                             44,725,625      44,702,625      44,702,625
                                                                                                         
Weighted average shares for basic earnings per share          44,712,521       44,702,625      44,702,625
Effect of dilutive potential ordinary shares                   3,183,859       2,579,091        2,348,181
                                                                                                        
Weighted average shares for diluted earnings per share        47,896,380      47,281,716       47,050,806
                                                                                            

Adjusted earnings per ordinary share

An adjusted earnings per share has been calculated in addition to the post tax earnings per share, which eliminates
the effects of share-based payments, goodwill, amortisation of intangibles and restructuring costs attributable
to acquisitions.  It has been calculated to allow shareholders to gain a clearer understanding of the trading
performance of the group.  The basis of the calculation of the basic and adjusted profit per share is set out
below:

                                                               30 November     30 November          31 May
                                                                      2009            2008            2009
                                                                     £'000           £'000           £'000
                                                                                                            
Profit for the year attributable to shareholders                       483             635           3,047
Amortisation of intangibles                                            406             145             678
Share-based payment                                                     39              52              97
Deferred tax adjustment                                                  -               -         (1,302)
Adjusted profit for the year attributable to shareholders              928             832           2,520
                                                                                                          
Basic adjusted earnings per share                                     2.1p            1.9p           5.64p
Diluted adjusted earnings per share                                   1.9p            1.8p           5.36p


5.    Related party transactions

The group had no related party transactions in the interim period for either 2009 or 2008.

6.    Events after the balance sheet date

On 15 December 2009, the Company completed the acquisition of Time Care AB ("Time Care"), a Swedish-based provider
of  workforce optimisation software for a net consideration of SEK 100 million (approximately £8.7 million).  To
help  fund  the  acquisition,  the Company successfully raised approximately £8.3  million  (approximately  £8.0
million  net of expenses) through a cash placing of 15.1m new ordinary shares at 55.0 pence per share, with  the
balance being satisfied from the Company's existing cash resources.

APPENDIX 1

The Company is required to disclose under the AIM Rules for Companies the following information in relation to the
appointment of Christopher Davis Gale (age 54) as a director of the Company.

Current Directorships and Partnerships held by Mr Gale  Directorships and Partnerships held by Mr Gale in
                                                        the last five years
CDG Financial Solutions Limited                         Bee Automobiles Limited
                                                        Clearswift Limited
                                                        Clearswift Systems Limited
                                                        Clearswift Sales Services Limited
                                                        Content Technologies Holdings Limited
                                                        Net-Tel Computer Systems Limited
                                                        GFI Software Limited


Other than as disclosed above, there is no further information in connection with the appointment of Mr Gale to the
Board  of Allocate Software which is required to be disclosed in accordance with Rule 17 and Schedule 2(g) of  the
AIM Rules for Companies.



Contact Information

  • Allocate Software plc