Peachtree 2009 Annual Report Download

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Results for the year ended
30 September 2009
30
September
2009

Table of contents

  • Page 1
    Results for the year ended 30 September 2009

  • Page 2
    ... restructuring costs Operating cash flow/EBITA†Dividend per share £1,439.3m Statutory +11% Underlying -4%* £307.5m^ £307 5 ^ £333.9m^ 16.63p^ 112% 7.43p +11% +14% 2%^ -2%^ +6%^ 0%^ +3% *At constant t t exchange h rates t ^Stated prior to amortisation of intangible fixed assets and after...

  • Page 3
    ...'s Sage s business model demonstrated in the year • Subscription revenues continued to grow, limiting the impact of contraction in software and software-related services revenues • Operating O ti cash h flow fl remains i strong t at t 112% of f EBITA • Final Fi l f full ll year di dividend id...

  • Page 4
    Trusted partner to SMEs 4

  • Page 5
    2009 focus • Provision of high quality support • Range g of p products launched in y year recognising g g evolving market • Operational improvements in North America and positioned Sage Healthcare Division for future growth • Quiet year for acquisitions but remains part of our growth th ...

  • Page 6
    Fi Financial i l review i

  • Page 7
    ...and software-related services revenue Licence, Training Professional services Business forms, Hardware -5% 5% 39% 35% 16% -16% 61% 65% Subscription revenue Combined software/support contracts Maintenance and support Transaction revenues H t d products Hosted d t +2% £m at constant exchange...

  • Page 8
    ... costs incurred FY09 £m UK Mainland Europe North America Total Group 6.9 8.8 10.7 26.4 Gross g saving FY09 £m 2.2 5.6 17.8 25.6 Net (cost) /saving g FY09 £m (4.7) (3.2) 7.1 (0.8) Annualised savings £m 5.8 13.5 34.6 53.9 % of FY08 full year cost base 4% 3% 7% 5% At constant exchange rates 8

  • Page 9
    ...Reported EBITA margin FY09 -180 bps • EBITA margin increased to 24% excluding restructuring costs (FY08: 23%) • One time cost in FY09 associated with these savings... = £26.4m or 180bps shown in the red bar • Meaning reported EBITA margin reduced to...

  • Page 10
    ... Depreciation/ amortisation/profit on disposal payments y Share-based p Working capital change Deferred income change Exchange differences Cash C h flow fl from f operations 320.7 25.3 6.7 3.3 (0 1) (0.1) 1.7 357.6 Free cash flow 259.2 Cash flow from operations Interest/issue costs Tax Net capex...

  • Page 11
    ... tax liabilities Retirement benefit obligations Acquisition deferred consideration Sept 2008 2,049.2 140.5 (21.6) 47 8 47.8 (352.2) (69.2) (3.9) (2.6) 1,788.0 Sept 2009 2,246.8 144.5 (33.7) 46 6 46.6 (391.1) (62.1) (11.8) (2.3) 1,936.9 (439.4) 1,497.5 , • PBIT/Interest: 21.3x - Covenant >4.0x...

  • Page 12
    R i Regional l review i

  • Page 13
    ...decline of 3% - S Subscription b i i +5% 5% - Software and software-related services -19% - Sage Pay grew strongly, and has significant potential - Accountants' Practice Solutions performed well with enhanced service levels - Accounting and ERP ERP, including Sage 50, declined 5% in difficult market...

  • Page 14
    ...£521m £275m • Organic O i revenue d decline li of f 3% - - - - Subscription +5% Software and software-related services -13% France resilient at 2% organic contraction Spain contracted 7% on an organic basis after exceptional growth last year - Germany G robust b t with ith fl flat t revenue 22...

  • Page 15
    ... - EBITA margin increased to 17% (FY08: 8%) 18% 37% margin margin FY08 Sage Healthcare Division 18% margin FY09 • EBITA margin 18% (FY08: 18%) - Margin pre-restructuring costs was 20% Sage Payment Solutions Division g Business Solutions Division ( (SBS) ) Sage At constant exchange rates 15

  • Page 16
    ... +14% - Software and software software-related related services -8% 8% £100m £100m • South Africa still grew strongly at 9% • Australia contracted 3% organically after strong growth last year • Smaller Asian businesses declined 15% pp in the absence of established support models • EBITA...

  • Page 17
    Business B i review i and d outlook tl k

  • Page 18
    Overview of Sage g 18

  • Page 19
    ... and delivery models • Today a number of services delivered over web by Sage • Launched SaaS accounting offers aimed at small/micro businesses • For mid-market accounting/ERP we see demand for a hybrid model with web/cloud services ( (such as hosting g and remote access) ) complementing...

  • Page 20
    ... My Business Online Billing Boss Edonea "SaaS" "Cloud" Computing Sage 50 Online Sage SalesLogix Sage Project Lifecycle M Management t Web services Sage Abra HR Employee Self Service ACT! E-marketing Sage Pay schnellcheck Globalisation Sage Accpac ERP Sage ERP X3 Sage ACT!/SalesLogix Mobile...

  • Page 21
    Products for a mobile workforce ACT! Mobile Live ACT! E-marketing E k ti 21

  • Page 22
    ...,000 000 new customers • Upgrades organic revenue declined by 18% - Releases well received but customers remain cautious • Software revenue from migrations declined organically by 15% • Professional services, training and other revenue declined organically by 8% At constant exchange rates 22

  • Page 23
    Subscription p revenues • Support renewal rates stable at 81% • Premium now two thirds of total support • Payments services attractive market • Healthcare transaction services offers opportunity 23

  • Page 24
    Customer support pp • 2,700 support staff with 1.7m support contracts • Examples of issues - Legislation changes - Payroll issues - Invoicing - Credit control functionality • Increased use of web forums and communities 24

  • Page 25
    North American progress p g Phase 2: Operational i improvements t Activ vities Phase 1: New team, organisation structure and cost focus FY09 FY10 25

  • Page 26
    Sage g Healthcare Division • Market leading US practice management and Electronic Health Records (EHR) solutions • Target the 1 to 25 physician practice segment - customer base of 15,000 , practices p • Profitability of the business has increased to 17% in the year (FY08: 8%) • EHR stimulus ...

  • Page 27
    Outlook and g growth drivers Outlook • Customers remain cautious - for FY10 continue to pr dentl manage costs and position b prudently business siness for upturn L Longer term t drivers di • 6m SME customers - resilience and platform for growth in evolving market • North America/Healthcare ...

  • Page 28
    Supplementary S l t information

  • Page 29
    Regional g profile p Revenue FY09 £m UK Mainland Europe North America Rest of World Total 242.2 520.5 576 4 576.4 100.2 1,439.3 FY09 revenue % of Group 17% 36% 40% 7% 100% EBITA FY09 £m 84.3 107.3 105 3 105.3 23.8 320.7 EBITA margin FY09 % 35% 21% 18% 24% 22% 29

  • Page 30
    UK Revenue Subscription Software and software-related services Total £171.1m £71.1m £242.2m EBITA margin EBITA EBITA £84.3m 35% Customers New in the year At 30 September 2009 31,000 803,000 Support contracts (3,000) 360,000 30

  • Page 31
    Mainland Europe p Revenue Subscription Software and software-related services Total £292.7m £227.8m £520.5m EBITA margin EBITA EBITA £107.3m 21% Customers New in the year At 30 September 2009 47,000 1,676,000 Support contracts 24,000 652,000 31

  • Page 32
    North America Revenue Subscription Software and software-related services Total £428.3m £148.1m £576.4m EBITA margin EBITA EBITA £105.3m 18% Customers* Customers New in the year At 30 September 2009 123,000 3,118,000 Support contracts 601,000 * Excluding ACT! 32

  • Page 33
    Rest of World Revenue Subscription Software and software-related services Total £44.7m £55.5m £100.2m EBITA margin EBITA EBITA £23.8m 24% Customers New in the year At 30 September 2009 44,000 545,000 Support contracts 12,000 166,000 33