UNIT4, the ERP provider which owns the Agresso and Coda brands has reported a 7% increase in total revenues and an 18% increase in license sales for the first half of 2010 compared to the first half of 2009. The supplier, which focuses on ERP for fast changing organisations said that total revenue for the period increased to €199.3 million and EBITDA rose by 23% to €35.4 million.
Performance exceeded market levels in UNIT4’s five most important markets, namely the United Kingdom, Benelux, Norway, Sweden and Spain. In the UK, total revenues were steady and license sales were strong, increasing by 20%. New customers included Herefordshire Council, Marie Stopes International and Aberdeen Asset Management. The UK business has also seen a number of large new contracts, including a deal worth € 1.6 million with Save the Children.
The largest European deal in the first half of the year was a €3 million government sector contract signed in Germany in June, but was booked as subscription (>5 year) and therefore does not directly contribute to earnings. In total, revenues in Germany declined by 4%. More new license sales are expected in the second half of the year. Eastern Europe (Hungary and Czech) reported a 10% increase in license growth while France secured few new license sales.
In North America, revenue stabilised primarily due to the fact that in the first half of 2009 some large contracts were secured. Performance in Asia improved significantly, with a sharp increase in revenue from new license sales. Further organic investment is planned in the region. The largest order secured by the Group in the first half was a landmark deal with the Queensland Government Department of Education and Training in Australia (> € 6 m), which will see UNIT4 play a significant role in the transformation of student management across more than 1250 schools in the coming years.
“Due to excellent organic performance, strong new license sales and strategic acquisitions in 2010, the outlook for the year has been revised and is now improved,” said Edwin van Leeuwen, CFO of UNIT4 N.V.
