System C Healthcare

A software and services provider to the healthcare industry, System C is confident that whatever the imminent General Election throws up, there will still be increasing demand for its wares.

Responding to recent investor concerns that companies supplying the NHS might be hit by a change in government, System C chief executive Dr Ian Denley argues that ‘both parties are committed to using IT to drive through efficiencies’. He believes that election would be ‘at worst, neutral and the Tories may introduce measures to open up the market, which would be beneficial for SMEs like us’.

The company's heavy investment in its product set – while rivals are either cash-constrained or put off by the risks of changing their large and complex systems – is starting to pay off. Recent half-year results to November included a first major impact from the new Medway Sigma suite, with product sales up 249% on the prior year. Part of this increase was down to a contribution from July acquisition Liquidlogic, which has added presence in the social care sector. All in all, group revenues increased 77% year-on-year to £18.3m and pre-tax profits by 49% to £2.8m.

Looking forward, Denley says the second half is ‘all about delivery’ and is ‘confident’ about achieving the City’s forecasts for the full year of £36.1m sales, £6.4m PBT and 4.5p of EPS. Further on, the aim is to continue ramping up product sales and making further inroads into related markets.

System C's shares, which are down from October’s year high of 66p but trending upwards since early 2007’s 20p all-time low, will pay an 0.25p interim dividend to shareholders on the register by the end of 12 February and are worth buying.