Bond International Software

Positive news flow continues apace at staffing software star Bond, which has hit the acquisition trail again, paying £2.68m of its own cash for competitor Strictly Education.

Milton Keynes-based Strictly provides HR, finance, property support and payroll services to 500-plus UK schools (out of a total of 30,000) and achieved pre-tax profits of £300,000 from £1.9m sales last year. It fits snugly within Bond’s stated strategy, extending the group’s presence in the education sector, where more and more schools are looking to outsource functions such as HR and payroll. Chief executive Steve Russell has identified significant product and service cross sell opportunities between Strictly Education and Bond’s existing business.

Bond, famed for its recruitment software package Adapt and with true international reach, delighted followers recently with the news calendar 2006 financials would match upgraded forecasts – investors can expect the figures in late March – and the market is looking for a pre-tax profits improvement from £3.1m to £4.2m, and 12.2p of earnings. Russell recently completed the group’s biggest acquisition to date, paying £8.9m in a cash and shares deal for the profitable Gowi, another human resources software specialist with a customer base of more than 850 companies.

Other recent highlights for shareholders have included Adapt’s selection by Manpower in a deal worth up to $12m over five years, as well as the decision by Hays Resource Management (part of the country’s biggest listed recruitment group) to renew its existing Bond contract in a deal worth £2m over three years. Trading on forward p/e multiples of 15.6 and 12.4, Bond is worth holding for assured further growth.