- Group revenues increased by 29%* to approximately £688m, in line with market expectations
- Core product organic revenue growth of 6%*, excluding acquisitions and non-core products
- Pre-tax profit increased by 20% to approximately £181m, in line with market expectations
- Earnings per share grew 21% to 9.9p
UK
In the UK, revenues grew 9% to approximately £186m and the operating margin was approximately 39% (2003: 39%).
Mainland Europe
In Mainland Europe, revenues grew 22%* to approximately £170m and the operating margin was approximately 24% (2003: 19%*).
SP (Spain, acquired in October 2003) contributed revenues of approximately £24m, at an operating margin of approximately 23%.
Excluding acquisitions, organic revenue growth in Mainland Europe was 5%*.
North America
North American revenues grew 30%* to approximately £287m and the operating margin was approximately 22% (2003: 25%), having been diluted by the lower initial margins of the two acquisitions described below.
Timberline (acquired in September 2003), in its first full year under ownership, contributed revenues of approximately £34m, at an operating margin of approximately 12%.
ACCPAC (acquired in March 2004) contributed total revenues of approximately £34m at an operating margin of approximately 12%. Of these revenues, approximately £25m was generated in North America, at an operating margin of approximately 11%. The remainder of ACCPAC’s contribution was in the other regions and has been allocated accordingly within the Group results.
Excluding acquisitions and non-core products, core product organic revenue growth in North America was 5%*.
Rest of World
This region principally comprises the South African, Australian and Far Eastern businesses of Softline (acquired in November 2003) and ACCPAC. Its revenues of approximately £45m generated an operating margin of approximately 26%.
Softline’s total revenues were approximately £39m, with an operating margin of approximately 22%. Of these revenues, approximately £35m was generated in the Rest of World region at an operating margin of approximately 24%. The remainder of Softline’s contribution was in North America and has been allocated accordingly within the Group results.
*Figures stated at constant exchange rates based on the average for the year ended 30 September 2004.
Geographical segments as revised for 2004 interim results.