When Advanced Computer Software (LON:ASW) launched itself on to London’s Alternative Investment Market in September 2008, the company’s chief executive Vin Murria could hardly have predicted the scale of the changes about to be unleashed in her core health and care markets. Nevertheless, for Murria’s buy-and-build IT services group, change is good. With structural reorganisation and efficiency savings now watchwords among NHS managers, Murria has begun to see new markets open up before her eyes. With a string of acquisitions under her belt, and the likelihood of more to come, Murria’s infectious enthusiasm – and past form for making buy-and-builds a success – mean Advanced is catching the eye of the industry and investors alike.

Advanced first emerged in July 2008 following the reverse takeover by Drury Lane Capital of healthcare software specialist Adastra Ltd. Murria, a partner at investment group Elderstreet, was brought in to use the deal as the start of a consolidation play, with Elderstreet’s chairman Michael Jackson coming in to chair the business. Murria was previously behind ACS’s predecessor company Computer Software Group plc, which after a merger with IRIS was sold in 2007 to private equity firm Hellman & Friedman for US$1bn.

Since the acquisition of Adastra, Murria and her team have picked off a string of players in the market, with the highlights including a £15.5m takeover of fellow AIM company BSG in June 2009. That business was bolted on to what it now the group’s Advanced Health, Care and Public Sector division, which covers the core market of supplying services – including iNurse and iConnect handheld devices – to the care in the community sector. Elsewhere, Advanced 365 represents the Managed Services side of the group, while the addition of COA Solutions, acquired in February this year for £100m, has created a new arm called Advanced Business Solutions. That sells management business software to healthcare and other public and private sector customers. Those deals have had a major impact. In the six month to the end of August, group revenues were up 330% to £47.3m with adjusted Ebitda up 307% at £12.2m, operating profit up 72% at £3.1m and pre-tax profit flat at £1.9m.

In an interview with Stockopedia, Vin Murria talked about the group’s recent interim results and how changes in the health and care markets are opening…

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