Strategy and business model
Our strategy is to focus on IP-led software and services in our core public services markets, investing in strategic product areas in response to market opportunity and customer demand. We continue the shift towards Software as a Service (‘SaaS’) and recurring revenue models and have restructured our services portfolio to be almost wholly focused on supporting our software platforms, de-emphasising our exposure to commodity IT and BP outsourcing where profitability challenges existed.
Our business model reflects this strategy, with operating business units matched to specific market sectors and responsible for delivering customer benefits from our platform investment as we move towards SaaS or recurring revenue models.
Performance and outlook
Underlying EBITDA of £35.1m is in line with the previous year at 22% of revenue, and our acquisition of HISL in March 2017 will support the continued expansion of our health screening business in the UK and internationally.
As we head towards Brexit, we see opportunities to grow market share in the UK and Ireland. We continue to see opportunity for our Housing platform in Australia and Canada, and are actively engaged in several new projects that will be delivered in 2017/2018. In India, we have also undertaken a limited number of targeted sales initiatives in the Safety and Healthcare sectors as we seek to create a market for our solutions, leveraging our offshore product and project management, development and support capabilities in Mumbai.
Governance and risk
The markets we compete in continue to experience significant change, with uncertainty around policy and budgets persisting. We have laid the foundations for growth, to make NPS more profitable and cash generative so as to provide some protection from these uncertainties.
Strengthened governance and improved business processes enhance our risk management policy which ensures that key business risks are recorded, managed and resolved in partnership with customers and all stakeholders.