TIDMIDEA
RNS Number : 1155H
Ideagen PLC
13 November 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Ideagen PLC
("Ideagen," "the Company" or the "Group")
Trading Update
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management Software to highly regulated industries, today provides
an update on trading for the six months ended 31 October 2018.
The Board is pleased to report that trading has remained strong
in the first half of the financial year and that revenue and EBITDA
are both expected to be significantly ahead of the same period last
year and in line with management's expectations. This has been
achieved through both organic revenue growth and the acquisitions
of Medforce (acquired in April), InspectionXpert and MK Insight
(both acquired in September)
The Company has a clear strategy to grow revenues organically
and maintain high EBITDA margins whilst transitioning from a
perpetual licence to a SaaS based subscription model. The
successful execution of this strategy will provide an even more
robust business model and provide a higher quality of earnings over
the medium term without impacting the short-term profitability of
the business.
Historically the board has measured performance using a number
of KPIs such as total revenue growth, organic revenue growth,
EBITDA and EPS growth. The board will now also report total
bookings growth and SaaS booking growth which are both important
metrics during the transition period and beyond.
Strong customer demand and sales execution in the period
indicates that the transition is progressing successfully and is
ahead of schedule. Total like for like bookings growth increased by
34% and total like for like SaaS bookings increased by 80%.
Given the momentum of our SaaS business the Company now expects
to generate 74% of its revenues from recurring contracts by the end
of 2020, up from the 70% previously anticipated. Organic revenue
growth in the period was 8% which, in the context of an accelerated
SaaS transition, represents a strong performance.
The Company continues to compete and win new business within the
UK and international markets reflecting the Company's global
expansion. During the period the Company won 120 new customer logos
including GlaxoSmithKline, Boston Biomedical, Virginia State
Office, McLaren, Mercedes AMG, Keolis and Cancer Research.
At the period end the group had net debt of GBP1.3 million (30
April 2018: net cash of GBP0.8 million) after spending GBP24.3
million on acquisitions and raising GBP19.4 million net of costs on
a share placing. Operating cash generation in the period remained
strong.
Ben Dorks, Chief Executive Officer of Ideagen, commented:
"I am pleased to report another excellent start to Ideagen's
financial year. Our core markets are strong and underpin the demand
we have seen this half. We continue to execute our strategy,
delivering growth and investing in the business whilst tightly
managing the cost base. The Company has continued to make
acquisitions which have further enhanced our global reach, customer
base and product capability.
Cash generation has been robust which coupled with further
growth in new SAAS recurring revenues and an increase in repeat
business from our growing customer base provides a strong platform
for the second half
The market opportunity remains large and long term and given the
Group's position as a leader in the Governance, Risk and Compliance
market, the Board is optimistic about the Group's continued growth
prospects."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Executive Chairman
Ben Dorks, Chief Executive Officer
Graeme Spenceley, Chief Financial
Officer
finnCap Limited 020 7220 0500
Henrik Persson/James Thompson (Nomad)
Alice Lane (ECM)
About Ideagen plc
Ideagen is a UK-headquartered, global technology company quoted
on the London Stock Exchange AIM market (Ticker: IDEA.L).
The Group provides software and services to organisations
operating within highly regulated industries such as aviation,
banking and finance and life science, with its main operational
premises spread throughout the UK, EU, US, Middle East and SE
Asia.
With an excellent portfolio of software products including
Q-Pulse, Coruson, Pentana Audit, Pentana Performance and
PleaseReview, Ideagen helps its clients reduce costs, improve
operational efficiency, strengthen compliance and oversight and
anticipate and manage every detail of risk.
Currently, more than 4,000 organisations use Ideagen's products
including seven of the top 10 UK accounting firms, all of the top
aerospace and defence companies and 75% of the world's leading
pharmaceutical firms.
Ideagen's diverse and varied customer base includes many
well-known, global brands such as British Airways, Aggreko, BAE,
Ryanair, US Navy, KLM, BBVA, Bank of New York, Commerzbank,
Meggitt, Heineken, Johnson Matthey, Haeco Group and European
Central Bank. As well as this, Ideagen counts 180 hospitals across
the UK and US amongst its client base.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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