IDOX PLC Year End Trading Update (8027O)
10 November 2016 - 6:00PM
UK Regulatory
TIDMIDOX
RNS Number : 8027O
IDOX PLC
10 November 2016
10 November 2016
Idox plc
("Idox", the "Company" or the "Group")
Year End Trading Update
Idox plc (AIM: IDOX), a leading supplier of specialist
information management solutions and services, today provides an
update on trading for its financial year ended 31 October 2016. The
Company has also announced separately today a Directorate
change.
Overview
Idox performed strongly during the year with double digit growth
in both revenues and Adjusted* profits, including good
contributions from organic growth and recent acquisitions.
Accordingly, the Company's Adjusted* results for the year are
expected to be in line with the Board's expectations.
Public Sector Software ('PSS', comprising the local government,
elections, facilities management, transport and Open Objects
businesses), which represents over half the Group's revenues, grew
revenues by over 14% during the year including organic growth of
around 5%. Local Government's final quarter was slightly slower
than anticipated partly caused by temporary delays incurred by a
key systems integrator. PSS has continued to win both more managed
services and market share and made good progress rolling out and
expanding its digital services platform. Engineering Information
Management ('EIM') performed well, having returned as expected to
revenue growth with much improved margins, as did the Digital
segment (comprising Reading Room, Rippleffect and Information)) and
Grants.
Acquisitions
The Group made two acquisitions in the second half, Open Objects
in July and Rippleffect in August; both businesses are being fully
integrated into the Group. Open Objects is expected to enable a
significant expansion in the important social care domain where the
Group has historically been under-represented, whilst Rippleffect
is expected to bolster the Group's growing digital capability.
These acquisitions supported the Group's strategy of extending its
public sector domains and expanding its delivery of digital
services across all areas of local government.
The integration of Reading Room (acquired in October 2015)
proceeded smoothly and it contributed strongly to Group profits
with a much improved margin in its first year of ownership, ahead
of our internal targets.
Financial position
Group net debt ended the year at GBP25.1m compared with GBP23.1m
as at 31 October 2015 and GBP13.9m as at 30 April 2016. This
included the cash costs of the two acquisitions completed during
the year, totalling GBP4.4m.
Outlook
The Board remains confident that the Group is well positioned in
its markets and will continue to perform well in 2017 given its
strong revenue visibility, order book and pipeline. To date there
has been no material impact from the UK's Referendum decision to
leave the EU, albeit the Group is expected to benefit from the fall
in sterling as a result of translation of its foreign currency
denominated earnings into sterling.
Overall, Idox remains on track to achieve its target of GBP100m
of revenues at sustainable margins in the short to medium term,
through a combination of organic growth and acquisitions.
Notice of Final Results
The Board intends to report the Group's final results on 14
December 2016.
*Adjusted is defined as earnings before amortisation,
restructuring, acquisition, corporate finance and share option
costs
Andrew Riley, Chief Executive of Idox said:
"We are pleased to have delivered a strong result in line with
our expectations, and we have made good progress with our strategic
goals and integrating our recent acquisitions. We continue to
benefit from our diversified sources of earnings to absorb and
compensate for external market factors.
The business has entered the new financial year in robust shape
and we are encouraged by the opportunities and outlook for the
business in the coming year."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
Enquiries:
Idox plc +44 (0) 870 333 7101
Laurence Vaughan, Chairman
Andrew Riley, Chief Executive
Jane Mackie, Chief Financial Officer
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
Shaun Dobson
Liz Yong
MHP (Financial PR) +44 (0) 20 3128 8100
Reg Hoare/Andrew Leach/Charlie Barker
For more information see www.idoxplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUKUKRNWAARAA
(END) Dow Jones Newswires
November 10, 2016 02:00 ET (07:00 GMT)
Idox (LSE:IDOX)
Historical Stock Chart
From Apr 2024 to May 2024
Idox (LSE:IDOX)
Historical Stock Chart
From May 2023 to May 2024