TIDMIDEA
RNS Number : 7010T
Ideagen PLC
22 July 2015
22 July 2015
Ideagen PLC
("Ideagen" or the "Group")
Unaudited Preliminary Results for the Year Ended 30 April
2015
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management software to highly regulated industries, announces its
unaudited preliminary results for the year ended 30 April 2015.
The results represent the Group's sixth consecutive year of
revenue and adjusted EPS growth.
Financial Highlights
-- Revenue up 60% to GBP14.4 million (2014: GBP9.0 million)
o Proforma organic revenue growth of 5.3%
o Recurring revenues of GBP10.6 million at year end covering 84%
of fixed costs
o Support and maintenance contract renewal rate 96%
-- Adjusted diluted EPS** up by 26% to 2.11 pence (2014: 1.67 pence)
-- Adjusted EBITDA* up 43% to GBP4.0 million (2014: GBP2.8 million)
-- Adjusted PBT** up by 42% to GBP3.6 million (2014: GBP2.55 million)
-- Cash generated by operations of GBP2.25 million (2014: GBP1.69 million)
-- Net cash of GBP5.3 million (2014: GBP4.0 million)
-- Net assets of GBP31.2 million (2014: GBP13.4 million)
-- Proposed final dividend of 0.11 pence per share
o Making a total of 0.165 pence per share for the year (2014:
0.15 pence per share)
*Before share based payments and exceptional items
**Before share based payments, amortisation of acquisition
intangibles and exceptional items
Operational Highlights
-- Transformational acquisition and integration of Gael helping
scale the business whilst supporting the Group's GRC and Healthcare
strategy
-- Acquisition and integration of EIBS strengthening the Group's
position in the UK Healthcare sector and providing the Group with
leading portal and mobile technology
-- Appointment of Ashley Marron as Group COO and Ben Dorks as
Group Sales and Marketing Director
-- Launch of dart/Portal, a Patient Information Portal based on EIBS technology
-- Largest single NHS contract win to date at Doncaster and
Bassetlaw NHS Trust worth GBP1million
-- Strong account management and customer retention resulting in
support and maintenance contract renewal rate of 96%
David Hornsby, CEO of Ideagen, commented: "I'm delighted with
the further progress made during the year. As well as delivering
strong, profitable revenue growth and cash generation we have made
two acquisitions, one of them transformational, and integrated them
successfully.
"We have entered the new financial year with an excellent, more
diverse client base, a stronger suite of products and the right
organisational structure to support our corporate goals. I am
pleased to announce that the new year has started well and that
Ideagen is well placed for another year of growth."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief
Executive
Graeme Spenceley, Finance
Director
finnCap Limited 020 7220 0500
Stuart Andrews/James
Thompson (Nomad)
Stephen Norcross (Corporate
Broking)
Alma PR
Josh Royston +44 (0)7780 901979
Hilary Buchanan +44 (0)7515 805218
CHAIRMAN'S STATEMENT
This has been a productive and transformational year for the
business. The Group has continued to perform strongly during the
period and the integration of our most recent acquisition, Gael, is
progressing as planned. The addition of Gael has allowed the Group
to significantly broaden the customer base, strengthen the solution
set, and gain further scale in our core Governance, Risk and
Compliance (GRC) markets.
In the year to 30 April 2015 we have successfully delivered on
ambitious targets, delivering strong growth in revenue and profit
through both organic and acquisitive growth. Adjusted EPS, an
important financial metric for the Group, increased by 26% to
2.11p, representing our sixth consecutive period of earnings
growth. At the same time, we have invested in our infrastructure
and product set to ensure we continue to anticipate our customer
needs and remain at the forefront of market trends.
The vertical markets in which we operate, namely healthcare,
complex manufacturing, aviation and banking and finance, are
characterised by a global customer profile, high consequences of
controls failure and are governed by industry specific standards.
As such, the demand from organisations operating in these
industries for specialist software solutions to address these
requirements and ensure adherence to exacting regulations is robust
and growing, particularly as compliance becomes more "risk based".
Furthermore, the highly fragmented market environment means that to
date we have only realised a small proportion of the opportunity
available to us, and we are therefore confident of further growth
through increased market share and the expansion of our footprint
within our existing customer base.
In line with our progressive dividend policy and reflecting the
strength of the balance sheet, the Board is pleased to propose a
final dividend of 0.11p making a total dividend of 0.165p for the
year.
I would like to take this opportunity to thank all of our
employees who work tirelessly to make Ideagen a success. We have an
exciting pipeline of opportunities as we enter the new financial
year and I look forward to the future with continued
confidence.
Jonathan Wearing
Non-Executive Chairman
CHIEF EXECUTIVE'S REVIEW
Business Review
I am pleased to report on another strong year for the Group
ended 30 April 2015. As well as delivering further revenue and
profit growth, the year was defined by our most significant and
transformative acquisition to date, of Gael Limited, which
completed in January of this year.
Revenue for the year was GBP14.4 million, an increase of 60%
compared to the GBP9.0 million achieved in the previous year, with
proforma organic growth contributing 5.3% (2014: 13%). Adjusted
EBITDA increased by 43% to GBP4.0 million compared to the prior
year's GBP2.8 million whilst adjusted earnings per share also rose
by 26% to 2.11p, up from 1.67p.
The financial strength of the business is underpinned by high
levels of recurring revenue, which represent 53% (2014: 56%) of
core revenue (software licence, maintenance and support, and
professional services) and cover 84% (2014: 86%) of the fixed
overhead base. Software licence revenue represented 26.3% of total
revenues at GBP3.78 million, Maintenance and Support 49.1% at
GBP7.07 million, Professional Services 20.2% at GBP2.90 million and
hardware 4.4% at GBP0.64 million.
In January 2015, the Group completed a successful Placing
raising GBP17.5 million to support the GBP18 million acquisition of
Gael and associated transaction costs and provide adequate working
capital headroom.
Cash generated by operations amounted to GBP2.25 million (2014:
GBP1.69 million) representing 56% (2014: 60%) of adjusted EBITDA.
Cash generation during the year was impacted by two significant
items which are not expected to recur: annual bonus payments to
Gael employees relating to the year ended 31 December 2014 made
post-acquisition, and the payments for unusually high hardware
purchases towards the end of the financial year to 30 April 2014 in
order to satisfy certain customer contracts. The effect of these
two items adversely affected cash flow by approximately GBP0.8m.
The group ended the year with cash balances of GBP5.3m (2014:
GBP4.0m) and no debt.
GRC and NHS
The Group has established a global business supplying
Governance, Risk and Compliance (GRC) solutions predominantly to
the Healthcare, Complex Manufacturing, Banking and Finance and
Aviation Sectors. The Group has in parallel leveraged its core
technology and has acquired capability to build a UK business
supplying content and clinical management solutions predominantly
to the NHS. Each of the Group's chosen markets require robust
information systems and exhibit a high consequence of error should
data and processes be compromised.
The Group's top line growth in the year was driven by strong
performance in the GRC markets, up 13% compared to 9% growth in the
prior year. This was offset by a modest decline in the NHS market
of 3% (2014: growth of 16%), the result of a funding uncertainty in
the run up to the General Election. The Group is now experiencing
renewed demand for its products from the NHS following the General
Election results and the Conservative Government's ongoing strategy
to deliver a paperless NHS, and the Board believes that the sector
will be a growth driver for the Group.
Acquisitions
The acquisition of Gael, a Scottish based GRC specialist, was in
line with our stated strategy of acquiring businesses with strong
IP and recurring revenues and has strengthened Ideagen's existing
markets, whilst also adding new product sets, vertical markets and
client relationships. Integration of the two businesses has
proceeded in line with expectations and, as a result, Ideagen is
well placed to deliver upon two key parts of our strategy, namely:
to be a dominant supplier in Governance, Risk and Compliance and;
to be a Best of Breed supplier to the NHS.
The combined business is extremely well placed in a number of
key sectors, including aerospace & defence, where we now count
7 out of the top 7 global companies as clients, finance where we
have 7 out of the top 10 UK accounting firms as clients, and
healthcare with over 125 NHS Acute Trusts using our solutions. The
enlarged Group now has over 1500 customers which span across
multiple geographies and size, including many blue chip names such
as BAE Systems, Emirates, Ernst and Young and the European Central
Bank. As a result, the acquisition has helped de-risk the Group's
business model as our revenue base is now spread across a greater
number of clients and markets with the Group now less reliant on
large enterprise NHS contracts where purchasing behavior can be
less predictable.
In the year, the Group also acquired EIBS Limited for a net cash
consideration of GBP1.29 million. EIBS is a software company that
has developed proprietary Information Portal, Internet and Mobile
solutions for the NHS and numerous public sector, not for profit
and commercial organisations. The integration of this business is
now complete, resulting in enhanced capabilities for the product
set, particularly to the Group's mobile offering and a further
consolidated position in the NHS sector.
Management Structure and Sales Strategy
Following the acquisition and ongoing integration of Gael, the
enlarged Group has been successfully re-organised under a single
management team and fully integrated reporting structure. Ashley
Marron, Chief Executive of Gael has been appointed as Group Chief
Operating Officer to enable integration of the Group's product
strategy, product development and professional services groups.
Additionally, the sales and marketing team has been successfully
restructured into one organisation under Ben Dorks, focused into
industry facing teams covering the Group's key markets. The Group
has also appointed a Global Head of Channel and the Group is
developing new routes to market particularly in the Asia Pacific
market.
In addition to winning new customers, a key proponent of the
Group's sales strategy is expanding its footprint within the
existing customer base. This represents a key growth area, both
through winning contracts from new divisions within existing
customers and by up-selling additional elements of the solution
set, including the newly acquired Gael and EIBS solutions. To date,
the sales team has been successful in both migrating customers onto
new products as they become available and cross selling new
products and services into the customer base.
Product Development
Product development remains an important part of the Group's
strategy and we currently have over 117 employees within this
function. The Group is focused on ensuring all of our current
products remain 'world class' in their specific markets and that we
can continue to win and develop 'world class' customers.
Furthermore, an important initiative is the development of the
Group's Amazon Web Services (AWS) based, scalable SaaS Risk and
Compliance platform, Enlighten, which ensures customers now have
the choice in terms of delivery method (SaaS, Hosted or on
premise). Enlighten has also enabled the Group to bid for
significantly larger contracts which are predominantly recurring in
nature.
Customer Case Studies
Brussels Airlines - Belgium's flagship carrier
Brussels Airlines - which operates 49 aircraft and has 3,500
employees - has been working with Ideagen to implement its Gael
Insight suite of software solutions to transform safety and
operational performance through efficient safety and risk
management and in depth performance indicators.
Adriaan Charlet, the airline's Safety Services Manager, said:
"Q-Pulse and the overall Gael Insight solution has provided us with
much better efficiency in investigating safety issues. It has also
provided safety related efficiencies as well as operational
reporting benefits.
"The risk management and performance monitoring capabilities in
particular have been extremely beneficial for us. Risk in
particular was a very important part of the overall solution - not
only because we can focus on the safety issues - but also enhance
our operational risk assessments. For example, nowadays we are able
to carry specific cargo that requires to be handled with care
thanks to being able to risk assess it and feed the results back
into the system.
"Performance monitoring is the link between safety and
efficiency. In the past we gathered information ourselves manually
from a variety of different databases. However now, thanks to being
able to monitor performance of the business through a series of
KPIs, we are able to view all of that data in a blink of an eye in
one central portal. We don't need to search or look for this
ourselves, the system does this for us and tells us what areas
require extra attention or is performing well."
Dirk Adriaenssens, who oversees Brussels Airlines' Safety &
Compliance Monitoring Department, said: "We invested in an
integrated software suite because we required one solution to
manage all of our safety and compliance monitoring activities. The
solution gives us full integration of all safety issues for all
departments and is also able to integrate with existing interfaces
- such as our flight data monitoring system or our scheduling
software - for a complete safety product.
"The largest benefit we've seen is that it can be used online
and offline and provides us with higher efficiencies in that we now
don't have to duplicate a lot of our tasks and data. This
encourages the same working methods throughout the organisation in
regards to capturing safety and operational issues and other forms
of data."
Mr Adriaenssens continued: "We are now capturing safety issues
more easily and working more proactively as we can detect hazards
in advance even better. This has helped us not only improve safety
even more here at Brussels Airlines, but has increased efficiency
as everyone is using and becoming knowledgeable in one tool."
NHS - Birmingham Children's Hospital NHS Foundation Trust
Birmingham Children's Hospital provides the widest range of
children's health services for young patients from Birmingham, the
West Midlands and beyond with over 270,000 patient visits every
year.
Prior to implementing Ideagen's PatientFirst software,
Birmingham's Children's Hospital had been using more of a Patient
Administration System (PAS) than a clinical patient management
system, with the Emergency Department itself being run using a
manual white (wipe) board.
Dr Benjamin Stanhope, one of six full-time consultants
responsible for patient care within the Emergency Department, said:
"This was quickly considered to be an inaccurate and inefficient
way of working and had created some difficulties, particularly in
the tracking of patients.
"There were also challenges in our ability to safely and
accurately record patients' vital signs; with no facility to
electronically record administration of nurse-dispensed Patient
Group Directives (PGDs) for drugs given at triage. This led to the
Trust exploring more effective options."
Dr Stanhope added: "PatientFirst was chosen due to the
hospital's confidence that Ideagen could deliver a purpose built,
customisable Emergency Department management tool. "The key
deliverable was in Ideagen working together with us to shape the
project pre and post-implementation. We had confidence in the
company and in our specific Ideagen team and our selection of
PatientFirst was reaffirmed by strong testimonials from colleagues
who were familiar with the system."
Once up and running, PatientFirst completely transformed the way
in which the Emergency Department at Birmingham Children's Hospital
NHS Foundation Trust operated, from improved tracking of patients
and speed of data access to achieving national targets.
Dr Stanhope continued: "We now have confidence in the tracking
of our patients throughout the department as well as having quick
and simple access to historical and medicinal records so we are
always aware of a patient's situation. There has been fewer errors
recorded, such as patients not being seen in order, which has also
improved safety and overall operations.
"Overall productivity has been enhanced as we now have the
ability to manage departmental workload much more efficiently. Our
situation can be seen remotely by the Hospital Operation Centre
(HOC), meaning Trust-wide activity and resource can be coordinated
more efficiently. "Our governance needs are being maintained and
exceeded with improvements in accuracy of activity and metrics,
allowing us to continually achieve the national Emergency
Department targets. This is of particular financial benefit, with
the functionality of the product improving quality coding against
patient episodes thus reducing missed remuneration for under-coded
activity."
Infrastructure
The Group operates from 3 primary locations: Nottingham, East
Kilbride and Welwyn Garden City and has 3 satellite offices in
Bristol, Sittingbourne and Matlock.
At year end the Group had 243 employees across the following
functions: Sales and Marketing - 55, Customer Services and Support
- 45, Research and Development - 117, Finance and Administration -
26. The Group will continue to recruit to support its ongoing
growth plans.
Outlook
The new financial year has started strongly and we have seen
continued progress across all of the Group's product and markets.
Furthermore, in the wake of the General Election in May, purchasing
patterns in the NHS appear to have returned to a more normal level
following a period of uncertainty in the lead up to the Election.
The Group has a strong pipeline of new business opportunities and
continues to develop sales levels to existing customers which
provides the board with confidence for the year.
David Hornsby
Chief Executive Officer
FINANCIAL REVIEW
Revenue for the year ended 30 April 2015 increased by 60% to
GBP14.4 million (2014: GBP9.0 million). Within this, underlying
organic revenue growth was 5.3% based on a comparison of revenue in
the year under review with pro-forma revenue for the comparative
period adjusted for the Gael, EIBS, MSS and Pentana acquisitions
and excluding revenue generated from the VA PRISM contract in the
early part of 2013/14.
Recurring revenues represent 53% (2014: 56%) of core revenues
and cover 84% (2014: 86%) of the fixed overhead base. The decrease
is due to a slightly lower historical proportion of recurring
revenues in the businesses acquired. Software licence revenue
represented 26.3% (2014: 21.6%) of total revenues at GBP3.78
million (2014: GBP1.94 million), Maintenance and Support 49.1%
(2014: 49.6%) at GBP7.07 million (2014: GBP4.45 million),
Professional Services 20.2% (2014: 21.8%) at GBP2.90 million (2014:
GBP1.95 million) and hardware 4.4% (2014: 7.0%) at GBP0.64 million
(2014: GBP0.63 million).
Adjusted EBITDA increased by 43% to GBP4.02 million (2014:
GBP2.81 million). The adjusted EBITDA margin reduced to 28% (2014:
31%) as expected following increased investment in products,
customer service and the longer-term infrastructure of the
business.
Amortisation of acquisition intangibles of GBP2.09 million
(2014: GBP0.95 million) represents the majority of the total
depreciation and amortisation charge of GBP2.50 million (2014:
GBP1.22 million). The GBP188,000 increase in the fair value of
contingent consideration related to settling the earn-out on the
acquisition of Pentana in 2013.
The adjusted group tax charge was GBP0.59 million (2014: GBP0.41
million). This has been adjusted to exclude the deferred tax
credits associated with the amortisation of acquisition intangibles
and share based payment charges. The adjusted group tax charge
represents 16% (2014: 16%) of adjusted PBT of GBP3.61 million
(2014: GBP2.55 million). A further taxation credit of GBP0.29
million relating to the tax deductions available on the exercise of
share options has been taken in reserves. Accordingly, the group's
corporation tax liability has been reduced to GBP0.04 million
(2014: GBP0.28 million).
As a result of the above, adjusted diluted earnings per share
increased by 26% to 2.11p (2014: 1.67p).
The Group's financial position has continued to strengthen with
net assets increasing to GBP31.2 million (2014: GBP13.4 million).
Intangible assets increased to GBP35.1 million (2014: GBP11.8
million) following the GBP17.5 million share placing and
acquisitions of Gael and EIBS during the year. Net current assets
were GBP1.23 million (2014: GBP2.60 million).
Cash generated by operations amounted to GBP2.25 million (2014:
GBP1.69 million) representing 56% (2014: 60%) of adjusted EBITDA.
Cash generation during the year was impacted by two significant
items which are not expected to recur: annual bonus payments to
Gael employees relating to the year ended 31 December 2014 made
post-acquisition, and the payments for unusually high hardware
purchases towards the end of the financial year to 30 April 2014 in
order to satisfy certain customer contracts. The effect of these
two items adversely affected cash flow by approximately GBP0.8
million. The group ended the year with cash balances of GBP5.3
million (2014: GBP4.0 million) and no debt.
The net cash outflows on acquisition of businesses during the
year were GBP14.59 million on Gael and GBP1.29 million on EIBS.
Deferred consideration of GBP3.2 million is payable in respect of
the acquisition of Gael of which GBP1.6 million is payable in
January 2016 and GBP1.6 million in January 2017.
Dividend
The Board proposes a final dividend of 0.11 pence per share
payable on 12 November 2015 to shareholders on the register on 30
October 2015. The corresponding ex-dividend date is 29 October
2015.
Graeme Spenceley
Finance Director
Ideagen plc
Group Statement of Comprehensive Income for the year ended 30
April 2015
2015 2014
GBP'000 GBP'000
Revenue 14,389 8,970
Cost of sales (1,892) (1,425)
Gross profit 12,497 7,545
Operating costs (8,477) (4,733)
------- -------
Profit from operating activities
before depreciation, amortisation,
share-based payment charges and
exceptional items 4,020 2,812
Depreciation and amortisation (2,503) (1,220)
Costs of acquiring businesses (450) (246)
Share-based payment charges (276) (285)
Profit from operating activities 791 1,061
Movement in fair value of contingent
consideration (188) -
Finance income 5 10
------- -------
Profit before taxation 608 1,071
Taxation (128) (198)
------- -------
Profit for the year 480 873
Other comprehensive income
Exchange differences on translating
foreign operations (4) (10)
Total comprehensive income for
the year attributable to the owners
of the parent company 476 863
======= =======
Earnings per share Pence Pence
Basic 0.35 0.72
Diluted 0.34 0.68
Ideagen plc
Group Statement of Financial Position at 30 April 2015
2015 2014
GBP'000 GBP'000
Assets and liabilities
Non-current assets
Intangible assets 35,050 11,807
Property, plant and equipment 302 166
Deferred income tax assets 876 173
-------- --------
36,228 12,146
-------- --------
Current assets
Inventories 55 389
Trade and other receivables 7,332 3,637
Cash and cash equivalents 5,266 4,011
-------- --------
12,653 8,037
-------- --------
Current liabilities
Trade and other payables 3,476 2,421
Contingent consideration
on business combinations 47 327
Current income tax liabilities 44 283
Deferred revenue 6,228 2,356
Deferred consideration
on business combinations 1,628 50
-------- --------
11,423 5,437
-------- --------
Non-current liabilities
Deferred consideration 1,613 -
on business combinations
Deferred income tax liabilities 4,656 1,377
6,269 1,377
Net assets 31,189 13,369
======== ========
Ideagen plc
Group Statement of Financial Position at 30 April 2015
(continued)
2015 2014
GBP'000 GBP'000
Equity
Issued share capital 1,773 1,219
Share premium 23,443 6,870
Merger reserve 1,167 1,167
Share-based payments reserve 653 596
Retained earnings 4,160 3,520
Foreign currency translation
reserve (7) (3)
Equity attributable to
owners of the parent 31,189 13,369
======== ========
Ideagen plc
Group Statement of Cash Flows for the year ended 30 April
2015
2015 2014
GBP'000 GBP'000
Cash flows from operating
activities
Profit for the year 480 873
Depreciation of property, plant
and equipment 156 110
Amortisation of intangible
non-current assets 2,347 1,110
Loss on disposal of property,
plant and equipment - 2
Share-based payment
charges 276 285
Finance income recognised in
profit or loss (5) (10)
Taxation charge recognised
in profit or loss 128 198
Business acquisition costs
in profit or loss 450 246
Net foreign exchange (gain)/loss
in profit or loss (13) 10
Movement in fair value of contingent
consideration 188 -
Decrease/(increase) in inventories 334 (389)
Increase in trade and other
receivables (1,487) (1,154)
(Decrease)/increase in trade
and other payables (648) 392
Increase in deferred revenue
liability 42 14
-------- -------
Cash generated by
operations 2,248 1,687
Interest received 5 5
Income tax paid (185) (281)
Business acquisition costs
paid (312) (180)
Net cash generated by operating
activities 1,756 1,231
-------- -------
Cash flows from investing
activities
Cash outflow on acquisition
of businesses net of cash acquired (15,879) (2,844)
Payments of deferred consideration
on business combinations (50) (106)
Payments of contingent consideration
on business combinations (468) -
Payments for development costs (941) (525)
Payments for property, plant
and equipment (98) (65)
Proceeds from disposal of property,
plant and equipment 9 24
Net cash used in investing
activities (17,427) (3,516)
-------- -------
Cash flows from financing activities
Proceeds from placing of equity
shares 17,500 -
Payments for share issue costs (584) -
Proceeds from issue of shares
under the share option scheme 211 5
Equity dividends paid (219) (61)
Net cash generated/(used) by
financing activities 16,908 (56)
-------- -------
Net increase/(decrease) in
cash and cash equivalents during
the year 1,237 (2,341)
Cash and cash equivalents at
the beginning of the year 4,011 6,372
Effect of exchange rate changes
on cash balances held in
foreign currencies 18 (20)
-------- -------
Cash and cash equivalents at
the end of the year 5,266 4,011
-------- -------
Ideagen plc
Group Statement of Changes in Equity for the year ended 30 April
2015
Share Share Merger Share Retained Foreign Total
capital premium reserve based earnings currency attributable
payments translation to owners
reserve reserve of the
parent
-------- -------- -------- --------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2014 1,219 6,870 1,167 596 3,520 (3) 13,369
Share placing 515 16,985 - - - - 17,500
Share placing issue
costs - (584) - - - - (584)
Shares issued under
share option scheme 39 172 - - - - 211
Profit for the year - - - - 480 - 480
Other comprehensive
income for the year - - - - - (4) (4)
Share-based payments - - - 142 - - 142
Transfer on exercise
of share options - - - (85) 85 - -
Taxation on share-based
payments in equity - - - - 294 - 294
Equity dividends paid - - - - (219) - (219)
Balance at 30 April
2015 1,773 23,443 1,167 653 4,160 (7) 31,189
======== ======== ======== ========= ========= ============ =============
Ideagen plc
Group Statement of Changes in Equity for the year ended 30 April
2014
Share Share Merger Share Retained Foreign Total
capital premium reserve based earnings currency attributable
payments translation to owners
reserve reserve of the
parent
-------- -------- -------- --------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May
2013 1,217 6,867 1,167 313 2,706 7 12,277
Shares issued under
share option scheme 2 3 - - - - 5
Profit for the year - - - - 873 - 873
Other comprehensive
income for the year - - - - - (10) (10)
Share-based payments - - - 285 - - 285
Transfer on exercise
of share options - - - (2) 2 - -
Equity dividends
paid - - - - (61) - (61)
Balance at 30 April
2014 1,219 6,870 1,167 596 3,520 (3) 13,369
======== ======== ======== ========= ========= ============ =============
Notes
1 Basis of information
The financial information included in this preliminary
announcement is unaudited. This information does not constitute the
annual report and accounts of the Group for the year ended 30 April
2015 within the meaning of section 434 of the Companies Act 2006.
This will be available from www.ideagenplc.com in due course. The
audited annual report and accounts of the Group for the year ended
30 April 2014 has been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and
did not contain any statement under section 498 (2) or (3) of the
Companies Act 2006 and did not include references to any matters to
which the auditor drew attention by way of emphasis. Consistent
accounting policies have been applied in the preparation of this
information over the two years ended 30 April 2015 unless otherwise
stated below.
2 Revenue
An analysis of the Group's revenue is given below.
2015 2014
GBP'000 GBP'000
Software licences 3,778 1,939
Maintenance and support 7,070 4,445
Professional services 2,905 1,954
Hardware 636 632
Total revenue 14,389 8,970
-------- --------
3 Earnings per share information
Basic earnings per share is calculated by dividing the profit
for the year attributable to the owners of the Group ('Earnings')
by the weighted average number of ordinary shares outstanding
during the year. Diluted earnings per share is calculated by
dividing Earnings by the weighted-average number of ordinary shares
outstanding during the year as adjusted for the effect of all
potentially dilutive shares, including share options.
In order to better demonstrate the performance of the Group,
adjusted earnings per share calculations have also been presented
which take into account items typically adjusted for by users of
financial statements. The adjusted earnings and earnings per share
information are shown below.
2015 2014
GBP'000 GBP'000
Profit for the year (Earnings) 480 873
Adjustments:
Costs of acquiring businesses 450 246
Share-based payment charges 276 285
Deferred taxation on share
based payment charges (57) (36)
Amortisation of acquired
intangibles 2,090 948
Deferred taxation on amortisation
of acquired intangibles (409) (179)
Movement in fair value of 188 -
contingent consideration
Adjusted earnings 3,018 2,137
------------ ------------
Weighted average number of
shares 138,783,359 121,823,670
Diluted weighted average
number of shares 143,068,383 128,269,454
Basic earnings per share 0.35 0.72
pence pence
Diluted earnings per share 0.34 0.68
pence pence
Adjusted basic earnings per 2.17 1.75
share pence pence
Adjusted diluted earnings 2.11 1.67
per share pence pence
4 Taxation
Further information on the taxation charge in the Statement of
Comprehensive Income is as follows:
2015 2014
GBP'000 GBP'000
UK corporation tax charge 109 311
Overseas income tax charge 51 20
160 331
Deferred tax credit on amortisation
of acquisition intangibles (409) (179)
Deferred tax credit on share based
payment charges (57) (36)
Deferred tax charge on utilisation
of tax losses 293 69
Deferred tax charge on development
costs 141 46
Other deferred taxation - (33)
-------- --------
Total deferred taxation (credit) (32) (133)
Total taxation charge 128 198
-------- --------
5 Adjusted profit before taxation and adjusted taxation charge in the Income Statement
2015 2014
GBP'000 GBP'000
Adjusted earnings (note 3) 3,018 2,137
Adjusted taxation charge (below) 594 413
-------- --------
Adjusted profit before taxation 3,612 2,550
-------- --------
Taxation charge in the Statement
of Comprehensive Income 128 198
Add back:
Deferred tax credit on amortisation
of acquisition intangibles (note
3) 409 179
Deferred tax credit on share based
payment charges 57 36
-------- --------
Adjusted taxation charge 594 413
-------- --------
Adjusted taxation charge based
on adjusted profit before taxation 16.4% 16.2%
-------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFFDDFILFIE
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