TIDMIDEA
RNS Number : 5290E
Ideagen PLC
19 July 2016
19 July 2016
Ideagen PLC
("Ideagen" "the Company" or "the Group")
Unaudited Preliminary Results for the Year Ended 30 April
2016
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 2016.
Financial Highlights
-- Revenue increased 52% to GBP21.9 million (FY2015: GBP14.4 million)
o Underlying organic growth of 10% (FY2015: 5.3%)
o Recurring revenues of GBP11.5 million at year end (FY2015:
GBP10.6 million), covering 88% of operating costs (FY2015: 84%)
-- Adjusted diluted EPS** increased 26% to 2.66 pence (FY2015: 2.11 pence)
-- Adjusted EBITDA* increased 57% to GBP6.3 million (FY2015: GBP4.0 million)
-- Adjusted PBT** increased 58% to GBP5.7 million (FY2015: GBP3.6 million)
-- Cash generated by operations of GBP4.9 million (FY2015: GBP2.2 million)
-- Net cash of GBP6.3 million (FY2015: GBP5.3 million)
-- Proposed final dividend of 0.122 pence per share
o Making a total dividend of 0.183 pence per share for the year
(FY2015: 0.165 pence per share) in line with our policy of growing
annual dividends by a minimum of 10%
Operational Highlights
-- Strong growth in SaaS business driven by investment in
Enlighten, Ideagen's cloud based Governance, Risk and Compliance
(GRC) platform
o Landmark contract awarded for Enlighten with the Railway
Safety and Standards Board worth GBP4.9 million over 5 years
o Additional 15 SaaS deals, including Providence Financial,
WAMOS Air, HNZ Global and Air Greenland
-- Over 100 new on-premise customer wins including Schiphol
Airport, DHL, Cobalt Air, Meggitt and South West Yorkshire NHS
Trust
-- Significant contract extensions and expanded engagements
within existing customer base, including PWC, Haeco, Babcock,
Bristow Helicopters, BTG and Dartford and Gravesham NHS Trust
-- Continued high levels of customer retention with support and
maintenance contract renewal rate of 96% (FY2015: 96%)
-- Ongoing product innovation and investment across all products
*Before share based payments and exceptional items
**Before share based payments, amortisation of acquisition
intangibles and exceptional items
David Hornsby, CEO of Ideagen, commented: "Ideagen has enjoyed
another year of strong growth. Having expanded the business
considerably with seven acquisitions completed in the previous four
years, adding significant product capabilities and expertise to the
Group, the year's focus was on driving forward our enlarged
operations and executing the organic growth strategy.
"The market for GRC management solutions remains fragmented and
the drivers are long term and highly strategic. Trading since the
year end has remained robust. Whilst we remain alert to prevailing
economic and political conditions we have a strong presence in a
variety of different markets across the globe, which, together with
the high levels of recurring revenues and repeat business derived
from our 2,200 customer base, provides me with confidence in the
future prospects for the Group."
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 020 8004 4218
Hilary Buchanan
Josh Royston
About Ideagen plc
Ideagen is a UK company quoted on the London Stock Exchange AIM
market (Ticker: IDEA.L). Ideagen is a supplier of Information
Management software with operations in the UK, the United States
and the Middle East. The Company specialises in eGRC (Enterprise
Governance, Risk and Compliance) and Healthcare solutions for
organisations operating within highly regulated industries. With an
excellent portfolio of software products, Ideagen is able to
provide complete content lifecycle solutions that enable
organisations to meet their Regulatory and Quality Compliance
standards, helping them to reduce costs and improve efficiency.
The Group has a customer base of over 2,200 organisations using
the Ideagen suite of products, including many blue chip names such
as BAE Systems, Emirates, Shell and the European Central Bank as
well as 150 hospitals in the UK and US.
CHAIRMAN'S STATEMENT
We are pleased to report on another solid performance for the
year to 30 April 2016, representing our 7th consecutive year of
revenue and EBITDA growth. The Group delivered strong organic
revenue growth of 10%, combined with a full year contribution from
Gael which was acquired in January 2015.
A key financial metric for the Group continues to be adjusted
EPS and we are pleased to report an increase in adjusted diluted
EPS of 26% to 2.66 pence for the year (FY2015: 2.11 pence).
Following several successful acquisitions in prior years,
Ideagen now has scale, a world class customer base, an outstanding
product set and a proven and effective management team. This year's
focus has been on driving forward our expanded operations and
executing the strategy through stronger organic growth.
We have successfully added new customers to the Group across all
of our key Governance, Risk and Compliance ("GRC") verticals,
including manufacturing, life sciences, healthcare and financial
services, while also maintaining a focus on product enhancement and
innovation which has seen acceptance across the user base,
resulting in significant revenues.
The clinical management solutions market continues to be
impacted by the stasis in acute NHS Trusts, as anticipated. However
our existing customers in this market continue to provide us with
strong levels of recurring revenues, adding to the underlying
financial strength of the business. GRC represents the large
majority of Ideagen revenues at 80% and continues to be the primary
engine of growth for the Group.
The long term prospects for the Group are positive.
Organisations require the tools we provide to help them identify,
assess and manage corporate risk while complying with international
industry standards, and many are only in the early stages of
adopting an enterprise-wide approach. We believe we have
established the right business platform to continue to participate
in this growth, with a comprehensive set of integrated solutions
and offices in the UK, US and Dubai from which we can service our
global customer base.
In line with our progressive dividend policy and reflecting our
continued confidence in the prospects for the Group, the Board is
pleased to propose a final dividend of 0.122 pence per share making
a total dividend of 0.183 pence for the year (FY2015: 0.165 pence).
Subject to approval at the forthcoming AGM, the final dividend will
be payable on 15 November 2016 to shareholders on the register on
31 October 2016. The corresponding ex-dividend date is 28 October
2016.
The success of Ideagen is the result of our dedicated and
committed employees and on behalf of the Board I should like to
thank all of them for their continued hard work. The new financial
year has started well and I look forward to continued growth.
Jonathan Wearing
Non-Executive Chairman
CHIEF EXECUTIVE'S REVIEW
Business Review
Trading for the period was robust, resulting in a year of solid
growth for the Group. Our priorities during the year were
completing the integration of Gael, our largest acquisition to date
in January 2015, and the continued development of the solutions
portfolio to ensure we are fully aligned to our customers' evolving
needs.
Growth in the period was driven by our core business in the
development and implementation of GRC solutions. New customers
added in the period include HNZ Global, Amsterdam Schiphol,
Providence Financial, WAMOS Air, DHL and Meggitt while significant
new orders from the existing customer base were achieved with
Haeco, Babcock, Boeing and PwC.
Revenue for the year increased 52% to GBP21.9 million (FY2015:
GBP14.4 million), representing underlying organic growth of 10%
(FY2015: 5.3%). This resulted in adjusted EBITDA for the Group of
GBP6.3 million (FY2015: GBP4.0 million), an increase of 57% whilst
adjusted diluted EPS increased 26% to 2.66 pence.
The Group continues to enjoy high levels of recurring revenue,
which represent 53% (FY2015: 53%) of revenue and cover 88% of the
operating cost base (FY2015: 84%).
Cash generation remained strong, particularly in the second half
of the year, and net cash at 30 April 2016 was GBP6.3 million (31
October 2015: GBP5.4 million), after paying GBP1.7 million of
deferred and contingent consideration, principally for the Gael
acquisition, and GBP0.3 million in dividends in the second half.
The Group continues to maintain a debt-free balance sheet.
The international landscape for GRC management is evolving and
we believe we are well positioned to capitalise on the emerging
trends. The industry verticals we operate in are governed by an
increasing number of international standards, with the introduction
of standards such as ISO 13485:2016, IATA/e-IOSA for aviation and
ISO 45001 for health and safety as examples. Furthermore, we are
seeing these new standards move increasingly towards a risk-based
philosophy, meaning that it is no longer sufficient for risk
management and compliance procedures to be implemented in
department silos but instead must be embedded across all areas of
an organisation in an integrated way.
We have the tools and expertise to help our customers develop
and embed a holistic approach to risk management across their
enterprise. This trend in turn is also driving interest in
SaaS-delivered GRC systems which can easily deploy across multiple
geographies and departments and scale to cope with vast, disparate
workforces. While SaaS-based revenue currently represents a small
proportion of overall revenue, we see this as a significant growth
area for the Group and a key focus for continued product
development.
Markets: GRC and Content & Clinical
The Group operates in two markets: supplying GRC solutions to
highly regulated industries including Healthcare (which includes
provision to the NHS), Complex Manufacturing, Finance, Transport
and Life Sciences; and, supplying Content and Clinical management
solutions, primarily to the NHS.
GRC represented 80% of Ideagen revenues at GBP17.5 million and
continues to be the main engine of growth for the Group. Revenues
from this market grew by 23% during the year (FY2015: 13%).
Content and Clinical represents 20% of Ideagen revenues
contributing GBP4.4 million to Group revenue (FY2015: GBP5.5
million).
The Content & Clinical market continues to be impacted by
stasis within acute NHS trusts resulting in a decline of 20% in
revenues from this market during the year (FY2015: decline of 3%).
While there are encouraging longer term opportunities, policy
initiatives and decisions continue to be delayed and as a result,
the Group does not see a strong growth opportunity in the near
term. The Group continues to benefit from high levels of recurring
revenues from our Content and Clinical customers adding to the
underlying financial strength of the business and does not expect
any further decline in the current financial year.
Acquisitions
The Board continues to pursue opportunities to complement
organic growth through strategic and bolt on acquisitions. The
Group continues to build on its extensive experience from previous
successful acquisitions and will adhere to its strict criteria of
acquiring complementary businesses that have strong IP and
significant recurring revenues.
Product Strategy & Development
The Group has a strong commitment to continued development of
its product suite. The product development strategy centres on the
closer integration of the established product set to enable a
modular best-of-breed GRC solution, delivered via SaaS or
on-premise.
On-premise:
The focus going forward is on the closer integration and
interoperability of the product suite, including the Pentana,
Proquis and Q-Pulse products, across a single, modular platform. We
have made good progress in the year towards creating common
standards and common user interfaces in line with this
strategy.
Cloud:
We continue to see growing interest in SaaS deployed GRC systems
amongst our customer base which can provide the scale and
flexibility required for a pan-enterprise approach to risk
management. As a result, we have seen excellent early success with
our Enlighten solution, delivered via Amazon Web Services. The
focus in the year ahead is adding enhanced functionality to the
Enlighten platform to provide smart forms capability, training and
competency and third party management.
Customer Case Studies
1. Ideagen Enlighten
Virgin Trains
Ideagen has been working with Virgin Trains, a major UK train
operating company, through the provision of its Enlighten cloud
solution.
Enlighten has brought with it a number of operational business
benefits such as easy access to company documentation, user
friendly completion of audits and the proactive logging and
reporting of accidents and incidents. The firm has over 1,400
employees utilising Enlighten to effectively streamline work
management processes and enhance quality document control. The
software also provides dynamic safety management investigation,
monitoring and reporting while safety incidents can be captured in
real time via mobile devices and processed seamlessly.
Garry Hall, Safety and Standards Manager at Virgin Trains, said:
"With very little training, we have managed to implement new ways
of working using the product for maximum benefit. We initially
started using Enlighten as a safety management system, but it
offers a lot more than just that and fits our long-term aims in
terms of development."
2. Ideagen Q-Pulse & Validation Services
Royal Wolverhampton NHS Trust
The Royal Wolverhampton NHS Trust is one of the largest acute
and community providers in the West Midlands having more than 800
beds on the New Cross site as well as a number of additional
locations. As the second largest employer in Wolverhampton, the
Trust employs more than 8,000 staff.
Ideagen worked with Royal Wolverhampton NHS Trust to validate
its Q-Pulse software following the Trust's transition from CPA to
ISO 15189 standard. Ideagen, along with its validated partner,
Compliance Path, helped the Trust achieve the standard
certification by providing a validation pack which consolidated
information across each of the Trust's Q-Pulse modules and offered
a simple guide to follow for successful validation.
Katy New, Pathology Quality Manager, said: "The final validation
report for Q-Pulse contained the package itself along with the
additional checks. All in all it was a fantastic, and hassle free
service from Ideagen and CompliancePath and meant that we didn't
need to spend months validating or contract a specialist consultant
paying a premium. It saved us immensely in resources and removed
what would have been a major headache for the department."
3. Ideagen Pentana
BDO
BDO, a global top-five accounting firm, worked with Ideagen to
implement Ideagen Pentana for its Risk and Advisory Services
department. Pentana quickly became an integral part of the
department's operations.
Pentana allowed BDO to implement a consistent methodology which
was compliant with international risk and auditing standards,
allowing for multiple departments within the business - in this
case the Risk, Compliance and Internal Audit teams - to work with a
single tool, increasing effectiveness of the 'Three Lines of
Defence' and 'Golden Thread'.
Nigel Burbidge, Partner and Global Head of Risk Advisory
Services for BDO, added: "We use Pentana for all of our internal
audits and the product is a requirement now within the risk and
advisory services team here at BDO. Every internal audit we carry
out uses Pentana from beginning to end as it provides a structured
receptacle for our working papers. The product also enables us to
manage our reviews and our files and to structure the risk based
internal audit reviews that we were carrying out in a way that was
relatively easy and simple for our staff to use."
Outlook
The market for GRC management solutions remains fragmented and
the drivers are long term and highly strategic. Trading since the
year end has remained robust. Whilst we remain alert to prevailing
economic and political conditions we have a strong presence in a
variety of different markets across the globe, which, together with
the high levels of recurring revenues and repeat business derived
from our 2,200 customer base, provides me with confidence in the
future prospects for the Group.
David Hornsby
Chief Executive Officer
FINANCIAL REVIEW
Revenue for the year ended 30 April 2016 increased by 52% to
GBP21.9 million (FY2015: GBP14.4 million). Within this, pro-forma
organic revenue growth was 10%. This is based on a comparison with
pro-forma revenue for FY2015 of GBP19.9 million which includes the
acquisitions of Gael and EIBS for a full year.
The Group operates in two markets. Revenues from the GRC market
of GBP17.5 million represented 80% of Ideagen revenues and this
continues to be the main engine of growth for the Group. Revenues
from this market grew by 23% during the year (FY2015: 13%). Content
and Clinical represents 20% of Ideagen revenues contributing GBP4.4
million to Group revenue (FY2015: GBP5.5 million). Revenues from
this market were impacted by the ongoing stasis in acute NHS trusts
and declined by 20% during the year although this decline was only
15% if revenues from non-core hardware sales are excluded.
Recurring revenues were GBP11.5 million (FY2015: GBP10.6
million) making up 53% (FY2015: 53%) of total revenues and are
equivalent to 88% (FY2015: 84%) of operating costs. Software
licence revenues represented 32.8% (FY2015: 29.5%) of total
revenues at GBP7.2 million (FY2015: GBP4.3 million), Maintenance
and Support 45.6% (FY2015: 45.9%) at GBP10.0 million (FY2015:
GBP6.6 million), Professional Services 21.1% (FY2015: 20.2%) at
GBP4.6 million (FY2015: GBP2.9 million) and Hardware 0.5% (FY2015:
4.4%) at GBP0.1 million (FY2015: GBP0.6 million).
Adjusted EBITDA increased by 57% to GBP6.3 million (FY2015:
GBP4.0 million) and the adjusted EBITDA margin at 28.5% remained at
a similar level to FY2015 (27.9%). We have continued our programme
of investment in our staff, improving customer service and the
longer-term infrastructure of the business both to support future
organic growth and provide a stronger platform for the integration
of future acquisitions.
Amortisation of acquisition intangibles of GBP3.7 million
(FY2015: GBP2.1 million) represents the majority of the total
depreciation and amortisation charge of GBP4.3 million (FY2015:
GBP2.5 million). Amortisation of development costs amounted to
GBP0.4 million (FY2015: GBP0.2 million). The share-based payment
charge of GBP0.9 million (FY2015: GBP0.3 million) is a non-cash
cost which relates to the Group's equity-settled share option
schemes. The increased charge is mainly in respect of the Long Term
Incentive Plan which was set up in 2015.
The adjusted group tax charge was GBP0.7 million (FY2015: GBP0.6
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 12.4% (FY2015: 16.4%) of adjusted profit before tax of
GBP5.7 million (FY2015: GBP3.6 million). The lower adjusted tax
rate is mainly the result of a higher rate of R&D tax credit
claims in the Gael business acquired in 2015. The Group's use of
tax losses has reduced the corporation tax liability to only
GBP13,000 at 30 April 2016.
As a result of the above, adjusted diluted earnings per share
increased by 26% to 2.66p (FY2015: 2.11p).
The Group's financial position has continued to strengthen
during the year with net assets increasing to GBP33.7 million
(FY2015: GBP31.2 million) and net current assets increasing to
GBP3.8 million (FY2015: GBP1.2 million).
The level of intangible assets decreased to GBP32.6 million
(FY2015: GBP35.1 million) as a result of amortisation charges and
no new acquisitions in the year. The Group capitalised GBP1.6
million (FY2015: GBP0.9 million) of R&D development costs
during the year which represented 47% (FY2015: 49%) of total
development costs of GBP3.5 million (FY2015: GBP1.9 million) or
7.5% (FY2015: 6.5%) of total revenues. The increase is the result
of having Gael in the Group for a full year and the acceleration of
the Enlighten development programme.
Cash generated by operations improved during the year and
amounted to GBP4.9 million (FY2015: GBP2.2 million) representing
78% (FY2015: 56%) of adjusted EBITDA. Free Cash flow also improved
significantly to GBP2.8 million (FY2015 GBP0.7 million)
representing 45% (FY2015: 18%) of adjusted EBITDA. The group ended
the year with cash balances of GBP6.3 million (FY2015: GBP5.3
million) and no debt.
During the year, the group made the first deferred consideration
payment of GBP1.6 million in respect of the acquisition of Gael. A
final payment of GBP1.6 million is due to be made in January
2017.
Graeme Spenceley
Finance Director
Ideagen plc
Group Statement of Comprehensive Income for the year ended 30
April 2016
2016 2015
GBP'000 GBP'000
Revenue 21,936 14,389
Cost of sales (2,632) (1,892)
Gross profit 19,304 12,497
Operating costs (13,047) (8,477)
-------- -------
Profit from operating activities
before depreciation, amortisation,
share-based payment charges
and exceptional items 6,257 4,020
Depreciation and amortisation (4,322) (2,503)
Costs of acquiring businesses - (450)
Share-based payment charges (936) (276)
Profit from operating activities 999 791
Movement in fair value of contingent
consideration (4) (188)
Finance income 7 5
-------- -------
Profit before taxation 1,002 608
Taxation 315 (128)
-------- -------
Profit for the year 1,317 480
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:
Exchange differences on translating
foreign operations 88 (4)
Corporation tax on exercise
of options in equity 27 -
Total comprehensive income for
the year attributable to the
owners of the parent company 1,432 476
======== =======
Earnings per share Pence Pence
Basic 0.74 0.35
Diluted 0.71 0.34
Ideagen plc
Group Statement of Financial Position at 30 April 2016
2016 2015
GBP'000 GBP'000
Assets and liabilities
Non-current assets
Intangible assets 32,572 35,050
Property, plant and equipment 433 302
Deferred income tax assets 877 876
-------- --------
33,882 36,228
-------- --------
Current assets
Inventories 33 55
Trade and other receivables 8,244 7,332
Cash and cash equivalents 6,317 5,266
-------- --------
14,594 12,653
-------- --------
Current liabilities
Trade and other payables 2,506 3,476
Contingent consideration on
business combinations - 47
Current income tax liabilities 13 44
Deferred revenue 6,603 6,228
Deferred consideration on business
combinations 1,623 1,628
-------- --------
10,745 11,423
-------- --------
Non-current liabilities
Deferred consideration on business
combinations - 1,613
Deferred income tax liabilities 4,048 4,656
4,048 6,269
Net assets 33,683 31,189
======== ========
Ideagen plc
Group Statement of Financial Position at 30 April 2016
(continued)
2016 2015
GBP'000 GBP'000
Equity
Issued share capital 1,790 1,773
Share premium 23,598 23,443
Merger reserve 1,167 1,167
Share-based payments reserve 1,482 653
Retained earnings 5,565 4,160
Foreign currency translation
reserve 81 (7)
Equity attributable to
owners of the parent 33,683 31,189
======== ========
Ideagen plc
Group Statement of Cash Flows for the year ended 30 April
2016
2016 2015
GBP'000 GBP'000
Cash flows from
operating activities
Profit for the year 1,317 480
Depreciation of property,
plant and equipment 201 156
Amortisation of intangible
non-current assets 4,121 2,347
Loss on disposal of property,
plant and equipment 3 -
Share-based payment
charges 936 276
Finance income recognised
in profit or loss (7) (5)
Taxation (credit)/charge
recognised in profit or loss (315) 128
Business acquisition costs
in profit or loss - 450
Movement in fair value of
contingent consideration 4 188
Decrease in inventories 22 334
Increase in trade and other
receivables (834) (1,487)
Decrease in trade and other
payables (894) (661)
Increase in deferred revenue
liability 348 42
------- --------
Cash generated by
operations 4,902 2,248
Interest received 7 5
Income tax paid (41) (185)
Business acquisition costs
paid (92) (312)
Net cash generated by operating
activities 4,776 1,756
------- --------
Cash flows from
investing activities
Cash outflow on acquisition
of businesses net of cash
acquired - (15,879)
Payments of deferred consideration
on business combinations (1,618) (50)
Payments of contingent consideration
on business combinations (51) (468)
Payments for development
costs (1,644) (941)
Payments for property, plant
and equipment (347) (98)
Proceeds of disposal of property,
plant and equipment 12 9
Net cash used in investing
activities (3,648) (17,427)
------- --------
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 172 211
Equity dividends paid (306) (219)
Net cash (used)/generated
by financing activities (134) 16,908
------- --------
Net increase in cash and
cash equivalents during the
year 994 1,237
Cash and cash equivalents
at the beginning of the year 5,266 4,011
Effect of exchange rate changes
on cash balances held in
foreign currencies 57 18
------- --------
Cash and cash equivalents
at the end of the year 6,317 5,266
------- --------
Ideagen plc
Group Statement of Changes in Equity for the year ended 30 April
2016
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 2015 1,773 23,443 1,167 653 4,160 (7) 31,189
Shares issued under
share option scheme 17 155 - - - - 172
Profit for the year - - - - 1,317 - 1,317
Other comprehensive
income for the year - - - - 27 88 115
Share-based payments - - - 921 - - 921
Transfer on exercise
of share options - - - (92) 92 - -
Taxation on share-based
payments in equity - - - - 275 - 275
Equity dividends paid - - - - (306) - (306)
Balance at 30 April
2016 1,790 23,598 1,167 1,482 5,565 81 33,683
======== ======== ======== ========= ========= ============ =============
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
======== ======== ======== ========= ========= ============ =============
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
2016 within the meaning of section 434 of the Companies Act 2006.
This will be available from www.ideagen.com in due course. The
audited annual report and accounts of the Group for the year ended
30 April 2015 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 2016 unless otherwise
stated below.
2 Revenue
An analysis of the Group's revenue is given below.
2016 2015
GBP'000 GBP'000
Software licences 7,196 4,242
Maintenance and support 10,000 6,606
Professional services 4,636 2,905
Hardware 104 636
Total revenue 21,936 14,389
-------- --------
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.
2016 2015
GBP'000 GBP'000
Profit for the year (Earnings) 1,317 480
Adjustments:
Costs of acquiring businesses - 450
Share-based payment charges 936 276
Deferred taxation on share
based payment charges (168) (57)
Amortisation of acquired
intangibles 3,715 2,090
Deferred taxation on amortisation
of acquired intangibles (851) (409)
Movement in fair value of
contingent consideration 4 188
Adjusted earnings 4,953 3,018
------------ ------------
Weighted average number of
shares 178,379,433 138,783,359
Diluted weighted average
number of shares 186,316,355 143,068,384
Basic earnings per share 0.74 0.35
pence pence
Diluted earnings per share 0.71 0.34
pence pence
Adjusted basic earnings per 2.78 2.17
share pence pence
Adjusted diluted earnings 2.66 2.11
per share pence pence
4 Taxation
Further information on the taxation (credit)/charge in the
Statement of Comprehensive Income is as follows:
2016 2015
GBP'000 GBP'000
UK corporation tax (credit) / charge (15) 109
Overseas income tax charge 34 51
19 160
Deferred tax credit on amortisation
of acquisition intangibles (851) (409)
Deferred tax credit on share based
payment charges (168) (57)
Deferred tax charge on utilisation
of tax losses 442 293
Deferred tax charge on development
costs 243 141
Total deferred taxation (credit) (334) (32)
Total taxation (credit) / charge (315) 128
-------- --------
5 Adjusted profit before taxation and adjusted taxation charge in the Income Statement
2016 2015
GBP'000 GBP'000
Adjusted earnings (note 3) 4,953 3,018
Adjusted taxation charge (below) 704 594
-------- --------
Adjusted profit before taxation 5,657 3,612
-------- --------
Taxation (credit)/charge in the
Statement of Comprehensive Income (315) 128
Add back:
Deferred tax credit on amortisation
of acquisition intangibles (note
3) 851 409
Deferred tax credit on share based
payment charges (note 3) 168 57
-------- --------
Adjusted taxation charge 704 594
-------- --------
Adjusted taxation charge based
on adjusted profit before taxation 12.4% 16.4%
-------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFVTDLITLIR
(END) Dow Jones Newswires
July 19, 2016 02:00 ET (06:00 GMT)
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