Ideagen PLC Pre-Close Trading Update (3487F)
May 17 2017 - 2:00AM
UK Regulatory
TIDMIDEA
RNS Number : 3487F
Ideagen PLC
17 May 2017
This announcement contains inside information.
17 May 2017
Ideagen PLC
("Ideagen," "the Company" or the "Group")
Pre-Close Trading Update
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management software to highly regulated industries, is pleased to
provide an update on trading for the year ended 30 April 2017 ahead
of the announcement of its full year results on or around 18 July
2017.
The Board is pleased to report that results to 30 April 2017 are
expected to be in line with market expectations and that trading
was once again robust across all key verticals, with particular
success within the Life Sciences, Aviation and Financial sectors.
The Group delivered organic revenue growth* of approximately 10 per
cent together with further contributions from all four acquisitions
made during the year. This represents the Group's eighth
consecutive year of revenue and adjusted EBITDA** growth.
The Group expects to report revenue of approximately
GBP27.1million, (FY2016: GBP21.9 million) and adjusted EBITDA** of
approximately GBP7.8 million (FY2016: GBP6.3 million), both having
increased by approximately 24%, and a significant increase in
adjusted EPS***, which continues to be an important financial
metric for the Group.
The Board is confident that the transition from a traditional
'perpetual licence' business model to a 'subscription licence'
model is well underway, as evidenced by a significant increase in
the run-rate of recurring revenues. This has been driven primarily
by the success of Coruson, our SaaS based enterprise Risk and
Safety Management solution which is allowing the Group to win
larger contracts and grow high visibility, subscription-based
revenue.
Cash generation was extremely strong at the end of the financial
year and accordingly net cash at 30 April 2017 was significantly
ahead of market forecasts at GBP4.2 million (31 October 2016:
GBP4.8 million), even after paying GBP4.6 million of consideration
for the acquisitions of IPI Solutions and Gael (deferred) and
GBP0.3 million in dividends. The Board expects to report that cash
generated by operations will be in excess of 100% of adjusted
EBITDA**.
David Hornsby, Chief Executive, commented: "We are pleased to
report that the Group has continued to perform well in delivering
another year of high quality earnings growth underpinned by strong
cash generation. We have also made four important acquisitions
which have provided scale, product capability and recurring
revenues. We continue to grow organically and to increase the
percentage of our revenues derived from recurring business. The
Group has significant contracted work in progress and a strong
pipeline of new business opportunities which provides the Board
with confidence for the current year and beyond."
* FY2016 comparator prepared on a proforma basis as if these
acquisitions had occurred during that year
**Earnings before interest, tax, depreciation, amortisation,
share based payments, acquisition costs and other exceptional
items.
***Adjusted diluted earnings per share
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief Executive
Graeme Spenceley, Finance
Director
finnCap Limited 020 7220 0500
Stuart Andrews/Henrik
Persson/James Thompson
(Nomad)
Stephen Norcross (Corporate
Broking)
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 GRC (Governance, Risk and Compliance) and
Content and Clinical solutions with a primary focus on
organisations operating within highly regulated industries. With an
excellent portfolio of software products, Ideagen is able to
provide complete information lifecycle solutions that enable
organisations to reduce risk, meet their regulatory and compliance
standards, helping them to reduce costs and improve efficiency.
The Group has a customer base of over 3,000 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.
For further information please visit www.ideagen.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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