TIDMIDEA
RNS Number : 2370N
Ideagen PLC
08 May 2018
This announcement contains inside information.
8 May 2018
Ideagen PLC
("Ideagen," "the Company" or the "Group")
Pre-Close Trading Update and Board Changes
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 2018 ahead
of the announcement of its full year results on or around 17 July
2018 and on changes to the structure and composition of its Board
of Directors (the "Board").
Trading Statement
The Board is pleased to report that results to 30 April 2018 are
expected to be in line with market expectations representing the
Group's ninth consecutive year of revenue and adjusted EBITDA**
growth.
The Group expects to report revenue up 33% at approximately
GBP36.1million, (FY2017: GBP27.1million) and adjusted EBITDA** up
40% at approximately GBP11.0 million (FY2017: GBP7.9 million), and
a significant increase in adjusted EPS***, which continues to be an
important financial metric for the Group.
Trading was once again strong across all key verticals with the
Group delivering organic revenue growth of approximately 11 per
cent* and generating a substantial increase in recurring revenues.
Last year's acquisitions all contributed positively to our growth
and the recently acquired Medforce Technologies Inc. is performing
as expected.
Cash generation remained robust. Net cash as at 30 April 2018
was GBP0.8 million (31 October 2017: GBP5.9million) after paying
GBP9.9 million of consideration for the acquisition of Medforce and
deferred consideration on Pleasetech, IPI Solutions and Logen and
GBP0.4 million in dividends.
Board Changes
Ideagen also announces a series of changes to its Board of
Directors. These changes are designed to optimise the talent and
expertise within the Company and will provide a structure that
ensures the Board's skillset remain aligned to the Group's ongoing
growth strategy.
Three of Ideagen's existing Directors will therefore realign
their roles with immediate effect:
David Hornsby has moved from the role of Chief Executive Officer
to become the Group's Executive Chairman. The Board has a clear
strategic objective to double revenues and adjusted EBITDA every 3
years and, having led Ideagen's significant growth since 2009,
David will continue to be responsible for Ideagen's medium and long
term growth plans. His particular areas of focus will include Group
strategy, M&A and Investor Relations.
Ben Dorks, currently Chief Customer Officer, has succeeded David
to become Ideagen's Chief Executive Officer. In this role Ben will
build upon his current leadership responsibilities and focus on the
Group's overall operational performance, customer acquisition and
retention and product development.
Jonathan Wearing has stepped down from his position as
Non-Executive Chairman after 15 years in this role. Jonathan will
remain on the Board as a Non-Executive Director and continue to add
his expertise to Board discussions.
David Hornsby, Executive Chairman:
"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 continue to grow
organically and to increase the percentage of our revenues derived
from recurring business. The Group has significant contracted work
in progress, a growing base of recurring revenues and a strong
pipeline of new business opportunities which provides the Board
with confidence for the current year and beyond.
I am also delighted to move into the Executive Chairman role and
that Ben has accepted the position of Chief Executive Officer. We
have worked with Ben for over five years and the Board believes
strongly he has the necessary experience, focus and energy to
develop and manage the people, systems and infrastructure to
support our growth plans. Finally, I would like to thank Jonathan
for his years of commitment to the Group as Chairman and look
forward to working with him in his new role."
* FY2017 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, Executive Chairman
Ben Dorks, Chief Executive Officer
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, Malaysia, Bulgaria and the
UAE. 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 3,500 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 250 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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