TIDMIDOX
RNS Number : 4762F
IDOX PLC
18 May 2017
18 May 2017
Idox plc
("Idox", the "Company" or the "Group")
Half Year Trading Update
Notice of Half Year Results
Good progress in renewed public sector focus and encouraging
outlook
Idox plc (AIM: IDOX), a leading supplier of specialist
information management solutions and services to the public sector,
today provides an update on trading for the six months ended 30
April 2017.
Overview
Revenues have grown by 19%, principally as a result of the
initial contributions from the acquisitions of Idox Health
(formerly 6PM, completed 31 January 2017), Open Objects, (part of
the Public Sector division, completed 26 July 2016) and Rippleffect
(part of the Digital division, completed 22 August 2016).
Adjusted EBITDA* for the first six months is in line with
management expectations and slightly ahead of the same period last
year. Overall, the Group remains on track to deliver in line with
its expectations for the year as a whole reflecting the benefits of
these acquisitions, organic growth from recent contract wins, and
seasonality.
Our renewed strategic focus on, and investment in, growth
opportunities in the public sector has led to good progress in a
number of areas, with contract wins in social care, health and
local government. Idox Elections has been particularly noteworthy;
we delivered services to all 32 Scottish councils in the recent
local council elections, including print services, postal vote
management and, for the second time, e-counting software. We also
provided services to over 80 councils across England and Wales. We
expect to be very busy in the forthcoming General Election
providing additional revenues in the second half of the year.
The new digital services platform, enabled by recent
acquisitions, is underpinning our public sector focus and
investment for future growth. The platform was initiated with
building regulation and planning applications, and is now offering
over 30 citizen centric services.
Idox Health traded in line with our acquisition expectations,
with integration on track and good contract wins since acquisition;
it has several cross selling opportunities in its pipeline for
delivery in the remainder of the financial year.
Financial position
Group net debt at the half year stood at GBP28.2m (30 April
2016: GBP13.9m; 31 October 2016: GBP25.0m). This was after
utilising the facility for the acquisition of Open Objects (GBP3.4m
paid in cash and upto a further GBP1.6m will be drawn down in 2018,
as per the earnout) and Rippleffect (GBP2.0m) plus the Maltese bond
of GBP11.6m acquired with the acquisition of 6PM.
Outlook
The Board retains a positive outlook for the year as a whole;
this is supported by anticipated full second half contributions
from 2016-17 acquisitions (including Idox Health), the benefits of
ongoing 'one Idox' integration activity, further progress with the
digital services platform, as well as recent contract wins together
with a strong pipeline of new orders, and also strong elections
activity in the second half.
Notice of Half Year Results
The Board intends to report the Group's half year results on 6
June 2017.
*Adjusted is defined as earnings before amortisation,
restructuring, acquisition, corporate finance and share option
costs.
Andrew Riley, Chief Executive of Idox said:
"We have made solid progress in the first half. We have
continued to build on our areas of core expertise within the public
sector, with significant investment in our digital services
platform for future growth.
The outlook for the remainder of the year is encouraging and in
line with our expectations; we have good visibility for our second
half performance, which is expected to benefit from several
positives, not least strong elections activity, the phasing of new
contracts and the realisation of the benefits of acquisition and
organic investment."
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
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
About Idox plc
Idox plc is a supplier of specialist information management
solutions to the public sector and to highly regulated asset
intensive industries around the world in the wider corporate
sector.
Idox is the leading applications provider to UK local government
for core functions relating to land, people and property, such as
its market leading planning systems and election management
software. Over 90% of UK local authorities are now customers. Idox
provides public sector organisations with tools to manage
information and knowledge, documents, content, business processes
and workflow as well as connecting directly with the citizen via
the web, and providing elections management solutions. It also
supplies in the UK and internationally, decision support content
such as grants and planning policy information and corporates
compliance services. Idox delivers engineering document control,
project collaboration and facility management applications to many
leading companies in industries such as oil & gas, architecture
and construction, mining, utilities, pharmaceuticals and
transportation in North America and around the world.
The Group employs over 894 staff located in the UK, North
America, Europe, India and Australia.
For more information see www.idoxplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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