Financial & Operational Highlights
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Investors / Financial & Operational Highlights
Idox plc – Full year results to 31 October 2022
Financial highlights
Revenue
- Revenue increased by 6% to £66.2m (2021: £62.2m), driven by growth in Public Sector Software.
- Recurring revenue1 increased by 12% to £40.5m (2021: £36.3m), and now account for 61% of the Group’s total revenue (2021: 58%).
Profit
- Adjusted2 EBITDA increased by 15% to £22.5m (2021: £19.5m).
- Adjusted2 EBITDA margin improved to 34% (2021: 31%), driven by operational improvements, acquisitions, and business mix.
- Statutory operating profit increased by 13% to £8.7m (2021: £7.6m).
- Statutory operating profit margin improved to 13% (2021: 12%).
- Statutory profit before tax £6.6m (2021: £7.3m).
- Adjusted3 diluted EPS increased by 7% to 2.44p (2021: 2.27p).
- Statutory diluted EPS decreased to 1.24p (2020: 1.34p).
Cash and debt
- Net debt4 at 31 October 2022 reduced by 18% to £6.7m (2021: £8.1m).
- Free cashflow5 generation of £7.2m (2021: £9.7m).
- Acquisition of LandHawk in the year for £1.1m.
Dividend
- Final dividend of 0.5p per share (2021: 0.4p) declared, reflecting continuing growth opportunities, our strong financial position and our confidence in the future.
Alternative Performance Measures
These items are excluded from statutory measures of profit to present a measure of cash earnings from underlying activities on an ongoing basis. This is in line with management information requested and presented to the decision makers in our business; and is consistent with how the business is assessed by our debt and equity providers.
1 Recurring revenue is defined as revenues recognised from support and maintenance fees, managed service fees (including for hosting) and Software-as-a-Service subscription fees.
2 Adjusted EBITDA is defined as earnings before amortisation, depreciation, restructuring, acquisition costs, impairment, financing costs and share option costs. Share option costs are excluded from Adjusted EBITDA as this is a standard measure in the industry and how management and our shareholders track performance (see note 11 for reconciliation).
3 Adjusted EPS excludes amortisation on acquired intangibles, restructuring, financing, impairment, share option and acquisition costs (see note 11 for reconciliation).
4 Net (debt) / cash is defined as the aggregation of cash, bank borrowings and the long-term bond.
Operational highlights
Idox has delivered a resilient performance in a year of economic uncertainty and maintained good progress against the Group’s strategic goals:
- Record full year order intake up 19% on FY21 to £74m, with good wins across the Group, providing good visibility into FY23.
- Good growth of revenue and profit in Public Sector Software (PSS) buoyed by FY21 acquisitions; stable performance in Engineering Information Management (EIM) despite difficult market conditions.
- Contract wins and extensions which increase average tenure across both our PSS and EIM
- Further enhancement of the Group’s geographic information system mapping (GIS) capabilities with the acquisition of LandHawk, following on from the three FY21 acquisitions of Aligned Assets, thinkWhere and exeGesIS.
- Continued upscaling of the Pune, India, centre of excellence to increase capacity, efficiency, capability, and knowledge sharing.
- Clear focus on innovation and consolidation of our product portfolio, including our continuing journey to transition to cloud across the portfolio.
- The Group has enjoyed an encouraging start to FY23, with trading in line with the Board’s expectations.
- High levels of recurring revenue, contract renewals, orderbook and pipeline, providing good visibility which leaves us well placed in our aim to grow the business by double digits in FY23.
- We continue to target further acquisitions to leverage our platform.
Rule 26
Information last updated: 26 January 2023