Results

Financial & Operational Highlights

Investors / Financial & Operational Highlights

Financial highlights

Continuing operations (excluding disposed Idox Content businesses1):

  • Revenue increased by 9% to £62.2m (2020: £57.3m), including 5% organic increase.
    Recurring2 revenue increased by 2% to £36.3m (2020: £35.7m).
  • Adjusted3 EBITDA increased by 13% to £19.5m (2020: £17.2m).
  • Adjusted3 EBITDA margin improved to 31% (2020: 30%).
  • Operating profit increased by 90% to £7.6m (2020: £4.0m). Operating profit margin improved to 12% (2020: 7%).
  • Adjusted4 diluted EPS increased by 54% to 2.27p (2020: 1.47p).
  • Diluted EPS increased to 1.34p (2020: 0.11p).
  • Free cashflow5 of £7.1m (2020: £11.2m) following planned repayment of 2020 VAT deferrals.
  • Disposal of Content businesses generated net proceeds of £10.7m; three acquisitions completed in the year with initial net consideration of £10.5m.
  • Net debt6 at 31 October 2021 reduced by 50% to £8.1m (2020: £16.1m).
  • Final dividend of 0.4p per share (2020: 0.3p) declared, reflecting the strong cash generation and healthy financial position of the Group.

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.

There have been no adjustments to any of our reporting metrics for any impact of the COVID-19 pandemic.

1 The comparatives have been restated due to the Content business being reclassified as discontinued operations. There has been no change to the overall results.
2 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.
3 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.
4 Adjusted EPS excludes amortisation on acquired intangibles, restructuring, financing, impairment, share option and acquisition costs.
5 Free cashflow is defined as net cashflow excluding: acquisitions / disposals, debt repayments & drawdowns, and shareholder placing & dividends.
6 Net debt is defined as the aggregation of cash, bank borrowings and long-term bond.

Operational highlights

  • Material advancement in our M&A strategy to focus capital on core software businesses with high margin operations and good growth potential:
    o Disposal of Content businesses, in line with our continued simplification and focus on software operations.
    o Acquisition of Aligned Assets, thinkWhere and exeGesIS, which enhance our Public Sector offering and provide greater focus and depth of expertise in the GIS (geospatial information services) market.
    o Further development of our M&A ambitions in both sourcing and managing pipeline opportunities.
  • Improvements to our product and go-to-market efforts; now fully managed and reported in our new Group-wide CRM platform.
  • Consolidated all offshore activity to a single Idox centre in Pune, India.
  • Clear focus on innovation and consolidation of our product portfolio, including continuing our journey to cloud across our portfolio.
  • Further investment in our people promoting higher levels of engagement, and leadership.
  • Increasing our commitments to Environmental, Social and Governance initiatives; conducting business responsibly is core to our business model and long-term strategic goals.
  • FY22 has started well, in line with expectations
  • Combination of recurring revenue and orderbook, driven by H2 sales orders, and resilient public sector markets, provides good viability for FY22 revenue.
  • The sales pipeline for FY22 remains encouraging.
  • FY21 acquisitions integrating well and to plan, and good line of sight over an attractive M&A pipeline.

Rule 26
Information last updated: 28 January 2022