Results

Financial & Operational Highlights

Investors / Financial & Operational Highlights

Financial highlights

Continuing operations (FY21 comparatives exclude Idox Content businesses disposed in H1 FY21):

Revenue

  • Increased by 7% to £33.2m (H1 FY21: £31.1m), driven by double digit growth in Public Sector Software.
  • Recurring revenues1 increased by 13% to £19.8m (H1 FY21: £17.6m), and now account for 60% of the Group’s total revenue (H1 FY21: 57%).

Profit

  • Adjusted2 EBITDA increased by 8% to £11.0m (H1 FY21: £10.1m).
  • Operating profit increased by 3% to £4.3m (H1 FY21: £4.1m).
  • Adjusted2 EBITDA margin consistent at 33% (H1 FY21: 33%).
  • Operating profit margin consistent at 13% (H1 FY21: 13%).
  • Statutory profit before tax £3.6m (H1 FY21: £3.7m).
  • Adjusted3 diluted EPS increased by 7% to 1.21p (H1 FY21: 1.13p).
  • Statutory diluted EPS increased by 1% to 0.68p (H1 FY21: 0.67p).

Cash

  • Net debt4 reduction of 54% in the period to £3.8m (31 October 2021: net debt £8.1m; 30 April 2021: net cash £7.6m). Comparatives reflect disposal of Content businesses which generated net proceeds of £10.7m in H1 FY21, and three acquisitions completed in H2 FY21 with initial net consideration of £10.5m.
  • Significant resources in place to fund M&A, including £35m revolving credit facility and £10m accordion.
  • Cash generated from operating activities before taxation as a percentage of Adjusted EBITDA for total operations was 122% (H1 FY21: 169%).

Alternative Performance Measures

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

  • Order intake of c.£40m, up 15% from H1 FY21, with strong pipeline underpinning our confidence over the medium term.
  • Contract wins and extensions with increased average tenure across both our Public Sector Software and Engineering Information Management (EIM) businesses.
  • Strong double-digit growth in revenue and profit in Public Sector Software buoyed by FY21 acquisitions; weaker performance in EIM due to continued global uncertainties.
  • Integration of 2021 acquisitions substantially complete and to plan.
  • Continued upscaling of Pune, India, centre of excellence to increase efficiency, capability, and knowledge sharing.
  • Good progress on furthering our M&A pipeline with strengthened and dedicated team, led by Rob Grubb.
  • Combination of recurring revenue and orderbook, in resilient Public Sector Software markets, provides good revenue visibility for the remainder of FY22.
  • EIM expected to deliver improved H2 FY22 performance.
  • The business continues to perform well and in line with the Board’s expectations.

Rule 26
Information last updated: 15 June 2022