Results

Financial & Operational Highlights

Investors / Financial & Operational Highlights

Financial highlights

  • Revenue increased by 4% to £68.0m (2019: £65.5m).
  • Recurring revenue* increased by 5% to £37.4m (2019: £35.7m).
  • Order book for contracted software and services up 31% to £15.9m (2019: £12.1m).
  • Adjusted EBITDA** increased by 36% to £19.6m (2019: £14.4m). Adjusted EBITDA margin improved to 29% (2019: 22%).
  • Cash conversion of Adjusted EBITDA to net cash from operating activities improved to 109% (2019: 86%). Free cashflow*** of £11.2m (2019: £4.4m).
  • Adjusted EPS**** for continuing operations increased by 39% to 1.81p (2019: 1.30p).
  • Net debt***** at 31 October 2020 down 39% at £16.1m (2019: £26.4m).
  • Final dividend of 0.3p per share (2019: £Nil) declared, in line with the stated intention to restore dividend payments.

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 the 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. The alternative performance measures for 2019 do not include the impact of the adoption of IFRS 16 – Leases which was adopted on a modified retrospective basis in FY20 without restatement of comparative amounts. Details are included within the financial review section of the Strategic Report.

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

* Recurring revenue is defined as existing, contracted annuity revenues that have a high expectation of renewal for a minimum of twelve months.

** 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.

*** Free cashflow is defined as net cashflow excluding: acquisitions / disposals, debt repayments & drawdowns, and shareholder placing & dividends.

**** Adjusted profit and adjusted EPS excludes amortisation on acquired intangibles, restructuring, financing, impairment and acquisition costs.

***** Net debt is defined as the aggregation of cash, bank borrowings and long-term bond.

Operational highlights

  • Fully integrating our 2019 Tascomi acquisition, recently rebranded as ‘Idox Cloud’;
  • Significant progress in delivering Digital Transformation to clients with several new wins for Idox Cloud and new software developments based upon the Idox Cloud development framework;
  • Fully exiting sub-scale operations in Ireland and Malta;
  • Consolidating UK statutory entities, and completing a rebrand;
  • Establishing the first Group-wide CRM, which is already yielding improved sales performance;
  • Fully integrating our operational processes creating a single Idox Software unit; and
  • Idox has not utilised any government job support schemes to date.

Rule 26
Information last updated: 4 February 2021