(“Idox”, the “Company” or the “Group”)
Year End Trading Update
Idox plc (AIM: IDOX), a leading supplier of specialist information management solutions and services, today provides an update on trading for its financial year ended 31 October 2017.
Idox continued to deliver on its strategy during the year and has grown both revenues and profits. The Company has been successful in winning several important contracts to further its focus on becoming a leading international supplier of software, services, managed services and content to the wide public sector in the UK and abroad. Due to customer disruption in the wake of June’s General Election, sign-off on some contract wins, especially within health and transport have been delayed into the new financial year, resulting in an impact to 2017 profit expectations. Due to this timing impact the board now expects EBITDA for the year of about £23m, compared with £21.5m in 2016. The Board does expect completion / implementation of the contracts affected in the weeks ahead which means the Company starts 2018 with strong momentum.
In all other respects the business has made good progress in the implementation of its strategy. Public Sector and Digital Divisions have seen further adoption of our new digital solutions and we have continued to see market consolidation on our core back office products, with contracts amounting to £3.5m being awarded in the final quarter of the year. In addition, the company has been awarded the contract to deliver electronic counting of elections in Malta with an initial value of £2.1m.
The integration of Halarose, the supplier of electoral back office software and services to UK local authorities, which Idox acquired in August is progressing well. Halarose helps create a larger, more effective and focused Idox Elections division which will increase market share through cross-selling initiatives to new and existing customers in the UK and Europe.
6PM, the healthcare solutions business acquired in January, has now been fully integrated and has been awarded contracts for 5 new NHS trusts with an order value in excess of £2.8m that we expect to be delivered in the first half of the new financial year.
Group net debt ended the year at £32.7m compared with £25.1m as at 31 October 2016 and £28.2m as at 30 April 2017. The debt figure reflects acquisitions, including 6PM, and the upfront costs of the delayed contract wins.
The Board remains confident that the Group is well positioned in its markets and carries excellent momentum into 2018. The Group’s focus on helping public sector customers improve efficiency and effectiveness through digital transformation continues to provide considerable growth opportunities. The large proportion of annual revenue from recurring and repeating revenues and a solid order book and pipeline underpins the Group’s prospects.
Notice of Final Results
The Board intends to report the Group’s final results on 20 December 2017.
Andrew Riley, Chief Executive of Idox, said:
“Overall Idox has made excellent progress with its strategy of organic and acquisitive growth and our products and services continue to gain traction within our markets.
“The timing of completion of some contracts which has spilled into the new financial year gives us a strong start to 2018, we continue to keep tight control of costs and we are encouraged by the opportunities for the year ahead.”
This announcement is released by Idox plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (“MAR”), encompassing information relating to the trading update described herein, and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Andrew Riley, Chief Executive Officer.
Idox plc +44 (0) 870 333 7101
Laurence Vaughan, Non-Executive Chairman
Andrew Riley, Chief Executive
Jane Mackie, Chief Financial Officer
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
MHP (Financial PR) +44 (0) 20 3128 8100