IDOX PLC Year End Trading Update (4915W)
November 14 2017 - 10:45AM
UK Regulatory
TIDMIDOX
RNS Number : 4915W
IDOX PLC
14 November 2017
Idox plc
("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.
Overview
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
GBP23m, compared with GBP21.5m 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 GBP3.5m 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 GBP2.1m.
Acquisitions
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 GBP2.8m that we expect
to be delivered in the first half of the new financial year.
Financial position
Group net debt ended the year at GBP32.7m compared with GBP25.1m
as at 31 October 2016 and GBP28.2m as at 30 April 2017. The debt
figure reflects acquisitions, including 6PM, and the upfront costs
of the delayed contract wins.
Outlook
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.
Enquiries:
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
Shaun Dobson
Liz Yong
MHP (Financial PR) +44 (0) 20 3128 8100
Reg Hoare
Andrew Leach
Charlie Barker
This information is provided by RNS
The company news service from the London Stock Exchange
END
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