TIDMIDOX
RNS Number : 2196V
IDOX PLC
07 July 2009
7 July 2009
IDOX plc
Market position strengthened with highest ever order book
IDOX plc (AIM: IDOX, 'the Group', 'IDOX'), the supplier of software and services
to the UK public sector, announces interim results for the six months ended 30
April 2009.
Financial highlights
* Highest ever first-half order book of GBP9.1m, significantly ahead of
expectations
* Revenues GBP15.7m (H1 2008: GBP16.2m), reflecting second-half scheduling of
deliveries
* Software revenues stable; overall recurring revenue level rose to 57% of total
Group revenues (H1 2008: 51%)
* Tight cost controls achieve GBP1.5m annualised cost savings
* Normalised pre-tax profit GBP2.8m (H1 2008: GBP3.6m)*
* Adjusted EPS 0.59p (H1 2008: 0.74p)
* Strong working capital management delivers GBP6.0m net cash (2008: GBP1.0m)
after repayment of GBP3.0m of debt, dividend payment and cash acquisition of J4B
* Maiden interim dividend of 0.08p per share
Operational highlights
* Won all three large contracts tendered by new Unitary Authorities, totalling
GBP1.95m
* Awarded GBP1.5m contract to deliver Stream 3 of Scottish Executive project
following successful delivery of Stream 2
* Improved efficiency after 12% headcount reduction
* Continued focus on service and quality benefits delivery and cash generation
* Normalised pre-tax profit is derived by adding back exceptional restructuring
charges, amortisation and share option costs
Martin Brooks, Chairman, said:
"We have built a record order book in the first half that will translate into
higher deliveries in the second. Our strength in the local government market has
been demonstrated by our success in winning all three major systems contracts,
worth nearly GBP2m, tendered by the new Unitary Authorities.
"We have consolidated our strong position in Scotland by winning Stream 3 of the
Scottish Government ePlanning Efficient Government Project, following successful
delivery of the first two phases.
"Profits in the first half reflect a weighting of deliveries toward the second
half, as previously indicated, and were also impacted by some one-off costs
related to delivery of the Stream 2 project. Second-half results are expected to
benefit not only from the phasing of deliveries, but also from the savings
introduced in the first half.
"Our continuing focus on greater efficiency has improved our cash position even
after the early repayment of debt and our acquisition of J4B. We have therefore
decided to declare a maiden interim dividend.
"The Group remains on course for a full-year performance in line with
expectations and our strong order book gives us confidence about prospects for
the second half and beyond."
Enquiries:
+---------------------------------------+----------------------------------+
| IDOX | 020 7332 6000 |
+---------------------------------------+----------------------------------+
| Martin Brooks, Chairman | |
+---------------------------------------+----------------------------------+
| Richard Kellett-Clarke, Chief | |
| Executive | |
+---------------------------------------+----------------------------------+
| William Edmondson, Chief Financial | |
| Officer | |
+---------------------------------------+----------------------------------+
| | |
+---------------------------------------+----------------------------------+
| Investec | 020 7597 4000 |
+---------------------------------------+----------------------------------+
| Andrew Pinder / Erik Anderson | |
+---------------------------------------+----------------------------------+
| | |
+---------------------------------------+----------------------------------+
| College Hill | 020 7457 2020 |
+---------------------------------------+----------------------------------+
| Adrian Duffield / Carl Franklin | |
+---------------------------------------+----------------------------------+
About IDOX plc
IDOX plc is a supplier of software solutions and services principally to the UK
public sector and the leading applications provider to local government for core
functions relating to land, people and property through its UNI-form, Plantech
and IDOX product range. Over 70% of UK local authorities are customers.
The Group gives public-sector organisations the tools to manage information and
knowledge, documents and content, business processes and workflow as well as
connecting directly with the citizen via the web.
It also supplies decision support content and additional specialist services via
the IDOX Information Service and the recently acquired J4B business.
Under the TFPL brand the company is transforming approaches to knowledge and
content management via consultancy and training, as well as providing these
specialist skills to customers through its recruitment division.
For more information see www.idoxplc.com
Overview
IDOX continued to make good progress in the first half of 2009, consolidating
its position as a leading supplier of software and services to the Local
Government market.
The Group's software business exited the first half with a record order backlog
that stood at GBP6.5m on 30 April 2009, up from GBP3.8m at the beginning of the
year, mainly as a result of the highest ever first-half order book of GBP9.1m.
As previously indicated, deliveries will be weighted towards the second half,
partially reflecting the increasing size and complexity of contracts that IDOX
is winning in open tender. As a result, first-half revenues are slightly lower
this year, with a consequent impact on profits, but the Group remains on course
for a full-year performance in line with expectations.
The quality of the Group's software and services was demonstrated by the fact
that IDOX won the first three contracts tendered by the newly created Unitary
Authorities of Cornwall, Central Bedfordshire and Shropshire.
Tight cost controls, which achieved annualised cost savings of GBP1.5m, and
strong management of working capital ensured that the Group increased its cash
position by GBP2m, even after the payment of GBP1.1m tax (H1 2008: GBP0), the
GBP0.8m acquisition of J4B and an early repayment of GBP3.0m of debt. Net funds
now stand at GBP6.0m compared with GBP1.0m at the beginning of the year.
The Group is paying a maiden interim dividend of 0.08p per share, demonstrating
its confidence in the future, its net cash position and strong cash generation.
Markets
IDOX is a leading supplier of software solutions and services to the UK Local
Government sector, principally within Land & Property. It is estimated by Kable,
the research company, that ICT investment by Local Authorities was GBP3.8bn in
2008/9, the largest single area of Government IT spending.
The Group continues to see strong tender activity from Local Authorities despite
the challenging economic environment and the expectation of cuts in public
spending. The Board believes that the larger the savings required the greater
will be the need to invest in technology such as IDOX's to deliver Government
outcomes and improve efficiency and quality of service.
As the market leader in Land & Property IDOX is positioned well to cross-sell
and share technology platforms to take advantage of opportunities in other
sectors within Local Government.
Financial review
Despite the significant deterioration in the wider economy, revenues were only
slightly down on the same period last year, at GBP15.7m (H1 2008:
GBP16.2m). This is more a reflection of the second-half weighting of deliveries
than any softening of the market, which largely remains robust.
Software now accounts for 80% of Group revenues, or GBP12.5m (H1 2008:
GBP12.5m), of which about 52% is recurring. Overall, 57% of Group revenues are
recurring providing excellent visibility on future income.
The Solutions business contributed GBP1.3m to revenues (H1 2008: GBP1.5m),
reflecting a reduced demand for training services from corporate clients, as
discretionary spend tightened.
The Recruitment business proved resilient, contributing revenues of GBP2.0m,
only slightly down from the GBP2.1m achieved in the first half of 2008.
Gross margins for the Group (revenue less external charges) eased from 81% to
76%, reflecting a shifting mix within the recruitment business towards interim
placements, which now account for 95% of recruitment revenues (2008: 87%).
Software margins of 85% were marginally reduced by additional costs associated
with the delivery of the Scottish Government Stream 2 project.
Operating costs were reduced to GBP8.7m (H1 2008: GBP9.0m) as a result of tight
cost controls and the completion of the integration of acquisitions. The
associated headcount reduction of 12% since October resulted in an exceptional
charge of GBP0.3m. The full benefit of these savings will flow through in the
second half and 2010.
EBITDA of GBP3.2m or 20% (H1 2008: GBP4.1m or 25%) reflects the slight fall in
revenue in the Solutions business, a lower-margin Recruitment business and the
increased costs of delivering major contracts in the Software division.
Normalised pre-tax profits, which exclude exceptional restructuring charges,
amortisation and share option costs, were GBP2.8m (H1 2008: GBP3.6m). Reported
pre-tax profits were GBP1.9m (H1 2008: GBP3.2m).
Adjusted earnings per share were 0.59p (H1 2008: 0.74p). Reported basic earnings
per share were 0.36p (H1 2008: 0.63p).
An interim dividend of 0.08p will be paid on 14 August to shareholders on the
register at 17 July 2009. It is the Board's current intention to pay dividends
in the ratio of approximately 40% interim and 60% final and to pursue a
progressive dividend policy.
Strong cash management increased the Group's cash position to GBP9.7m at 30
April 2009, after a GBP1.1m tax payment, GBP0.8m to fund the J4B acquisition,
the payment of GBP0.4m in dividends and the repayment of GBP3.0m of debt. Net
cash increased from GBP1.0m at 1 November 2008 to GBP6.0m at 30 April 2009.
Operational review
IDOX's Software business ended the first half of 2009 with a record contracted
work-in-progress that increased from GBP3.8m at the beginning of the financial
year, to GBP6.5m on 30 April, including GBP9.1m of new orders offset by GBP6.2m
of implementations and a movement in deferred income of GBP0.2m.
Notable wins included all three large systems contracts tendered by the new
Unitary Authorities, following changes brought on by the Local Government Review
(LGR).
Contracts worth a combined GBP1.95m were awarded by the new authorities in
Cornwall, Central Bedfordshire and Shropshire. Delivery of these contracts is
concentrated in the second half, with maintenance contract durations ranging up
to seven years. The Group expects a further five new Unitary Authorities
created under Phase 1 of the LGR to issue tenders in 2009/10 with a further
three Unitaries created under Phase 2 expected to tender in 2010/11.
IDOX successfully delivered Stream 2 of the Scottish Government's ePlanning
Efficient Government Project on time, despite a number of external factors that
resulted in some additional costs and a shortening of the implementation time.
The value of IDOX's work on this important Scottish project has since been
enhanced by the award of the contract for Stream 3, worth a further GBP1.5m, in
early June.
There is continuing demand from existing customers for additional software
modules and services such as Public Access systems. Smaller contract wins (less
than GBP0.2m) represent over 65% of total orders in the first half.
IDOX continues to invest in the development of new software modules to increase
penetration of existing and new vertical markets within Local Government. The
recent launch of the Enterprise management dashboard solution enables customers
to monitor workflow in order to further improve efficiency and deliver an
increased return on investment from their IDOX software installations. In
addition the significantly upgraded Public Access system allows customers to
meet Government targets for online service delivery and improving citizens'
access to information.
The Solutions business has performed in line with expectations and the
acquisition of J4B has enhanced the capabilities of the existing IDOX
Information Service ("IIS") by increasing its expertise in the creation of
web-managed content solutions for Government.
In the Recruitment division, revenues from interim placements held up well,
despite the challenging recruitment market. As expected, permanent recruitment
and training, which contributes less than 5% of Recruitment revenues, suffered
from cutbacks in the banking, law and professional services markets. Although
these markets are now showing signs of stability, the Group has taken actions to
reflect the changing market by headcount reduction and reallocation of staff.
In operational terms, the Group has made significant progress in cross training
staff to improve flexibility and continues to improve internal processes and
systems to make the business more efficient. The benefit of these changes is
expected in the second half of 2009 and in 2010, although the Group is already
seeing improvements in contract delivery and cash collection. Group overheads
are now expected to be lower in the second half, with further benefits flowing
through into 2010.
The Group continues to look for suitable acquisitions and was pleased to
announce the acquisition of J4B on 23 April 2009. J4B has made an encouraging
start, having signed its largest-ever contract in April with the National
Council of Voluntary Organisations to create, host and maintain a funding
information portal for the voluntary community sector.
In February, the Group announced a strategic partnership with Kirona Systems to
provide mobile solutions for field-based workers in local government. The first
local authority site is expected to go live in August with a further six orders
awaiting delivery.
Outlook and current trading
The Group believes that the outlook remains encouraging for its services. Local
Authorities remain under pressure to cut costs, while at the same time improving
both services and outcomes though the use of innovative new technologies such as
those developed by IDOX.
Tender issue activity within IDOX's addressable markets remains robust and the
current sales pipeline gives us good visibility for the future.
The Board expects that the backlog of contracted work will be delivered in the
second half which, coupled with cost reductions, provides further confidence
about the outcome for the year.
Consolidated Income Statement
For the six months ended 30 April 2009
+-------------------------+------+-------------+-------------+-------------+
| |Note | 6 months to | 6 months to | 12 months |
| | | | | to |
| | | 30-Apr-09 | 30-Apr-08 | 31-Oct-08 |
| | | (unaudited) | (unaudited) | (audited) |
| | | GBP000 | GBP000 | GBP000 |
+-------------------------+------+-------------+-------------+-------------+
| Revenue | 3 | 15,735 | 16,167 | 34,034 |
+-------------------------+------+-------------+-------------+-------------+
| External charges | | (3,811) | (3,082) | (7,017) |
+-------------------------+------+-------------+-------------+-------------+
| Gross margin | | 11,924 | 13,085 | 27,017 |
+-------------------------+------+-------------+-------------+-------------+
| Staff costs | | (6,990) | (6,918) | (14,745) |
+-------------------------+------+-------------+-------------+-------------+
| Other operating charges | | (1,692) | (2,114) | (3,697) |
+-------------------------+------+-------------+-------------+-------------+
| | | 3,242 | 4,053 | 8,575 |
+-------------------------+------+-------------+-------------+-------------+
| Depreciation | | (181) | (185) | (340) |
+-------------------------+------+-------------+-------------+-------------+
| Amortisation | | (510) | (446) | (920) |
+-------------------------+------+-------------+-------------+-------------+
| Restructuring costs | | (303) | - | - |
+-------------------------+------+-------------+-------------+-------------+
| Share option costs | | (59) | (33) | (108) |
+-------------------------+------+-------------+-------------+-------------+
| Operating profit | | 2,189 | 3,389 | 7,207 |
+-------------------------+------+-------------+-------------+-------------+
| Finance income | | 17 | 154 | 263 |
+-------------------------+------+-------------+-------------+-------------+
| Finance costs | | (325) | (387) | (901) |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Profit before taxation | | 1,881 | 3,156 | 6,569 |
+-------------------------+------+-------------+-------------+-------------+
| Income tax expense | 4 | (652) | (988) | (1,785) |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Profit for the period | | 1,229 | 2,168 | 4,784 |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Earnings per share | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Basic | 5 | 0.36p | 0.63p | 1.40p |
+-------------------------+------+-------------+-------------+-------------+
| Diluted | 5 | 0.35p | 0.62p | 1.38p |
+-------------------------+------+-------------+-------------+-------------+
Consolidated Balance Sheet
At 30 April 2009
+-------------------------+------+-------------+-------------+-------------+
| | | At | At | At |
| | | 30 April | 30-Apr-08 | 31-Oct-08 |
| | | 2009 | (unaudited) | (audited) |
| | | (unaudited) | GBP000 | GBP000 |
| | | GBP000 | | |
+-------------------------+------+-------------+-------------+-------------+
| ASSETS | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Non-current assets | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Property, plant & | | 601 | 448 | 500 |
| equipment | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Intangible assets | | 33,460 | 32,011 | 31,887 |
+-------------------------+------+-------------+-------------+-------------+
| Deferred tax assets | | 114 | 584 | 265 |
+-------------------------+------+-------------+-------------+-------------+
| Total non-current | | 34,175 | 33,043 | 32,652 |
| assets | | | | |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Trade & other | | 10,625 | 11,440 | 8,276 |
| receivables | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Cash at bank | | 9,771 | 12,468 | 7,688 |
+-------------------------+------+-------------+-------------+-------------+
| Total current assets | | 20,396 | 23,908 | 15,964 |
+-------------------------+------+-------------+-------------+-------------+
| Total assets | | 54,571 | 56,951 | 48,616 |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| LIABILITIES | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Current liabilities | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Trade & other payables | | 4,541 | 6,864 | 2,845 |
+-------------------------+------+-------------+-------------+-------------+
| Other liabilities | | 15,604 | 15,085 | 8,113 |
+-------------------------+------+-------------+-------------+-------------+
| Provisions | | 74 | - | 370 |
+-------------------------+------+-------------+-------------+-------------+
| Current tax | | 625 | 1,574 | 1,086 |
+-------------------------+------+-------------+-------------+-------------+
| Deferred tax | | 250 | - | 250 |
| liabilities | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Derivative financial | | - | - | 96 |
| instrument | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Borrowings | | 1,000 | 1,000 | 1,000 |
+-------------------------+------+-------------+-------------+-------------+
| Total current | | 22,094 | 24,523 | 13,760 |
| liabilities | | | | |
+-------------------------+ + + + +
| Non-current liabilities | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Trade & other payables | | - | - | 422 |
+-------------------------+------+-------------+-------------+-------------+
| Deferred tax | | 3,403 | 3,667 | 3,292 |
| liabilities | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Borrowings | | 2,739 | 6,111 | 5,696 |
+-------------------------+------+-------------+-------------+-------------+
| Total non-current | | 6,142 | 9,778 | 9,410 |
| liabilities | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Total liabilities | | 28,236 | 34,301 | 23,170 |
+-------------------------+------+-------------+-------------+-------------+
| Net assets | | 26,335 | 22,650 | 25,446 |
+-------------------------+------+-------------+-------------+-------------+
| | | | | |
+-------------------------+------+-------------+-------------+-------------+
| EQUITY | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Called up share capital | | 3,442 | 3,432 | 3,442 |
+-------------------------+------+-------------+-------------+-------------+
| Capital redemption | | 1,112 | 1,112 | 1,112 |
| reserve | | | | |
+-------------------------+------+-------------+-------------+-------------+
| Share premium account | | 9,883 | 9,793 | 9,883 |
+-------------------------+------+-------------+-------------+-------------+
| Treasury reserve | | (8) | - | - |
+-------------------------+------+-------------+-------------+-------------+
| Shares options reserve | | 423 | 393 | 364 |
+-------------------------+------+-------------+-------------+-------------+
| Other reserves | | 1,294 | 1,294 | 1,294 |
+-------------------------+------+-------------+-------------+-------------+
| ESOP trust | | (91) | (103) | (96) |
+-------------------------+------+-------------+-------------+-------------+
| Retained earnings | | 10,280 | 6,729 | 9,447 |
+-------------------------+------+-------------+-------------+-------------+
| Total equity | | 26,335 | 22,650 | 25,446 |
+-------------------------+------+-------------+-------------+-------------+
Consolidated Statement of Changes in Equity
At 30 April 2009
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | Issued | Capital | Share | Treasury | Share | Other | ESOP | Profit | Total |
| | share | redemption | Premium | reserve | options | reserves | Trust | and | GBP000 |
| | capital | reserve | GBP000 | GBP000 | reserve | GBP000 | GBP000 | loss | |
| | GBP000 | GBP000 | | | GBP000 | | | account | |
| | | | | | | | | GBP000 | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| At 1 November 2007 | | | | | | | | | |
| (audited) | | | | | | | | | |
+ +--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | 3,420 | 1,112 | 9,706 | - | 359 | 1,294 | (104) | 4,903 | 20,690 |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Profit for the | | | | | | | | | |
| period | | | | | | | | | |
+ +--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | - | - | - | - | - | - | - | 2,168 | 2,168 |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Total recognised | - | - | - | - | - | - | - | 2,168 | 2,168 |
| income and expense | | | | | | | | | |
| for the period | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Share options | - | - | - | - | 34 | - | - | - | 34 |
| granted | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Issue of share | 12 | - | 87 | - | - | - | - | - | 99 |
| capital | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Equity dividends | - | - | - | - | - | - | - | (342) | (342) |
| paid | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| ESOP trust | - | - | - | - | - | - | 1 | - | 1 |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| At 30 April 2008 | 3,432 | 1,112 | 9,793 | - | 393 | 1,294 | (103) | 6,729 | 22,650 |
| (unaudited) | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Profit for the | - | - | - | - | - | - | - | 2,616 | 2,616 |
| period | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Total recognised | - | - | - | - | - | - | - | 2,616 | 2,616 |
| income and expense | | | | | | | | | |
| for the period | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Issue of share | 10 | - | 90 | - | - | - | - | - | 100 |
| capital | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Transfer on | - | - | - | - | (103) | - | - | 103 | - |
| exercise of Share | | | | | | | | | |
| options | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Share options | - | - | - | - | 74 | - | - | - | 74 |
| granted | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Equity dividends | - | - | - | - | - | - | - | (1) | (1) |
| paid | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| ESOP trust | - | - | - | - | - | - | 7 | - | 7 |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| At 31 October 2008 | 3,442 | 1,112 | 9,883 | - | 364 | 1,294 | (96) | 9,447 | 25,446 |
| (audited) | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Profit for the | - | - | - | - | - | - | - | 1,229 | 1,229 |
| period | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Total recognised | - | - | - | - | - | - | - | 1,229 | 1,229 |
| income and expense | | | | | | | | | |
| for the period | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Share options | - | - | - | - | 59 | - | - | - | 59 |
| granted | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Share repurchase | - | - | - | (8) | - | - | - | - | (8) |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| Equity dividends | - | - | - | - | - | - | - | (396) | (396) |
| paid | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| ESOP trust | - | - | - | - | - | - | 5 | - | 5 |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
| At 30 April 2009 | 3,442 | 1,112 | 9,883 | (8) | 423 | 1,294 | (91) | 10,280 | 26,335 |
| (unaudited) | | | | | | | | | |
+--------------------+--------------------+------------+----------+----------+---------+----------+---------+---------+---------+
Consolidated Cash Flow Statement
For the six months ended 30 April 2009
+--------------------------+--+----------------+-------------+-------------+
| | | 6 months to | 6 months to | 12 months |
| | | 30 April 2009 | | to |
| | | (unaudited) | 30 April | 31 October |
| | | GBP000 | 2008 | 2008 |
| | | | (unaudited) | (audited) |
| | | | GBP000 | GBP000 |
+--------------------------+--+----------------+-------------+-------------+
| Cash flows from | | | | |
| operating activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Profit for the period | | 1,881 | 3,156 | 6,569 |
| before taxation | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Adjustments for: | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Depreciation | | 181 | 185 | 340 |
+--------------------------+--+----------------+-------------+-------------+
| Amortisation | | 510 | 446 | 920 |
+--------------------------+--+----------------+-------------+-------------+
| Finance income | | (17) | (154) | (263) |
+--------------------------+--+----------------+-------------+-------------+
| Finance costs | | 283 | 387 | 901 |
+--------------------------+--+----------------+-------------+-------------+
| Exchange gain | | (12) | - | - |
+--------------------------+--+----------------+-------------+-------------+
| Share option costs | | 59 | 34 | 108 |
+--------------------------+--+----------------+-------------+-------------+
| Movement in receivables | | (2,348) | (3,795) | (538) |
+--------------------------+--+----------------+-------------+-------------+
| Movement in payables | | 7,689 | 8,138 | (1,830) |
+--------------------------+--+----------------+-------------+-------------+
| Cash generated by | | 8,226 | 8,397 | 6,207 |
| operations | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Tax on profit paid | | (1,091) | - | (1,280) |
+--------------------------+--+----------------+-------------+-------------+
| Net cash from operating | | 7,135 | 8,397 | 4,927 |
| activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Cash flows from | | | | |
| investing activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Acquisition of | | (791) | (3,797) | (3,833) |
| subsidiary net of cash | | | | |
| acquired | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Purchase of property, | | (280) | (84) | (291) |
| plant & equipment | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Purchase of intangible | | (220) | - | (353) |
| fixed assets | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Interest received | | 17 | 154 | 263 |
+--------------------------+--+----------------+-------------+-------------+
| Net cash used in | | (1,274) | (3,727) | (4,214) |
| investing activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Cash flows from | | | | |
| financing activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Proceeds from issue of | | - | 99 | 199 |
| share capital | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Interest paid | | (235) | (387) | (816) |
+--------------------------+--+----------------+-------------+-------------+
| Other loan related costs | | (144) | - | - |
+--------------------------+--+----------------+-------------+-------------+
| Loan repayments | | (3,000) | (500) | (1,000) |
+--------------------------+--+----------------+-------------+-------------+
| Equity dividends paid | | (396) | (342) | (343) |
+--------------------------+--+----------------+-------------+-------------+
| Sale/(purchase) of own | | (3) | 1 | 8 |
| shares | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Net cash flows from | | (3,778) | (1,129) | (1,952) |
| financing activities | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Net movement on cash and | | 2,083 | 3,541 | (1,239) |
| cash equivalents | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Cash and cash | | 7,688 | 8,927 | 8,927 |
| equivalents at the | | | | |
| beginning of the period | | | | |
+--------------------------+--+----------------+-------------+-------------+
| Cash and cash | | 9,771 | 12,468 | 7,688 |
| equivalents at the end | | | | |
| of the period | | | | |
+--------------------------+--+----------------+-------------+-------------+
Notes to the Condensed Consolidated Interim Financial Statements
For the six months ended 30 April 2009
1. GENERAL INFORMATION
IDOX plc is a leading supplier of software and services for the management of
local government and other organisations. The company is a public limited
company which is listed on the Alternative Investment Market of the London Stock
Exchange and is incorporated and domiciled in the UK. The address of its
registered office is 160 Queen Street, London, EC4V 4BV. The registered number
of the company is 03984070.
The financial information for the year ended 31 October 2008 set out in this
interim report does not constitute statutory accounts as defined in Section 240
of the Companies Act 1985. The Group's statutory financial statements for the
year ended 31 October 2008 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain statements under Section 237(2) or Section 237(3) of the Companies Act
1985.
2. BASIS OF PREPERATION
The accounting policies have been applied consistently throughout the group for
the purposes of the preparation of the condensed consolidated interim
report. These interim condensed consolidated financial statements are for the
six months ended 30 April 2009. The group has elected not to apply IAS 34,
Interim Financial Reporting. The interim condensed consolidated financial
statements do not include all of the information required for full annual
financial statements, and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 October 2008. The same
accounting policies, presentation and methods of computation are followed in
this interim condensed consolidated report as were applied in the Group's annual
financial statements for the year ended 31 October 2008.
3. SEGMENTAL ANALYSIS
The Group's primary basis of segmentation is by class of business.
The segment results for the six months ended 30 April 2009 are as follows:
+-------------------+----------+-----------+--------------+----------+
| | Software | Solutions | Recruitment | Total |
| | GBP000 | GBP000 | GBP000 | GBP000 |
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Total segment | 12,460 | 1,309 | 1,966 | 15,735 |
| revenues | | | | |
+-------------------+----------+-----------+--------------+----------+
| Inter-segment | - | - | - | - |
| revenues | | | | |
+-------------------+----------+-----------+--------------+----------+
| Revenues from | 12,460 | 1,309 | 1,966 | 15,735 |
| external | | | | |
| customers | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Depreciation | 147 | 33 | 1 | 181 |
+-------------------+----------+-----------+--------------+----------+
| Amortisation | 510 | - | - | 510 |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment operating | 2,233 | 31 | (75) | 2,189 |
| profit | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Interest revenue | 10 | 3 | 4 | 17 |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment profit | 2,243 | 34 | (71) | 2,206 |
| before tax | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment total | 16,718 | 1,756 | 2,637 | 21,111 |
| assets | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Expenditures on | 193 | 87 | - | 280 |
| segment | | | | |
| non-current | | | | |
| assets | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment total | 16,455 | 1,754 | 2,635 | 20,844 |
| liabilities | | | | |
+-------------------+----------+-----------+--------------+----------+
The segment results for the six months ended 30 April 2008 are as follows:
+-------------------+----------+-----------+--------------+----------+
| | Software | Solutions | Recruitment | Total |
| | GBP000 | GBP000 | GBP000 | GBP000 |
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Total segment | 12,516 | 1,513 | 2,138 | 16,167 |
| revenues | | | | |
+-------------------+----------+-----------+--------------+----------+
| Inter-segment | - | - | - | - |
| revenues | | | | |
+-------------------+----------+-----------+--------------+----------+
| Revenues from | 12,516 | 1,513 | 2,138 | 16,167 |
| external | | | | |
| customers | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Depreciation and | 136 | 35 | 14 | 185 |
| amortisation | | | | |
+-------------------+----------+-----------+--------------+----------+
| Amortisation | 446 | - | - | 446 |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment operating | 3,130 | 164 | 95 | 3,389 |
| profit | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Interest revenue | 142 | 5 | 7 | 154 |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment profit | 3,272 | 169 | 102 | 3,543 |
| before tax | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment total | 19,752 | 2,074 | 3,116 | 24,942 |
| assets | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Expenditures on | 67 | 6 | 6 | 79 |
| segment | | | | |
| non-current | | | | |
| assets | | | | |
+-------------------+----------+-----------+--------------+----------+
| | | | | |
+-------------------+----------+-----------+--------------+----------+
| Segment total | 21,507 | 1,316 | 700 | 23,523 |
| liabilities | | | | |
+-------------------+----------+-----------+--------------+----------+
Reconciliations of reportable profit/(loss) and assets and liabilities:
+----------------+--------------+-------------+-------------+----+-----------+
| | | | 2009 | | 2008 |
+----------------+--------------+-------------+-------------+----+-----------+
+----------+----------+----------+-------------+-------------+----+-----------+
| Segment Profit or Loss | | | | |
+--------------------------------+-------------+-------------+----+-----------+
| | | | | | | |
+----------+----------+----------+-------------+-------------+----+-----------+
| Total profit for reportable | | 2,206 | | 3,543 |
| segments | | | | |
+--------------------------------+-------------+-------------+----+-----------+
| Other financial | | | (325) | | (387) |
| costs | | | | | |
+---------------------+----------+-------------+-------------+----+-----------+
| Group Profit Before Tax | | 1,881 | | 3,156 |
+----------+----------+----------+-------------+-------------+----+-----------+
+-------------+--------+--------------+----------+-------------+----+-----------+
| Assets | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Total assets for reportable | | 21,111 | | 24,942 |
| segments | | | | |
+-------------------------------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Goodwill and intangible fixed | | 33,460 | | 32,009 |
| assets | | | | |
+-------------------------------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Entity's assets | | | 54,571 | | 56,951 |
+----------------------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Liabilities | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Total liabilities for reportable | | 20,844 | | 23,523 |
| segments | | | | |
+-------------------------------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Bank loan | | | | 3,739 | | 7,111 |
+-------------+--------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Deferred taxation | | | 3,653 | | 3,667 |
+----------------------+--------------+----------+-------------+----+-----------+
| | | | | | | |
+-------------+--------+--------------+----------+-------------+----+-----------+
| Group liabilities | | | 28,236 | | 34,301 |
+-------------+--------+--------------+----------+-------------+----+-----------+
Other financial costs relate to loan interest and a one off swap interest charge
paid by IDOX plc, which along with the loan have not been included in reportable
segments. Goodwill and intangible fixed assets and related deferred tax entries
are held at consolidation level only and are therefore shown as reconciling
items.
4. TAX ON PROFIT ON ORDINARY ACTIVITIES
+---------------------+-----------------+----------------+------------------+
| | 6 months to | 6 months to | 12 months to |
| | 30-Apr-09 | 30-Apr-08 | 31-Oct-08 |
| | (unaudited) | (unaudited) | (audited) |
| | GBP000 | GBP000 | GBP000 |
+---------------------+-----------------+----------------+------------------+
| Current tax | | | |
+---------------------+-----------------+----------------+------------------+
| Corporation tax on | 630 | 993 | 2,149 |
| profits for the | | | |
| period | | | |
+---------------------+-----------------+----------------+------------------+
| (Over)/under | - | - | (272) |
| provision in | | | |
| respect of prior | | | |
| periods | | | |
+---------------------+-----------------+----------------+------------------+
| Total current tax | 630 | 993 | 1,877 |
+---------------------+-----------------+----------------+------------------+
| Deferred tax | | | |
+---------------------+-----------------+----------------+------------------+
| Origination and | (77) | 87 | (205) |
| reversal of timing | | | |
| differences | | | |
+---------------------+-----------------+----------------+------------------+
| Adjustments in | 99 | (92) | 113 |
| respect of prior | | | |
| periods | | | |
+---------------------+-----------------+----------------+------------------+
| Total deferred tax | 22 | (5) | (92) |
+---------------------+-----------------+----------------+------------------+
| Total tax charge | 652 | 988 | 1,785 |
+---------------------+-----------------+----------------+------------------+
Unrelieved trading losses of GBP517,500 (30 April 2008: GBP320,000), which when
calculated at the standard rate of corporation tax in the United Kingdom of 28%,
amounts to GBP144,900 (30 April 2008: GBP89,600). These remain available to
offset against future taxable trading profits.
5. EARNINGS PER SHARE
The earnings per share is calculated by reference to the earnings attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during each period, as follows:
+--------------------------+-------------+----------------+------------------+
| | 6 months | 6 months to | 12 months to |
| | to | 30-Apr-08 | 31-Oct-08 |
| | 30-Apr-09 | (unaudited) | (audited) |
| | (unaudited) | GBP000 | GBP000 |
| | | | |
| | GBP000 | | |
+--------------------------+-------------+----------------+------------------+
| Profit for the period | 1,229 | 2,168 | 4,784 |
+--------------------------+-------------+----------------+------------------+
| Basic earnings per share | | | |
+--------------------------+-------------+----------------+------------------+
| Weighted average number | 342,900,983 | 341,511,611 | 342,059,867 |
| of shares in issue | | | |
+--------------------------+-------------+----------------+------------------+
| | | | |
+--------------------------+-------------+----------------+------------------+
| Basic earnings per share | 0.36p | 0.63p | 1.40p |
+--------------------------+-------------+----------------+------------------+
| Diluted earnings per | | | |
| share | | | |
+--------------------------+-------------+----------------+------------------+
| Weighted average number | 342,900,983 | 341,511,611 | 342,059,867 |
| of shares in issue used | | | |
| in basic earnings per | | | |
| share calculation | | | |
+--------------------------+-------------+----------------+------------------+
| Dilutive share options | 3,511,143 | 5,738,152 | 5,061,729 |
+--------------------------+-------------+----------------+------------------+
| Weighted average number | 346,412,126 | 347,249,763 | 347,121,596 |
| of shares in issue used | | | |
| in dilutive earnings per | | | |
| share calculation | | | |
+--------------------------+-------------+----------------+------------------+
| | | | |
+--------------------------+-------------+----------------+------------------+
| Diluted earnings per | 0.35p | 0.62p | 1.38p |
| share | | | |
+--------------------------+-------------+----------------+------------------+
+--------------------------+-------------+----------------+------------------+
| Adjusted earnings per | | | |
| share | | | |
+--------------------------+-------------+----------------+------------------+
| | 6 months | 6 months to | 12 months to |
| | to | 30-Apr-08 | 31-Oct-08 |
| | 30-Apr-09 | (unaudited) | (audited) |
| | (unaudited) | GBP000 | GBP000 |
| | | | |
| | GBP000 | | |
+--------------------------+-------------+----------------+------------------+
| Profit for the period | 1,229 | 2,168 | 4,784 |
+--------------------------+-------------+----------------+------------------+
| | | | |
+--------------------------+-------------+----------------+------------------+
| Adjusting items: | | | |
+--------------------------+-------------+----------------+------------------+
| Share option costs | 59 | 33 | 108 |
+--------------------------+-------------+----------------+------------------+
| Restructuring costs | 303 | - | - |
+--------------------------+-------------+----------------+------------------+
| Amortisation | 510 | 446 | 920 |
+--------------------------+-------------+----------------+------------------+
| Interest rate swap and | 48 | - | 96 |
| related costs | | | |
+--------------------------+-------------+----------------+------------------+
| Taxation on above items | (143) | (130) | (257) |
+--------------------------+-------------+----------------+------------------+
| Adjusted profit for the | 2,006 | 2,517 | 5,651 |
| period | | | |
+--------------------------+-------------+----------------+------------------+
| | | | |
+--------------------------+-------------+----------------+------------------+
| Adjusted basic earnings | 0.59p | 0.74p | 1.65p |
| per share | | | |
+--------------------------+-------------+----------------+------------------+
| Adjusted diluted | 0.58p | 0.73p | 1.63p |
| earnings per share | | | |
+--------------------------+-------------+----------------+------------------+
6. DIVIDENDS
During the period a dividend was paid in respect of the year ended 31 October
2008 of 0.115p per Ordinary share at a total cost of GBP0.4m (2008: 0.1p,
GBP0.3m). An Interim dividend of 0.08p will be paid on 14 August 2009 for the 6
month period ending 30th April 2009 at a total cost of GBP0.3m.
7. ACQUISITIONS
On 23 April 2009, the Group acquired the entire share capital of J4B Software
and Publishing Limited for a consideration of GBP1.1m, of which GBP0.8m was
satisfied in cash and GBP0.3m is due as deferred consideration. Goodwill
arising on the acquisition of J4B Software and Publishing Limited has been
capitalised. The purchase of Software and Publishing Limited has been accounted
for using the acquisition method of accounting.
+------------------------+--------------+----------------+------------------+
| | Book value | Provisional | Fair value |
| | GBP000 | fair value | GBP000 |
| | | adjustments | |
| | | GBP000 | |
+------------------------+--------------+----------------+------------------+
| Intangible assets | - | 865 | 865 |
+------------------------+--------------+----------------+------------------+
| Property, plant and | 34 | - | 34 |
| equipment | | | |
+------------------------+--------------+----------------+------------------+
| Trade receivables | 333 | - | 333 |
+------------------------+--------------+----------------+------------------+
| Investments | 13 | - | 13 |
+------------------------+--------------+----------------+------------------+
| Other receivables | 63 | - | 63 |
+------------------------+--------------+----------------+------------------+
| Cash at bank | 311 | - | 311 |
+------------------------+--------------+----------------+------------------+
| TOTAL ASSETS | 754 | 865 | 1,619 |
+------------------------+--------------+----------------+------------------+
| | | | |
+------------------------+--------------+----------------+------------------+
| Trade payables | (57) | - | (57) |
+------------------------+--------------+----------------+------------------+
| Deferred revenue | (212) | (466) | (678) |
+------------------------+--------------+----------------+------------------+
| Corporation tax | (36) | - | (36) |
+------------------------+--------------+----------------+------------------+
| Social security and | (156) | - | (156) |
| other taxes | | | |
+------------------------+--------------+----------------+------------------+
| Accruals | (186) | - | (186) |
+------------------------+--------------+----------------+------------------+
| Deferred tax liability | - | (242) | (242) |
+------------------------+--------------+----------------+------------------+
| TOTAL LIABILITIES | (647) | (708) | (1,355) |
+------------------------+--------------+----------------+------------------+
| NET ASSETS | 107 | 157 | 264 |
+------------------------+--------------+----------------+------------------+
| Purchased goodwill | | | 838 |
| capitalised | | | |
+------------------------+--------------+----------------+------------------+
| | | | 1,102 |
+------------------------+--------------+----------------+------------------+
| Satisfied by: | | | |
+------------------------+--------------+----------------+------------------+
| Cash to vendor | | | 815 |
+------------------------+--------------+----------------+------------------+
| Costs of acquisition | | | 287 |
+------------------------+--------------+----------------+------------------+
| Total consideration | | | 1,102 |
+------------------------+--------------+----------------+------------------+
The fair value adjustment for the intangible assets relates to customer
relationships, trade names and software. A related deferred tax liability has
also been recorded as a fair value adjustment.
Other adjustments were made to the revenue recognition policy for subscription
income in order to bring it in line with group policy.
Given that the acquisition took place on 23 April 2009, the Group is still
establishing the appropriateness of the fair values of trade receivables
balances.
The profit after taxation of J4B Software and Publishing Limited for the period
from 1 January 2009, the beginning of the subsidiary's financial year, to the
date of acquisition was GBP14k. The profit after taxation for the period ended
30 April 2009 was GBP14k.
Independent review report to IDOX plc
Introduction
We have been engaged by the company to review the financial information in the
half-yearly financial report for the six months ended 30 April 2009 which
comprises the Consolidated Income Statement, Consolidated Balance Sheet, the
Consolidated Statement of Changes in Equity and the related notes. We have read
the other information contained in the half yearly financial report which
comprises the overview, markets, financial review, operational review and
outlook and considered whether they contain any apparent misstatements or
material inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the financial information in the
half-yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for
such accounts.
The annual financial statements of the group are prepared in accordance with
IFRSs as adopted by the European Union. The financial information in the
half-yearly financial report has been prepared in accordance with the basis of
preparation in Note 2.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial
information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the financial information in the half-yearly financial report for the six
months ended 30 April 2009 is not prepared, in all material respects, in
accordance with the basis of accounting described in Note 2.
GRANT THORNTON UK LLP
AUDITOR
London
6 July 2009
Notes:
1. The maintenance and integrity of IDOX plc website is the responsibility of
the directors: the interim review does not involve consideration of these
matters and, accordingly, the company's reporting accountants accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the website.
2. Legislation in the United Kingdom governing the preparation and
dissemination of the interim report differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSIFWMSUSESW
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