IDOX PLC Trading Statement (7419F)
May 29 2013 - 2:00AM
UK Regulatory
TIDMIDOX
RNS Number : 7419F
IDOX PLC
29 May 2013
29 May 2013
Idox plc
Trading Update
Idox plc (AIM: IDOX, 'Idox' or the 'Company'), a leading
independent supplier of software and services to the UK public
sector and global engineering information markets, announces a
trading update for the six months to 30 April 2013.
The Company is encouraged by the underlying progress made in all
of its businesses during the first half and continues to be excited
by the multiple growth opportunities available to it. However, in
light of a slower than expected first half of the year, the Board
now thinks it is prudent to anticipate full year EBITDA is likely
to be no less than GBP18 million, which reflects uncertainty of
timing as to when those opportunities will crystallise.
The UK Public Sector business has continued to increase its
market share in its core markets, with the sale of 50 new systems
in the financial year to date. We continue to promote and have been
successful in growing our version of managed and hosted services
while partnering with local government to deliver cost savings and
improved services. We have completed contracts with the smallest
unitary council, the Isles of Scilly and larger councils, such as,
Hart District Council, Canterbury City Council, Sandwell MBC and
North East Lincolnshire. These contracts are worth a total of
GBP1.6m over the next five years.
The Company has been awarded a further local government
reorganisation contract in Durham, replacing 18 competitor systems
and has been appointed the sole solutions provider for Planning and
Building Control at Rossendale Borough and Sefton Metropolitan
Borough Councils.
The division is now starting to bid for contracts outside the UK
in all its areas of expertise and has recently been awarded a
framework agreement by the Norwegian Ministry of Local Government
for an election contract.
Within the Engineering Information Management (EIM) division,
the enterprise sales pipeline for the business has grown
significantly since the start of the financial year; however closed
order values are lower than in the first half last year, which
included two large enterprise deals. The division has seen growing
interest in its off premise McLaren OnAir offering and SaaS based
solutions. Recurring revenues in the division have increased by 18%
to 58%. In the first half McLaren launched its virtual Business
Process Outsourcing offering for document control. This has
attracted strong interest and our first contract, worth GBP0.4m for
the first 12 months has been signed in May. The division has
continued to expand its global sales coverage and is on track to
deliver multilingual and global 365-day support for its enterprise
solutions.
Whilst the Information Solutions business has seen slower than
expected growth, due to reductions in Dutch grant rates and UK
Government spending, it has maintained content subscription
revenues, forged new partnerships and expanded its geographical
coverage across the Netherlands during the period.
The acquisitions made in recent months have been fully
integrated into the business and are on plan to deliver against
their acquisition cases.
The Group expects to announce interim results for the 6 months
to 30 April 2013 on 25 June 2013.
Richard Kellett-Clarke, CEO of Idox said:
"Across all material parts of the business we have built a
stronger and more diversified pipeline and we continue to move
forward with new innovations and improvements to services. Whilst
the first half performance is disappointing and has been impacted
by delays in new Engineering Information Management licence sales
in particular, we believe we remain very well positioned."
Enquiries:
Idox plc +44 (0) 20 7332 6000
Martin Brooks, Chairman
Richard Kellett-Clarke, Chief
Executive
William Edmondson, Chief Financial
Officer
Investec Investment Banking +44 (0) 20 7597 5000
Andrew Pinder/Patrick Robb/Dominic
Emery
finnCap +44 (0) 20 7220 0500
Stuart Andrews/Stephen Norcross
Leander PR +44 (0) 7795 168 157
Christian Taylor-Wilkinson
About Idox plc
Idox plc is a supplier of specialist document management
collaboration solutions and services to the UK public sector and
increasingly to highly regulated asset intensive industries around
the world in the wider corporate sector.
Its Public Sector Software Division is the leading applications
provider to UK local government for core functions relating to
land, people and property, such as its market leading planning
systems and election management software. Over 90% of UK local
authorities are now customers. The Group provides public sector
organisations with tools to manage information and knowledge,
documents, content, business processes and workflow as well as
connecting directly with the citizen via the web.
The Engineering Information Management Division delivers
engineering document control, project collaboration and facility
management applications to many leading companies in industries
such as oil & gas, architecture and construction, mining,
utilities, pharmaceuticals and transportation around the world.
Through the Information Solutions Division Idox also supplies,
predominantly to the public sector, decision support content such
as grants and planning policy information as well as related
specialist services. In addition the Group provides knowledge and
content management skills to customers through its TFPL branded
recruitment division.
The Group employs over 500 staff located in the UK, the USA,
Europe, India and Australia.
For more information see www.idoxplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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