17 November 2015
Idox plc
("Idox", "the Company" or "the
Group")
Year End Trading Update
Idox plc (AIM: IDOX), a leading
supplier of software and services to the public sector and
industry, provides an update on trading for its financial year
ended, 31 October 2015.
The Company is pleased to report its
Adjusted* results for the year are expected to be in line with
market expectations, and that it is maintaining its forward
guidance.
Idox performed well in the year despite
continued headwinds in Engineering Information Management's (EIM)
energy related markets and fluctuating exchange rates. In
particular the Group has made good progress towards positioning
itself as a key partner for its customers to achieve significant
efficiencies through the use of digital technologies. EIM continues
to make a reasonable contribution to Group results and has had its
risk profile reduced pending recovery in its key
markets.
The Group's Public Sector Software
(PSS) division which represents 78% of Group revenues, grew its
revenues by 13%. Within this there were good performances from
Grants up 17%, Compliance up 173%, while in contrast Elections
declined 48% reflecting the election cycle which included only the
UK General Election during the year. Facilities Management was up
8%, and as expected, EIM's revenues declined 22%.
PSS continued to win both more
managed services and market share. The Compliance business
benefited from a full year contribution from Digital Spirit
(acquired October 2014), which exceeded the contribution expected
at the time of acquisition.
The latest acquisitions of Cloud
Amber (July 2015) and Reading Room (October 2015) are performing in
line with our expectations and their respective integrations are on
track. Both acquisitions are expected to be
earnings enhancing in their first full year of
ownership.
Reflecting the £10.6m cost of the
two second half acquisitions set against good cash generation, net
debt as at 31 October 2015 stood at £23.1m (31 October 2014 £15.8m;
30 April 2015: £9.8m).
The Board expects to report the
Group's final results on 16 December 2015.
*Adjusted is defined as earnings before
amortisation, restructuring, acquisition, corporate finance and
share option costs
Richard Kellett-Clarke, Chief
Executive of Idox said:
"We are pleased to have
delivered a strong result in line with our expectations, despite
some market challenges, and we continue to benefit from our
diversified business model and sources of earnings. We have made
good progress towards our medium term strategic goals and have
benefitted from the contribution of recent acquisitions which have
expanded our capabilities whilst also providing cross selling
opportunities.
"Idox is in good shape and we are
encouraged by the opportunities and outlook for the business in the
coming year."
-ends-
For further information please
contact:
Idox plc
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+44 (0) 870 333 7101
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Richard Kellett-Clarke, Chief
Executive
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Jane Mackie, Chief Financial
Officer
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Andrew Riley, Chief Operations
Officer
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N+1 Singer (Nominated adviser and Broker)
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+44 (0) 20 7496 3000
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Shaun Dobson
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Alex Wright
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MHP Communications
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+44 (0) 20 3128 8100
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Reg Hoare/Andrew Leach/Charlie
Barker
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About Idox plc
Idox plc is a supplier of specialist
document management collaboration solutions and services to the
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 Division
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, and providing elections management solutions. It also
supplies in the UK and internationally, decision support content
such as grants and planning policy information and corporates
compliance services.
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
in North America and around the world.
The Group employs over 660 staff
located in the UK, the USA, Canada, Europe, India and
Australia.