TIDMIDOX
RNS Number : 7739R
IDOX PLC
14 December 2016
14 December 2016
Idox plc
('Idox' or 'the Group' or 'the Company')
Final results for the year ended 31 October 2016
Financial highlights:
-- Revenues up 23% to GBP76.7m (2015: GBP62.6m)
-- Adjusted EBITDA* increased 18% to GBP21.5m (2015: GBP18.2m)
-- Adjusted EBITDA* margin 28.0% (2015: 29.1%)
-- Adjusted profit before tax** was GBP16.7m, up 15% (2015: GBP14.5m)
-- Adjusted EPS** 4.11p up 25% (2015: 3.28p)
-- Net debt as at 31 October 2016 stood at GBP25.0m (31 October
2015 GBP23.1m; GBP4.7m net cash outflow on two acquisitions in the
second half of the financial year)
-- Proposed final dividend of 0.650p (2015: 0.525p) making a
total of 1p (2015: 0.850p), an increase of 18% for the financial
year
Operational highlights:
-- Recurring and repeating revenues represented 82% of revenues
-- Another strong performance from Public Sector Software (PSS):
o Represented 53% of Group revenues
o Organic revenue growth of 5% - strong election year and
winning of market share
o Won 90 new local authority customers - 92% of all local
authorities now customers
-- Acquisitions:
o Open Objects and Rippleffect enhanced the Group's capabilities
in social care and digital services respectively
-- Board succession planning completed; Andrew Riley appointed
Chief Executive in November 2016, Richard Kellett-Clarke becomes a
non-Executive Director
Statutory Equivalents
The above highlights are based on adjusted results.
Reconciliations between adjusted and statutory results are
contained within these financial statements. The statutory
equivalents of the above results are as follows:
-- Profit before tax was 33% higher at GBP13m (2015: GBP9.8m)
-- Basic EPS increased by 49% to 3.30p (2015: 2.21p)
* Adjusted EBITDA is defined as earnings before amortisation,
depreciation, restructuring, acquisition, corporate finance and
share option costs
** Adjusted profit before tax and adjusted EPS excludes
amortisation on acquired intangibles, restructuring and acquisition
costs
Andrew Riley, Chief Executive of Idox said:
"Idox has reported another year of strong progress, driven by
organic growth complemented by contributions from acquisitions,
underpinned by our strategy of positioning the Group as a key
partner to enable its customers to achieve significant efficiencies
through digital technologies.
"We have started the new financial year strongly building on
this good performance, have integrated recent acquisitions and have
had early successes winning contracts. The Group is well positioned
in its markets and has a strong revenue visibility, order book and
pipeline. We are on track to achieve our target of GBP100m of
revenues at sustainable margins in the short to medium term,
through a combination of organic growth and acquisitions.
"Overall, the outlook for Idox in the coming years is therefore
very positive and our expectations for the Group's financial
performance are unchanged."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
For further information please contact:
Idox plc +44 (0) 870 333 7101
Laurence Vaughan, 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
An analyst meeting will be held at the offices of N+1 Singer, 1
Bartholomew Lane, London, EC2N 2AX at 10.15 for 10.30am this
morning. Please contact idox@mhpc.com to register.
About Idox plc
Idox plc is a supplier of specialist information management
solutions to the public sector and to highly regulated asset
intensive industries around the world in the wider corporate
sector.
Idox 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. Idox
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. Idox 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 760 staff located in the UK, North
America, Europe, India and Australia.
For more information see www.idoxplc.com.
CHAIRMAN'S STATEMENT
Overview
I am pleased to report a year of strong progress for Idox,
driven by organic growth complemented by contributions from
acquisitions. The success of Idox continued to be underpinned by
its strategy of positioning itself as a key partner enabling
customers to achieve significant efficiencies through digital
technologies.
In generally stable markets, the Group continued to benefit from
its diversified business model and sources of earnings which helped
mitigate challenges in some of our smaller markets.
Results
Idox grew revenue by 23% to a record GBP76.7m and achieved an
18% increase in Adjusted EBITDA. The overall Group margin was
slightly lower than the prior year due to the anticipated change in
mix of election and digital services revenues.
As in previous years, a significant percentage (82%; 2015: 88%)
of Idox's annual revenues were derived either from recurring
contracts with customers or from repeat customers from whom the
Group had derived revenues in the prior year; this gives the Group
significant revenue visibility and is evidence of Idox's strong
relationships and focus on customer service.
A summary of our financial key performance indicators is
presented below:
2016 2015 Change
Revenue GBP76.7m GBP62.6m 23%
Adjusted EBITDA* GBP21.5m GBP18.2m 18%
Adjusted EBITDA*
margin 28% 29% -1%
Adjusted EPS** 4.11p 3.28p 25%
*Adjusted EBITDA is defined as earnings before depreciation,
amortisation, restructuring, acquisition, corporate finance and
share option costs
**Adjusted EPS excludes amortisation on acquired intangibles,
restructuring and acquisition costs
Group strategy
Idox has a strong reputation and market leading positions
principally in important segments of the public sector software
market in the United Kingdom and Europe. The Group partners with
its customers so they can achieve efficiency savings using digital
technology.
The Group's strategy is to become a much larger business by
establishing and building on its leading market positions by
extending its public sector domains and expanding its delivery of
digital services across all areas of local government. This will be
achieved through a combination of organic and acquisitive growth.
This is intended to deliver double digit annual revenue growth with
a short to medium term objective of GBP100m of revenues at
sustainable margins.
Acquisitions
During the financial year, two acquisitions were completed in
line with our strategy, both of which contributed to the year's
financial performance whilst expanding our capabilities and
providing cross selling opportunities. The Group has a strong track
record of acquisition integration and delivering earnings enhancing
contributions from such transactions. The recent acquisitions
were:
-- Open Objects Software Limited ('Open Objects') in July 2016
broadened our capability in the important social care market where
the Group has historically been under-represented
-- Rippleffect Studio Limited ('Rippleffect') in August 2016
added e-commerce consultancy expertise to add to our digital
capabilities
-- In addition, there was a strong contribution from the
acquisition of Reading Room, completed just prior to the previous
year end in October 2015.
Together these acquisitions have enhanced our capabilities, such
that we can now deliver content, domain specific solutions, managed
and hosted services and web services to improve processes,
productivity and customer engagement in all of our chosen
domains.
Dividends
The Board is pleased to propose, subject to shareholder approval
at the Company's Annual General Meeting, a final dividend of 0.650p
(2015: 0.525p), bringing the total for the year to 1p. This
represents an increase of 18% over the previous year total of
0.850p, and is consistent with both our strong performance in the
year and our progressive dividend policy to grow dividends in line
with earnings growth.
The Board
On 10 November 2016, we announced some significant board changes
as part of our succession planning. Richard Kellett-Clarke stepped
down as Chief Executive and Andrew Riley, previously the Group's
Chief Operating Officer (COO), was appointed Chief Executive.
Andrew's appointment ensures continuity of both leadership and
strategy and he takes over at a time when the business is in the
best shape it has ever been. Andrew joined the Group in 2000 and
was Managing Director of Idox's Public Sector Software Division
from 2011 before becoming COO. Richard will remain at Idox as a
Non-Executive Director, until the end of the current financial year
ending 31 October 2017 to ensure an orderly handover and to assist
with the integration of recent acquisitions and the ongoing
development of the Group's strategy.
Richard has played a key role in the transformation of Idox over
the last ten years, first as Finance Director, then as Chief
Operating Officer and most recently as Chief Executive. From
joining the Group in 2006 he has been instrumental in establishing
and delivering the Group's organic and acquisition growth strategy,
resulting in a near fifteen-fold increase in the share price and
market capitalisation over that time. We thank him for his
significant contribution to the Group.
In January 2016, the Board was pleased to appoint Barbara
Moorhouse as a non-Executive Director; she has more than 25 years
of management experience across the private and public sectors and
replaces Dame Wendy Hall who stepped down in December 2015.
Outlook
The Group has started the new financial year strongly building
on the good performance and organic and acquisitive growth of 2016.
We also believe there is a relatively stable outlook in all our
markets notwithstanding recent political developments. We have
integrated recent acquisitions and have had early successes winning
contracts in the new financial year in a number of our segments in
both the UK and Europe. The importance to our customers of
achieving efficiency through the effective use of information
technology should not be underestimated.
The encouraging adoption of the Government's digital services
initiative by the public sector and local government especially,
and the early success of blending this with our recently acquired
digital capability, has encouraged us to accelerate our
developments in this area. We believe this growth in digital
engagement will benefit our Public Sector Software business as its
products are focused on delivering savings and helping local
authorities improve their consumer experiences.
The Board remains confident that the Group is well positioned in
its markets and will continue to perform well in 2017 given its
strong revenue visibility, order book and pipeline. The Group
remains on track to achieve its target of GBP100m of revenues at
sustainable margins in the short to medium term, through a
combination of organic growth and acquisitions.
Overall, the outlook for Idox in the coming years is therefore
very positive and our expectations for the Group's financial
performance are unchanged.
Laurence Vaughan
Chairman
CHIEF EXECUTIVE'S REVIEW
Overview of operational performance
We are pleased to report that the Group performed strongly
during the year with double digit growth in both revenues and
adjusted profits, including good contributions from organic growth
and recent acquisitions.
The year saw the continued expansion of our digital services
platform which, through a combination of internal development and
technology acquisition, is increasingly underpinning deliveries of
new products and services across the Group in a more efficient and
sustainable way.
Management focus during the year has continued to be in
accelerating the expansion of the digital services platform,
completing and consolidating recent acquisitions, and in continuing
the drive for further productivity improvements and performance
across the Group.
Public Sector Software ('PSS')
The Public Sector Software business, which represented 53% of
Group revenues for the year, had a particularly strong performance
with revenues up 14%. The year saw significant elections activity
and we delivered services in support of Local Elections, the EU
referendum and a new e-count solution for the Scottish Government
to be used in the local elections in May 2017.
The digital service platform has been instrumental in delivering
new solutions and add-on products to our existing customers with a
combined value of GBP2.9m. The platform has been used to provide
integration for the new national online planning and building
standards services for the Scottish Government, as well as
providing the infrastructure for a new suite of platform
independent mobile applications for use across our core back office
software solutions. The framework has also provided the capability
to write new back office applications and underpins the long term
upgrade strategy for our existing back office applications. The
first of these new systems is a new national election system for
Northern Ireland, on which we plan to build a next generation
platform for the wider UK and future international expansion.
The iApply service, also based on the digital service platform,
was launched earlier in the year to provide a national planning
application service; it has been successfully extended to provide
online licensing and building control applications, achieving a
monthly transaction volume of over 10,000 applications by the end
of the financial year. The platform will be expanded during the
current financial year to deliver further customer journeys with a
vision of delivering a comprehensive suite of services for local
government over the next three years.
We have continued to see further market share gains with 90 new
local authority customers in the year, 19 new system sales and a
further 11 managed service customers.
The integration of the Facilities Management business within the
public sector team during the prior year has continued to deliver
benefits in terms of improved sales performance and cross selling
opportunities. Revenues within Facilities Management grew by 11%.
Key contracts wins included Carillion, SSS Managed Services and
Pinsent Masons.
Our Transport business (formerly Cloud Amber) was held back in
the first half of the year by the need to focus on completing the
delivery of two complex sales contracted prior to acquisition. One
of these was a new integrated transport management system for a new
bus station in Perth Australia. This underground bus station is
Australia's first to work more like an airport, with buses
departing from different stands for each trip to maximise
efficiency with the flow of buses and passengers being fully
controlled by our software solutions.
A significant milestone was achieved with our next generation
adaptive control platform that has successfully completed field
trials throughout a number of key road junctions in Southampton,
enabling real time control of traffic lights. This development
paves the way for our next generation of fully adaptive artificial
intelligence algorithms enabling pioneering policy lead control of
the road network.
The business finished the year strongly with a major project win
either side of the year end.
Digital
Reading Room has performed well in its first full year within
the Group, delivering revenues of GBP9.1m and an improved EBITDA
margin of 13%. The business has been fully integrated and rebranded
as Idox Digital and, with the acquisition of Rippleffect, has
become a true full service digital agency.
The business is working in collaboration with other parts of the
Group, in support of delivering the digital service platform and
combined product and service offerings. The main successes have
been in delivering Unified Travel Information Portals in in
Cornwall and Northamptonshire that provide an end to end one stop
shop in which all modes of transport, cars, taxis, buses, DRT,
flights, trains including walking and cycling are included so that
travellers can make informed choices.
Other significant contracts in the period included delivery of
the new Royal Family website, and systems for the Ministry of
Defence, NHS, British Cycling and Reynolds Porter Chamberlain.
Grants
The Grants business continued to increase its customer base, and
deliver bigger grants on a success fee basis for larger
customers.
We have seen acceleration in the adoption of the Research
Connect platform within European Universities via our new
pan-European sales team.
Compliance
Revenue in our compliance business declined by 28% to GBP4.4m,
which was partly the result of aligning its year end to Idox's
after a very strong prior year. This was further compounded by a
decline in demand for our core compliance e-learning programmes.
Some R&D and sales issues were resolved in the second half of
the year, which has resulted in significant new contract wins in
the first month of the new financial year, including sales to a
major German airline and a leading German tools provider.
Engineering Information Management ('EIM')
The EIM business returned to modest growth with revenues up 3%
to GBP14.1m and a much improved EBITDA margin increasing to 23%
from 16%. It has benefited from early and decisive action taken in
the prior year to realign the business following the global market
decline in oil and gas capital projects activity.
EIM has achieved key contracts wins, including Odebrecht, BNP
Paribas, Strabag, Weherhauser, PM Group and a reseller agreement
with Amplexor. It also continued to make further productivity
gains, and is well poised to benefit from any improvement in its
core markets, while continuing to invest in its new Cloud based
services.
Acquisitions
The Group has made two acquisitions in the second half of the
year: Rippleffect and Open Objects. Both acquisitions have been
made to support our objectives of expanding our digital capability
and extending our presence within the public sector. Both
businesses will have been fully integrated into the Group, ahead of
schedule, by the end of calendar year 2016.
Open Objects, acquired in July, provides digital services to the
social care and health markets within the UK, enabling citizens and
care providers to engage digitally in care provision. In addition
to providing significant penetration into the social care and
health markets, the acquisition expands the digital service
platform's capability, especially within data management. The
business supplies solutions to Social Care departments within the
UK and has expanded its presence since acquisition with new wins
from Warrington and London Borough of Waltham Forest
Rippleffect, acquired in August, is a digital agency based in
Liverpool that completes our skills and technical capability by
providing with the Group with an e-commerce capability for use
within the digital service platform under the Idox Digital Brand.
The business has a focus on sport and has 7 premiership football
clubs as customers with wins since acquisition including
Middlesbrough FC.
Markets
The Group continues to operate successfully and has grown in
challenging markets despite continuing pressure on government
expenditure and grant funding. We see no change in outlook for our
core markets, whilst the diversity of our offerings and tight
integration of our businesses into a single management structure
continues to allow us to take advantage of opportunities and
respond to challenges.
We have seen minor delays in customer decision making as a
consequence of the EU referendum, and we expect this to continue
through the period of uncertainty around the nature of the UK's
exit. The Board expects the Group to ultimately be a beneficiary
due to our key role in implementing the required changes to
legislation within our core systems.
Growth strategy
The Group has refocused on become a leading international
supplier of software, services, managed services and content to the
wider public sector, whilst continuing to deliver service to
private sector customers as well.
Following recent acquisitions, Idox has presence across all UK
public sector markets and it is the Board's intention to accelerate
the consolidation of the Group's presence within these markets in
the same way it has done within the UK Local Government market
space. In addition, we will also seek international expansion
opportunities.
The Group's investment strategy in the coming year is to
continue the development of the digital service platform and to
build the commercial teams to facilitate its growth.
The Board believes that channel shift and automation remain
fundamental to the delivery of public services and that the Group
remains well placed to support not only local government but the
wider public sector to achieve this.
The business is on schedule to deliver its target of GBP100m
revenues in the short to medium term.
Andrew Riley
Chief Executive Officer
FINANCIAL REVIEW
Group revenues grew by 23% to GBP76.7m (2015: GBP62.6m) driven
by 2% organic growth and the impact of four acquisitions. Cloud
Amber Ltd and Reading Room Ltd were acquired during 2015 and had a
full year impact for the first time in 2016. Open Objects Software
Ltd and Rippleffect Studio Ltd were acquired in 2016 and made a
contribution in the current year. 27% of Group revenues were
generated outside of the UK (2015: 34%) with a change in
geographical mix due to the four acquisitions which have the
majority of their customer base in the UK. Gross profit earned was
19% higher at GBP66.6m (2015: GBP55.9m) and the Group saw a slight
decrease in gross margin from 89% to 87% as a result of lower
margin election print revenue related to May local elections and
the EU Referendum. Earnings before amortisation, depreciation,
restructuring, acquisition, corporate finance and share option
costs ("Adjusted EBITDA") increased by 18% to GBP21.5m (2015:
GBP18.2m) with Adjusted EBITDA margins of 28% (2015: 29%).
Performance by segment
In previous periods, the Group was organised into two main
operating segments. Following an internal reorganisation the Group
is now organised into five operating segments.
The Public Sector Software (PSS) segment, which accounted for
53% of Group revenues (2015: 57%), delivered revenues of GBP41.0m
(2015: GBP35.8m) due to 5% organic growth and the contribution of
Cloud Amber and Open Objects. Product and services revenue grew 13%
to GBP19.0m (2015: GBP16.8m). Election revenue accounted for
GBP5.6m (2015: GBP2.6m) of PSS revenues with the segment delivering
on the Scottish eCount project, May local elections and EU
Referendum, in comparison to only the UK General Election in 2015.
Recurring revenues within the PSS segment were 42% (2015: 45%)
decreasing due to the contribution of election revenue in the
period. Segmental Adjusted EBITDA increased by 16% to GBP16.3m
(2015: GBP14.1m) delivering a 40% EBITDA margin (2015: 39%).
The Engineering Information Management (EIM) segment accounted
for 18% of Group revenues (2015: 22%) and reported a revenue
increase of 4% to GBP14.1m (2015: GBP13.6m). The proportion of
recurring revenues in the EIM business from maintenance and
Software-as-a-Service ("SaaS") were 57% (2015: 56%). Segmental
Adjusted EBITDA for the EIM segment increased 50% to GBP3.3m (2015:
GBP2.2m). EBITDA margin increased to 23% (2015: 16%) reflecting the
restructuring in the segment carried out in 2015 and organic
revenue growth in the period.
The Digital segment had revenue of GBP10.9m (2015: GBP1.1m)
which included a full year of Reading Room acquired in November
2015 and an initial revenue contribution of GBP1.2m from
Rippleffect acquired in 2016.
The Grants business in the UK and Netherlands saw 8% growth on
the prior period with revenues of GBP6.4m (2015: GBP5.9m). The
Compliance business in Europe had a decrease in revenues from
GBP6.1m to GBP4.4m.
Profit before tax
Adjusted EBITDA increased 18% to GBP21.5m (2015: GBP18.2m), or
organically by 6%. Cost of sales increased 51% to GBP10.1m (2015:
GBP6.7m). Cost of sales increased 19% excluding acquisitions due to
higher election print and postage costs on the prior year.
Administrative expenses increased 15% to GBP52.3m (2015: GBP45.3m),
or excluding acquisitions in the year decreased by 4%. Staff costs
increased by 19% to GBP35.9m (2015; GBP30.3m), excluding
acquisitions staff costs decreased by 6% due to a full year benefit
of 2015 restructuring costs from EIM and higher R&D
capitalisation. Other overheads increased by 2% on a like-for-like
basis.
Financing costs increased 17% to GBP1.4m (2015: GBP1.2m) and
included interest payable of GBP0.8m (2015: GBP0.7m) and bank
charges of GBP0.3m (2015: GBP0.4m). Finance income decreased to
GBP0.1m (2015: GBP0.4m) as the prior period included GBP0.3m of
exchange gain on translation of intercompany balances.
Adjusted profit before tax and adjusted earnings per share are
alternative performance measures, considered by the Board to be a
better reflection of true business performance than looking at the
Group's results on a statutory basis only. These measures are
widely used by research analysts covering the Company. A full
reconciliation between underlying profit and the profit
attributable to shareholders is provided in the following
table:
12 months to 12 months
to
31 October 2016 31 October
2015
(audited) (audited)
Adjusted profit before tax GBP000 GBP000
Profit before tax for the year 12,983 9,763
Add back:
Amortisation on acquired intangibles 3,817 3,778
Acquisition credits (404) (34)
Restructuring costs 330 1,025
------------------ ------------
Adjusted profit for the year 16,726 14,532
------------------ ------------
Reported profit before tax was up 33% to GBP13.0m (2015:
GBP9.8m). Amortisation of intangibles remained flat at GBP3.8m
(2015: GBP3.8m) due to intangibles from prior acquisitions becoming
fully amortised offset by amortisation on new intangibles relating
to acquisitions. Amortisation on Research and Development was
GBP1.3m (2015: GBP1.0m) and amortisation on software licences
increased to GBP1.0m (2015: GBP0.7m). Restructuring charges of
GBP0.3m (2015: GBP1.0m) relates to the integration of Reading Room,
Rippleffect and Open Objects. Acquisition credits of GBP0.4m
include acquisition costs of GBP0.3m and a GBP0.7m credit relating
to a reduction of the contingent consideration for Cloud Amber as a
result of the revenue target being missed as described in the Share
Purchase Agreement.
The Group continues to invest in developing innovative
technology solutions and has incurred capitalised Research and
Development costs of GBP2.8m (2015: GBP1.2m). Research and
Development costs expensed in the period were GBP4.5m (2015:
GBP4.1m).
Taxation
The effective tax rate ('ETR') for the period was 9.06% (2015:
19.80%). A significant tax repayment was processed in 2016, in
respect of historic R&D claims covering FY13, FY14 and the
Reading Room Group's 31 March 2014 year-end. The Reading Room Group
had never previously made an R&D claim. Furthermore, the
decrease in the deferred tax rate provided for, from 20% to 18%, in
advance of decreases in the UK corporation tax main rate to 19% (01
April 2017) and 17% (01 April 2020), resulted in downward pressure
on the ETR given the Group's net deferred tax liability
position.
Other factors decreasing ETR in 2016 were share option
exercises, the utilisation of pre-acquisition losses and a
non-taxable write-off of deferred consideration. A factor
mitigating the decrease in ETR was the decision not to recognise
international losses incurred in the US and Germany during 2016
until potential utilisation becomes more certain.
The higher effective tax rate in 2015 was due to a larger
proportion of the overall tax charge being incurred in overseas
jurisdictions with a higher rate of corporation tax than the UK.
Another factor increasing the tax rate in 2015 was the
derecognition of deferred tax assets in the US given uncertainty
over the assets' future recoverability.
Earnings per share and dividends
Adjusted earnings per share increased by 25% to 4.11p (2015:
3.28p). Adjusted diluted earnings per share increased by 27% to
3.96p (2015: 3.13p).
Basic earnings per share increased by 49% to 3.30p (2015:
2.21p). Diluted earnings per share increased by 51% to 3.18p (2015:
2.10p).
The Board proposes a final dividend 0.650p, an increase of 24%
on the previous final dividend, giving a total dividend for the
year of 1p and an 18% growth for the full year. This is in line
with our progressive dividend policy for our dividends to track our
earnings per share. Subject to shareholder approval at the
forthcoming Annual General Meeting, the final dividend is expected
to be paid on the 21 April 2017 to shareholders on the register at
31 March 2017.
Balance sheet and cashflows
The Group's balance sheet continued to strengthen during the
period and at 31 October 2016 net assets were GBP65.2m compared to
GBP53.6m at 31 October 2015.
Cash generated from operating activities before tax as a
percentage of Adjusted EBITDA was 63%, up from 53% in the previous
year.
The Group ended the period with net debt of GBP25.0m (2015:
GBP23.1m) after utilising the facility for the acquisition of Open
Objects (GBP3.4m paid in cash and a further GBP1.6m which will be
utilised in 2018) and Rippleffect (GBP2.0m). The Group's total
signed debt facilities at 31 October 2016 stood at GBP35m, a
combination of a GBP12m term loan and GBP23m revolving credit
facility, split GBP21.9m with the Royal Bank of Scotland and
GBP13.1m with the Silicon Valley Bank.
Deferred income, representing invoiced maintenance and SaaS
contracts yet to be recognised in revenue, stood at GBP15.9m at 31
October 2016 (2015: GBP14.6m). Accrued income, increased to
GBP18.8m (2015: GBP13.2m). GBP3.8m of the increase relates to a
higher volume of longer term contracts with local authorities,
GBP0.7m relates to an EIM contract closed in October 2016 and
GBP0.9m relates to acquisitions.
Jane Mackie
Chief Financial Officer
Consolidated Statement of
Comprehensive Income for the
year ended 31 October 2016 Note 2016 2015
GBP000 GBP000
Revenue 2 76,739 62,575
Cost of sales (10,138) (6,684)
-------- --------
Gross profit 66,601 55,891
Administrative expenses (52,316) (45,347)
Operating profit 14,285 10,544
Analysed as:
Earnings before depreciation,
amortisation, restructuring,
acquisition costs, corporate
finance costs and share option
costs 21,452 18,215
Depreciation (584) (785)
Amortisation (6,052) (5,480)
Restructuring costs (330) (1,025)
Acquisition credits 404 34
Corporate finance costs (8) -
Share option costs (597) (415)
---------------------------------- ---- -------- --------
Finance income 55 445
Finance costs (1,357) (1,226)
Profit before taxation 12,983 9,763
Income tax expense 3 (1,177) (1,934)
Profit for the year 11,806 7,829
Other comprehensive income
for the year
Items that will be reclassified
subsequently to profit or
loss:
Exchange losses on retranslation
of foreign operations 295 (276)
-------- --------
Other comprehensive income
for the year, net of tax 295 (276)
-------- --------
Total comprehensive income
for the year attributable
to owners of the parent 12,101 7,553
======== ========
Earnings per share attributable
to owners of the parent during
the year
Basic 4 3.30p 2.21p
Diluted 4 3.18p 2.10p
Consolidated Balance
Sheet
At 31 October 2016 2016 2015
GBP000 GBP000
ASSETS
Non-current assets
Property, plant and
equipment 1,115 1,077
Intangible assets 82,519 74,812
Deferred tax assets 2,114 1,649
Other receivables 6,094 4,956
------- -------
Total non-current
assets 91,842 82,494
------- -------
Current assets
Trade and other receivables 33,753 26,713
Cash and cash equivalents 3,787 4,084
Total current assets 37,540 30,797
------- -------
Total assets 129,382 113,291
------- -------
LIABILITIES
Current liabilities
Trade and other payables 7,643 7,109
Other liabilities 20,214 19,083
Provisions 39 29
Current tax 1,468 1,815
Borrowings 2,425 2,428
Total current liabilities 31,789 30,464
------- -------
Non-current liabilities
Deferred tax liabilities 4,351 4,357
Deferred consideration 1,600 -
Borrowings 26,410 24,831
------- -------
Total non-current
liabilities 32,361 29,188
------- -------
Total liabilities 64,150 59,652
------- -------
Net assets 65,232 53,639
======= =======
EQUITY
Called up share capital 3,640 3,587
Capital redemption
reserve 1,112 1,112
Share premium account 13,480 11,741
Treasury reserve (1,244) (1,271)
Share options reserve 2,222 1,900
Merger reserve 1,294 1,294
ESOP trust (274) (242)
Foreign currency retranslation
reserve 57 (238)
Retained earnings 44,945 35,756
------- -------
Total equity 65,232 53,639
======= =======
Consolidated
Statement
of Changes in
Equity
For the year
ended
31 October
2016
Called Capital Share Treasury Share Merger ESOP Foreign Retained Total
up redemption premium reserve options reserve trust currency earnings
share reserve account reserve retranslation
capital reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
GBP000
Balance at 1
November
2014 3,587 1,112 11,741 (1,001) 1,636 1,294 (213) 38 30,396 48,590
Share options
charge - - - - 309 - - - - 309
Exercise of
share
options - - - - (45) - - - - (45)
Purchase of
treasury
shares - - - (270) - - - - - (270)
Deferred tax
movement
on share
options - - - - - - - - 199 199
ESOP trust - - - - - - (29) - - (29)
Equity
dividends
paid - - - - - - - - (2,668) (2,668)
Transactions
with
owners - - - (270) 264 - (29) - (2,469) (2,504)
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- ----------
Profit for the
period - - - - - - - - 7,829 7,829
Other
comprehensive
income
Exchange gains
on
retranslation
of foreign
operations - - - - - - - (276) - (276)
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- ----------
Total
comprehensive
income for
the period - - - - - - - (276) 7,829 7,553
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- ----------
Balance at 31
October
2015 3,587 1,112 11,741 (1,271) 1,900 1,294 (242) (238) 35,756 53,639
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- ----------
Issue of share
capital 53 - 1,739 - - - - - - 1,792
Share options
charge - - - - 597 - - - - 597
Exercise of
share
options - - - - (275) - - - 259 (16)
Purchase of
treasury
shares - - - 27 - - - - - 27
Deferred tax
movement
on share
options - - - - - - - - 272 272
ESOP trust - - - - - - (32) - - (32)
Equity
dividends
paid - - - - - - - - (3,148) (3,148)
Transactions
with
owners 53 - 1,739 27 322 - (32) - (2,617) (508)
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- --------
Profit for the
period - - - - - - - - 11,806 11,806
Other
comprehensive
income
Exchange gains
on
retranslation
of foreign
operations - - - - - - - 295 - 295
Total
comprehensive
income for
the period - - - - - - - 295 11,806 12,101
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- --------
At 31 October
2016 3,640 1,112 13,480 (1,244) 2,222 1,294 (274) 57 44,945 65,232
-------- ----------- -------- --------- -------- -------- ------- -------------- --------- --------
Consolidated Cash Flow Statement for the year ended 31 October
2016
2016 2015
GBP000 GBP000
Cash flows from operating
activities
Profit for the period before
taxation 12,983 9,763
Adjustments for:
Depreciation 584 785
Amortisation 6,052 5,480
Acquisition credits (722) (156)
Finance income (55) (135)
Finance costs 873 892
Debt issue costs amortisation 100 100
Research and development
tax credit (301) -
Share option costs 597 309
Movement in receivables (6,292) (7,070)
Movement in payables (271) (225)
-------- --------
Cash generated by operations 13,548 9,743
Tax on profit paid (2,456) (1,670)
Net cash from operating activities 11,092 8,073
Cash flows from investing
activities
Acquisition of subsidiaries (4,701) (8,917)
Purchase of property, plant
and equipment (639) (559)
Purchase of intangible assets (4,168) (1,826)
Finance income 55 135
-------- --------
Net cash used in investing
activities (9,453) (11,167)
Cash flows from financing
activities
Interest paid (827) (579)
New loans 13,000 13,000
Loan related costs (96) (178)
Loan repayments (11,524) (7,538)
Equity dividends paid (3,148) (2,668)
Purchase of own shares - (344)
Sale of own shares 570 -
-------- --------
Net cash flows from financing
activities (2,025) 1,693
Net movement on cash and
cash equivalents (386) (1,401)
Cash and cash equivalents
at the beginning of the period 4,084 5,855
Exchange gains on cash and
cash equivalents 89 (370)
-------- --------
Cash and cash equivalents
at the end of the period 3,787 4,084
======== ========
Notes to the announcement for the year ended 31 October 2016
1 ACCOUNTING POLICIES
Basis of preparation
These financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU) and the Companies Act 2006 applicable to
companies reporting under IFRS.
The financial statements have been prepared under the historical
cost convention as modified by the revaluation of certain financial
assets and liabilities, being derivatives at fair value through
profit or loss.
The financial information set out in the announcement does not
constitute the Group's statutory accounts for the year ended 31
October 2016 within the meaning of section 434 of the Companies Act
2006. The financial information for the year ended 31 October 2015
is derived from the statutory accounts for that year which have
been delivered to the Registrar of Companies. The financial
information for the year ended 31 October 2016 is derived from the
statutory accounts for that year which were approved by the
Directors on 13 December 2016. The statutory accounts for the year
ended 31 October 2016 will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The
auditors reported on those accounts; their report was unqualified
and did not contain a statement under Section 498(2) or (3) of the
Companies Act 2006.
Restatement of comparative figures
In previous periods, the Group was organised into two main
operating segments. Following the acquisition and integration of
Cloud Amber Limited and Reading Room Limited, and an internal
reorganisation, the operating segments were revised. As at 31
October 2016, the Group is primarily organised into five operating
segments. The segmental analysis for the comparative period to 31
October 2015 has been restated to show results for all five
business segments.
2 SEGMENTAL ANALYSIS
In previous periods, the Group was organised into two main
operating segments. Following the acquisition and integration of
Cloud Amber Limited and Reading Room Limited, and an internal
reorganisation, the operating segments were revised. As at 31
October 2016, the Group is primarily organised into five operating
segments, which are detailed below. The segmental analysis for the
comparative period to 31 October 2015 has been restated to show
results for all five business segments.
Financial information is reported to the chief operating
decision maker, which in the year ended 31 October 2016 comprised
the Chief Executive Officer, the Chief Operating Officer and the
Chief Financial Officer, monthly on a business unit basis with
revenue and operating profits split by business unit. Each business
unit is deemed an operating segment as each offers different
products and services.
-- Public Sector Software (PSS) - delivering specialist
information management solutions and services to the public
sector
-- Engineering Information Management (EIM) - delivering
engineering document management and control solutions to asset
intensive industry sectors
-- Grants (GRS) - delivering funding solutions to private and third sector customers
-- Compliance (COMP) - delivering compliance solutions to
corporate, public and commercial customers
-- Digital (DIG) - delivering digital consultancy services to
public, private and third sector customers
Segment revenue comprises sales to external customers and
excludes gains arising on the disposal of assets and finance
income. Segment profit reported to the Board represents the profit
earned by each segment before the allocation of taxation, Group
interest payments and Group acquisition costs. The assets and
liabilities of the Group are not reviewed by the chief operating
decision maker on a segment basis.
The Group does not place reliance on any specific customer and
has no individual customer that generates 10% or more of its total
Group revenue.
The segment revenues by geographic location are as follows:
2016 2015
GBP000 GBP000
Revenues from external
customers
United Kingdom 55,739 41,463
USA 6,361 6,987
Europe 12,271 12,804
Australia 1,008 617
Rest of World 1,360 704
------- -------
76,739 62,575
======= =======
Revenues are attributed to individual countries on the basis of
the location of the customer.
2016 2015
GBP000 GBP000
Revenues by type
Recurring revenues 32,861 27,613
Non-recurring revenues 43,878 34,962
76,739 62,575
======= =======
The segment results by business unit for the year ended 31
October 2016:
PSS EIM GRS COMP DIG Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 40,966 14,059 6,433 4,371 10,910 76,739
--------- --------- --------- --------- --------- ---------
Profit before interest, tax, depreciation,
amortisation, share option costs,
acquisition costs and restructuring costs 16,310 3,300 689 135 1,018 21,452
--------- --------- --------- --------- --------- ---------
Adjusted segment operating profit 11,961 2,113 309 (277) 179 14,285
--------- --------- --------- --------- --------- ---------
Finance income 55
Finance costs (1,357)
Profit before Tax 12,983
--------- --------- --------- --------- --------- ---------
The segment results by business unit for the year ended 31
October 2015:
PSS EIM GRS COMP DIG Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 35,803 13,606 5,919 6,101 1,146 62,575
--------- --------- --------- --------- --------- ---------
Profit before interest, tax, depreciation,
amortisation, share option costs,
acquisition costs and restructuring costs 14,127 2,242 571 985 290 18,215
--------- --------- --------- --------- --------- ---------
Adjusted segment operating profit 9,540 347 (65) 537 185 10,544
--------- --------- --------- --------- --------- ---------
Finance income 445
Finance costs (1,226)
Profit before Tax 9,763
--------- --------- --------- --------- --------- ---------
3 INCOME TAX
The tax charge is made up as follows:
2016 2015
GBP000 GBP000
Current tax
UK corporation tax on profits
for the period 2,634 2,310
Foreign tax on overseas companies 508 498
Over provision in respect of prior
periods (754) (259)
------- ------
Total current tax 2,388 2,549
------- ------
Deferred tax
Origination and reversal of temporary
differences (961) (555)
Adjustment for rate change (252) -
Adjustments in respect of prior
periods 2 (60)
------- ------
Total deferred tax (1,211) (615)
------- ------
Total tax charge 1,177 1,934
======= ======
The differences between the total tax charge above and the
amount calculated by applying the standard rate of UK corporation
tax to the profit before tax, together with the impact on the
effective tax rate, are as follows:
2016 % ETR 2015 % ETR
GBP000 movement GBP000 Movement
Profit before taxation on
continuing operations 12,983 9,763
Profit on ordinary activities
multiplied by the standard
rate of corporation tax in
the UK of 20% (2015: 20%) 2,597 20.00 1,953 20.00
Effects of:
Share option deduction (216) (1.66) 84 0.86
Tax losses arising (utilised)
in year (113) (0.87) 0 0.00
International losses not recognised 172 1.32 3 0.03
Other timing differences 5 0.04 150 1.54
Expenses not deductible for
tax purposes 118 0.91 103 1.06
Prior year over-provision (751) (5.78) (330) (3.38)
Non-taxable income (152) (1.17) (46) (0.47)
Adjustment for tax rate differences (374) (2.88) 85 0.86
R&D enhanced relief (139) (1.07) (99) (1.01)
Foreign tax suffered 30 0.22 31 0.31
1,177 9.06 1,934 19.80
====== ======== ====== ========
The effective tax rate ('ETR') for the period was 9.06% (2015:
19.80%). A significant tax repayment was processed in 2016, in
respect of historic R&D claims covering FY13, FY14 and the
Reading Room Group's 31 March 2014 year-end. Furthermore, the
decrease in the deferred tax rate provided for, from 20% to 18%, in
advance of decreases in the UK corporation tax main rate to 19% (1
April 2017) and 17% (1 April 2020), resulted in downward pressure
on the ETR given the Group's net deferred tax liability
position.
The higher effective tax rate in 2015 was due to a larger
proportion of the overall tax charge being incurred in overseas
jurisdictions with a higher rate of corporation tax than the UK.
Another factor increasing the tax rate in 2015 was the
derecognition of deferred tax assets in the US given uncertainty
over the assets' future recoverability.
Movement on trading losses during 2016 are as follows:
UK unrelieved Foreign Total
trading unrelieved unrelieved
losses trading trading
losses losses Tax effect
Recognised trading GBP000 GBP000 GBP000
losses GBP000
As at 1 November 2015 - 2,281 2,281 456
Impact of decrease
in deferred tax rate - - - (45)
Recognised during the
year - 41 41 7
Utilised during the
year - 76 76 14
- 2,398 2,398 432
============= =========== =========== ==========
Unrecognised trading
losses
Losses not recognised - (880) (880) (158)
- (880) (880) (158)
============= =========== =========== ==========
As noted above, no UK trading losses were brought forward to
2016. Foreign losses of GBP310,000 were utilised during the year in
the US, however, the sterling value of the losses increased to the
extent that the closing sterling value of these US losses is higher
than at Oct 15, notwithstanding the utilisation during 2016. This
explains the positive utilisation contribution above. The closing
derecognised overseas losses of GBP880,000 relate to the US and
Germany. The decision was made to derecognise these assets until
there is more certainty over their future utilisation. Across the
year the total deferred tax asset in respect of unrelieved trading
losses has decreased from GBP456,000 to GBP432,000.
4 EARninGS per share
The earnings per ordinary 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:
2016 2015
GBP000 GBP000
Profit for the year 11,806 7,829
----------- -----------
Basic earnings per share
Weighted average number of shares
in issue 357,989,177 354,730,817
----------- -----------
Basic earnings per share 3.30p 2.21p
=========== ===========
Weighted average number of shares
in issue 357,989,177 354,730,817
Add back:
Treasury shares 3,023,469 2,863,552
ESOP shares 875,044 1,139,245
----------- -----------
Weighted average allotted, called
up and fully paid share capital 361,887,690 358,733,614
----------- -----------
Diluted earnings per share
Weighted average number of shares
in issue used in basic earnings
per share calculation 357,989,177 354,730,817
Dilutive share options 13,579,022 17,234,828
----------- -----------
Weighted average number of shares
in issue used in dilutive earnings
per share calculation 371,568,199 371,965,645
Diluted earnings per share 3.18p 2.10p
=========== ===========
Adjusted earnings per 2016 2015
share GBP000 GBP000
Profit for the year 11,806 7,829
Add back:
Amortisation on acquired
intangibles 3,817 3,778
Acquisition credits (404) (34)
Restructuring costs 330 1,025
Tax effect (829) (961)
------------ --------------
Adjusted profit for year 14,720 11,637
------------ --------------
Weighted average number
of shares in issue - basic 357,989,177 354,730,817
Weighted average number
of shares in issue - diluted 371,568,199 371,965,645
Adjusted earnings per
share 4.11p 3.28p
Adjusted diluted earnings
per share 3.96p 3.13p
5 ACQUISITIONS
Open Objects Software Limited
On 25 July 2016, the Group acquired the entire share capital of
Open Objects Software Limited for a total consideration of
GBP6.24m, being GBP5.04m in cash and GBP1.20m in shares. Open
Objects offer managed cloud services to the public sector,
specialising in social care and health. It is a UK market leader in
the provision of Adult Social Care and Family Services software and
services to local authorities. The acquisition supports the Group's
strategy of extending its Public Sector domains.
Goodwill arising on the acquisition of Open Objects has been
capitalised and consists largely of the workforce value, synergies
and economies of scale expected from combining the operations of
Open Objects with Idox. None of the goodwill recognised is expected
to be deductible for income tax purposes. The purchase of Open
Objects has been accounted for using the acquisition method of
accounting.
Provisional
fair value
Book adjustments Fair value
value GBP000 GBP000
GBP000
Intangible assets 1 3,646 3,647
Property, plant and
equipment 54 (11) 43
Trade receivables 954 - 954
Other receivables 86 - 86
Cash at bank 1,040 - 1,040
--------- ------------- -------------
TOTAL ASSETS 2,135 3,635 5,770
Trade payables (73) - (73)
Other liabilities (144) - (144)
Deferred income (1,101) - (1,101)
Social security and
other taxes (2) - (2)
Deferred tax liability - (656) (656)
TOTAL LIABILITIES (1,320) (656) (1,976)
--------- -------------
NET ASSETS 3,794
Purchased goodwill capitalised 2,443
-------------
Total consideration 6,237
-------------
Satisfied by:
Cash to vendor 3,437
Issue of share
capital 1,200
Earn out consideration 1,600
------
Total consideration 6,237
------
Due to the timing of the acquisition, the fair values stated
above are provisional based on management's best estimate. The fair
value adjustment for the intangible assets includes GBP3,645,000 in
relation to customer relationships, trade names and software. A
related deferred tax liability has also been recorded as a fair
value adjustment. Adjustments were also processed to align company
policies with Idox Group policies. These included GBP1,000 in
respect of intangible assets and GBP11,000 in relation to property,
plant and equipment.
The revenue included in the consolidated statement of
comprehensive income since 25 July 2016, contributed by Open
Objects was GBP825,000. Open Objects also made a profit of
GBP159,000 for the same period. If Open Objects had been included
from 1 November 2015, it would have contributed GBP3,078,000 to
Group revenue and a profit after tax of GBP423,000.
The earn out period is 1 April 2017 to 31 March 2018. The earn
out arrangement requires the Group to pay the former owners of Open
Objects an amount to be determined by revenue in the earn out
period, up to a maximum of GBP1,600,000 in cash. GBP1,600,000 has
been recognised at the date of acquisition, which represents the
fair value of
the contingent consideration. At the reporting date,
management's best estimate, based on forecast revenues, is that the
full contingent consideration will be payable.
Acquisition costs of GBP75,000 have been written off in the
consolidated statement of comprehensive income.
Rippleffect Studio Limited
On 22 August 2016, the Group acquired the entire share capital
of Rippleffect Studio Limited for a total consideration of
GBP2.039m in cash. Rippleffect is a digital consultancy agency with
expertise in the delivery of digital solutions for the sports,
leisure and public sector markets including the provision of
e-commerce platforms. The acquisition is complementary to Idox's
Digital segment and provides new technology. The acquisition also
supports the Group's strategy of expansion into sector neutral
content and digital platforms.
Goodwill arising on the acquisition of Rippleffect has been
capitalised and consists largely of the workforce value, synergies
and economies of scale expected from combining the operations of
Rippleffect with Idox. None of the goodwill recognised is expected
to be deductible for income tax purposes. The purchase of
Rippleffect has been accounted for using the acquisition method of
accounting.
Provisional
fair value
Book adjustments Fair value
value GBP000 GBP000
GBP000
Intangible assets - 2,492 2,492
Property, plant and
equipment 17 (8) 9
Trade receivables 609 - 609
Accrued Income 1,277 (879) 398
Other receivables 45 - 45
Cash at bank (265) - (265)
--------- ------------- -------------
TOTAL ASSETS 1,683 1,605 3,288
Trade payables (280) - (280)
Other liabilities (54) (186) (240)
Deferred Income - (603) (603)
Social security and
other taxes (159) - (159)
Deferred tax liability - (449) (449)
TOTAL LIABILITIES (493) (1,238) (1,731)
--------- -------------
NET ASSETS 1,557
Purchased goodwill capitalised 482
-------------
Total consideration 2,039
-------------
Satisfied by:
Cash to vendor 2,039
Earn out consideration -
------
Total consideration 2,039
------
Due to the timing of the acquisition, the fair values stated
above are provisional, based on management's best estimate. The
fair value adjustment for the intangible assets relates to customer
relationships and trade names. A related deferred tax liability has
also been recorded as a fair value adjustment. Adjustments were
also processed to align company policies with Idox Group policies.
These included GBP8,000 in respect of fixed assets, GBP879,000 in
relation to accrued income, GBP186,000 in relation to accruals and
GBP603,000 in relation to deferred income.
The fair value of trade receivables is equal to the gross
contractual amounts receivable. An initial review of trade
receivables has not indicated any recoverability issues.
The revenue included in the consolidated statement of
comprehensive income since 22 August 2016, contributed by
Rippleffect, was GBP1,151,000. Rippleffect also made a loss of
GBP82,000 for the same period. If Rippleffect had been included
from 1 November 2015, it would have contributed GBP6,000,000 to
Group revenue and a loss after tax of GBP312,000.
There is no earn out period for Rippleffect.
Acquisition costs of GBP48,000 have been written off in the
consolidated statement of comprehensive income.
Had the above acquisitions occurred at the beginning of the
financial year, the revenue of the Group would be GBP85.8m and the
profit before tax of the Group would be GBP13.1m.
Cloud Amber Limited
During the period, a fair value adjustment was made in respect
of the acquisition of Cloud Amber Limited on the 7 July 2016. The
adjustment totalled GBP215,000 and was in relation to the release
of a bad debt provision not utilised.
During the period the contingent consideration was adjusted from
GBP1,200,000 to GBP478,000. The reduction was a result of missing
the revenue target as set out in the Share Purchase Agreement. At
the reporting date, management's best estimate is that the adjusted
contingent consideration will be payable. The adjustment of
GBP722,000 is included in 'Acquisition credits' in the Consolidated
Interim Statement of Comprehensive Income.
Reading Room Limited
During the period, there have been several fair value
adjustments in respect of the acquisition of Reading Room Limited
on 8 October 2015. The adjustments totalled GBP414,000.
A number of adjustments were processed to align company policies
with Idox Group policies. These included GBP238,000 in respect of
intangible assets, GBP71,000 in respect of property, plant and
equipment, GBP12,000 in respect of the bad debt provision,
GBP193,000 in respect of deferred income and GBP74,000 in respect
of accruals.
Acquisition cash flows
Acquisition cash flows in the year are as follows:
Net cash
outflow
Subsidiaries acquired during the year: GBP000
Open Objects Software Limited 2,397
Rippleffect Studio Limited 2,304
4,701
========
No additional fair value adjustments have been made in the year
in respect of prior year acquisitions.
6 FURTHER COPIES
Copies of this announcement and the full annual report and
accounts will be available, free of charge, for a period of one
month from the Company's Nominated Adviser and Broker N+1 Singer, 1
Bartholomew Lane, London, EC2N 2AX, Tel: 020 7496 3000 or from IDOX
plc, 2nd floor, 1310 Waterside, Arlington Business Park, Theale,
Reading, RG7 4SA. Copies of the full financial statements will be
made available to shareholders in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOUURNKAUAUA
(END) Dow Jones Newswires
December 14, 2016 02:00 ET (07:00 GMT)
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