TIDMIDOX
RNS Number : 1909G
IDOX PLC
16 March 2020
16 March 2020
Idox plc
( ' Idox ' or the ' Group ' or the ' Company ' )
FY20 Q1 Trading Update
Dividend Update
FY19 Trading Update
Notice of Results
ldox plc (AIM: IDOX), a leading supplier of specialist
information management software and solutions to the public and
asset-intensive sectors, is pleased to issue a trading update for
the first quarter of its financial year ending 31 October 2020
("FY20").
Highlights in the first quarter of FY20 include:
-- Significantly stronger financial performance with improved
revenues and earnings compared to the same period last year:
o Q1 financial performance is consistent with the Board's
expectations for FY20 as a whole.
-- Material reduction in closing net debt as at 31 January 2020
at GBP27.5m (FY19: GBP35.5m) representing leverage* of below 1.6
times, underpinning a much stronger financial position.
-- The Group continues to make good strategic and commercial
progress across the business; our Tascomi business acquired in
August 2019 is integrating well and is performing as planned.
-- All historical issues identified in FY19 have been fully
resolved: Idox entered FY20 with no material remaining outstanding
litigation or property issues. All non-core businesses have been
disposed, and new financial reporting and operational controls are
now fully embedded throughout the Group.
-- The Board intends to introduce a final dividend in respect of
FY20 which it anticipates will be approximately 30% of retained
earnings.
In summary, we are progressing well against our plans for FY20
and remain encouraged by the opportunities; the Board remains
confident in the prospects of the business for FY20 and beyond.
Adjusted EBITDA is defined as earnings before amortisation,
depreciation, restructuring, acquisition, corporate finance and
share option costs.
(*) Net debt / trailing 12 months Adjusted EBITDA
FY19 Trading Update
Further to the Trading Update the on FY19 the Group provided on
25 November 2019, the Group expects to report the following results
for its financial year ended 31 October 2019:
Financial highlights:
-- Revenue of GBP65.5m (2018: GBP66.4m for continuing business,
restated for prior year adjustments).
-- Revenue visibility significantly improved, with annualised
recurring revenue run rate at 31 October 2019 up 20% to GBP38.9m
following adoption of IFRS 15 (16% organic).
-- Contracted software and services order book up 29% to GBP12.1m.
-- Adjusted EBITDA : GBP14.4m (2018: GBP13.6m, restated) for continuing business.
-- Net debt at 31 October 2019 down 17% at GBP26.4m (2018: GBP31.8m).
-- Statutory loss before tax GBP0.03m (2018: GBP27.6m loss, restated) for continuing operations.
Adjusted EBITDA is defined as earnings before amortisation,
depreciation, restructuring, acquisition costs, impairment,
financing costs and share option costs.
Notice of Results
The Group continues to work closely with its auditor to resolve
an outstanding historical matter that has arisen on finalisation of
its FY19 results in respect of the FY17 financial reporting period,
associated with the acquisition of 6PM Holdings plc. This remaining
item does not have any impact on the Group's expected FY19 results
or its future prospects.
The Group expects to resolve the matter shortly, and expects to
issue its FY19 results announcement as soon as practical.
Statement on Covid-19
The Group has considered the impact of the ongoing Covid-19
pandemic. The Board believes Idox is well placed because of the
Group's high recurring revenue base, the high proportion of staff
that work from home, and the limited exposure to the geographies
currently most impacted by the virus. We continue to monitor the
situation and adapt our approach as required.
The exposures identified to date are as follows:
-- our EIM Business has cross-border operations; any impact is
tempered by its existing high recurring revenues which account for
approximately 80% of its revenue targets;
-- our Public Sector Software business is exposed to government
policy in response to Covid-19, notably the recent postponement of
the local and mayoral elections originally scheduled for May 2020
to May 2021;
-- overall, no material impact has been identified to date.
We continue to update our contingency planning and risk
assessments in respect of Covid-19 as the impact of the virus
develops.
David Meaden, Chief Executive of Idox, commented:
"We entered FY20 with encouraging momentum following the
extensive reform of the business in the previous year and it is
therefore pleasing to report a strong first quarter performance,
consistent with our expectations.
The business is benefitting from our strategy to significantly
increase engagement with our customers, staff and other
stakeholders and from the introduction of new products and extended
service offerings. During FY20, we are planning further integration
of our activities and refinement of our operating models to drive
further efficiencies.
We are pleased with the progress we have made but are not
complacent. We remain committed to establishing Idox as a leader in
Public Sector Software with market-leading cloud-based products and
an efficient operating model to drive high levels of recurring
revenue, strong margins and consistent cash generation."
-Ends-
Enquiries:
Idox plc +44 (0) 870 333 7101
Chris Stone, Non-Executive Chairman
David Meaden, Chief Executive
Rob Grubb, Chief Financial Officer
Peel Hunt LLP (NOMAD and Broker) +44 (0) 20 7418 8900
Edward Knight
Nick Prowting
James Steel
MHP Communications + 44 (0) 203 128 8100
Reg Hoare ` idox@mhpc.com
Patrick Hanrahan
Amy O'Sullivan
About Idox plc
For more information see www.idoxplc.com @Idoxgroup
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END
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