TIDMIDEA
RNS Number : 1857T
Ideagen PLC
13 November 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
13 November 2019
Ideagen PLC
("Ideagen" "the Company" or "the Group")
Trading Update
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management Software to highly regulated industries, today provides
an update on trading for the six months ended 31 October 2019.
The Board is pleased to report that trading has remained strong
in the first half of the financial year and that revenue and EBITDA
are both expected to be significantly ahead of the same period last
year and in line with management's expectations. This has been
achieved through both organic revenue growth and the acquisitions
of Redland Business Solutions Ltd (acquired in June 2019) and
Optima Diagnostics Ltd (acquired in Oct 2019). The Company has a
clear strategy to grow revenues organically and maintain high
EBITDA margins whilst transitioning from a perpetual licence to a
SaaS based subscription model. The successful execution of this
strategy will provide an even more robust business model and a
higher quality of earnings over the medium term without impacting
on the short-term profitability of the business.
The Board considers that the key growth metric for the Group is
based on Annual Recurring Revenue ("ARR"). ARR is the value of the
Group's contracted recurring revenue book at any point in time,
which will be recognised over the next 12 month period.
The Group's ARR has grown by approximately 20 per cent. from
GBP36.4 million on 30 April 2019 to GBP43.9 million on 31 October
2019. This comprises of acquisition-led growth of GBP3.8 million
combined with organic growth of GBP3.7 million within the period,
representing approximately a 20 per cent. organic growth rate on an
annualised basis. Group performance is based on strong customer
demand and sales execution in the period and indicates that the
transition to a recurring model is progressing successfully and is
ahead of schedule.
Total organic revenue growth in the period was 7 per cent.
which, in the context of an accelerated SaaS transition, represents
a strong performance. Recognised Recurring revenue is expected to
be approximately 74 per cent. of total revenue and is expected to
rise to over 80 per cent. in the next full financial year.
The Company continues to compete and win new business within the
UK and international markets reflecting the Company's global
expansion. During the period, the Company won over 240 new customer
logos including Emirates Airline, Emirates Catering, Alexander
Hall, Mallinckrodt Pharmaceuticals, Freightliner, Vietjet Air,
Mylan Pharmaceuticals and Royal London.
At the period end the group had net debt of GBP18.2 million (30
April 2019: net debt of GBP1.3 million) after spending GBP19.8
million on acquisitions. Operating cash generation in the period
remained robust and in line with the Board's expectations.
Ben Dorks, Chief Executive Officer of Ideagen, commented:
"I am pleased to report an excellent start to Ideagen's
financial year. Our core markets are strong and underpin the demand
we have seen this half. We continue to execute our strategy,
delivering growth and investing in the business whilst tightly
managing the cost base. The Company has continued to make
acquisitions which have further enhanced our global reach, customer
base and product capability.
Cash generation has been good which coupled with further growth
in new SaaS recurring revenues and an increase in repeat business
from our growing customer base provides a strong platform for the
second half.
The market opportunity remains large and long term and given the
Group's position as a leader in the Governance, Risk and Compliance
market, the Board is optimistic about the Group's continued growth
prospects."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Executive Chairman
Ben Dorks, Chief Executive Officer
Graeme Spenceley, Chief Financial
Officer
finnCap Limited 020 7220 0500
Henrik Persson/James Thompson
(Nomad)
Alice Lane (ECM)
Canaccord Genuity Limited 020 7523 8000
Simon Bridges
Richard Andrews
About Ideagen plc
Ideagen is a UK-headquartered, global technology company quoted
on the London Stock Exchange AIM market (Ticker: IDEA.L).
The Group provides IRM software and services to organisations
operating within highly regulated industries such as aviation,
banking and finance and life science, with its main operational
premises spread throughout the UK, EU, US, Middle East and SE
Asia.
With an excellent portfolio of software products including
Q-Pulse, Coruson, Pentana Audit and PleaseReview, Ideagen helps its
clients reduce costs, improve operational efficiency, strengthen
compliance and oversight and anticipate and manage every detail of
risk.
Currently, more than 4,700 organisations use Ideagen's products
including seven of the top 10 UK accounting firms, all of the top
aerospace and defence companies and 75% of the world's leading
pharmaceutical firms.
Ideagen's diverse and varied customer base includes many
well-known, global brands such as British Airways, Aggreko, BAE,
Ryanair, US Navy, KLM, BBVA, Bank of New York, Commerzbank,
Meggitt, Heineken, Johnson Matthey, Haeco Group and European
Central Bank. As well as this, Ideagen counts 180 hospitals across
the UK and US amongst its client base.
For further information please visit www.ideagen.com
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END
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