Ingenta PLC Trading Statement (4661O)

TIDMING

RNS Number : 4661O

Ingenta PLC

30 January 2019

The information contained within this announcement (the "Announcement") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this Announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

30 January 2019

Ingenta plc

("Ingenta" or the "Group")

Trading Update

Ingenta plc (AIM: ING), a leading software and services provider to the publishing and media industry, provides the following trading update for the year ended 31 December 2018.

The Group is pleased to confirm that it has made considerable progress in its business combination plans, moving away from a divisional product siloed structure, which will enable the Group to operate in a more efficient and nimble manner going forward. The Group expects to report revenue of GBP12m and adjusted EBITDA of approximately GBP0.8 million. The Group generated operating cash inflows of GBP2.3m in the year, before expenditure on research and development of GBP1.8m, acquisition costs of GBP0.25m, dividends of GBP0.25m and the planned reorganisation costs of GBP0.8m, resulting in net cash balances at year-end of GBP1.3 million.

During the year, the business took the opportunity to impair its non-core Chinese joint venture investment and goodwill from legacy business combinations by GBP0.3m and GBP0.6m respectively, both of which were non-cash transactions.

Progress made by Ingenta's management over the past 18 months to reorganise and reposition the business have resulted in cumulative cost reductions of approximately GBP4m on an annualised basis. These efforts have substantially de-risked the Company, enabling it to produce increased profitability from a lower revenue base and allowing us to look forward to 2019 with considerable optimism.

The Board confirms its intention to pay a dividend of 1.5 pence per ordinary share for the 2018 financial year and intends to announce its final results for 2018 in March, subject to shareholder approval at the AGM.

Scott Winner, Chief Executive Officer, commented:

"The results of our recent business combination plan are now starting to produce results and I look forward to 2019 with great enthusiasm. The business is now leaner and focussed on delivering first class services to all our customers meaning we are significantly better placed to propel the business through the next stage of its growth".

For further information contact:

 
  Ingenta Plc 
   Scott Winner, Jon Sheffield        +44 (0) 1865 397 800 
  Cenkos Securities plc 
   Nicholas Wells, Harry Hargreaves   +44 (0) 20 7397 8900

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END

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