TIDMIDEA
RNS Number : 3048L
Ideagen PLC
18 July 2017
18 July 2017
Ideagen PLC
("Ideagen" "the Company" or "the Group")
Unaudited Preliminary Results for the Year Ended 30 April
2017
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management software to highly regulated industries, announces its
unaudited preliminary results for the year ended 30 April 2017.
Financial Highlights
-- Revenue increased 24% to GBP27.1 million (FY2016: GBP21.9 million)
o Underlying organic growth* of 10% (FY2016: 10%)
o Run rate recurring revenues of GBP20.2 million at year end
(FY2016: GBP11.9 million), covering 93% of operating costs (FY2016:
81%)
-- SaaS revenue increased 133% to GBP4.8 million (FY2017 : GBP2.1 million)
-- Adjusted diluted EPS*** increased 19% to 3.16 pence (FY2016: 2.66 pence)
-- Adjusted EBITDA** increased 26% to GBP7.9 million (FY2016: GBP6.3 million)
-- Adjusted PBT*** increased 22% to GBP6.9 million (FY2016: GBP5.7 million)
-- Cash generated from operations of GBP8.9 million (FY2016: GBP4.9 million)
-- Net cash of GBP4.2 million (FY2016: GBP6.3 million)
-- Proposed final dividend of 0.142 pence per share
o Making a total dividend of 0.21 pence per share for the year
which represents a 15% increase over the FY2016 dividend of 0.183
pence per share
Operational Highlights
-- Acquisitions of Covalent, IPI, PleaseTech and Logen adding
further IP, customers and recurring revenue to the Group --
Strengthening of the Board through the addition of Ben Dorks as
Chief Customer Officer and Barnaby Kent as Chief Operating Officer
-- Significant growth in SaaS business driven by investment in
Coruson, Ideagen's cloud based Governance, Risk and Compliance
(GRC) platform and the Group's acquisition strategy -- 45 new SaaS
customer wins including British Airways, Ryanair, Johnson Matthey,
Air Transat and Telefonica -- Over 150 new on-premise customer wins
including Babcock, Doncasters Group, KLM and Argenta Bank -- Strong
account management with significant contract extensions from SABIC,
BDO, Jaguar Land Rover, Imperial Tobacco and DHL -- Continued high
levels of customer retention with support and maintenance contract
renewal rate of 97% (FY2016: 96%) -- Ongoing product innovation and
investment across all products
* Comparison calculated on a pro-forma basis as if acquisitions
had been in the Group for the same period in the previous year
** Before share based payments and exceptional items
*** Before share based payments, amortisation of acquisition intangibles and exceptional items
David Hornsby, CEO of Ideagen, commented: "The Group's focus
this year was on the delivery of our organic growth objectives
whilst continuing the execution of our buy and build strategy which
resulted in four valuable acquisitions. We are delighted to report
another year of strong growth, which has been underpinned by
excellent cash generation and has augmented our position as a
leader in the Governance, Risk and Compliance (GRC) market.
Trading since the year end has remained robust and we continue
to see strong demand for our products from new potential customers.
Moreover our growing recurring revenues and the repeat business
derived from more than 3,000 customers, an increase of over 800
from last year, provides the Board with confidence in the prospects
for the Group for the current year and beyond."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief Executive
Graeme Spenceley, Finance Director
Joe O'Brien, Investor Relations
finnCap Limited 020 7220 0500
Henrik Persson (Corporate Finance)
Stephen Norcross (Corporate Broking)
About Ideagen plc
Ideagen is a UK company quoted on the London Stock Exchange AIM
market (Ticker: IDEA.L). Ideagen is a supplier of Information
Management software with operations in the UK, the United States
and the Middle East. The Company specialises in Governance, Risk
and Compliance (GRC) and Healthcare solutions for organisations
operating within highly regulated industries. With an excellent
portfolio of software products, Ideagen is able to provide complete
information lifecycle solutions that enable our customers to meet
their regulatory and quality compliance standards, helping them to
mitigate risks and achieve operational excellence
The Group has a customer base of over 3,000 organisations using
the Ideagen suite of products, including many blue chip names such
as BAE Systems, Emirates, Shell and the European Central Bank as
well as 180 hospitals in the UK and US.
CHAIRMAN'S STATEMENT
I am pleased to report on another strong performance for the
year to 30 April 2017, representing Ideagen's 8th consecutive year
of revenue and EBITDA growth. The Group met or exceeded all key
financial and operational objectives for the year covering revenue,
profitability, organic growth, cash generation and customer
retention.
These results demonstrate that Ideagen has scale, a world class
customer base, an outstanding product set and a proven and
effective management team. This year's focus has been a combination
of organic growth combined with a return to the execution of our
buy and build strategy.
The Board believes the long term prospects for the Group are
positive. The Governance, Risk and Compliance (GRC) market was,
according to Gartner, worth $4.4 billion globally in 2016 and is
estimated to be growing at 13% per annum. We believe that we have
established a compelling business platform that has been enhanced
by the four acquisitions made this year and are well placed to
participate in this growth.
Highly regulated organisations require the tools we provide to
help them identify, assess and manage corporate risk while
complying with international industry standards, and many are only
in the early stages of adopting an enterprise-wide approach. The
Board believes that the Group's cloud solutions will be a
particular growth area for the company which will increase the
percentage of total revenues derived from recurring contracts
providing even greater visibility of earnings.
In January Ben Dorks and Barnaby (Barney) Kent joined the Board
as Chief Customer Officer and Chief Operating Office respectively,
both Ben and Barney joined ideagen through the acquisition of
Plumtree in 2013. Since then both have taken on increasing levels
of responsibility, consistently met challenging business objectives
and have developed as outstanding business leaders. Ben and Barney
have been fundamental to the successful execution of the Group's
growth strategy and are now contributing effectively at board
level. We continue to review the optimum board structure and will
look to further strengthen the team at Non-Executive level in due
course.
In line with our progressive dividend policy and reflecting our
continued confidence in the prospects for the Group, the Board is
pleased to propose a final dividend of 0.142 pence per share making
a total dividend of 0.21 pence for the year (FY2016: 0.183 pence)
an increase of 15%. Subject to approval at the forthcoming AGM, the
final dividend will be payable on 22 November 2017 to shareholders
on the register on 3 November 2017. The corresponding ex-dividend
date is 2 November 2017.
The success of Ideagen is the result of the excellence and
dedication of our employees and on behalf of the Board I should
like to thank all of them for their continued hard work. The new
financial year has started well and I look forward to continued
growth.
Jonathan Wearing
Non-Executive Chairman
CHIEF EXECUTIVE'S REVIEW
Business Review
I am pleased to report on another excellent performance for the
twelve months ended 30 April 2017 during which we achieved strong
organic revenue growth* of approximately 10% and made four
important acquisitions each of which made a contribution in the
year .
Total revenue of GBP27.1 million (2016: GBP21.9 million)
represented overall growth of 24% and adjusted EBITDA grew 26% to
GBP7.9 million (2016: GBP6.3 million), each slightly ahead of
expectations. A key financial metric for the Group continues to be
adjusted EPS and I am pleased to report an increase in adjusted
diluted EPS of 19% to 3.16 pence for the year (FY2016: 2.66
pence).
Our early visibility of revenue ahead of expectations enabled
the Group to bring forward the investment in a number of sales,
marketing and technology initiatives that had been planned for the
current year. This additional investment has provided additional
resource, technology and infrastructure to further support the
Group's growth strategy.
Net cash at the end of the year of GBP4.2million was also ahead
of expectations following strong cash generation, particularly
during the second half. Outstanding acquisition-related borrowings
at 30 April 2017 of GBP2million were repaid shortly after the year
end, and consequently the Group has now returned to having a debt
free balance sheet.
The Group continues to benefit from a strong and growing base of
recurring revenues, which represented 57% of total revenue in the
year (2016: 54%). The Group is committed to increasing the
percentage of total revenue derived from recurring contracts
through the medium term transition from a traditional licence model
to a SaaS subscription based model. This transition is well
underway and recurring SaaS revenues represented 18% of total
revenues within the year (2016: 9%).
GRC represents the large majority of Ideagen revenues at 84% and
continues to be the primary engine of growth for the Group. GRC
provides software tools that enable customers to identify, assess
and prioritise risk and to manage information in line with rigorous
regulations. In each of our chosen verticals, our customers are
increasingly required to take a holistic view of risk management,
internal audit and compliance, with many organisations at the
beginning of the adoption phase of high value enterprise-wide
solutions.
In order to drive growth we have successfully added new
customers to the Group across all of our key GRC verticals, with
aviation, life sciences and financial services providing
particularly notable success in the year. We also continue to
maintain a focus on product enhancement and innovation which has
seen acceptance across the user base, resulting in significant
revenues from strong retention of recurring contracts and new
projects from our extensive customer base.
As in the previous two financial years the clinical management
solutions market continues to be impacted by the uncertainty of
funding for acute NHS Trusts. However our existing customers in
this market continue to provide us with strong levels of recurring
revenues, adding to the underlying financial strength of the
business.
Following the previous year, during which the Board decided not
to make any acquisitions, the Group re-embarked on the execution of
its proven buy and build strategy. Ideagen had been aware of all
four companies acquired for a number of years and had been tracking
their progress carefully. The acquisitions made during the year
were :
-- Covalent, a supplier of risk assurance and performance
management software to the Public Sector and Financial
Services;
-- IPI, a supplier of quality reporting software to the Aerospace and Defence Industry;
-- PleaseTech, a supplier of document review and control
software primarily to Life Sciences industry
-- Logen, a Bulgarian reseller of "Ideagen Pentana" our audit management product.
Each of the acquisitions are performing well by adding
intellectual property, recurring revenues, vertical market
consolidation and technical expertise to the Group and will form
part of our enlarged GRC business.
The acquisition of PleaseTech was funded primarily by an
oversubscribed share placing of GBP10 million which completed in
March. The Board remains committed to an ongoing buy and build
strategy and would expect to complete further acquisitions in the
future assuming targets meet our criteria and represent value for
shareholders.
Markets and Product Strategy
Ideagen's product and market strategy is geared to market
penetration horizontally in governance, risk and compliance and
vertically in transport, advanced manufacturing, life science,
healthcare and financial services. As an acquisitive Plc, we both
acquire and develop new products and continue to identify
acquisitions that support our market penetration approach.
We have subject matter expertise and decades of experience in
our vertical markets and in our technology domains. These are as
follows:
GRC Domains:
-- Quality Management
-- Safety Management
-- Risk Management
-- Audit Management
-- Performance Management
Vertical markets:
-- Transport
-- Advanced Manufacturing
-- Life Science
-- Government
-- Healthcare
-- Financial Services
We develop and sell software products that satisfy our
customers' critical needs at the intersection of these domains and
markets. Thus, we primarily provide risk based quality and safety
management software to transport, manufacturing, life science and
healthcare and risk based audit and performance software to
financial services, accounting firms and the public sector.
Due to the horizontal nature of GRC the Group can also supply to
other vertical markets, for example Oil and Gas and Construction
and it is likely that additional key vertical markets will evolve
over time.
Clinical Workflow
Ideagen also provides clinical workflow software solutions to
the UK NHS where trusts are seeking to modernise and transform
processes by digitising medical records. The primary goal of this
transformation is to improve patient outcomes and care quality
while also generating efficiency savings. The NHS is aiming to
implement widespread modernisation and digitisation of working
practices. Ideagen clinical workflow and hospital information
management solutions have been designed in close collaboration with
NHS customers to deliver innovation and improvements in quality,
performance and productivity
Sales and Marketing Review
Our marketing objectives are to generate qualified sales leads
and to enhance the global recognition and reputation of our brand
and solutions. This is achieved through content driven product and
vertical marketing covering blogs, white papers, webinars, a
dedicated digital team and over 50 global events per year. Our
principal marketing initiatives target key executives and decision
makers within our existing and prospective customer base.
We sell our products primarily through a direct sales force
which generate 93 percent of Group revenue and also through
relationships with resellers. Our sales force operates globally
with a focus on UK, Europe, North America, and Asia. The team is
organized by both vertical market and function area and includes 40
'quota carrying' sales executives and account managers supported by
technical sales and domain experts. We generate revenues from sales
to new customers and through repeat licence and services sales to
our existing customers.
Customer Examples
Ideagen Coruson at Johnson Matthey - Cloud Based Risk and
Quality Management
Operating across a number of highly-regulated industries,
Johnson Matthey is required to conduct stringent testing of its
products which includes unique and specialised detection,
diagnostic and measurement solutions in order to achieve and
maintain compliance to a series of industry standards.
Among those standards includes ISO 9001. Using a previous
software system for general quality management and business
performance reporting, Johnson Matthey's day-to-day quality
processes were "manual, slow and laborious".
Ideagen Coruson, Ideagen's cloud-based software solution, was
rolled out by the company to address those issues, initially being
adopted as a dedicated quality solution.
Rachel Burke, Global Quality Manager at Johnson Matthey, said:
"We had planned on using Ideagen Coruson to modernise our legacy
quality system - such as managing non-conformances, customer
complaints, document management and supplier issues. What we found,
was that the system was so user friendly, effective and popular
among staff that it is now used for risk based processes and
procedures outside of our initial scope."
Ideagen Q-Pulse at Doncasters Group - On Premise Quality
Management
Doncasters Group Ltd required a quality management solution
which would successfully bring together all of their business
processes and allow them to be managed from one central and
electronic place.
Since initial implementation, the Q-Pulse software has been
expanded within the Doncasters Group. From its initial Bramah
installation in Sheffield, they now have four sites in the UK using
the software extensively to manage tasks such as non-conformance
management as well as the tracking of maintenance, recalls and
calibration data.
Peter Rowe, VP of Quality at Doncasters Group, said: "The
Q-Pulse product has taken many of the human issues out of quality
management and this has resulted in an increase in quality levels -
as well as an awareness of quality in general - at all of our sites
currently using the system."
Ideagen Pentana at Argenta Bank - Internal Audit and Risk
Management
Following the success of the Pentana auditing software within
its Internal Audit and Risk Management departments, Argenta, a Bank
based in Belgium and operating across the BENELUX region, has
turned its attention to transforming the operational performance of
its Inspection team using the same software.
With over 500 branches requiring regular visits each year,
Argenta's Inspection team was continuously battling issues during
each visit, mostly related to their use of a series of manual,
paper-based methods.
During each visit, Argenta's inspectors are required to run
various tests and document many observations and results. With each
inspection lasting just one day, Argenta's Inspection team has
limited time.
By implementing Pentana, paper-based and manual processes which
were obstructing inspectors during their on-site reviews, were
removed. Now, the Inspection team uses Pentana to perform
inspections of Argenta's local branches, to document their
findings, recommendations and actions electronically in a
consistent way and to deliver the outputs in a standardised and
easy to consume report. In short, Argenta's Inspection team's
processes are now solid and consistent while objective measurement
is now possible and action follow-up automatic.
Christel Van Camp, Process Manager within the department of
Compliance and Integrity at Argenta, said: "Because our inspectors
do not have to deal with potential barriers of paper-based systems
and processes, our inspections now generate around 50% more output
while re-work and other manual tasks have significantly
decreased."
Outlook
Trading since the year end has remained robust and we continue
to see strong demand for our products from new potential customers.
With acquisitions made during the previous year performing well,
and with a base of over 3,000 customers generating growing
recurring revenues and repeat business the Board has every
confidence in the continued prospects for the Group.
David Hornsby
Chief Executive Officer
FINANCIAL and OPERATIONAL REVIEW
Financial Review
Revenue for the year ended 30 April 2017 increased by 24% to
GBP27.1 million (FY2016: GBP21.9 million). Within this, pro-forma
organic revenue growth was, like last year, approximately 10%. This
is calculated based on a comparison with pro-forma revenue for
FY2016 of GBP24.6 million which includes revenues for Covalent,
IPI, PleaseTech and Logen for the same period that they were owned
by the group in FY2017.
The Group provides software solutions in two areas; GRC and
Content and Clinical.
Revenues from the GRC market of GBP22.7 million represented 84%
(FY2016: 80%) of total Ideagen revenues. This continues to be the
main area of focus for the Group, and the proportion of overall
revenues that it represents will increase further in coming years
with the effects of full years' contributions from the acquisitions
made during this year. Pro-forma organic revenue growth in GRC was
13% during the year (FY2016: 23%).
Content and Clinical, which accounts for 16% or GBP4.5million of
Group revenues (FY2016: 20% and GBP4.4 million) is predominantly
focused on content and clinical management for the NHS. It has seen
revenues decline in recent years however this pattern has now
stabilised with revenues growing by 1% in the year.
Recurring revenues have grown strongly this year, both because
of the Group's continued focus on SaaS-based products, and through
acquisitions of companies with high levels of recurring revenues.
Recurring revenues were GBP15.5 million (FY2016: GBP11.9 million)
making up 57% (FY2016: 54%) of total revenues and are equivalent to
93% (FY2016: 81%) of operating costs. This proportion will increase
further with a full contribution from the acquisitions; the Group
particularly considers high recurring revenue models as a key
feature for acquisition targets.
With the increased focus on SaaS software sales, on-premise
software licence revenues represented a declining proportion of
revenues at 20.3% (FY2016: 24.0%) or GBP5.5million (FY2016:
GBP5.3million) of total revenues as expected. Maintenance and
Support revenues on traditional licence sales continued to grow in
value terms however, for the same reasons, this also represents a
reducing proportion of total revenues at 39.4% (FY2016: 45.1%).
Professional services revenues represented a relatively stable
proportion of total sales at 21.1% (FY2016: 20.2%). Revenues are
analysed by revenue stream in note 2.
Adjusted EBITDA increased by 26% to GBP7.9 million (FY2016:
GBP6.3 million) and the adjusted EBITDA margin at 29.0% remained at
a similar level to FY2016 (28.5%). We consider it important to
invest significantly in our staff and the infrastructure of the
business to support continued organic growth and to provide a
strong, scalable platform for the integration of future
acquisitions.
Amortisation of acquisition intangibles of GBP4.3 million
(FY2016: GBP3.7 million) represents the majority of the total
depreciation and amortisation charge of GBP5.3 million (FY2016:
GBP4.3 million). Amortisation of development costs amounted to
GBP0.7 million (FY2016: GBP0.4 million). The share-based payment
charge of GBP1.2 million (FY2016: GBP0.9 million) relates to the
Group's equity-settled share option schemes and included
GBP0.3million of national insurance costs on the exercise of
non-tax efficient options. The remainder of the charge does not
represent a cash cost to the Group.
The adjusted Group tax charge is analysed in note 5 and amounted
to GBP0.8 million (FY2016: GBP0.7 million). This has been adjusted
to exclude the deferred tax effects associated with the
amortisation of acquisition intangibles and share based payment
charges. The adjusted Group tax charge represents 12% (FY2016: 12%)
of adjusted profit before tax of GBP6.9 million (FY2016: GBP5.7
million). The Group's use of tax losses, R&D tax credit claims
and tax deductions linked to the exercises of share options means
there is no UK corporation tax liability on FY2017 profits.
As a result of the above, adjusted diluted earnings per share
increased by 19% to 3.16p (FY2016: 2.66p).
The Group's financial position has continued to strengthen
during the year with net assets increasing to GBP46.4 million
(FY2016: GBP33.7 million).
The level of intangible assets increased to GBP56.4 million
(FY2016: GBP32.6 million) mainly as a result of the four
acquisitions completed during the year. The Group capitalised
GBP2.0 million (FY2016: GBP1.6 million) of R&D development
costs during the year which represented 7.3% (FY2016: 7.5%) of
total revenues. The increase is due to costs capitalised in respect
of the products being developed by the businesses acquired during
the year.
The acquisitions made during the year were funded through a
combination of the Group's existing resources, an over-subscribed
GBP10million share placing, deferred consideration payments agreed
as part of the deals and the entry into a revolving working capital
facility to cover short-term financing needs. At 30 April 2017,
GBP2million of this revolving facility was still being utilised
however this has been repaid since the year end, and accordingly,
the Group currently has no material external borrowings
outstanding.
Cash generated by operations improved significantly during the
year and amounted to GBP8.9 million (FY2016: GBP4.9 million)
representing cash conversion of approximately 113% (FY2016: 78%) of
adjusted EBITDA. The Board has set a cash conversion target of 90%
and therefore the performance in the year represents significant
over achievement. It is however important to note that this figure
was positively impacted by the receipt, prior to the year-end of
GBP0.8million of cash from option holders who have exercised
options near the end of the financial year to cover payroll taxes
arising on the exercise. This sum was paid out after the year end.
Excluding this sum, cash generated by operations would have
represented approximately 103% of adjusted EBITDA. Free Cash flow
also improved significantly to GBP6.1 million (FY2016 GBP2.8
million) representing 77% (FY2016: 45%) of adjusted EBITDA. The
group ended the year with net cash balances of GBP4.2 million.
During the year, the Group made the final deferred consideration
payment of GBP1.6 million in respect of the acquisition of Gael
Ltd. The Group also expects to pay a total of approximately GBP4.2m
over the next two years in respect of contingent or deferred
consideration on acquisitions completed in the year.
Operational Review
Ideagen has a strong cultural drive towards operational
excellence focused around its people, processes, systems and
facilities. At 30 April 2017 Ideagen had 363 employees based across
its UK and international office network, with over 230 of these
located at the 2 core UK offices of Nottingham and East Kilbride.
Ideagen maintains an international office presence in the US,
Dubai, Bulgaria, and Malaysia, where a combined total of 41 people
are based.
The organisation remains committed to significant investment in
R&D, with 95% of resources based at the core R&D sites in
Nottingham, East Kilbride, Bulgaria, and Malaysia. Ideagen
maintains its focus building upon core markets, both geographically
and vertically, and delivering excellence across the customer base.
As a result the company has 77 people within Sales & Marketing,
68 in Service Delivery, and 43 in Support.
Ideagen is pleased to combine success with continued investment
in the team, and 52% of employees have been with the Group for 3 or
more years. The Group is delighted that this traditionally male
dominated sector has seen strong growth in female applications,
resulting in a ratio of 71% male to 29% female.
In order to facilitate the growth of recent years, Ideagen
continues to invest significantly in 'best of breed' systems that
have scalability, functionality and reporting at their core.
Salesforce.com remains the number one system for the organisation,
providing both the internal platform for sales, marketing, and
service delivery and the external platform for self-service support
portals for our customers.
As Ideagen develops, significant resource is invested in
benchmarking processes and systems to ensure best practice is
standard and that Ideagen remains fit for growth. Ideagen remains
committed to relevant accreditations and currently holds Microsoft
Gold Partner status, ISO 9001, ISO 27001, and ISO 14001. The
company has membership to a significant number of leading bodies
including the Chartered Quality Institute (CQI), Institute of
Internal Auditors (IIA), Airports Council International Europe
(ACI), and the Institute of Biomedical Science (IBMS).
Graeme Spenceley
Chief Financial Officer
Ideagen plc
Group Statement of Comprehensive Income for the year ended 30
April 2017
Note 2017 2016
GBP'000 GBP'000
Revenue 2 27,112 21,936
Cost of sales (2,841) (2,632)
Gross profit 24,271 19,304
Operating costs (16,404) (13,047)
-------- --------
Profit from operating activities before
depreciation, amortisation, share-based
payment charges and exceptional items 7,867 6,257
Depreciation and amortisation (5,255) (4,322)
Costs of acquiring businesses (609) -
Restructuring costs (104) -
Share-based payment charges (1,203) (936)
Profit from operating activities 696 999
Movement in fair value of contingent consideration - (4)
Finance (costs) / income (33) 7
-------- --------
Profit before taxation 663 1,002
Taxation 4 68 315
-------- --------
Profit for the year 731 1,317
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translating foreign
operations 252 88
Corporation tax on exercise of options 277 27
Total comprehensive income for the year
attributable to the owners of the parent
company 1,260 1,432
======== ========
Unadjusted earnings per share 3 Pence Pence
Basic 0.40 0.74
Diluted 0.38 0.71
Adjusted earnings per share 3 Pence Pence
Basic 3.32 2.78
Diluted 3.16 2.66
Ideagen plc
Group Statement of Financial Position at 30 April 2017
2017 2016
GBP'000 GBP'000
Assets and liabilities
Non-current assets
Intangible assets 56,427 32,572
Property, plant and equipment 583 433
Deferred income tax assets 1,348 877
-------- --------
58,358 33,882
-------- --------
Current assets
Inventories 10 33
Trade and other receivables 10,971 8,244
Current income tax recoverable 27 -
Cash and cash equivalents 6,205 6,317
-------- --------
17,213 14,594
-------- --------
Current liabilities
Trade and other payables 5,115 2,506
Contingent consideration on business 2,054 -
combinations
Current income tax liabilities - 13
Short-term borrowings 2,000 -
Deferred revenue 11,609 6,603
Deferred consideration on business
combinations 1,640 1,623
-------- --------
22,418 10,745
-------- --------
Non-current liabilities
Deferred consideration on business 460 -
combinations
Deferred income tax liabilities 6,274 4,048
6,734 4,048
Net assets 46,419 33,683
======== ========
Ideagen plc
Group Statement of Financial Position at 30 April 2017
(continued)
2017 2016
GBP'000 GBP'000
Equity
Issued share capital 1,981 1,790
Share premium 33,405 23,598
Merger reserve 1,658 1,167
Share-based payments reserve 961 1,482
Retained earnings 8,081 5,565
Foreign currency translation reserve 333 81
Equity attributable to the owners
of the parent 46,419 33,683
======== ========
Ideagen plc
Group Statement of Cash Flows for the year ended 30 April
2017
2017 2016
GBP'000 GBP'000
Cash flows from operating
activities
Profit for the year 731 1,317
Depreciation of property, plant and
equipment 249 201
Amortisation of intangible non-current
assets 5,006 4,121
(Profit)/loss on disposal of property,
plant and equipment (14) 3
Share-based payment charges 1,203 936
Finance costs/(income) recognised in
profit or loss 33 (7)
Taxation credit recognised in profit
or loss (68) (315)
Business acquisition costs in profit
or loss 609 -
Movement in fair value of contingent
consideration - 4
Decrease in inventories 23 22
Increase in trade and other receivables (1,395) (834)
Increase/(decrease) in trade and other
payables 1,237 (894)
Increase in deferred revenue liability 1,264 348
-------- -------
Cash generated by operations 8,878 4,902
Finance (costs paid)/income received (33) 7
Income tax paid (14) (41)
Business acquisition costs paid (390) (92)
Employer's national insurance paid on
share-based payments (108) -
Net cash generated by operating activities 8,333 4,776
-------- -------
Cash flows from investing
activities
Net cash outflow on acquisition of businesses
net of cash acquired (16,394) -
Payments of deferred consideration on
business combinations (1,623) (1,618)
Payments of contingent consideration
on business combinations - (51)
Payments for development costs (1,988) (1,643)
Payments for property, plant and equipment (289) (347)
Proceeds of disposal of property, plant
and equipment 23 11
Net cash used in investing activities (20,271) (3,648)
-------- -------
Cash flows from financing activities
Proceeds from placing of equity shares 10,000 -
Payments for share issue costs (334) -
Proceeds from issue of shares under
the share option schemes 324 172
New short-term borrowings 2,000 -
Equity dividends paid (346) (306)
Net cash generated/(used) by financing
activities 11,644 (134)
-------- -------
Net (decrease)/increase in cash and
cash equivalents during the year (294) 994
Cash and cash equivalents at the beginning
of the year 6,317 5,266
Effect of exchange rate changes on cash
balances held in
foreign currencies 182 57
-------- -------
Cash and cash equivalents at the end
of the year 6,205 6,317
-------- -------
Ideagen plc
Group Statement of Changes in Equity for the year ended 30 April
2017
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- -------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 1,790 23,598 1,167 1,482 5,565 81 33,683
Share placing 133 9,867 - - - - 10,000
Share placing issue
costs - (335) - - - - (335)
Shares issued on
acquisition of
business 9 - 491 - - - 500
Shares issued under
share option
scheme 49 275 - - - - 324
Share-based payments - - - 858 - - 858
Transfer on exercise of
share options - - - (1,379) 1,379 - -
Taxation on share-based
payments
in equity - - - - 475 - 475
Equity dividends paid - - - - (346) - (346)
-------- -------- -------- ----------- --------- ------------ -------------
Total transactions with
owners recognised
directly in equity 191 9,807 491 (521) 1,508 - 11,476
-------- -------- -------- ----------- --------- ------------ -------------
Profit for the year - - - - 731 - 731
Other comprehensive
income for the
year - - - - 277 252 529
-------- -------- -------- ----------- --------- ------------ -------------
Total comprehensive
income for the
year - - - - 1,008 252 1,260
-------- -------- -------- ----------- --------- ------------ -------------
Balance at 30 April
2017 1,981 33,405 1,658 961 8,081 333 46,419
======== ======== ======== =========== ========= ============ =============
Ideagen plc
Group Statement of Changes in Equity for the year ended 30 April
2016
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- -------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2015 1,773 23,443 1,167 653 4,160 (7) 31,189
Shares issued under
share option
scheme 17 155 - - - - 172
Share-based payments - - - 921 - - 921
Transfer on exercise of
share options - - - (92) 92 - -
Taxation on share-based
payments
in equity - - - - 275 - 275
Equity dividends paid - - - - (306) - (306)
-------- -------- -------- ----------- --------- ------------ -------------
Total transactions with
owners recognised
directly in equity 17 155 - 829 61 - 1,062
-------- -------- -------- ----------- --------- ------------ -------------
Profit for the year - - - - 1,317 - 1,317
Other comprehensive
income for the
year - - - - 27 88 115
-------- -------- -------- ----------- --------- ------------ -------------
Total comprehensive
income for the
year - - - - 1,344 88 1,432
-------- -------- -------- ----------- --------- ------------ -------------
Balance at 30 April
2016 1,790 23,598 1,167 1,482 5,565 81 33,683
======== ======== ======== =========== ========= ============ =============
Notes
1 Basis of information
The financial information included in this preliminary
announcement is unaudited. This information does not constitute the
annual report and accounts of the Group for the year ended 30 April
2017 within the meaning of section 434 of the Companies Act 2006.
This will be available from www.ideagen.com in due course. The
audited annual report and accounts of the Group for the year ended
30 April 2016 has been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and
did not contain any statement under section 498 (2) or (3) of the
Companies Act 2006 and did not include references to any matters to
which the auditor drew attention by way of emphasis. Consistent
accounting policies have been applied in the preparation of this
information over the two years ended 30 April 2017.
2 Revenue
An analysis of the Group's revenue is given below.
2017 2016
GBP'000 GBP'000
Recurring software revenues 4,785 2,055
Recurring support & maintenance 10,685 9,885
-------- --------
Total recurring revenues 15,470 11,940
Software - new licence revenues 5,493 5,255
Professional services 5,723 4,439
Other 426 302
Total revenue 27,112 21,936
-------- --------
3 Earnings per share information
Basic earnings per share is calculated by dividing the profit
for the year attributable to the owners of the Group ('Earnings')
by the weighted average number of ordinary shares outstanding
during the year. Diluted earnings per share is calculated by
dividing Earnings by the weighted-average number of ordinary shares
outstanding during the year as adjusted for the effect of all
potentially dilutive shares, including share options.
In order to better demonstrate the performance of the Group,
adjusted earnings per share calculations have also been presented
which take into account items typically adjusted for by users of
financial statements. The adjusted earnings and earnings per share
information are shown below.
2017 2016
GBP'000 GBP'000
Profit for the year (Earnings) 731 1,317
Adjustments:
Costs of acquiring businesses 609 -
Restructuring costs 104 -
Share-based payment charges 1,203 936
Deferred taxation on share based payment
charges 78 (168)
Amortisation of acquired intangibles 4,318 3,715
Deferred taxation on amortisation
of acquired intangibles (977) (851)
Movement in fair value of contingent
consideration - 4
Adjusted earnings 6,066 4,953
------------ ------------
Weighted average number of shares 182,719,656 178,379,433
Diluted weighted average number of
shares 191,847,039 186,316,355
Basic earnings per share 0.40 pence 0.74 pence
Diluted earnings per share 0.38 pence 0.71 pence
Adjusted basic earnings per share 3.32 pence 2.78 pence
Adjusted diluted earnings per share 3.16 pence 2.66 pence
4 Taxation
Further information on the taxation credit in the Group
Statement of Comprehensive Income is as follows:
2017 2016
GBP'000 GBP'000
UK income tax charge / (credit) 228 (15)
Overseas income tax charge 53 34
281 19
Deferred tax credit on amortisation of acquisition
intangibles (977) (851)
Deferred tax charge / (credit) on share based
payment charges 78 (168)
Deferred tax charge on utilisation of tax
losses 222 442
Deferred tax charge on development costs 328 243
Total deferred taxation credit (349) (334)
Total taxation credit (68) (315)
-------- --------
5 Adjusted profit before taxation and adjusted taxation charge in the Income Statement
2017 2016
GBP'000 GBP'000
Adjusted earnings (note 3) 6,066 4,953
Adjusted taxation charge (below) 831 704
-------- --------
Adjusted profit before taxation 6,897 5,657
-------- --------
Taxation (credit)/charge in the Statement
of Comprehensive Income (68) (315)
Add back:
Deferred tax credit on amortisation of acquisition
intangibles (note 3) 977 851
Deferred tax credit on share based payment
charges (note 3) (78) 168
-------- --------
Adjusted taxation charge 831 704
-------- --------
Adjusted taxation charge based on adjusted
profit before taxation 12% 12%
-------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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