TIDMIDOX
RNS Number : 5511F
IDOX PLC
17 November 2020
17 November 2020
Idox plc
( ' Idox ' or the ' Group ' or the ' Company ' )
Year End Trading Update
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 today
for its financial year ended 31 October 2020 ('FY2020').
The Group expects to deliver another strong financial and
operational performance, in line with the Board's expectations,
building on the transformation executed in the previous year with
good margin expansion and cash conversion.
Financial Highlights
-- Revenue increased by 4% to GBP68.0m (2019: GBP65.5m);
-- Recurring revenue increased by 5% to GBP37.4m (2019: GBP35.7m);
-- Significant 35% increase in adjusted EBITDA to GBP19.5m (2019: GBP14.4m);
-- Adjusted profit before tax of GBP10.4m (2019: GBP7.7m);
-- Statutory profit before tax of GBP2.8m (2019: loss of GBP0.03m);
-- Material reduction in net debt at 31 October 2020 to GBP16.1m (2019: GBP26.4m):
o Leverage at 31 October 2020 of 0.8x trailing 12 month adjusted
EBITDA (2019: 1.8x)
o Excluding our 6PM Bond redeemable in 2025, net debt to our
banking group at 31 October 2020 is GBP4.3m (2019: GBP14.8m),
representing a decrease of 71%
o Idox retains substantial headroom against its banking
facilities which include a GBP35m revolving credit facility and
GBP10m accordion facility
-- Intention to proceed with reinstatement of a final dividend
for the year ended 31 October 2020
Operational Highlights
Idox has continued to improve all areas of the business within
its four pillars framework during FY2020, with successful
initiatives including:
-- Fully integrating our 2019 Tascomi acquisition, recently rebranded as 'Idox Cloud';
-- Significant progress in delivering Digital Transformation to
clients with several new wins for Idox Cloud and new software
developments based upon the Idox Cloud development framework;
-- Fully exiting sub-scale operations in Ireland and Malta;
-- Consolidating all UK operations into a single statutory entity, and completing a rebrand;
-- Establishing the first groupwide CRM, which is already
yielding improved sales performance; and
-- Fully integrating our operational processes creating a single Idox Software unit.
Outlook
The Group remains ambitious for the future and well-placed to
realise this ambition. Idox strives to be a trusted partner of
choice for customers, colleagues and suppliers in addition to our
banking partners and shareholders as we continue to grow revenues,
margin, and cash.
We remain cautious in respect of the ongoing impact of the
Covid-19 pandemic but are confident that our public sector markets
and software solutions will continue to be resilient. Idox has not
taken advantage of any government job support schemes to date.
Trading in the current financial year has started in line with
our expectations with continued contract momentum and strong
revenue visibility. The closing order book for contracted software
and services for FY2021 and beyond is GBP15.9m (2019: GBP12.1m) in
addition to our recurring revenue base.
The Group expects to issue its FY2020 results announcement in
early February 2021.
Adjusted EBITDA is defined as earnings before interest, tax,
amortisation, depreciation, restructuring, acquisition, corporate
finance and share option costs.
David Meaden, Chief Executive of Idox, commented:
"We have continued the momentum of the transformations of 2019
into the 2020 financial year and I am delighted with our financial
and operational performance over the past twelve months. We
continue to see significant opportunities in our markets to support
our customers in realising their digital ambitions through
enhancements to best in class software applications, digital
transformation and delivery through the cloud.
"We intend to proceed with re-instating our dividend for the
2020 financial year as previously stated, which will be payable
following our AGM in the first half of 2021.
"Our strong balance sheet will enable us to drive forward as we
look to scale our business through carefully selected organic and
inorganic investments, whilst at the same time retaining our sharp
focus on margins and cash.
"We remain encouraged by and confident in the ongoing prospects
for the Group."
-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
Paul Gillam
Nick Prowting
MHP Communications +44 (0) 203 128 8170
Reg Hoare / James Bavister / Amy O'Sullivan idox@mhpc.com
About Idox plc
For more information see www.idoxplc.com @Idoxgroup
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