Good morning, it's Paul here.

Just to get you started today, I reviewed 8 companies last night, which was clearing some of the backlog from earlier this week.

Then I'll look at Friday's RNSs once I've had a lie-in, and a full english at my favourite local Turkish cafe here in north London!

Ideagen (LON:IDEA)

Share price: 150p
No. shares: 219.2m
Market cap: £328.8m

Interim results

Ideagen PLC (AIM: IDEA), a leading supplier of Integrated Risk Management (IRM) software to highly regulated industries, announces its unaudited interim results for the six months ended 31 October 2018.

These numbers were published on Tuesday this week (22 Jan 2019), and have been well-received by the market, with a good bounce in the share price from a recent low of c.119p, to 150p now.

I met the Exec Chairman both at Mello Chiswick, and also privately for a working lunch, in late Dec 2018. I wrote up my thoughts afterwards, here. I've just re-read those notes, to refresh my memory.

Interim results - key points;

  • Good revenue growth of 22%, to £21m
  • Organic revenue growth is strong, at 8% (the rest has come from acquisitions)
  • Recurring revenues now 67% of the total. This is expected to grow to 74% by 2020, as the group transitions more to a SaaS model
  • Adjusted profit before tax up 17% to to £4.8m - note the strong profit margin of nearly 23% of revenues (if you accept the adjustments)
  • Net debt of £1.3m - a very good position for an acquisitive group. I'll look at the balance sheet more closely below

Positive-sounding operational review (I won't repeat it here). 95% customer retention rate stands out as very pleasing.

Current trading & outlook - sounds fine;

First half performance in line with market expectations and outlook strong for second half...
Current trading is in line with market expectations and the acquisitions made in H1 are performing well.

The IRM market continues to grow and our success in winning new business together with our levels of recurring revenue and repeat business from our 4,000 strong customer base provides the Board with confidence in the outlook for this year and beyond.

What's IRM? It stands for "integrated risk management".

Balance sheet - net assets of £71.7m, is top heavy with intangibles of…

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