REG - IDOX PLC - Half Year Results
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RNS Number : 4725M IDOX PLC 12 June 2025
12 June 2025
Idox plc
Half Year results for the six months ended 30 April 2025
Positive momentum continues with good first half performance
Idox plc (AIM: IDOX, 'Idox', 'the Company' or 'the Group'), a leading supplier
of specialist information management software and geospatial data solutions to
the public and asset-intensive sectors, is pleased to announce its unaudited
half year results for the six months ended 30 April 2025 ('H1 FY25').
Financial highlights
H1 FY25 H1 FY24 % change
Revenue:
Revenue £45.0m £43.1m 4%
Recurring Revenues(1) £29.8m £27.4m 9%
Profit:
Adjusted(2) EBITDA £13.9m £13.1m 6%
Adjusted(2) EBITDA margin 31% 30% -
Statutory operating profit £6.4m £5.7m 14%
Adjusted(3) diluted EPS 1.48p 1.26p 17%
Statutory diluted EPS 0.92p 0.71p 30%
Cash:
Free cashflow(5) £13.6m £13.0m 5%
Cash generated from operating activities before taxation as a percentage of 141% 149% -
Adjusted EBITDA
Net cash(4) / (debt) £0.2m £(6.6)m N/A
Operational highlights - record intake and new wins
· Record first half order intake of £58.7m, up 9% from H1 FY24
(£54.1m), providing increasing levels of revenue visibility for the remainder
of FY25 and into FY26.
· Strong wins from existing and new customers including North Yorkshire
Council, Calderdale Borough Council, Swansea Council, the Welsh Government,
Ministry of Housing, Communities and Local Government, Berkshire Hathaway
Energy, and Pacificorp.
· Continued progress on further developing the Group's geospatial
capabilities and revenue including new wins with customers including Vodafone.
· Healthy M&A pipeline with good progress on a number of strategic
targets.
· Acquisition of Plianz, a UK-based provider of Health and Social Care
software solutions, shortly after the period end for initial enterprise value
of £7.65m in cash.
· Continued growth of India operation in Pune, which now employs over
100 colleagues with further ongoing recruitment to support growth ambition.
Current trading and outlook - good visibility for the remainder of the year
· A combination of strong growth in recurring revenue and an active
bidding pipeline, provides good revenue visibility for the remainder of FY25
and into FY26.
· The business continues to perform well and in line with the Board's
expectations.
· Intention to pay a final dividend in line with the Group's stated
dividend policy.
David Meaden, Chief Executive Officer of Idox said:
"Idox has delivered a good financial performance in the first half of 2025 in
line with the Board's expectations, with increased total revenue, recurring
revenue, profitability and cash generation, putting the Group in its strongest
position ever.
A clear focus on, and a deep understanding of the markets we serve, continues
to provide us with excellent opportunities to support new and existing
customers. The breadth and depth of our services delivered via our outstanding
people offers further opportunities for organic growth.
We have a proven track record of identifying, acquiring and integrating
strategic assets into Idox and were pleased to complete the acquisition of
Plianz shortly after the period end to strengthen our existing Health and
Social Care offering. Our M&A pipeline remains healthy, and we remain
confident of adding to our existing portfolio of specialist software and
geospatial data solutions to deliver further profitable growth.
We are pleased with the progress made and positive momentum meaning the Group
is well positioned to deliver on our full-year expectations."
There will be a webcast at 9:30am UK time today for analysts and investors. To
register for the webcast please contact MHP at idox@mhpgroup.com
(mailto:idox@mhpgroup.com)
For further information please contact:
Idox plc +44 (0) 870 333 7101
Chris Stone, Non-Executive Chair investorrelations@idoxgroup.com
David Meaden, Chief Executive Officer
Anoop Kang, Chief Financial Officer
Peel Hunt LLP (NOMAD and Broker) +44 (0) 20 7418 8900
Benjamin Cryer
Kate Bannatyne
Adam Telling
MHP + 44 (0) 7827 662 831
Reg Hoare idox@mhpgroup.com (mailto:idox@mhpgroup.com)
Ollie Hoare
Matthew Taylor
Finn Taylor
About Idox plc
For more information see www.idoxgroup.com
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@Idoxgroup
Alternative Performance Measures (APMs)
The Group uses these APMs, which are not defined or specified under
International Financial Reporting Standards, as this is in line with the
management information requested and presented to the decision makers in our
business; and is consistent with how the business is assessed by our debt and
equity providers.
(1) Recurring revenue is defined as revenues associated with access to a
specific ongoing service, with invoicing that typically recurs on an annual
basis and underpinned by either a multi-year, rolling contract and highly
repeatable services. These services include Support & Maintenance, SaaS
fees, Hosting services, and some Managed service arrangements which involve a
fixed fee irrespective of consumption.
(2) Adjusted EBITDA (earnings before interest, tax, depreciation and
amortisation) is defined as earnings before amortisation, depreciation,
non-underlying, acquisition costs, impairment, financing costs and share
option costs. Share option costs are excluded from Adjusted EBITDA as this is
a commonly used measure in the industry and how management and our
shareholders track performance (see note 10 for reconciliation).
(3) Adjusted EPS excludes amortisation on acquired intangibles,
non-underlying, financing, impairment, share option and acquisition costs (see
note 10 for reconciliation).
(4) Net cash / debt is defined as the aggregation of cash, bank borrowings and
the long-term bond (see note 10 for reconciliation). This differs from a
similar measure under IFRS, which would also include lease liabilities as
debt. The definition used is consistent with that used within the Group's
banking arrangements.
(5) Free cash flow is defined as net cash flow from operating activities after
taxation less capital expenditure and lease payments (see note 10 for
reconciliation).
Chair's statement
Introduction
I am pleased to introduce a good set of results from Idox for the first half
of the financial year. This has been a period of continuous progress and
operational execution. During the period, revenues grew by 4% and Adjusted
EBITDA by 6%. Cash generated from operating activities, before taxation, was
£19.6m, a conversion rate of 141% against an Adjusted EBITDA for the period
of £13.9m. The period ended with the business in a net cash position of
£0.2m.
The Group continues to be well placed to execute on our growth strategy. There
is positive momentum across the business, supported by an increase of 9% on
last year's order intake and a strong pipeline of opportunities which
underpins our confidence in the medium term. We continue to see strong demand
for our products and services from existing customers as they use software and
new technologies to help them manage increasing demand with limited resources.
It is important that we manage the business to take advantage of new
opportunities, build scale in our operations and continue to expand into near
market adjacencies to capitalise on our core competencies. We will do this
through both organic development and acquisitions.
We have continued to see opportunities that extend our product and service
footprint with our customers, and we have supported the business with
investment in new product areas which we believe will deliver value to
customers and shareholders over the medium term. We continue to pursue an
active acquisition programme yet remain focussed on only acquiring businesses
which we believe will enhance our current position, and at prices which
deliver value for our shareholders. In this vein, we were pleased to complete
the acquisition of Plianz shortly after the period end, which is a very good
fit with our current activities. We continue to look for accretive,
synergistic acquisition opportunities that support our long-term focus on
software and complement the existing portfolio. We are confident that there
are a range of opportunities that fit the key criteria we have defined, it is
incumbent on the Board to exercise the necessary patience to ensure that we
are delivering in the best long-term interests of shareholders. In support of
our growth strategy, the continued focus on cash generation and paying down
existing debt has put the business in a strong position to execute on this
strategy.
The divisional structure continues to work well for our business and our
customers, and this focus on customers has been a significant driver of our
growth in recurring revenue, up 9% in the period. We continue to see strong
demand for our cloud-based solutions, particularly in our LPPP business where
we saw recurring revenue in Idox Cloud up over 13% on the prior year period.
During the reporting period, we have undertaken work to report our progress in
matters relating to ESG and enhanced our reporting on matters relating to
diversity, equality, and inclusivity (DEI). We have continued to explore how
our teams engage with the business and their thoughts on matters that affect
them through the 'Be Heard' survey and this continues to shape our approach to
DEI. We are committed to ensuring that all stakeholders, foremost amongst
these our employees, can be proud of the Company's work in this area.
We are grateful to our customers for continuing to have confidence in Idox as
a partner and to our colleagues for their hard work and dedication in making
Idox the business it is today.
Dividend
As previously announced, the Group paid a dividend of 0.7p per share in April
2025 in respect of the year ending 31 October 2024. Our current policy is to
only declare a final dividend and therefore, no interim dividend is proposed
in respect of H1 FY25 (H1 FY24: £Nil). We will keep the level of future
dividends under review in consideration of our performance, financial position
and our confidence in the future.
Summary
The Group has made good progress in the period. We are focused on ensuring we
drive the full benefit of our strong performance in growing our recurring
revenues into improving our net cash generation. We also remain committed to
our buy and build strategy and continue to carefully evaluate M&A
opportunities that we believe will deliver long term benefits for customers
and shareholders whilst creating strong opportunities for our teams and their
future development. Overall, the business continues to perform well and in
line with the Board's expectations.
Chris
Stone
Chair of the
Board
Chief Executive's statement
I am pleased to report on a good performance for the first half of the year
and would like to thank our teams across the business who have been
instrumental in building the strong momentum we have across the Group. We are
proud to deliver market leading software that helps customers across a range
of industries manage highly complex operational, legislative and regulatory
processes through robust and effective software solutions.
The insight our customers gain to their business operations through these
software platforms is profound and we have increased our capabilities in this
area with the delivery of geospatial software and data solutions and look
forward to developing these along with advanced machine learning and AI
developments over the coming months and years.
The Company has continued to improve its revenue, recurring revenue, Adjusted
EBITDA, cash and order book positions and has never been stronger than it is
today. In addition, our committed banking facilities provide significant
firepower to compliment organic growth and internal investment with
acquisitions where we see that we can add scale and capability. Our priorities
are opportunities that drive growth, improve recurring revenue, broaden our
offering, and extend Idox's position in our chosen markets. Shortly after the
period end we announced the acquisition of Plianz and this adds to our
attractive portfolio of solutions across the Health and Social Care sectors.
Strong progress
During this reporting period we have seen growth in Group revenues of 4%,
including 9% in our recurring revenues, generating total revenues of £45.0m,
an Adjusted EBITDA improvement of 6% from £13.1m to £13.9m and a statutory
operating profit improvement of 14% to £6.4m. The Group continued to generate
strong cash flow during the period, resulting in a net cash position at 30
April 2025 of £0.2m compared to £9.9m net debt at the end of the last
financial year.
Our strong operational cadence and financial position makes Idox well placed
for continued growth in our software operations and provides a secure
foundation to which we can add compatible acquisitions to our portfolio of
offerings.
Clarity of strategy and consistency of performance has been based upon our
'Four Pillars' which underpin our strategic thinking and operational decision
making for the business as we continue to grow, adapt, and evolve; these are
Revenue expansion, Margin enhancement, Simplification and Communication.
The 'Four Pillars' programme
Revenue expansion
Our significant market positions and continued investment in our solutions has
supported an improved sales performance, increasing sales to existing
customers, in addition to welcoming new client customers across all Divisions.
During the period we saw recurring revenues increase by 9% and total revenue
by 4% on the same period last year. Given the comparative period last year was
cyclically significantly higher for customers extending the use of many of our
key software offerings and when considering the overall economic sentiment,
this can be seen as a very pleasing result. The record order intake during the
period of £58.7m speaks well to the performance and momentum of the business.
Reviewing the performance of our Divisions:
Land, Property & Public Protection
Sales order intake in Local Government continued to perform well with high
retention rates in the period and a good mix of new services and contract
extensions. As anticipated this year, customers resigns were at a cyclically
lower point, but our previously outlined strategic focus on establishing
longer term agreements with customers, securing future long-term relationships
has continued and we have seen a continued increase in Annual Recurring
Revenue (ARR).
The period saw significant contracts with North Yorkshire Council, Calderdale
Borough Council, Swansea Council, East Lyndsay District Council, London
Borough of Bexley and London Borough of Barnet Council. Harlow Council joined
a growing customer base choosing the Idox provisioned hosting service for
their existing software platforms, with 25% having now transitioned to our
Uniform Cloud hosting service.
Recurring revenue in Idox Cloud was up over 13% in H1 FY25, with overall
revenues up almost 18% on the same period last year. We welcomed new customers
to our solution, including East Staffordshire Borough Council and a number of
migrations including Blackburn with Darwen Borough Council, Kent County
Council, Derby City Council, Walden Borough Council and Blackpool Council.
Address Management Solutions revenues were up 7% supported by continued
recurring revenue growth in the period which was up 9%. Our strategy of
expanding into new adjacent markets showed good progress in the first half of
the year with significant new business wins with Frequentis Ltd welcomed as a
new customers, alongside Portsmouth City Council, Torbay Council and New
Forest District Council, alongside a number of customers upgrades to the
iManage Cloud offering.
The formation of Idox Geospatial, following the acquisition of Emapsite in
2023, has created an opportunity to create and explore new data services and
solutions. Emapsite has built on its previous performance, with revenue growth
of 23% on the same period last year. During the period there were a number of
successes, including a major 3-year contract with Vodafone, new contracts with
the National Collection of Aerial Photography and Miller & Bryce and
continues to be an area which we invest in.
Communities
Revenue in Lilie, our sexual health solution, was up 10% on prior year, as we
continued our strong relationship with existing customers such as Cardiff
& Vale University Health Board, Hereford & Worcestershire, Royal
Berkshire Hospital NHS Trust, Noble's Hospital and Maidstone & Tunbridge
Wells NHS Trust.
Elections revenues were up 8% on prior year, with significant work with the
Welsh Government, Ministry of Housing, Communities and Local Government,
Swansea City Council and Glasgow City Council.
In the Database subscription businesses GrantFinder and ResearchConnect,
recurring revenue was up over 3% on the same period last year. GrantFinder
welcomed 72 new customers in the period, with Research Connect and The
Knowledge Exchange also enjoying good performance in the first half.
Social Care revenues were 8% lower than in 2024, however, recurring revenue
has continued to increase (up 2%) including new contracts with London Borough
of Lambeth, Reading Borough Council, Manchester City Council and Salford City
Council.
Assets
EIM returned to growth with revenues 2% higher compared to 2024. The second
quarter saw a much better order intake performance carrying a stronger
orderbook into the second half of the year. New FusionLive sales included
significant contracts with Berkshire Hathaway Energy, Pacificorp and San
Francisco Bay Area Rapid Transit, expanding EIM's international customer base.
iFit (our asset tracking solution) revenues were up over 31% with
non-recurring revenues accounting for most of the improvement in performance,
growing 46% half-on-half. There are a number of exciting opportunities for the
iFit solution across the NHS and into other markets that we continue to
target. Birmingham Community Healthcare NHS Foundation Trust, Belfast NHS and
Social Care Trust and NHS Tayside were notable new wins and resigns during the
period.
Margin enhancement
We continue to target margin improvements across the business, and this has
delivered results in the first half of the year, with the Adjusted EBITDA
margin rising from 30% to 31%. Leveraging the matrix structure to build on our
scale across our Engineering and IT departments has helped create efficiencies
and better use of resources.
Formation of the Customer Success horizontal team and combining the leadership
and management of onboarding, professional services and customer support is
helping improve efficiency and delivery of better and more consistent services
to customers. This approach has created opportunities for pooled resources
providing additional support and scale across the Group as well as shared
learning and improvement of technical capabilities.
We have continued to increase our operational teams in India over the first
half of the year, and we now have over 100 colleagues based in Pune. We see
this as an important focus area over the next few years as we target
increasing the scale of our teams in India further.
Across Engineering we have developed a strategy to delivering Micro-Services
across all platforms, simplifying our approach to complex and repeatable
software requirements to ensure we engineer solutions once and apply them
across all of our platforms.
We have also established an AI Group, focussed on creating the appropriate
platforms for the Group going forward and demonstrating how AI technology can
practically work for customers in simplifying process, removing duplicated
costs and improving both staff and customer experiences.
Simplification
Across the Group we have implemented technologies and processes to streamline
and improve consistency and colleague experience; this has helped bring better
controls and improved visibility, facilitating better management control and
information.
Expansion of the sales desk and revenue assurance teams across the entire
Group has improved the overall customer experience, simplifying the order
process and refining the order to cash workflow. This approach has created
organisational efficiencies, significantly simplified the operations and
created a more consistent approach.
We continue to review, refine and invest in processes and technology across
the organisation to streamline and improve both the colleague and customer
experience.
Communication
Given the nature of our operations, we have embraced, where appropriate, the
world of hybrid working. However, we continue to work hard to provide an open
and engaging environment where colleagues can collaborate effectively. We have
encouraged and facilitated regular face-to-face activities and contact as we
believe that in the creative areas of work, especially in development and
product management, this is of particular importance.
We have opened a new office in Farnborough to accommodate our growing
Geospatial operations and we successfully completed the move to a new modern
office in Pune that can accommodate over 200 colleagues.
As part of our communication strategy, we engage and encourage regular and
open dialogue with colleagues across the business, targeted through areas of
special interest and focus groups, delivered through a variety of media and
channels, and leveraging the very latest collaboration tools.
Regular CEO broadcasts continue to underpin our communication strategy, these
include regular interactive sessions with various colleagues from across the
business contributing to ensure that a broad range of insights, opinions, and
inputs are presented. This forum provides opportunities for colleagues to ask
open questions of the panel with high levels of participation from across the
Group.
During the first half we have also engaged in a number of focus groups across
the business under the banner of 'Be Heard'. This allows teams across the
Group to reflect on the good things that come from working at Idox, provide
feedback about the Company's future strategy and highlight the things that are
important to them going forward that they would like us to focus on.
During the period we have introduced the My Growth initiative allowing team
members to more actively drive their own career development at Idox and have
implemented over 36 staff promotions in the period.
Responsible
We believe that our solutions and services create long term value for the
customers and communities we serve, and whilst we recognise our need to create
shareholder value, the Board also recognises the importance of our societal
and environmental responsibilities and the need to conduct our business in a
responsible and sustainable way.
Our commitment to this is focussed in four areas; our People; our Communities,
our Environment and Organisational Responsibilities.
Our ESG steering committee is now in its fifth year of driving our strategy
and agenda, built on understanding and monitoring our business practices to
ensure they are sustainable in both environmental and social terms as well as
ensuring that Idox is well governed and authentic.
We have sponsored initiatives throughout the first half of FY25, maintaining
our focus on DEI - and this is approached through smaller cross business
virtual team meetings to discuss lived experiences and effective ways to make
improvements across the business.
We have also supported employee led initiatives throughout the first half of
the year to raise funds in support of various charities and we encourage and
promote the use our community days scheme to support good causes in our local
communities. Initiatives like the payroll giving scheme are well used and help
maximise the impact of employees' contributions. We also operate regular
workplace wellbeing sessions, which are very well attended and appreciated by
members of the Idox Team.
Through our work in the Local Government community, we continue to enter into
social value partnerships with customers allied to the delivery of our
products and services. These arrangements enable Idox to make a very real and
direct contribution in the customers' local community. In addition, as
mentioned previously, we have continued to give free access to our My Funding
Central services for eligible charities.
Through our "My Funding Central" solution, and as part of our ongoing
commitment to charities working across the UK, we provide organisations with
incomes of less than £30,000 free access to grants and funding information.
Idox remains committed to our environmental protection initiatives and
operating the business in a responsible manner. Our Environmental Management
System is accredited to BS EN ISO 14001:2015, and we participate in the Energy
Saving Opportunities Scheme ('ESOS'), meeting the requirements of the
Streamlined Energy and Carbon Reporting ('SECR') regulations.
The ESG steering committee also monitors our ongoing carbon reduction
initiatives to ensure we are meeting our targets, including maintaining
disciplines on avoiding unnecessary travel, travelling green wherever possible
and by continuing to take advantage of virtual meetings and the delivery of
many of our customer services online. Following its introduction last year, we
have maintained our options to incentivise and encourage employees to obtain
an electric vehicle through our salary sacrifice scheme, along with providing
financial support for colleagues who may wish to install ground-based heating
systems, alongside help and advice on energy saving measures that can be
implemented when working from home.
Outlook
Idox has delivered a good financial performance in the first half of 2025 in
line with the Board's expectations, with increased total revenue, recurring
revenue, profitability and cash generation, putting the Group in its strongest
position ever.
A clear focus on, and a deep understanding of the markets we serve, continues
to provide us with excellent opportunities to support new and existing
customers. The breadth and depth of our services delivered via our outstanding
people offers further opportunities for organic growth.
We have a proven track record of identifying, acquiring and integrating
strategic assets into Idox and were pleased to complete the acquisition of
Plianz shortly after the period end to strengthen our existing Health and
Social Care offering. Our M&A pipeline remains healthy, and we remain
confident of adding to our existing portfolio of specialist software and
geospatial data solutions to deliver further profitable growth.
We are pleased with the progress made and positive momentum meaning the Group
is well positioned to deliver on our full-year expectations.
David Meaden
Chief Executive
Officer
Chief Financial Officer's review
The Group delivered a good performance in the first half of 2025 across
revenue, Adjusted EBITDA and cash flow. Revenue increased 4% in the period to
£45.0m (H1 FY24: £43.1m). Adjusted EBITDA increased by 6% to £13.9m (H1
FY24: £13.1m). Net debt since 31 October 2024 improved to a net cash position
of £0.2m at 30 April 2025.
The following table sets out the Revenue and Adjusted EBITDA for each of the
Group's segments.
H1 FY25 H1 FY24 Variance
£000 £000 £000 %
Revenue
LPPP 29,741 28,950 791 3%
Assets 7,850 7,081 769 11%
Communities 7,416 7,118 298 4%
Total 45,007 43,149 1,858 4%
Revenue Split
LPPP 66% 67%
Assets 17% 16%
Communities 17% 17%
Total 100% 100%
Adjusted EBITDA(1)
LPPP 9,212 9,197 15 -%
Assets 2,062 1,580 482 31%
Communities 2,631 2,282 349 15%
Total 13,905 13,059 846 6%
Adjusted EBITDA Margin
LPPP 31% 32%
Assets 26% 22%
Communities 35% 32%
- Total 31% 30%
(1) Adjusted EBITDA is defined as earnings before amortisation, depreciation,
non-underlying, acquisition costs, impairment, financing costs and share
option costs. Share option costs are excluded from Adjusted EBITDA as this is
a commonly used measure in the industry and how management and our
shareholders track performance. See note 10 for reconciliations of the
alternative performance measures.
Total revenue for the period increased by 4% to £45.0m (H1 FY24: £43.1m),
with all divisions growing. LPPP increased 3% in the period to £29.7m (H1
FY24: £29.0m). Assets increased 11% to £7.9m (H1 FY24: £7.1m) and
Communities revenues increased 4% to £7.4m (H1 FY24: £7.1m).
Adjusted EBITDA increased by 6% for the period to £13.9m (H1 FY24: £13.1m).
The growth in Adjusted EBITDA was driven by Assets and Communities which were
up 31% and 15% respectively in the period with LPPP delivering a stable
performance. This resulted in an anticipated overall Adjusted EBITDA margin of
31% (H1 FY24: 30%). In line with the improvements in Adjusted EBITDA, the
Adjusted EBITDA margin has improved to 31%, driven by increases in both Assets
and Communities.
Revenues
H1 FY25 H1 FY24 Variance
£000 £000 £000 %
Revenues
- Recurring (LPPP) 19,747 17,621 2,126 12%
- Recurring (Assets) 4,802 4,727 75 2%
- Recurring (Communities) 5,209 5,018 191 4%
29,758 27,366 2,392 9%
- Non-Recurring (LPPP) 9,994 11,329 (1,335) (12%)
- Non-Recurring (Assets) 3,048 2,354 694 29%
- Non-Recurring (Communities) 2,207 2,100 107 5%
15,249 15,783 (534) (3%)
45,007 43,149 1,858 4%
- Recurring(1) 66% 63%
- Non-Recurring(2) 34% 37%
(1) Recurring revenue is defined as revenues associated with access to a
specific ongoing service, with invoicing that typically recurs on an annual
basis and underpinned by either a multi-year, rolling contract and highly
repeatable services. These services include Support & Maintenance, SaaS
fees, Hosting services, and some Managed service arrangements which involve a
fixed fee irrespective of consumption.
(2) Non-recurring revenue is defined as revenues without any formal commitment
from the customer to recur on an annual basis.
Total recurring revenue increased by 9% in the period to £29.8m and increased
to 66% of the Group's total revenue (H1 FY24: 63%). LPPP has seen an increase
of 12% in recurring revenues to £19.7m driven by growth across all of its
solutions. Recurring revenue within the Assets division increased 2% to £4.8m
with growth in EIM and our asset tracking solution (iFit) offset by reductions
in the CAFM facilities management solution. Communities recurring revenue
increased by 4% driven by growth across all solutions.
Non-recurring revenues have decreased by 3% to £15.2m for the period and
account for 34% of the Group's revenue. LPPP non-recurring revenue was down
12% to £10.0m (H1 FY24: £11.3m) driven by anticipated reductions in Local
Authority, partially offset by increases in Cloud. Non-recurring revenue
within Assets increased 29% to £3.0m (H1 FY24: £2.4m) with a strong
performance in iFit and Transport. Communities delivered £2.2m (H1 FY24:
£2.1m) of non-recurring revenue with slightly lower volumes in our Social
Care solutions.
The Group's order intake for the period was up 9% on last year to £58.7m
which provides good levels of revenue visibility for the remainder of the year
and into FY26.
Profit before taxation
The statutory profit before taxation for the period was up 15% at £5.3m (H1
FY24: £4.6m). The following table provides a reconciliation between Adjusted
EBITDA and statutory profit before taxation.
H1 FY25 H1 FY24 Variance
£000 £000 £000 %
Adjusted EBITDA 13,905 13,059 846 6%
Depreciation & Amortisation (6,189) (6,100) (89) 1%
Non-underlying costs (366) (26) (340) 1,308%
Acquisition costs (107) (12) (95) 792%
Financing costs - (23) 23 (100%)
Share option costs (800) (1,225) 425 (35%)
Net finance costs (1,180) (1,116) (64) 6%
Profit before taxation 5,263 4,557 706 15%
The Group incurred non-underlying costs of £0.4m in the year relating to
organisational change and restructuring.
Acquisition costs of £0.1m primarily relate to the acquisition of Plianz
which was announced in May 2025.
Share option costs of £0.8m (H1 FY24: £1.2m) relate to the accounting charge
for awards made under the Group's Long-term Incentive Plan, in accordance with
IFRS 2 - Share-based Payments.
Net finance costs are in line with the prior year at £1.2m (H1 FY24: £1.1m).
The Group continues to invest in developing innovative technology solutions
across the portfolio and has capitalised £4.2m of development costs during
the period (H1 FY24: £3.7m). The increase in the period is primarily driven
by our Geospatial offering.
Taxation
The effective tax rate (ETR) on a statutory basis for the period was 20% (H1
FY24: 28%).
The main driver for the decreased tax rate is the claim of Research and
Development (R&D) tax credit for prior periods. The ETR of 20% in the
period was lower than the UK corporation tax rate of 25% as a result of the
R&D tax credit and lower overseas losses and expenses not deductible for
tax purposes. In 2024 the ETR of 28% was higher than the UK corporation tax
rate of 25% as a result of overseas losses and expenses not deductible for tax
purposes. As a result, the ETR on an adjusted basis moved from 26.5% to 20.6%.
Earnings per share and dividends
The adjusted basic earnings per share for the period was up 16% at 1.49p (H1
FY24: 1.28p) and the adjusted diluted earnings per share increased by 17% to
1.48p (H1 FY24: 1.26p). The increase was driven by improved profitability and
the lower tax charge, resulting in a higher adjusted profit after taxation of
£6.8m (H1 FY24: £5.8m).
Basic earnings per share improved by 29% to 0.93p (H1 FY24: 0.72p). Diluted
earnings per share increased by 30% to 0.92p (H1 FY24: 0.71p). This was driven
by the statutory profit after tax for the period being 30% higher than the
prior year.
In line with H1 FY24, the Board does not propose an interim dividend in
respect of the six months ended 30 April 2025. Our current policy is to only
declare a final dividend. It will keep the level of future dividends under
review in consideration of the Group's performance, financial position and
overall confidence in the future.
Balance sheet and cashflow
The Group's net assets have increased to £80.0m compared to £78.3m at 31
October 2024. The constituent movements are detailed in the Group's
consolidated Statement of Changes in Equity, which are summarised as follows:
6 months to
30 April 2025
£000
Total Equity as per FY24 Financial Report 78,280
Share option movements 610
Equity dividends paid (3,221)
Profit for the period 4,230
Exchange losses on translation of foreign operations 55
Total Equity as per H1 FY25 Financial Report 79,954
The Group continued to have good cash generation in the period. Cash generated
from operating activities before taxation was £19.6m, and as a percentage of
Adjusted EBITDA was 141% (H1 FY24: 149%). The Group typically operates on a
negative working capital cycle. A significant part of the Group's contracts
renew and re-sign during the first half of the year. As a result, billings and
cash collections typically tend to be annually in advance in the first half of
the year.
H1 FY25 H1 FY24
£000 £000
Net cashflow from operating activities after taxation 18,713 17,666
Capex (4,558) (4,292)
Lease payments (542) (400)
Free cashflow(1) 13,613 12,974
( )
(1) Free cash flow is defined as net cash flow from operating activities after
taxation less capital expenditure and lease payments (see note 10 for
reconciliation).
Given the strong cash collection during the first half of the year, the Group
ended the period with net cash of £0.2m compared to net debt of £9.9m at 31
October 2024. Net debt comprised cash of £16.4m less bank borrowings of
£5.3m and the Maltese listed bond of £10.9m, which is due for repayment in
July 2025. We ended the period with a leverage ratio of 0.02 times (FY24: 0.4
times) with significant headroom against the Group's financial covenants.
The Group retains excellent liquidity with cash and available committed bank
facilities and has strong headroom against financial covenants. The Group's
total available facilities at 30 April 2025 consisted of a revolving credit
facility of £75m and £45m accordion which continue to 1 October 2027,
providing significant scope for further M&A.
Anoop Kang
Chief Financial Officer
Consolidated interim statement of comprehensive income
Note 6 months to 12 months to
6 months to 30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
£000 £000 £000
Revenue 3 45,007 43,149 87,599
Cost of sales (12,431) (10,811) (24,517)
Gross profit 32,576 32,338 63,082
Administrative expenses (26,133) (26,665) (53,068)
Operating profit 6,443 5,673 10,014
Analysed as:
Adjusted EBITDA 10 13,905 13,059 26,051
Depreciation & Amortisation (6,189) (6,100) (12,021)
Non-underlying costs (366) (26) (302)
Acquisition costs (107) (12) (1,156)
Financing costs - (23) (67)
Share option costs (800) (1,225) (2,491)
Finance income 36 186 69
Finance costs (1,216) (1,302) (2,019)
Profit before taxation 5,263 4,557 8,064
Income tax charge 5 (1,033) (1,304) (2,805)
Profit for the period attributable to the owners of the parent 4,230 3,253 5,259
Other comprehensive income / (loss) for the period 55 (42) (33)
Items that will be reclassified subsequently to profit or loss:
Exchange movement on translation of foreign operations net of tax
Other comprehensive income / (loss) for the period, net of tax 55 (42) (33)
Total comprehensive income for the period attributable to owners of the parent 4,285 3,211 5,226
Earnings per share attributable to owners of the parent
Basic 6 0.93p 0.72p 1.16p
Diluted 6 0.92p 0.71p 1.15p
The accompanying notes form an integral part of these financial statements.
Consolidated interim balance sheet
Note At 30 April At 30 April 2024 (unaudited) At 31 October 2024
2025 (audited)
(unaudited)
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 993 1,358 1,064
Intangible assets 7 105,486 107,520 106,564
Right-of-use-assets 2,049 1,398 1,893
Deferred tax assets 2,160 2,130 2,656
Other receivables 1,158 1,185 1,154
Total non-current assets 111,846 113,591 113,331
Current assets
Trade and other receivables 25,078 24,026 21,488
Cash and cash equivalents 16,385 18,217 11,660
Total current assets 41,463 42,243 33,148
Total assets 153,309 155,834 146,479
Liabilities
Current liabilities
Trade and other payables 10,322 11,044 10,290
Deferred consideration - 869 -
Current tax payable 995 922 738
Other liabilities 36,492 32,062 24,553
Provisions 477 714 491
Lease liabilities 687 522 613
Bonds in issue 10,861 - 10,808
Total current liabilities 59,834 46,133 47,493
Non-current liabilities
Deferred tax liabilities 6,231 7,052 6,738
Lease liabilities 1,408 910 1,310
Other liabilities 598 2,063 1,878
Bonds in issue - 11,049 -
Borrowings 5,284 13,760 10,780
Total non-current liabilities 13,521 34,834 20,706
Total liabilities 73,355 80,967 68,199
Net assets 79,954 74,867 78,280
Equity
Called up share capital 4,617 4,594 4,602
Capital redemption reserve - 1,112 -
Share premium account 23 41,581 23
Treasury reserve (6) - -
Share option reserve 7,140 5,775 6,849
Other reserves 9,347 9,165 9,397
ESOP trust (519) (548) (558)
Foreign currency translation reserve 216 152 161
Retained earnings 59,136 13,036 57,806
Equity attributable to the owners of the parent 79,954 74,867 78,280
The accompanying notes form an integral part of these financial statements.
Consolidated interim statement of changes in equity
Called up share capital Capital redemption Share Treasury reserve Share Other ESOP Foreign currency translation reserve Retained earnings Total
£000 reserve premium £000 options reserves trust £000 £000 £000
£000 account reserve £000 £000
£000 £000
Balance at 1 November 2023 (audited) 4,562 1,112 41,558 - 5,841 9,165 (526) 194 11,371 73,277
Issue of share capital 32 - 23 - - - - - - 55
Share option costs - - - - 1,102 - - - - 1,102
Exercise / lapses of share options - - - - (1,168) - - - 1,168 -
ESOP trust - - - - - - (22) - - (22)
Equity dividends paid - - - - - - - - (2,756) (2,756)
Transactions with owners 32 - 23 - (66) - (22) - (1,588) (1,621)
Profit for the period - - - - - - - - 3,253 3,253
Other comprehensive loss
Exchange movement on translation of foreign operations - - - - - - - (42) - (42)
Total comprehensive (loss) / income for the period - - - - - - - (42) 3,253 3,211
At 30 April 2024 (unaudited) 4,594 1,112 41,581 - 5,775 9,165 (548) 152 13,036 74,867
Issue of share capital 8 - - - - - - - - 8
Share options costs - - - - 1,168 - - - - 1,168
Exercise / lapses of share options - - - - (94) - - - 94 -
Deferred tax on share options - - - - - 232 - - - 232
ESOP trust - - - - - - (10) - - (10)
Capital reduction - (1,112) (41,558) - - - - - 42,670 -
Transactions with owners 8 (1,112) (41,558) - 1,074 232 (10) - 42,764 1,398
Profit for the period - - - - - - - - 2,006 2,006
Other comprehensive income
Exchange movement on translation of foreign operations - - - - - - - 9 - 9
Total comprehensive income for the period - - - - - - - 9 2,006 2,015
Balance at 31 October 2024 (audited) 4,602 - 23 - 6,849 9,397 (558) 161 57,806 78,280
Issue of share capital 15 - - (15) - - - - - -
Share option costs - - - - 621 - - - - 621
Exercise / lapses of share options - - - 9 (330) - - - 321 -
Deferred tax on share options - - - - - (50) - - - (50)
ESOP trust - - - - - - 39 - - 39
Equity dividends paid - - - - - - - - (3,221) (3,221)
Transactions with owners 15 - - (6) 291 (50) 39 - (2,900) (2,611)
Profit for the period - - - - - - - - 4,230 4,230
Other comprehensive income
Exchange movement on translation of foreign operations - - - - - - - 55 - 55
Total comprehensive income for the period - - - - - - - 55 4,230 4,285
At 30 April 2025 (unaudited) 4,617 - 23 (6) 7,140 9,347 (519) 216 59,136 79,954
The accompanying notes form an integral part of these financial
statements.
Consolidated interim cash flow statement
Note
6 months to 6 months to 12 months to
30 April 2025 30 April 2024 (unaudited) 31 October 2024 (audited)
(unaudited)
£000 £000 £000
Cash flows from operating activities
Profit for the period before taxation 5,263 4,557 8,064
Adjustments for:
Depreciation of property, plant and equipment 392 515 984
Depreciation of right-of-use assets 490 572 870
Amortisation of intangible assets 7 5,307 5,013 10,167
Acquisition / disposal finalisation costs - - 131
Finance income (36) (186) (69)
Finance costs 1,141 1,227 1,869
Movement on debt issue costs 75 75 150
Research and development tax credit (410) (275) (450)
Share option costs 8 800 1,225 2,491
Profit on disposal of fixed assets - - 14
(Increase) / decrease in receivables (3,585) (2,559) 10
Increase in payables 10,166 9,332 977
Cash generated by operations 19,603 19,496 25,208
Tax paid (890) (1,830) (4,100)
Net cash from operating activities 18,713 17,666 21,108
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired - (1,393) (2,393)
Purchase of property, plant and equipment (329) (544) (726)
Purchase / capitalisation of intangible assets 7 (4,229) (3,748) (7,946)
Finance income 36 34 69
Net cash used in investing activities (4,522) (5,651) (10,996)
Cash flows from financing activities
Interest paid (394) (694) (1,719)
Loan drawdowns 3,500 - -
Loan related costs (183) (174) (506)
Loan repayments (9,000) (4,706) (7,706)
Principal lease payments (542) (400) (782)
Equity dividends paid 4 (3,221) (2,756) (2,756)
Issue of own shares (140) (60) (165)
Net cash outflows from financing activities (9,980) (8,790) (13,634)
Net movement in cash and cash equivalents 4,211 3,225 (3,522)
Cash and cash equivalents at the beginning of the period 11,660 14,824 14,824
Exchange gains on cash and cash equivalents 514 168 358
Cash and cash equivalents at the end of the period 16,385 18,217 11,660
The accompanying accounting policies and notes form an integral part of these
financial statements.
Notes to the interim accounts
1 General information
Idox plc is a leading supplier of software and services for the management of
Local Government and other organisations. The Company is a public limited
company, limited by shares, which is listed on the AIM Market of the London
Stock Exchange and is incorporated and domiciled in the UK. The address of its
registered office is Unit 5, Woking 8, Forsyth Road, Woking, Surrey, GU21 5SB.
The registered number of the Company is 03984070. There is no ultimate
controlling party.
The interim financial statements are prepared in pounds sterling.
2 Basis of preparation
The financial information for the period ended 30 April 2025 set out in this
interim report does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The Group's statutory financial statements for
the year ended 31 October 2024 have been filed with the Registrar of
Companies. The auditor's report on those financial statements was unqualified.
This unaudited interim report has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and the potential
for those strategies to succeed. The report should not be relied on by any
other party or for any other purpose.
The report contains certain forward-looking statements. These statements are
made by the Directors in good faith based on the information available to them
up to the time of their approval of this report, but such statements should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information.
The interim financial information has been prepared using the same accounting
policies and estimation techniques as will be adopted in the Group financial
statements for the year ending 31 October 2025. The Group financial statements
for the year ended 31 October 2024 were prepared in accordance with
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 and International Financial Reporting Standards as issued
by the IASB. The Group has not applied IAS 34 'Interim Financial Reporting',
which is not mandatory for AIM companies, in the preparation of these interim
financial statements.
Going concern
The Directors, having made suitable enquiries and analysis of the accounts,
consider that the Group has adequate resources to continue in business for the
foreseeable future, taken to be a period of at least 12 months from the
approval of these interim financial statements. In making this assessment, the
Directors have considered the Group's budget, cash flow forecasts, available
banking facility with appropriate headroom in facilities and financial
covenants, and levels of recurring revenue.
In October 2024 the Group extended its loan agreement with National
Westminster Bank plc, HSBC Innovation Bank Limited and Santander UK plc. The
facilities comprise a revolving credit facility of £75m and a £45m accordion
and are committed until October 2027. The Group retains significant liquidity
with cash and available committed bank facilities and has strong headroom
against financial covenants.
As part of the preparation of our FY24 results, the Group performed detailed
financial forecasting, as well as severe stress-testing in our financial
modelling, but did not identify any credible scenarios that would cast doubt
on our ability to continue as a going concern. The financial forecasting and
stress testing assumptions remain valid at 30 April 2025 after taking into
account the €13m bond repayable in July 2025.
On the basis of the above considerations, the Directors have a reasonable
expectation that the Group will have adequate resources to continue in
business for the foreseeable future and therefore continue to adopt the going
concern basis in preparing the interim financial statements.
3 Segmental analysis
During the period ended 30 April 2025, the Group was organised into three
operating segments which are detailed below.
IFRS 8 Operating Segments requires the disclosure of reported segments in
accordance with internal reports provided to the Group's chief operating
decision maker. The Group considers its Board of Directors to be the chief
operating decision maker and therefore, has aligned the segmental disclosures
with the monthly reports provided to the Board of Directors.
· Land Property & Public Protection (LPPP) - delivering
specialist information management solutions and services to the public and
private sectors.
· Assets - delivering engineering document management and control
solutions to asset intensive industry sectors.
· Communities (COMM) - delivering software solutions to customers
with social value running through their core.
Segment revenue comprises sales to external customers and excludes gains
arising on the disposal of assets and finance income. Segment profit reported
to the Board represents the profit earned by each segment before the
allocation of taxation, Group interest payments and Group acquisition costs.
The assets and liabilities of the Group are not reviewed by the chief
operating decision maker on a segment basis. The Group does not place reliance
on any specific customer and has no individual customer that generates 10% or
more of its total Group revenue.
The segment results for the six months to 30 April 2025 were:
LPPP Assets COMM £000 Total
£000 £000 £000
Revenue 29,741 7,850 7,416 45,007
Adjusted EBITDA (note 10) 9,212 2,062 2,631 13,905
Depreciation & Amortisation (4,031) (1,084) (1,074) (6,189)
Non-underlying costs (211) (101) (54) (366)
Acquisition costs (28) - (79) (107)
Share option costs (517) (163) (120) (800)
Segment operating profit 4,425 714 1,304 6,443
Financing costs -
Operating profit 6,443
Finance income 36
Finance costs (1,216)
Profit before tax 5,263
The corporate recharge to the business unit is allocated on a head count
basis.
The segmental information for the six months to 30 April 2024 were:
LPPP Assets COMM £000 Total
£000 £000 £000
Revenue 28,950 7,081 7,118 43,149
Adjusted EBITDA (note 10) 9,197 1,580 2,282 13,059
Depreciation & Amortisation (3,945) (1,147) (1,008) (6,100)
Non-underlying costs (16) (5) (5) (26)
Acquisition costs (12) - - (12)
Share option costs (770) (204) (251) (1,225)
Segment operating profit 4,454 224 1,018 5,696
Financing costs (23)
Operating profit 5,673
Finance income 186
Finance costs (1,302)
Profit before tax 4,557
The segment revenues by geographic location were as follows:
H1 FY25 H1 FY24
£000 £000
Revenues from external customers:
United Kingdom 40,938 38,757
North America 2,435 2,495
Europe 1,229 1,296
Rest of World 405 601
45,007 43,149
4 Dividends
During the period a dividend was paid in respect of the year ended 31 October
2024 final dividend of 0.7p per ordinary share at a total cost of £3,221,000
(H1 FY24: 0.6p per ordinary share at a total cost of £2,756,000).
The directors do not propose a dividend in respect of the interim period ended
30 April 2025 (H1 FY24: £Nill).
5 Tax on profit on ordinary activities
The tax charge is made up as follows:
6 months to 6 months to 12 months to
30 April 2025 (unaudited) 30 April 2024 (unaudited) 31 October 2024
(audited)
£000 £000 £000
Current tax
UK corporation tax on profit for the year 1,616 1,361 3,300
Foreign tax 8 - 27
Over provision in respect of prior periods (535) - 145
Total current tax 1,089 1,361 3,472
Deferred tax
Origination and reversal of timing differences (336) (57) (891)
Adjustment for rate change - - 196
Adjustments in respect of prior periods 280 - 28
Total deferred tax (56) (57) (667)
Total tax charge 1,033 1,304 2,805
The UK trading losses unrecognised at 30 April 2024 (£44,074) were recognised
in audited financial statements 31 October 2024 as the trades became
profitable. Unrelieved trading losses of £415,267 (H1 FY24: £493,674) remain
available to offset against future taxable trading profits (excluding
unrecognised overseas losses of £11,873,839 (H1 FY24: £15,736,014). The
decision was made to maintain derecognition of the overseas assets on the
basis these losses will not be utilised over the next three to five years.
Across the period the total deferred tax asset in respect of unrelieved
trading losses reduced from £127,208 to £103,816. There are no expiry dates
for any of the unrelieved trading losses carried forward.
6 Earnings per share
The earnings per share is calculated by reference to the earnings attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during each period, as follows:
6 months to 6 months to 12 months to
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Profit for the period (£000) 4,230 3,253 5,259
Basic earnings per share
Weighted average number of shares in issue 455,432,163 452,460,466 453,835,013
Basic earnings per share 0.93p 0.72p 1.16p
Weighted average number of shares in issue 455,432,163 452,460,466 453,835,013
Add back:
Dilutive share options 3,109,290 4,920,946 3,951,198
Weighted average allotted, called up and fully paid share capital 458,541,453 457,381,412 457,786,211
Diluted earnings per share
Diluted earnings per share 0.92p 0.71p 1.15p
Adjusted earnings per share 6 months to 6 months to 12 months to
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Adjusted profit for the period (£000) (see note 10) 6,801 5,781 11,929
Weighted average number of shares in issue - basic 455,432,163 452,460,466 453,835,013
Weighted average number of shares in issue - diluted 458,541,453 457,381,412 457,786,211
Adjusted basic earnings per share 1.49p 1.28p 2.63p
Adjusted diluted earnings per share 1.48p 1.26p 2.61p
7 Intangibles
Goodwill Customer relationships Trade names Software Development costs Total
£000 £000 £000 £000 £000 £000
At 31 October 2024 61,555 17,541 1,490 7,987 17,991 106,564
Additions - - - - 4,229 4,229
Amortisation - (1,075) (175) (800) (3,257) (5,307)
At 30 April 2025 61,555 16,466 1,315 7,187 18,963 105,486
No impairment charge was incurred during H1 FY25 (H1 FY24: £Nil).
8 Long-term incentive plan (LTIP)
During the period, 4,472,700 were granted under the LTIP.
The Group recognised a total charge of £800,000 (H1 FY24: £1,225,000) for
equity-settled share-based payment transactions during the period. The total
cost was in relation to outstanding share options and share options granted in
the year.
The number of options in the LTIP scheme is as follows:
30 April 2025 30 April 2024 31 October 2024
No. No. No.
Outstanding at the beginning of the period 20,869,383 19,164,949 19,164,949
Granted 4,472,700 5,231,494 5,671,554
Forfeited (425,847) (422,448) (664,038)
Exercised (945,468) (3,132,658) (3,303,082)
Outstanding at the end of the period 23,970,768 20,841,337 20,869,383
Exercisable at the end of the period 70,020 785,530 772,338
9 Post balance sheet events
It was announced on 13 May 2025 that Idox had acquired Plianz, a provider of
Health and Social Care solutions in the UK, for initial consideration of
£7.65m (rising to c.£7.9m taking into account net cash acquired). Plianz
will be included within the Communities segment for the FY25 results.
10 Alternative Performance Measures
Following the issuance of the Guidelines on Alternative Performance Measures
(APMs) by the European Securities and Markets Authority (ESMA) in June 2015,
the Group has included this section in its Interim Report with the aim of
providing transparency and clarity on the measures adopted internally to
assess performance. Throughout this report, the Group has presented financial
performance measures which are considered most relevant to Idox and are used
to manage the Group's performance. These financial performance measures are
chosen to provide a balanced view of the Group's operations and are considered
useful to investors as these measures provide relevant information on the
Group's past or future performance, position, or cash flows. The APMs, which
are not defined or specified under International Financial Reporting
Standards, adopted by the Group are also commonly used in the sectors it
operates in and therefore serve as a useful aid for investors to compare
Idox's performance to its peers. The Board believes that disclosing these
performance measures enhances investors' ability to evaluate and assess the
underlying financial performance of the Group's operations and the related key
business drivers. These financial performance measures are also aligned to
measures used internally to assess business performance in the Group's
budgeting process and when determining compensation. They are also consistent
with how the business is assessed by our debt and equity providers.
We believe that these measures provide a user of the Interim Report with
important additional information. The following table reconciles these APMs to
statutory equivalents:
6 months to 30 April 2025 (unaudited) 6 months to 30 April 2024 (unaudited) 12 months to 31 October 2024 (audited)
£000 £000 £000
Adjusted EBITDA:
Profit before taxation 5,263 4,557 8,064
Depreciation & Amortisation 6,189 6,100 12,021
Non-underlying costs 366 26 302
Acquisition costs 107 12 1,156
Financing costs - 23 67
Share option costs 800 1,225 2,491
Net finance costs 1,180 1,116 1,950
Adjusted EBITDA 13,905 13,059 26,051
Free cashflow:
Net cashflow from operating activities after taxation 18,713 17,666 21,108
Capex (4,558) (4,292) (8,686)
Lease payments (542) (400) (782)
Free cashflow 13,613 12,974 11,640
Net debt / (cash):
Cash (16,385) (18,217) (11,660)
Bank borrowings 5,284 13,760 10,780
Bonds in issue 10,861 11,049 10,808
Net (cash) / debt (240) 6,592 9,928
Adjusted profit for the period and adjusted earnings per share:
Profit for the period 4,230 3,253 5,259
Add back:
Amortisation from acquired intangibles 2,026 2,026 4,052
Non-underlying costs 366 26 1,156
Acquisition costs 107 12 302
Financing costs - 23 67
Share option costs 800 1,225 2,491
Tax effect (728) (784) (1,398)
Adjusted profit for the period 6,801 5,781 11,929
Weighted average number of shares in issue - basic 455,432,163 452,460,466 453,835,013
Weighted average number of shares in issue - diluted 458,541,453 457,381,412 457,786,211
Adjusted basic earnings per share 1.49p 1.28p 2.63p
Adjusted diluted earnings per share 1.48p 1.26p 2.61p
The Group adjusts for certain non-underlying items which the Board believes
assists in understanding the performance achieved by the Group. These are
non-underlying items as they do not relate to the underlying performance of
the Group. Profit before taxation is adjusted for depreciation, amortisation,
non-underlying costs, acquisition costs, financing costs, share option costs
and net finance costs to calculate a figure for EBITDA which is commonly
quoted by our peer group and allows users to compare our performance with
those of our peers. This also provides the users of the accounts with a view
of the underlying performance of the Group which is comparable year on year.
Depreciation and amortisation are omitted as they relate to assets acquired by
the Group which may be subject to differing treatment within the peer group
and so this allows meaningful comparisons to be made.
Amortisation on acquired intangibles is omitted in order to improve the
comparability between acquired and organic operations as the latter does not
recognise internally generated intangible assets. Adjusting for amortisation
provides a more consistent basis for comparison between the two.
Non-underlying costs, acquisition costs, financing costs and net finance costs
are omitted as they are considered to be one off in nature or do not represent
the underlying trade of the Group. The items within these categories are
assessed on a regular basis to ensure that they do not contain items which
would be deemed to represent the underlying trade of the business.
Share option costs are excluded as they do not represent the underlying trade
of the business and fluctuate subject to external market conditions and number
of shares. This would distort year-on-year comparison of the figures.
Profit after taxation is adjusted for amortisation from acquired intangibles,
non-underlying costs, acquisition costs, financing costs and share option
costs, as well as considering the tax impact of these items. To exclude the
items without excluding the tax impact would not give the complete picture.
This enables the user of the accounts to compare the core operational
performance of the Group. Adjusted earnings per share takes into account all
of the factors above and provides users of the Interim Report information on
the performance of the business that management is more directly able to
influence and on a comparable basis for year to year. Readers of the Interim
Report are encouraged to review this report in its entirety.
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