REG - IDOX PLC - Trading Statement

IdoxAnnouncement

16/11/2022 07:00

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RNS Number : 5282G  IDOX PLC  16 November 2022

16 November 2022

Idox plc

('Idox', the 'Group' or the 'Company')

Year End Trading Update

A resilient performance

 

Idox plc (AIM: IDOX), a leading supplier of specialist information management
software and solutions to the public and asset intensive sectors, today issues
a trading update for its financial year ended 31 October 2022 ('FY22').

 

 

Group trading performance

 

We are pleased to report Idox has delivered a resilient performance for FY22
against a backdrop of economic uncertainty. We have continued to make progress
towards a number of our medium-term strategic goals, putting the Group on a
strong footing for the future.

 

Our focus on winning and retaining long-term recurring revenue contracts with
high quality customers has resulted in record full year order intake in excess
of c. £74m, up 19% on FY21, providing good visibility into FY23.

 

The Board expects to report (subject to audit) a c. 15% increase in full year
adjusted EBITDA to c. £22.5m, in line with management's expectations. Revenue
is expected to be up 6% to c. £66m, and recurring revenue is anticipated to
be up c. 12% over the period to c. £40.5m. As a result, the Group expects to
deliver an improved adjusted EBITDA margin of c. 34% (FY21: 31%).

 

The Group's net debt at year-end was £6.7m, a reduction since 31 October 2021
(£8.1m net debt). The Group continues to maintain significant balance sheet
flexibility and strength, including a £35m revolving credit facility and a
£10m accordion.

 

As reported in early October, Idox acquired Landhawk, a land mapping and GIS
data business, for £1.5m, including an initial cash consideration of £1.1m.
Landhawk further strengthens the Group's GIS capabilities following the
acquisitions of Aligned Assets, thinkWhere and exeGesIS in FY21. We continue
to pursue a number of acquisition opportunities but remain focussed on
ensuring strategic alignment whilst maintaining a disciplined approach to
valuations.

 

We have started FY23 with strong recurring revenue and good levels of contract
renewals, a solid order book and a healthy pipeline. As a result, our
expectations for FY23 remain unchanged, albeit we remain cognisant of the
current economic environment.

 

 

David Meaden, Chief Executive Officer of Idox commented:

 

"We have laid the foundations for sustained success at Idox, and against a
challenging macro-economic backdrop, we have delivered a robust set of
results.

With recurring revenue and order intake up, we are well positioned to continue
our success over the coming years, supported by a strong balance sheet.

 

Pleasingly, we have seen significant success in areas of strategic focus,
notably with Idox Cloud where we have seen 15 new sales during the period,
which bodes well for our future performance.

 

The integration of recent acquisitions into the Group has progressed well and
we have made several adjustments to our operating business, building capacity
for future growth. I am pleased that our leadership development programme has
ensured that all new senior appointees have been internal candidates.

 

We have a strong balance sheet position, leaving us well placed for an
accretive buy and build programme. This, alongside our accelerating organic
growth, will create significant value for shareholders and wider stakeholders
going forward."

 

 

 

 

 

 

Notice of results

 

The Group expects to report its FY22 results in late January 2023. Management
intends to host a results webinar on the day. Please contact MHP
Communications to register your interest.

 

 

Definitions

 

Adjusted EBITDA is defined as earnings before amortisation, depreciation,
restructuring, acquisition costs, impairment, financing costs and share option
costs.

 

Net debt is defined as the aggregation of cash, bank borrowings and long-term
bond.

 

 

For further information please contact:

 

 Idox plc                                                              +44 (0) 870 333 7101

 Chris Stone, Non-Executive Chairman                                   investorrelations@idoxgroup.com

 David Meaden, Chief Executive Officer

 Anoop Kang, Chief Financial Officer

 Peel Hunt LLP (NOMAD and Broker)                                      +44 (0) 20 7418 8900

 Paul Gillam

 Michael Burke

 James Smith

 MHP Communications                                                    + 44 (0) 20 3128 8276

 Reg Hoare                                                             idox@mhpc.com

 Ollie Hoare

 Matthew Taylor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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