REG - IDOX PLC - Year End Trading Update

IdoxAnnouncement

22/11/2023 07:15

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RNS Number : 2040U  IDOX PLC  22 November 2023

22 November 2023

Idox plc

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

Year End Trading Update

A resilient performance in line with expectations

 

Idox plc (AIM: IDOX), a leading supplier of specialist information management
software and Geospatial data solutions to the public and asset intensive
sectors, today issues a trading update for its financial year ended 31 October
2023 ('FY23').

 

Group trading performance

 

Building on the significant progress the Group has made over the past few
years, we are pleased to report Idox has again delivered a resilient
performance in line with expectations for FY23 despite the backdrop of
continued geo-political and economic uncertainty. We have continued to make
good progress towards a number of our medium-term strategic goals, placing the
Group on a firm footing for FY24 and beyond.

 

The Group delivered a record order intake of over £82m in FY23, an increase
of c.11% on the prior year, reflecting our high-quality customer base and
strong market positions.

 

The Board expects to report (subject to external audit) revenue and profit in
line with expectations; revenue is expected to be up c.11% to c.£73m, with
recurring revenue up c.8% over the period to c.£44m, delivering a c.9%
increase in full year adjusted EBITDA to c.£24.5m and a robust adjusted
EBITDA margin of c.34% (FY22: 34%).

 

Net debt at 31 October 2023 was £14.7m, including the initial cash
consideration of £14.8m paid for Emapsite.com Limited ('Emapsite') as
announced on 21 August 2023 (FY22: net debt of £6.7m). In September 2023 the
Group completed the refinancing of its lending facilities to a new £75m
revolving credit facility and a £45m accordion, a significant increase on the
previous facilities which consisted of a revolving credit facility of £35m
and £10m accordion, respectively.  The new facilities, which are on improved
terms, are for a three-year period with two extension options of one year
each. The new facilities are provided by the Group's existing syndicate of
banks: HSBC Innovation, NatWest and Santander.

 

The integration of Emapsite is underway and will enhance the Group's data
capabilities whilst adding significant scale to our Geospatial offering. The
Group continues to evaluate a number of further acquisition opportunities,
remaining focussed on ensuring strategic alignment at appropriate valuations.

 

We have started FY24 with good levels of visibility - strong recurring
revenue, a solid order book and a healthy order pipeline supported by a
strengthened financial platform. As a result, our expectations for FY24 remain
unchanged, notwithstanding the current macro-environment.

 

David Meaden, Chief Executive Officer of Idox commented:

 

"We are pleased to deliver another solid performance including double-digit
revenue growth despite a challenging geo-political and economic backdrop. Our
recurring revenue and order intake are both up on the prior year and this
provides a solid foundation as we start the new financial year.

 

We are very pleased with the acquisition of Emapsite which adds significant
scale and expertise to our existing Geospatial data capabilities. We are
excited by the growth opportunities available in this sector, adding to our
existing market leading public software capabilities.

 

We were delighted to complete a refinancing in the period. The new and
increased facilities, which are on improved terms, support our strategic
M&A ambitions supplementing our organic growth strategy. Despite the
challenging headwinds, our resilient business model allows us to look forward
with confidence."

 

 

Notice of results

 

The Group expects to report its FY23 results in late January 2024. Management
intends to host a results webinar on the day. Please contact MHP 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                                                                   + 44 (0) 20 3128 8100

 Reg Hoare                                                             idox@mhpgroup.com

 Ollie Hoare

 Matthew Taylor

 

 

 

 

 

 

 

 

 

 

 

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