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REG - Ingenta PLC - Trading Update

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RNS Number : 2552W  Ingenta PLC  07 February 2025

7 February 2025

Ingenta plc

("Ingenta" or the "Company")

Trading Update

Ingenta plc (AIM: ING), a leading provider of software and services to the
publishing and media industries, provides the following trading update for the
year ended 31 December 2024 ("FY24").

In line with previous guidance, the Group expects to report revenues for FY24
of £10.2m (2023: £10.8m) and EBITDA of £1.8m (2023: £2.2m). The Group
generated substantially improved positive cash flow during FY24 of £0.9m
(2023: £0.3m), providing closing cash balances at 31 December 2024 of £3.6m.
The Group has no debt.

The Board expects to recommend the payment of an unchanged final dividend for
the year of 2.6 pence per share, taking the dividend for the year to a total
of 4.1 pence.

During 2024, the Group's focus remained on implementing new projects based on
new generation software platforms to offset the anticipated reduction in
revenues from certain legacy services. As announced in September 2024, the
Company experienced delays in implementing a number of these new projects and
therefore did not fully offset the effects of legacy revenue reductions within
FY24.

The Company is prioritising acceleration of new business acquisition to offset
the expected larger scale reduction in revenues from legacy platforms in the
current year and beyond and return the Company to growth in revenues and
profits.

The momentum of new business wins is already accelerating: the Board is
pleased to report four substantial new contracts won since the year end, with
aggregate contract values of £1.9m over 2-5 years, broadly spread across the
Edify, IngentaConnect and Commercial platforms. This equates to the total
amount of new business won in the first half of 2024 and underpins
management's confidence that the Group will resume growth in top line revenues
in 2025.

In order to continue the Group's overall growth momentum beyond 2025, the
Board has sanctioned a £0.5m investment in the Group's sales and marketing
activities during 2025 in order to build a larger and longer term pipeline of
new business. As a result of this investment, the Board expects that EBITDA
for 2025 is likely to be lower than in 2024, despite the expectation of
increased revenues referred to above.

Subject to trading remaining in line with expectations, the Board intends to
retain the level of dividends for 2025 at the current level of 4.1p per share
for the year.

 

Scott Winner, CEO of Ingenta, commented:

"I am pleased to report that we have won substantial new business in 2024,
broadly based across all the Group's current platform offerings, and it is
disappointing that delays in implementing these new services due to
customer-induced delays have resulted in this impacting on the overall results
for the year. The rate of new business wins has accelerated since the year end
with four new clients, and an aggregate of £1.9m contract values, already in
2025, which provides us with a firm foundation on which to invest further in
our sales and marketing resources.

Looking ahead to the longer term, this new investment will further reduce our
reliance on revenues and profits from legacy platforms and aim to ensure that
the transition of long-standing customers away from higher-value legacy
products will be more than offset by increasing new business from our current
and next generation offerings. Although this will impact on profits in 2025,
it is an investment in the future which we expect to bear fruit in
accelerating growth in future years."

Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.

For further information please contact:

Ingenta
plc
Tel: 01865 397 800

Scott Winner/Jon Sheffield

Cavendish Capital Markets Limited                  Tel: 0207
220 0500

Katy Birkin / Callum Davidson

 

 

 

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