LONDON (Alliance News) – Idox PLC on Tuesday said it has seen both revenue and profit grow in the recently ended financial year, but it said some contracts have been delayed, meaning work is to be pushed into the new financial year.
Idox shares were down 12% late Tuesday afternoon at 57.32 pence.
The specialist information management and service company said it expects annual earnings before interest, tax, depreciation and amortisation in the 12 months to the end of October to rise to GBP23.0 million from the GBP21.5 million reported in the previous year.
“Idox continued to deliver on its strategy during the year and has grown both revenues and profits. The company has been successful in winning several important contracts to further its focus on becoming a leading international supplier of software, services, managed services and content to the wide public sector in the UK and abroad,” said Idox.
“Due to customer disruption in the wake of June’s general election, sign-off on some contract wins, especially within health and transport have been delayed into the new financial year, resulting in an impact to 2017 profit expectations,” Idox added.
Idox said it secured GBP3.5 million worth of contracts in the final three months of the financial year for its Public Sector and Digital divisions, which have seen further clients take-up the company’s digital offerings, with market consolidation of the firm’s back office products continuing.
The integration of Halarose, the supplier of electoral back office software and services to UK local authorities which Idox acquired in August, is progressing well, the firm said.
“Halarose helps create a larger, more effective and focused Idox Elections division which will increase market share through cross-selling initiatives to new and existing customers in the UK and Europe,” said Idox.
Meanwhile, the healthcare business acquired in January, 6PM, is now fully-integrated into the business and secured contracts for five new NHS trusts with an order value of GBP2.8 million, which it expects to be realised in the first half of the new financial year.
Net debt at the end of October stood at GBP32.7 million versus GBP25.1 million a year earlier and GBP28.2 million at the end of April 2017. The debt figure reflects acquisitions, including 6PM, and the upfront costs of the delayed contract wins.
“The board remains confident that the group is well positioned in its markets and carries excellent momentum into 2018. The group’s focus on helping public sector customers improve efficiency and effectiveness through digital transformation continues to provide considerable growth opportunities. The large proportion of annual revenue from recurring and repeating revenues and a solid order book and pipeline underpins the group’s prospects,” said Idox.
Idox will release annual results on December 20.
By Joshua Warner; email@example.com; @JoshAlliance
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