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Ideagen hikes dividend after decent first half
13th Jan 2022 12:57
(Sharecast News) - Information management software company Ideagen reported a first half performance in line with market expectations on Thursday, with total revenue rising 33% to £38.8m.
The AIM-traded firm said adjusted EBITDA grew 32% year-on-year for the six months ended 31 October, to £13.2m, while adjusted diluted earnings per share grew 31% to 3.41p.
Its board proposed an interim dividend 15% higher than a year ago, at 0.138p per share.
Ideagen said its proforma annualised recurring revenue book, including acquisitions completed shortly after the period ended, totalled £86.3m, up from £54.8m at the end of the first half a year earlier.
Annualised recurring revenue grew 35% in the period, of which 7% was organic, making for organic annualised recurring revenue growth of about 13% on an annualised basis.
The company said it was in a "strong" cash position with a "robust" balance sheet, with cash generated by operations of £13.6m, up from £10m year-on-year, representing 103% of adjusted EBITDA, compared to 99% a year ago.
Net cash at period-end totalled £4.4m, swinging from net bank debt of £27.9m, while the company completed an equity fundraise since the year ended, raising total gross proceeds of £103.5m.
Looking ahead, Ideagen said its three-year strategy was to reach its annualised recurring revenue target of £200m by April 2025.
It said it was continuing its focus on organic revenue growth with a 15% medium-term target, augmented by acquisitions.
The board described the balance sheet as "robust", with the liquidity necessary to support a "healthy" acquisition pipeline, which would add adjacent capabilities and broaden the firm's geographic reach.
Ideagen reported a "strong start" to the second half in line with its expectations, with confidence in delivering on its targets for the full year.
"I am very pleased with Ideagen's performance in the first half as we continue to see strong demand for our products from existing and new potential customers," said chief executive officer Ben Dorks.
"This is testament to our people and reflects our simple purpose: making complying with regulation easy, quick and cost effective.
"At our recent capital markets day we set out our plan to capture more of this market opportunity and reach £200m of annual recurring revenues by April 2025 through a combination of organic growth and acquisitions."
Dorks said the company had a healthy pipeline of acquisitions to add adjacent capabilities and broaden its geographic reach, supported by the recent fundraising.
"We have a strong record of identifying and integrating acquisitions that fit with our strategy, having completed eight acquisitions since December 2020, and are working hard on a number of near and medium term targets.
"The second half of the year has begun in line with our expectations, and we remain confident in delivering on our targets for the full year."
At 1231 GMT, shares in Ideagen were down 1.41% at 257.33p.
The AIM-traded firm said adjusted EBITDA grew 32% year-on-year for the six months ended 31 October, to £13.2m, while adjusted diluted earnings per share grew 31% to 3.41p.
Its board proposed an interim dividend 15% higher than a year ago, at 0.138p per share.
Ideagen said its proforma annualised recurring revenue book, including acquisitions completed shortly after the period ended, totalled £86.3m, up from £54.8m at the end of the first half a year earlier.
Annualised recurring revenue grew 35% in the period, of which 7% was organic, making for organic annualised recurring revenue growth of about 13% on an annualised basis.
The company said it was in a "strong" cash position with a "robust" balance sheet, with cash generated by operations of £13.6m, up from £10m year-on-year, representing 103% of adjusted EBITDA, compared to 99% a year ago.
Net cash at period-end totalled £4.4m, swinging from net bank debt of £27.9m, while the company completed an equity fundraise since the year ended, raising total gross proceeds of £103.5m.
Looking ahead, Ideagen said its three-year strategy was to reach its annualised recurring revenue target of £200m by April 2025.
It said it was continuing its focus on organic revenue growth with a 15% medium-term target, augmented by acquisitions.
The board described the balance sheet as "robust", with the liquidity necessary to support a "healthy" acquisition pipeline, which would add adjacent capabilities and broaden the firm's geographic reach.
Ideagen reported a "strong start" to the second half in line with its expectations, with confidence in delivering on its targets for the full year.
"I am very pleased with Ideagen's performance in the first half as we continue to see strong demand for our products from existing and new potential customers," said chief executive officer Ben Dorks.
"This is testament to our people and reflects our simple purpose: making complying with regulation easy, quick and cost effective.
"At our recent capital markets day we set out our plan to capture more of this market opportunity and reach £200m of annual recurring revenues by April 2025 through a combination of organic growth and acquisitions."
Dorks said the company had a healthy pipeline of acquisitions to add adjacent capabilities and broaden its geographic reach, supported by the recent fundraising.
"We have a strong record of identifying and integrating acquisitions that fit with our strategy, having completed eight acquisitions since December 2020, and are working hard on a number of near and medium term targets.
"The second half of the year has begun in line with our expectations, and we remain confident in delivering on our targets for the full year."
At 1231 GMT, shares in Ideagen were down 1.41% at 257.33p.