Idox ends year in line with expectations

22nd Nov 2023 13:27

(Sharecast News) - Information management specialist Idox said in an update on Wednesday that, despite a backdrop of ongoing geopolitical and economic uncertainty, it traded in line with expectations for the financial year just ended.

The AIM-traded firm said it had been making significant progress towards its medium-term strategic goals, positioning itself firmly for 2024 and beyond.

It said it achieved a record order intake in the 12 months ended 31 October of over £82m, marking an approximate 11% increase compared to the prior year.

The board anticipated that revenue and profit would align with expectations, with revenue expected to rise by 11% to £73m and recurring revenue increasing by 8% to about £44m.

That would translate into a roughly 9% rise in full-year adjusted EBITDA, reaching £24.5m, while maintaining a robust adjusted EBITDA margin of 34%.

As of 31 October, the company's net debt stood at £14.7m, including the initial cash consideration of £14.8m paid for Emapsite in a deal announced on 21 August, widening from net debt of £6.7m.

In September, Idox successfully refinanced its lending facilities, securing a new £75m revolving credit facility and a £45m accordion.

The integration of Emapsite was currently in progress and was expected to enhance the group's data capabilities while adding substantial scale to its geospatial offerings.

Idox said it was continuing to assess various acquisition opportunities to ensure strategic alignment and appropriate valuations.

Looking ahead to the 2024 financial year, the company said it was starting with a favourable outlook, with substantial recurring revenue, a solid order book and a healthy order pipeline.

"We are pleased to deliver another solid performance including double-digit revenue growth despite a challenging geopolitical and economic backdrop," said chief executive officer David Meaden.

"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."

Meaden said the company was "excited" by the growth opportunities available in the sector, adding to its 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 merger and acquisition ambitions, supplementing our organic growth strategy.

"Despite the challenging headwinds, our resilient business model allows us to look forward with confidence."

Idox said it expected to report its 2023 results in late January.

At 1218 GMT, shares in Idox were up 2.58% at 63.6p.

Reporting by Josh White for Sharecast.com.