Idox financials stumble but order book offers hope

27th Nov 2018 09:11

(Sharecast News) - Annual revenue and earnings stalled at Idox as the information management software provider refocuses on its core business and disposes of loss-making divisions, though its order book more than doubled.A trading update from the AIM-traded company said it expects to report an 8.6% drop in annual revenue for the year ended 31 October, not taking into account the loss-making digital business that Idox sold at the start of November.EBITDA for the continuing business is expected to be reported at £14.4m, down 13.8% on the prior year, while net debt is thought to be down from £32.8m at £31.7m.The majority of cost-cutting measures were taken against the since-disposed digital division, though costs for the continuing businesses were reduced by £1.7m for the year to £44m in a trend that is expected to continue through the ongoing year.David Meaden, chief executive of Idox, said: "FY2018 has seen a number of changes in the Idox business, but we end the financial year in a stronger position than we entered it and I am confident in our new leadership and team to deliver success in FY2019."Looking ahead, the contracted order book for software and services more than doubled in size to £9.4m from £4m and, after an internal review, Idox will seek a higher proportion of recurring revenue in future years."We continue to work hard to fully integrate prior year acquisitions and refocusing operations on our intellectual property and profitable cash generative activities. I am excited by the prospects for the business in FY2019 and future periods as we begin to reap the benefits of these ongoing efforts," said Meaden.Idox's shares were down 1.70% at 32.90p at 1023 GMT.