IDOX announces increased revenue and profits ahead of full-year results
Information management solutions group IDOX said in a year-end trading statement on Tuesday that it had continued to deliver on its strategy throughout the year ended 31 October, growing both revenues and profits.
IDOX won several major contracts throughout the year; however, due to customer disruption in the wake of June's general election, sign-off on some contract wins, especially those within the health and transport sectors, had been delayed into the next financial year - somewhat impacting profit expectations.
As a result of the delays, IDOX expected its EBITDA for the year to be in the region of £23m, compared to the £21.5m posted in 2016.
In terms of acquisitions, the integration of Halarose, an electoral management software firm, was "progressing well", helping create a "more effective and focused" elections division for the firm, and 6PM, the healthcare solutions business acquired by IDOX in January, had been fully integrated at the end of the financial year, with five contracts worth in excess of £2.8m from the NHS expected to be delivered in the first half of 2018.
The group, as expected, increased its net debt position from £25.1m to £32.7m by virtue of the acquisition and in order to cover upfront costs related to the delayed contract wins.
Andrew Riley, chief executive of Idox, said, "Overall Idox has made excellent progress with its strategy of organic and acquisitive growth and our products and services continue to gain traction within our markets."
"The timing of completion of some contracts which has spilled into the new financial year gives us a strong start to 2018, we continue to keep tight control of costs and we are encouraged by the opportunities for the year ahead," he concluded.
The group announced it would release its full financials on 20 December.
As of 1700 GMT, shares had dropped 19.85% to 52.00p.