Year-end Trading Update

RNS Number : 3798C

IDOX PLC

12 November 2009

 



12 November 2009

IDOX plc

Year-end trading update

IDOX plc (AIM: IDOX, 'the Group', 'IDOX'), the supplier of software and services to the UK public sector, announces a trading update for the year ended 31 October 2009.

Overall, the Group has performed strongly in the second half. However, the Board now anticipates that the Group's revenues for the financial year will be lower than its expectations and as a consequence EBITDA will be about 9% below market forecasts. As previously reported, IDOX has continued to see extended decision making and a shift towards longer term maintenance and managed service contracts. However, this has impacted 2009 revenue recognition, although it further strengthens the Group's future recurring revenue stream. 

In the local government markets where the Group specialises, demand remains strong. At the end of the financial year, the Group had an increased order backlog for delivery and its strongest qualified pipeline.  

The solutions business has grown revenues through a second half contribution from J4B and in the recruitment business permanent placements, as expected, suffered as a result of the recession. Contract recruitment remained broadly stable. There are now signs that permanent recruitment is beginning to recover. 

Continued improvements in operational performance have already generated annualised savings of £1.5m in 2009.

The Group's cash position remains strong, even after the repayment of £3.0m debt, a maiden interim dividend and the acquisition of J4B for £0.8m cash. As at 31 October 2009, the Group had £7.0m cash, with net funds of £3.2m.

Martin Brooks, Chairman, said:

"We have built a record contracted order book and it is therefore frustrating to have experienced delays in customers' procurement at the end of the last financial year. We do not expect these delays to have any impact on the current financial year. 

"Looking forward, tender activity in our markets continues to be high as local authorities remain under pressure to reduce costs and improve services.

"We have a substantial amount of contracted local authority revenue still to recognise and we are very confident of converting our large qualified pipeline into further sales. The business is in good shape and our balance sheet is strong with net cash."

IDOX expects to publish its final results on 12 January 2010.

Enquiries:

IDOX		020 7332 6000
Martin Brooks, Chairman
Richard Kellett-Clarke, Chief Executive
William Edmondson, Chief Financial Officer
Investec		020 7597 4000
Andrew Pinder / Erik Anderson
College Hill	020 7457 2020
Adrian Duffield / Carl Franklin

About IDOX plc

IDOX plc is a supplier of software solutions and services principally to the UK public sector and the leading applications provider to local government for core functions relating to land, people and property through its UNI-form, Plantech and IDOX product range. Over 70% of UK local authorities are customers.

The Group gives public-sector organisations the tools to manage information and knowledge, documents and content, business processes and workflow as well as connecting directly with the citizen via the web.

It also supplies decision support content and additional specialist services via the IDOX Information Service and the recently acquired J4B business.

Under the TFPL brand the company is transforming approaches to knowledge and content management via consultancy and training, as well as providing these specialist skills to customers through its recruitment division.

For more information see www.idoxplc.com

 

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