IDOX PLC
20 February 2007
IDOX PLC
20 February 2007
IDOX plc
('IDOX', the 'Company' or the 'Group')
TRADING UPDATE
The directors are pleased to report that the strategy of returning the principal
focus of the Company to the Software division has been validated by new customer
wins in IDOX's core government market place. Overall first quarter trading has
delivered a strong performance, with excellent revenue growth in the Software
and Information Solutions divisions.
Software division
Following a management reorganisation, the Software division has had new
contract wins from its new Planning, Licensing and Building Control public
access system and three new contract wins with its Revenues and Benefits
systems, the new corporate system at Caerphilly County Borough Council being the
largest Revenues and Benefits order yet. Other recent contracts secured since
October 2006 have included a corporate Electronic Document Record Management
System (EDRMS) for Chichester City Council and a corporate solution for Fife
Fire and Rescue. The Software division has a growing prospect pipeline from new
and existing clients interested in our new products, which deliver real cost
benefits through enhanced efficiency and productivity savings. New orders have
exceeded £850k since the start of the trading year. Overall first quarter
revenues in the Software division were 18% above the same period last year and
are expected to be sustained at double digit growth levels through the trading
year.
Information Solutions division
Following its reorganisation in 2006, the Information Solutions division is
increasingly specialising in Enterprise Content Management (ECM) consultancy and
solutions. The division saw strong growth in orders from Government and Media
clients and has an increasing pipeline for the second quarter. Consultancy
contract wins, including the Army, Department of Education and Skills and Yell
amongst others, are delivering double digit revenue growth compared to the first
quarter of last year.
Recruitment division
The higher margin permanent recruitment business continues to expand in both the
traditional markets and specialist IT appointments. The lower margin contract
recruitment business revenues remain below levels enjoyed in 2005 but the
monthly revenue run rate has recovered from the low point in mid 2006. As
reported in December, the Recruitment division is being prepared for
divestiture.
Cash, costs and contribution continue to be tightly controlled across the whole
Group.
Martin Brooks, Chairman and CEO, commented, 'We are pleased with our recent new
business wins, which have put our core businesses back on a growth path. We are
also benefiting from a significantly lower cost base than during last year. The
Company is working very hard to make this a sustainable and firm platform for
continuing business development. We continue to look for suitable, value
enhancing acquisition opportunities.'
For further information please contact:
Martin Brooks, Chairman and CEO, IDOX plc Tel: +44 (0)870 333 7101
Richard Kellett-Clarke, CFO, IDOX plc Tel: +44 (0)870 333 7101
Matthew Hall, Noble & Company Ltd Tel: +44 (0)207 763 2200
This information is provided by RNS
The company news service from the London Stock Exchange
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