Software supplier Idox (IDOX) saw revenue jump by 7% to £33.2m in the six months to 30 April 2022, driven by double digit growth witnessed across its public sector software division.
The company said a “robust” trading performance in 1H22 has also translated into a strong cash performance, with cash generated from continuing operations, before tax, of £13.4 million, representing a conversion rate of 122% against £11m of EBITDA for the period.
Addressing shareholders, Idox said it believes the business is “well placed” to continue to execute on its growth strategy supported by selective strategic acquisitions, with £7.1m of available cash supplemented by a £35m revolving credit facility and £10m accordion.
The company confirmed to investors that it has moved from a net debt position at 31 October 2021 of £8.1m to a net debt position of £3.8m following a period of strong cash generation.
On the operational side, Idox reported order intake of around £40m - that’s up 15% from 1H21, with a strong pipeline underpinning its confidence over the medium term, it noted today.
Reduced revenues in the Engineering Information Management (EIM) division in 1H were offset by strong double-digit revenue and profit growth within the Public Sector Software division. The Company added that EIM is expected to deliver an improved 2H performance.
Shares in Idox were trading 4.26% higher this morning at 62.4p following the announcement.
David Meaden, Chief Executive Officer of Idox said: "Operationally, the business continues to perform strongly within our 'Four Pillars' framework. I am particularly pleased with the progress from the investment we have made in the business; in our people development, notably our culture of engagement and leadership, organisational design incorporating our offshore capabilities, improved management information and automation programmes.”
During 1H, Rob Grubb resigned his board position as Chief Financial Officer and took up a role as M&A Director. Idox says further investments in the M&A team, led by Grubb, has already created greater focus and opportunity for further expansion through acquisitions.
Meaden added that “the outlook for the business is promising as we continue to improve our operational capabilities and build momentum in our chosen markets. We are now firmly focussed on our 'fly phase' which we believe will drive value for our key stakeholders."
The Company said it believes the combination of recurring revenue and growing order book in resilient Public Sector Software markets offers good revenue visibility for the remainder of FY22. Idox added that the business continues to perform well and in line with the Board's expectations.
As previously announced, the Company paid a dividend of 0.4p per share in April 2022 in respect of the year ending 31 October 2021. Its current policy is to only declare a final dividend and therefore there is no interim dividend in respect of the first half of FY22.
Follow News & Updates from Idox: