Ideagen revenue surges 33%, management reshuffle announced

AIM-listed Ideagen named its new chief executive officer on Tuesday as it said it expects to report a 33% jump in full-year revenue.

In an update for the year to 30 April, the company said it expects revenue to come in at £36.1m from £27.1m the year before, while adjusted earnings before interest, taxes, depreciation and amortisation are expected to have risen 40% to £11m, with a "significant" increase in adjusted earnings per share.

The group said trading was strong across all key verticals, with organic revenue growth of around 11% and a "substantial" increase in recurring revenues as last year's acquisitions contributed to its growth.

Meanwhile, cash generation remained robust, with net cash as at 30 April of £0.8m versus £5.9m at the end of October 2017, after the group paid £9.9m for the acquisition of Medforce and deferred consideration on Pleasetech, IPI Solutions and Logen and £0.4m in dividends.

Ideagen also announced some board changes, with David Hornsby moving from CEO to the role of executive chairman, while current chief customer officer Ben Dorks succeeds Hornsby to become CEO.

In addition, Jonathan Wearing has stepped down as non-executive chairman after 15 years.

Executive chairman David Hornsby said: "We are pleased to report that the group has continued to perform well in delivering another year of high quality earnings growth underpinned by strong cash generation. We continue to grow organically and to increase the percentage of our revenues derived from recurring business.

"The group has significant contracted work in progress, a growing base of recurring revenues and a strong pipeline of new business opportunities which provides the Board with confidence for the current year and beyond."

At 1020 BST, the shares were up 3.9% to 116.90p.