Ideagen revenues grow in 'robust' H1, acquires CompliancePath

Software firm Ideagen said on Monday that it had experienced a "robust first six months" of the trading year, with strong growth in recurring revenues and continued execution of its merger and acquisition strategy.

Ideagen stated its first-half performance was in line with internal expectations and demonstrated "a continuing growth" in high-quality recurring revenues, underpinning the board's "high confidence "in the group's prospects for the second half of the year.

The AIM-listed firm now expects to report total interim revenues of approximately £38.8m, up 33% year-on-year, with recurring revenues recognised in the period up 41% to £34.2m to represent 88% of total revenues.

Total revenue grew organically at 6%, whilst organic recurring revenue growth was 10%, driven by strong customer retention rates as well as new business wins.

Adjusted underlying earnings were projected to have increased 32% to roughly £13.2m.

Chief executive Ben Dorks said: "Ideagen enters the second half of the year in a great position, confident of delivering on its expectations for the year and the considerable opportunity continuing our current M&A plus organic growth strategy that lies ahead."

Elsewhere, Ideagen announced the acquisition of software validation and assurance firm CompliancePath for an initial consideration of $6.0m, payable in cash, plus a conditional deferred earnout of up to a further $6.0m, payable over the next two years. The acquisition was funded from the group's existing resources.

As of 1125 GMT, Ideagen shares were up 1.03% at 293.0p.