Ideagen signals significant first half growth

Information management software provider Ideagen posted an update on trading for the six months to 31 October on Monday, with its board reporting that trading had remained strong in the first half of the financial year.

The AIM-traded company said revenue and adjusted EBITDA were expected to show a significant increase over the same period last year through a combination of organic growth and the acquisition of Covalent.

It expected to report organic revenue growth of approximately 16%, it said, alongside a small contribution from Covalent which was acquired in August.

The integration of Covalent wass now complete and the company expected an increased level of contribution in the second half, it claimed.

As a result, Ideagen’s board continued to trade in line with market expectations for the full year to 30 April 2017.

Cash generation in the period was strong and the company maintained a robust balance sheet with no debt.

The cash balance at the period end was £4.8m, down from £6.3m, after the payment of £3.8m for acquisitions and associated costs.

“This has been a good start to the financial year,” said chief executive David Hornsby.

“Strong trading has been driven by demand across all key vertical markets and continued momentum with our cloud-based Enlighten solution.

“The market opportunity remains large and long term, and consequently, the board is optimistic about the group's continued growth prospects."