Idox performs in line with expectations

Idox, an AIM-listed supplier of specialist information management solutions and services, reported growth was in line with expectations for the year ended 31 October 2016.

The company experienced double digit growth in both revenues and adjusted profits including good contributions from organic growth and recent acquisitions.

Public sector software, which represents over half of the group’s revenues grew by over 14% during the year including organic growth of around 5%. It has continued to win more managed services and market share as well as make good progress expanding its digital services platform.

Local government’s final quarter was slightly lower than anticipated partly caused by temporary delays incurred by a key systems integrator.

Energy information management (EIM) experienced revenue growth at improved margins as did the digital segment and grants.

The company made two acquisitions in the second half, Open Objects in July and Rippleffect in August. Open objects is expected to enable significant expansion in the social care domain and Rippleffect is expected to boost the group’s digital capability.

The group’s net debt at the end of the year grew to £25.1m from £23.1m at 31 October 2015.

The board remains confident that the group is well positioned in its markets and will continue to perform well in 2017 given its strong revenue visibility, order book and pipeline.

In terms of the Brexit vote, there has been no material impact on the company according to management. The depreciation of Sterling however is expected to have a positive effect on the business as a result of the translation of its foreign currency denominated earnings into sterling.

The group remains on track to achieve its target of £100m revenue at sustainable margins in the short to medium-term through a combination of organic growth and acquisitions.

Chief executive Andrew Riley said: “The business has entered the new financial year in robust shape and we are encouraged by the opportunities and outlook for the business in the coming year.”

The share price rose by 2.02% to 61.98p at 1434 GMT on Thursday.