Ingenta makes 'considerable progress' in combination plan

Software and services provider Ingenta made "considerable progress" in its business combination plan during its last trading year, enabling it to operate in a "more efficient and nimble manner" from now on.

Ingenta, which principally provides software to the publishing industry, told investors on Wednesday that it now expects to report revenues of £12m and an adjusted EBITDA of roughly £800,000.

The AIM-listed firm said the figures were a result of its 18-month long programme to reorganise and reposition its Chinese joint venture, which resulted in £4m worth of cost savings per year.

Ingenta said its efforts had "substantially de-risked the company", enabling it to produce increased profitability from a lower revenue base and allowing it to look forward to 2019 with "considerable optimism".

The Oxford-based group recorded operating cash inflows of £2.3m in the year - before expenditure on research and development of £1.8m, acquisition costs of £250,000, dividends of £250,000 and planned reorganisation costs of £800,000, resulting in a net cash balance of £1.3m.

Chief executive Scott Winner said: "The results of our recent business combination plan are now starting to produce results and I look forward to 2019 with great enthusiasm."

"The business is now leaner and focussed on delivering first-class services to all our customers meaning we are significantly better placed to propel the business through the next stage of its growth".

As of 1020 GMT, Ingenta shares had picked up 2.72% to 76.01p.