Ideagen trades in line amid Covid-19, reiterates FY guidance and dividend

Ideagen expects to report a 21% jump in revenues to approximately £56.6m, while adjusted underlying earnings were pegged to be up 29% to roughly £18.5m on an IFRS16 basis and 22% to about £17.5m on a like-for-like basis.

Annual recurring revenues recognised was projected to be £43.1m, representing an increase to 76% year-on-year.

Cash generated by operations was ahead of expectations at over 95% of adjusted EBITDA, resulting in a gross cash balance of £8.2m and gross bank borrowings of £25m at the period end. Net bank debt at the year-end of £16.8m was lower than anticipated and comfortably within banking covenants.

As a result, the AIM-listed group believes it has "the right financial model" to meet market expectations for the current year and continue to pay a dividend in line with its progressive policy.

Chief executive Ben Dorks said: "We are pleased to report that despite the impact of Covid-19, the group has continued to perform well in delivering yet another year of quality earnings growth underpinned by strong cash generation.

"The group has now successfully transitioned to primarily a recurring revenue model and has quickly responded to the new and challenging business backdrop we all face."

As of 1015 BST, Ideagen shares were up 0.93% at 163p.