Idox financials stumble but order book offers hope

A trading update from the AIM-traded company said it expects to report an 8.6% drop in annual revenue for the year ended 31 October, not taking into account the loss-making digital business that Idox sold at the start of November.

EBITDA for the continuing business is expected to be reported at £14.4m, down 13.8% on the prior year, while net debt is thought to be down from £32.8m at £31.7m.

The majority of cost-cutting measures were taken against the since-disposed digital division, though costs for the continuing businesses were reduced by £1.7m for the year to £44m in a trend that is expected to continue through the ongoing year.

David Meaden, chief executive of Idox, said: "FY2018 has seen a number of changes in the Idox business, but we end the financial year in a stronger position than we entered it and I am confident in our new leadership and team to deliver success in FY2019."

Looking ahead, the contracted order book for software and services more than doubled in size to £9.4m from £4m and, after an internal review, Idox will seek a higher proportion of recurring revenue in future years.

"We continue to work hard to fully integrate prior year acquisitions and refocusing operations on our intellectual property and profitable cash generative activities. I am excited by the prospects for the business in FY2019 and future periods as we begin to reap the benefits of these ongoing efforts," said Meaden.

Idox’s shares were down 1.70% at 32.90p at 1023 GMT.