IDOX monitors COVID-19 impact following 'significantly stronger' Q1

IDOX said its financial performance was consistent with expectations for the year as a whole and that it had achieved a material reduction in closing net debt as of 31 January at £27.5m.

The AIM-listed group also said it had continued to make "good strategic and commercial progress" across the business.

Chief executive David Meaden said: "We entered FY20 with encouraging momentum following the extensive reform of the business in the previous year and it is therefore pleasing to report a strong first-quarter performance, consistent with our expectations.

"We are pleased with the progress we have made but are not complacent. We remain committed to establishing Idox as a leader in Public Sector Software with market-leading cloud-based products and an efficient operating model to drive high levels of recurring revenue, strong margins and consistent cash generation."

As far as impacts related to the COVID-19 outbreak were concerned, IDO said it was well placed due to its high recurring revenue base, a high proportion of staff that work from home and limited exposure to geographies that were currently most impacted by the virus.

"We continue to monitor the situation and adapt our approach as required," said IDOX.

As of 1020 GMT, IDOX shares were down 24.31% at 26p.