Idox reports robust first-half performance

The AIM-traded firm said first-half revenue increased 21% to £43.1m, up from £35.8m in the same period last year.

That growth was bolstered by a full six-month contribution from Emapsite, which was acquired in August last year.

Recurring revenue rose 29% to £27.4m, accounting for 63% of the group’s total revenue, compared to 59% in the first half of the 2023 financial year.

Adjusted EBITDA saw an 8% increase to £13.1m, though the adjusted EBITDA margin declined slightly to 30%, reflecting the impact of the Emapsite acquisition.

Statutory operating profit grew by 15% to £5.7m, with a stable operating profit margin of 13%.

The firm said statutory profit before tax increased 12% to £4.6m.

Adjusted diluted earnings per share (EPS) decreased to 1.26p due to a higher effective tax rate and increased borrowing costs, while statutory diluted EPS remained relatively stable at 0.71p.

The company maintained stable free cash flow generation at £13m, and significantly reduced net debt to £6.6m from £14.7m at the end of October.

Cash generated from operating activities before tax was 149% of adjusted EBITDA, highlighting strong cash flow management.

Idox also had significant resources available for mergers and acquisitions, supported by a £75m revolving credit facility and a £45m accordion.

Operationally, Idox reported a 4% increase in order intake to £54.1m, enhancing recurring revenue visibility for the remainder of 2024 and into 2025.

The integration of Emapsite had progressed well, with performance meeting expectations.

Additionally, the company made good progress in developing its geospatial capabilities and reported a healthy pipeline of potential merger and acquisition targets.

Looking ahead, Idox said it expected continued strong performance, with growth in recurring revenue and a robust pipeline providing good revenue visibility.

The company said it was planning to pay a final dividend in line with its stated policy, reflecting confidence in its ongoing financial health and strategic direction.

“The group has delivered a strong financial performance in the first half of 2024 in line with the board's expectations, with increased total revenue, recurring revenue, profitability and cash generation,” said chief executive officer David Meaden.

“A clear focus on, and a deep understanding of the markets we serve, continues to provide us with excellent opportunities to support new and existing customers.

“The breadth and depth of our services delivered via our outstanding people offers further opportunities for organic growth.”

At the close on Tuesday, shares in Idox were up 0.31% at 64.2p.

Reporting by Josh White for Sharecast.com.