19th Jul 2016 09:22
LONDON (Alliance News) - Ideagen PLC on Tuesday said its pretax profit grew in its financial year to the end of April thanks to the contribution from acquisitions and from solid organic growth.
The company, which provides software to highly-regulated industries including the health, defence and rail sectors, said pretax profit for the year to April 30 grew to GBP1.0 million from GBP608,000 a year earlier.
Revenue grew 52% to GBP21.9 million from GBP14.4 million, but this was partially offset on the bottom line by higher operating costs related to acquisitions the company had made. Gael - the governance, risk and compliance software company Ideagen bought in January 2015 - was the primary contributor to the revenue growth.
Organic revenue grew 10% in the year, helped by contract wins for Ideagen's Enlighten cloud platform and a series of on-premises contract wins with the likes of South West Yorkshire NHS Trust and Meggitt PLC, the aerospace and defence components firm. Ideagen also secured a series of extensions and expanded deal with existing clients, including defence support services company Babcock International Group PLC and pharmaceutical company BTG PLC.
Ideagen declared a final dividend of 0.122 pence per share, meaning its total payout will rise to 0.183p from 0.165p.
"Ideagen has enjoyed another year of strong growth. Having expanded the business considerably with seven acquisitions completed in the previous four years, adding significant product capabilities and expertise to the group, the year's focus was on driving forward our enlarged operations and executing the organic growth strategy," said Ideagen Chief Executive David Hornsby.
"Trading since the year end has remained robust. Whilst we remain alert to prevailing economic and political conditions we have a strong presence in a variety of different markets across the globe, which, together with the high levels of recurring revenues and repeat business derived from our 2,200 customer base, provides me with confidence in the future prospects for the group," Hornsby added.
Ideagen shares were down 0.5% at 55.00 pence Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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