13th Nov 2019 11:29
(Alliance News) - Ideagen PLC on Wednesday said it is "optimistic" about its growth prospects following a "strong" increase in first half earnings.
The management software supplier said trading has remained "strong" in the six months to the end of October, with revenue and earnings before interest, taxes, depreciation, and amortization both expected to be "significantly" ahead of the same period last year.
Total organic revenue growth in the period was 7%, Ideagen noted.
Annual recurring revenue has grown by 20% to GBP43.9 million from GBP36.4 million as at the end of April, thanks to "strong" customer demand and sales execution in the period.
Ideagen explained that the improvement has been achieved through both organic revenue growth and the acquisitions of Redland Business Solutions Ltd in June and Optima Diagnostics Ltd in October.
The AIM-listed company said it has a clear strategy to grow revenue organically and maintain high Ebitda margins, whilst transitioning from a perpetual licence to a software-as-a-service-based subscription model.
Ideagen said it continues to compete and win new business within the UK and international markets, reflecting its global expansion.
"I am pleased to report an excellent start to Ideagen's financial year. Our core markets are strong and underpin the demand we have seen this half," said Chief Executive Ben Dorks.
He added: "The market opportunity remains large and long term and given the group's position as a leader in the Governance, Risk and Compliance market, the board is optimistic about the group's continued growth prospects."
Ideagen shares were trading 2.6% higher in London on Wednesday at 154.94 pence each.
By Evelina Grecenko; [email protected]
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