22nd Jul 2015 09:06
LONDON (Alliance News) - Ideagen PLC Wednesday said it's in a good position to grow the business, as it reported a fall in pretax profit in its last financial year, mainly due to higher costs relating to amortisation of intangible assets acquired.
Ideagen acquired competitor Gael Ltd in December 2014, which followed a deal to buy software company EIBS Ltd in June that year.
Ideagen, which provides governance, risk and compliance software to organisations in sectors such as aerospace & defence and banking & finance, said it made a GBP608,000 pretax profit in the year ended April 30, compared with GBP1.1 million in the prior year.
Revenue grew by 61% to GBP14.4 million, and a lower rate of increase in the cost of goods sold led to improved margins, with operating costs up by 80% to GBP8.5 million. Without including higher costs of depreciation and amortisation, costs of acquiring businesses and share-based payment charges, profit from operating activities increased to GBP4.0 million from GBP2.8 million.
Ideagen increased its dividend for the year to 0.165 pence per share, compared with 0.15p for 2014.
"We have entered the new financial year with an excellent, more diverse client base, a stronger suite of products and the right organisational structure to support our corporate goals. I am pleased to announce that the new year has started well and that Ideagen is well placed for another year of growth," Chief Executive David Hornsby said in a statement.
Following the UK's General Election in May, when the Conservative Party secured a surprise majority victory, the company has seen a "more normal level" of purchasing patterns in the UK's National Health Service, according to the CEO.
"The group has a strong pipeline of new business opportunities and continues to develop sales levels to existing customers which provides the board with confidence for the year," Hornsby said.
Ideagen shares were down 0.7% at 45.80 pence on Wednesday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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