22nd Jan 2019 13:53
LONDON (Alliance News) - Governance, risk management and compliance software provider Ideagen PLC on Tuesday reported a swing to a loss in the first half of its financial year from a profit a year ago.
In the six months to October 31, Ideagen reported a pretax loss of GBP635,000 from a profit of GBP754,000.
The company's revenue increased 22% to GBP21.0 million from GBP17.2 million.
However, Ideagen's operating costs increased 24% in the half to GBP13.4 million from GBP10.8 million. It also recorded increased depreciation & amortisation costs, of GBP4.3 million from GBP3.5 million.
The company also booked GBP793,000 acquisition costs and GBP267,000 in restructuring costs, versus no such costs a year before. It took a GBP948,000 share-based payment charge, up from GBP414,000 a year before, related to its long-term incentive plan.
Ideagen declared an interim dividend of 0.09 pence compared to the 0.078p paid out last year, a 15% increase.
"We are delighted to report on another strong performance from the group across all of our vertical markets and geographies during the first half of the year," said Chief Executive Officer Ben Dorks.
Dorks continued: "The group continues to generate significant international sales growth and momentum in our SaaS business driven by customer demand. This will enable the acceleration of our transition to a subscription licence model whilst maintaining high margins and organic growth."
Ideagen said its new sales bookings increased 34% to GBP14.5 million from GBP10.8 million. The firm's software-as-a-service contracts increased 42% to GBP5.5 million, representing 26% of total revenue.
Ideagen said increasing its recurring revenue as a portion of total revenue continues to be a focus.
Dorks added: "Current trading is in line with market expectations and the acquisitions made in H1 are performing well. The integrated risk management market continues to grow and our success in winning new business together with our levels of recurring revenue and repeat business from our 4,000 strong customer base provides the Board with confidence in the outlook for this year and beyond."
Shares in Ideagen were up 1.5% Tuesday at 134.00 pence each.
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