8th Jun 2015 07:45
LONDON (Alliance News) - Idox PLC on Monday expressed confidence in "achieving current market guidance" for its full year as it continues to invest in sales and marketing activity, and it posted a decline in pretax profit for its first half.
Idox provides software and services for the public sector and corporate sector.
According to forecasts provided by Morningstar, N+1 Singer expects Idox to post a pretax profit of GBP16.2 million for its full year, FinnCap expects GBP15.6 million, and Progressive Equity Research expects GBP16.0 million.
For the half year to end-April the company posted a pretax profit of GBP3.1 million, down from GBP3.5 million a year before, as revenue was broadly flat at GBP29.6 million, but this was offset by GBP841,000 in restructuring costs. The company said it completed restructuring that it began last year during the first half, and this has produced efficiencies which it expects will help it maintain its margins over the full year.
The company said growth in its public sector business helped offset difficult trading conditions in the oil and gas segment of its engineering information management business.
During the half year, the UK national and local elections helped boost revenue in its public sector division, as it delivered election services to 25% of councils across the UK. It has further elections business coming up in its second half with a significant number of by-elections, and elections in Norway.
"Whilst the focus in the second half will be on the public sector side of the business, we are well positioned should we see signs of recovery in the engineering business. We continue to make further investment in new sales and marketing activity, which give us confidence in achieving current market guidance for the full year," the company said in a statement.
Shares in Idox are trading down 1.3% at 37.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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