7th Jun 2016 09:42
LONDON (Alliance News) - Idox PLC Tuesday said it is confident of "at least" meeting market expectations for its full year, with visibility for its second half helped by the upcoming UK referendum on its membership in the EU, as it reported a rise in its interim profit.
The public sector-focused software and services company reported a pretax profit of GBP6.5 million for the half year to end-April, up from GBP3.1 million the year before, as revenue rose to GBP37.2 million from GBP29.6 million.
Revenue growth was boosted by two acquisitions during the year, Cloud Amber and Reading Room.
It saw a slight decrease in gross margin to 87% from 88%, as a result of lower margin election print revenue related to the May local elections and the EU referendum.
Idox said that, despite "global macroeconomic uncertainty" in its principal markets, and said it is a beneficiary of the upcoming 'Brexit' referendum on June 23, as they provide election services to many local councils. It noted there has been "no impact due to uncertainty about the outcome of that vote to date".
Idox proposed an interim dividend of 0.35 pence, up 8% from 0.325 pence the year before.
"Following the strong first half performance, we have additional visibility of revenues from the European Referendum and a healthy pipeline and order book. These together with full year contributions from last year's acquisitions, means the board is confident of at least meeting market expectations for the financial year as a whole," said Chief Executive Richard Kellett-Clarke in a statement.
Shares in Idox were up 1.6% at 65.55 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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