25th Nov 2019 10:14
(Alliance News) - Software firm Idox PLC on Monday said it expects to swing to a pretax profit for financial 2019, in line with the board's expectations, due to good strategic and commercial progress.
"Our 2019 financial year has seen extensive and positive changes throughout the business as we have re-established how we organise, measure and run operations across the group. We continue to focus on driving full value from the group's assets and working intelligently to drive high margin and cash generation," Idox Chief Executive David Meaden said.
The company, which supplies software to businesses and government, expects to record a pretax profit of GBP300,000 from continuing operations for the year ended October 31 versus a pretax loss of GBP27.0 million in financial 2018.
Earnings before amortisation, depreciation, restructuring, acquisition, corporate finance and share option costs is predicted to be flat year-on-year at GBP14.4 million.
Recurring revenue is estimated to rise 20% to GBP38.9 million for financial 2019, while the contracted software and services order book is expected to rise 29% to GBP12.1 million.
Net debt is anticipated to fall 17% to GBP26.4 million at October 31 from GBP31.8 million a year ago.
Theale, Berkshire-based Idox said it continues to focus on its core public sector software business and added that sustaining improving levels of recurring revenues remains a priority.
Idox additionally expects to secure new multi-year borrowing facilities prior to its financial 2019 results announcement, expected sometime in early February.
Shares in Idox were trading marginally higher at 34.81 pence each in London on Monday morning.
By Tapan Panchal; [email protected]
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