22nd Jul 2019 10:53
(Alliance News) - Information management services provider IDOX PLC on Monday reported a narrowed interim loss following a "stable financial performance", though revenue did slip.
Shares in the company were down 13% at 30.00 pence each in London on Monday.
For the six months to April 30, the company made a pretax loss of GBP2.3 million versus a loss of GBP34.5 million in the same period a year before. The company's revenue dipped 0.9% year-on-year, however, to GBP31.5 million from GBP31.8 million.
The company's administrative expenses more than halved to GBP22.8 million from GBP56.7 million a year earlier, contributing to the slimmer loss. IDOX was also aided by the disposal of its digital division which the company said "incurred losses of GBP9.1 million" in the 2018 financial year.
In last year's corresponding period, the company was also forced to pay an impairment charge of GBP39.5 million.
IDOX reported adjusted earnings before interest, tax, depreciation and amortisation of GBP4.4 million, up 63% year-on-year from GBP2.7 million. Excluding the Digital business, earnings slipped to GBP4.4 million from GBP4.6 million.
The Content division was the only part of the business to see a revenue hike, up 10% to GBP7.5 million from GBP6.8 million. The Engineering Information Management unit and its Public Sector Software division both saw revenue slip 4%, to GBP4.6 million and GBP19.4 million respectively.
For the rest of the financial year, the IDOX said it expects its "full year performance to be at a similar level to that reported in financial 2018 for continuing operations" after resolving a "wide range of historic issues".
Chief Executive David Meaden said: "We remain confident in the outlook for the group and remain ambitious in securing and improving margins and cash generation. We are focused on growing the group by cross-selling to our customers, expanding the applicability of our existing products and extending our reach to new areas where there is good opportunity to create further value."
The company did not pay an interim dividend, in line with a year before.
"As we rebuild our business, the board has decided that it would not be the right moment to resume the payment of a dividend. The board will review the group's future dividend policy to ensure an appropriate payout ratio taking into consideration the group's expectations of future cash flow generation and long term earnings," the company said
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