16th Mar 2020 12:35
(Alliance News) - Information management software firm IDOX PLC on Monday said performance has significantly improved with past problems now behind it.
For its financial year ended October 2019, IDOX sees revenue of GBP65.5 million, which would be down 1.4% on the year before. The order book as of October 31 was 29% higher on a year before at GBP12.1 million.
Adjusted earnings before interest, tax, depreciation, and amortisation is guided to have risen 5.9% to GBP14.4 million. IDOX estimates a pretax loss of just GBP30,000 for financial 2019, after a loss of GBP27.6 million loss the year prior.
However, in November, IDOX had forecast a GBP300,000 pretax profit.
Glasgow-based IDOX reduced debt over the year by 17% to GBP26.3 million.
IDOX is working with its auditor over an "outstanding historical matter" regarding financial year ended October 2017 and its purchase of 6PM. This should not impact financial 2019 results, but IDOX will release financial 2019 results as soon as it can.
Turning to its newly begun financial year, IDOX said first-quarter trading has been "significantly stronger" year-on-year, meeting expectations for financial 2020 as a whole.
All historical issues have been remedied, IDOX said, and there are now no outstanding litigation or property issues.
IDOX is planning a final dividend for financial 2020 which would be around 30% of annual retain earnings.
Commenting on Covid-19, IDOX believes it is well placed due to a high recurring revenue base and limited exposure to places worst-hit by the virus.
"We entered financial 2020 with encouraging momentum following the extensive reform of the business in the previous year and it is therefore pleasing to report a strong first-quarter performance, consistent with our expectations," commented Chief Executive David Meaden.
"The business is benefiting from our strategy to significantly increase engagement with our customers, staff and other stakeholders and from the introduction of new products and extended service offerings. During financial 2020, we are planning further integration of our activities and refinement of our operating models to drive further efficiencies."
"We are pleased with the progress we have made but are not complacent. We remain committed to establishing Idox as a leader in public sector software with market-leading cloud-based products and an efficient operating model to drive high levels of recurring revenue, strong margins and consistent cash generation," he added.
Shares were 25% lower on Monday afternoon in London at 25.82 pence each.
By George Collard; [email protected]
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