13th Jan 2015 09:53
LONDON (Alliance News) - Idox PLC Tuesday reported a slight increase in pretax profit for the full year, driven by a rise in revenue, after its two divisions reported good growth in both revenue and profitability during the period, resulting in the company increasing its full-year dividend.
For the year ended October 31, 2014, the information management company reported a pretax profit of GBP7.6 million, marginally up from the GBP7.5 million reported in 2013. The increase was driven by a rise in revenue, slightly offset by increased administrative expenses and other costs.
Revenue for the period was up 6% to GBP60.7 million, compared to GBP57.3 million a year earlier. Organic growth and market share gains by its Public Sector Software division, and revenue growth from the Engineering Information Management division drove the rise in revenue.
Administrative expenses rose to GBP45.8 million from GBP43.4 million, whilst costs relating to depreciation, amortisation, restructuring, financing and share option costs increased to GBP16.4 million from GBP15.1 million.
The company's EBITDA increased by 8.6% to GBP16.4 million from GBP15.1 million a year earlier.
Idox lifted its full-year dividend by 7.1% to 0.75 pence per share compared to a 0.70 pence per share dividend in 2013.
"I am pleased to report that Idox was restored to good growth in both revenue and profitability in the last 12 months," said Chairman Martin Brooks. "It was particularly gratifying that our Public Sector Division enjoyed an impressive year, seeing organic revenue grow by 8%, while our Engineering Information Management Division maintained its EBITDA margin of 23%, despite the current challenges in the oil and gas market, and while also benefiting from the reorganisation of the business in 2013"
"Idox is now a group with a simplified corporate structure comprising two major divisions, PSS and EIM. We apply our specialist information management skills to our chosen markets in the UK and around the world, with approximately two thirds of business in the UK from public sectors and one third in the global EIM business," added Brooks.
The Public Sector Service division benefited from a high level of new activity in the UK public sector such as providing the electronic management for the Scottish independence referendum and supplying solutions to local authorities in Birmingham, South Norfolk, Aylesbury, Shropshire and Highland, it said in a statement.
The division currently generates 68% of the company's total revenue. The PSS division saw recurring revenues fall by 5% in the period, but did increase its margin by 1% due to cost efficiencies.
"The current trading environment in public sector remains unchanged with the pre-Christmas public sector spending announcements in-line with our expectations," said Brooks. "We believe it remains a positive environment for change, which allows Idox the opportunity to look at doing things differently and therefore provides a significant opportunity for growth."
The Engineering Information Management division was hurt by a fall in activity in the oil and gas sector, which represents around a third of the division's business. Idox said that despite this, the division had won some notable business wins amongst oil and gas majors including BG Group PLC and Pembina and with companies in the utility sector such as Elo Lilly and Mustang.
Idox is hoping growth in North America shale and in the utility sector including nuclear, hydro and fossil generation will mitigate against any further fall in demand from the oil and gas market, but said the market is still attractive at present.
"Total capital projects are down in oil and gas but have not collapsed altogether, and the trend to standardisation to reduce costs will continue and the tougher markets will, we believe, encourage the market to adopt change faster. There continues to be growing investments in Infrastructure and Utilities," said Chairman Brooks in a statement.
Idox shares were up 1.3% to 39.50 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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