7th Feb 2025 11:34
(Alliance News) - Ingenta PLC on Friday said it expects to report decreased revenue for 2024 but it will retain its previous dividend level.
The Oxford, England-based provider of software and services to the publishing industry said it expects 2024 revenue to fall 5.6% to GBP10.2 million from GBP10.8 million in the previous year, in line with previous guidance.
It expects earnings before interest, tax, depreciation and amortisation to decline 18% to GBP1.8 million from GBP2.2 million.
Ingenta said it expects to declare an unchanged final dividend of 2.6 pence per share, giving a total dividend of 4.1 pence, unchanged from the prior year.
The company said it focused on new projects to offset revenue reduction from legacy services in 2024. Some of the new projects were delayed and did not fully offset the legacy reductions.
It said it is prioritising new business in 2025 to offset the larger scale reduction in legacy revenue expected in 2025, to return the company to growth.
Ingenta said it has won four new contracts since the year end with an aggregate contract value of GBP1.9 million.
It said this underpins confidence in top line revenue growth in 2025.
The company will spend GBP500,000 on sales and marketing during 2025, meaning that Ebitda is "likely to be lower" than 2024. It expects to retain the current dividend level in 2025.
The firm said it generated "substantially improved" positive cash flow in 2024, which multiplied to GBP900,000 from GBP300,000, giving a closing cash balance of GBP3.6 million.
Chief Executive Officer Scott Winner said: "I am pleased to report that we have won substantial new business in 2024, broadly based across all the group's current platform offerings, and it is disappointing that delays in implementing these new services due to customer-induced delays have resulted in this impacting on the overall results for the year.
"Looking ahead to the longer term, this new investment will further reduce our reliance on revenues and profits from legacy platforms and aim to ensure that the transition of long-standing customers away from higher-value legacy products will be more than offset by increasing new business from our current and next generation offerings. Although this will impact on profits in 2025, it is an investment in the future which we expect to bear fruit in accelerating growth in future years."
Ingenta shares were down 8.1% to 65.25 pence in London on Friday morning.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.