12th Jun 2014 14:03
LONDON (Alliance News) - IDOX PLC raised its interim dividend on Thursday after pretax profit rose in the half year ended April 30 following restructuring it did in 2013.
The software and services company proposed an interim dividend of 0.325 pence, up from 0.300 pence in the previous year.
It posted a pretax profit of GBP3.5 million, up from GBP2.6 million in the same period a year earlier, as revenue rose to GBP29.6 million, from GBP26.6 million, driven by strong performances in its public sector software and engineering information management divisions, and thanks to its acquisition of Artesys International SA in 2013.
The company posted restructuring charges of GBP200,000 for the re-organisation of the engineering information management division and streamlining of its corporate functions between London and Newbury into its Theale office.
After a "disappointing" 2013, the company said it had opted to strengthen its management team and improve its systems and controls.
The company said that the expansion of its service offering has given it smoother and more predictable revenue flows, which has improved visibility. The company's recurring revenue accounted for around 50% of total revenue, which it expects to continue into 2014.
Revenue in the public sector software unit was GBP19.7 million, up from GBP18.3 million a year earlier, driven by new contract wins and increased activity in its election business.
Revenue was GBP9.9 million in the engineering information management division, up from GBP8.2 million, benefiting from six months contribution from Artesys and the honing down of its focus on the oil and gas, infrastructure and utilities sectors.
The division has launched a new service for oil and gas corporates to assist with the trading of assets, and Chief Executive Kellett-Clarke told Alliance News that it was the only one on the market offering the service. It is currently looking for customers.
"We're actively discussing with a number of organisations, it's dependant on their demand, if they buy and sell assets then we can step in and provide that support for them," Kellett-Clarke said.
The company said that its restructuring during 2013 had secured GBP1 million in savings, and Chief Financial Officer Jane Mackie told Alliance News that IDOX is expecting around half a million of those savings to come through in the second half of the year.
The company's net debt position improved, shrinking to GBP8.7 million from GBP17.7 million as at April 30.
"We're in the process of looking at our funding requirements going out into 2015 when our bank (facilities) comes up for renewal," Kellett-Clarke said. "We're looking at rejigging our facilities in the debt markets today that would give us more fire-power in 2015 off a stable performance in 2014."
In its second half, IDOX said it expects to continue to improve its business, focusing on product development and adding value added services.
"Most of the investment is going into making the products easier to use and more joined up, and into the back office infrastructure being more flexible, so that it scales to both small and large organisations so they can use it," Kellett-Clarke said.
Shares in IDOX were trading down 0.6% at 42.75 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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