Final Results

Ideagen PLC

("Ideagen", the "Company" or the "Group")

Unaudited Preliminary Results for the Year Ended 30 April 2013

Ideagen PLC (AIM: IDEA), a leading supplier of Compliance based Information Management (CIM) software announces its unaudited preliminary results for the year ended 30 April 2013.

These are the second set of financial results and the first full year of trading since the Company's admission to AIM on 2nd July 2012. The results represent the Company's fourth consecutive year of revenue and adjusted EPS growth and demonstrate continued strong cash generation from operations.

Financial Highlights

·; Revenue up by 63% to £6.51m (2012: £4.00m)

o Organic revenue growth of 25% in UK Health business

o Recurring revenues of £3.1m at year end covering 80% of fixed cost base

·; Adjusted EBITDA up by 71% to £2.02m (2012: £1.18m)*

·; Adjusted PBT up by 73% to £1.87m (2012: £1.08m)**

·; Diluted adjusted EPS up by 34% to 1.49 pence (2012: 1.11 pence)**

·; Cash generated by operations of £2.24m (2012: £1.26m)

·; Net Cash of £6.37m (2012: £1.50m)

·; Net Assets of £12.28m (2012: £5.79m)

·; Placing of 31,578,948 shares at 19p raising £6m before expenses to part fund the acquisition of Plumtree and for future acquisitions

*Before share based payments and exceptional items

**Before share based payments, amortisation of acquisition intangibles and exceptional items.

Operational Highlights

·; Acquisition of Plumtree Group Ltd strengthening the company's position in the UK Healthcare sector

·; Two further NHS contract wins, Western Isles and Forth Valley, under the Scottish NHS Framework agreement

·; Strategic reseller partnership signed with Abbott Laboratories

·; Strong performance within the Aerospace and Defence sector with contract wins at the MOD, BAE Systems, and Northrop Grumman

·; Appointment of Ben Dorks, formerly Sales Director of Plumtree Group as Group Head of Sales and Marketing

·; Appointment of Barnaby Kent, formerly Chief Executive of Plumtree Group as Group Head of Operations

·; Implementation of single Finance and CRM systems across the group

·; Support and maintenance contract renewal rate of 95%

David Hornsby, CEO of Ideagen, commented: "We have made strong progress during the year both strategically and financially. Despite considerable investment in our products, sales resources and management team and the successful acquisition and integration of Plumtree, we have again exceeded market forecasts in terms of adjusted EBITDA** being 6% ahead and year-end cash balance being 12% ahead. We have strong recurring revenues and contract renewal rates and continue to establish ourselves in our chosen markets. Current trading remains in line with market expectations and the Directors look to the future with confidence."

Enquiries:

Chief Executive's Statement

I am pleased to announce our results for the year ended 30 April 2013. The year saw further transformation of the Company through continued organic revenue and profit growth and a fourth strategic acquisition. The acquisition of Plumtree Group Limited ("Plumtree") has provided the Company with over 125 new customers predominantly in the NHS and two strategic software products: dart EDM, an electronic medical records solution, and dart OCM, a medical order communications solution. During the year the Company invested in on-going product development, sales resource and additional management whilst delivering adjusted EPS** growth of 34%. In December 2012, the Company raised £6m before expenses through a placing at 19p to both new and existing investors to part-fund the acquisition of Plumtree and for future acquisitions.

Results

Revenue for the year ended 30 April 2013 increased by 63% to £6.51m (2012: £4.00m) with a full year contribution from Proquis and a four month contribution from Plumtree, which was acquired in December 2012.

Profit before taxation excluding the amortisation of acquisition intangibles, share based payment charges and exceptional items increased by 73% to £1.87m (2012: £1.08m).

Diluted adjusted earnings per share** increased by 34% to 1.49 pence (2012: 1.11 pence).

The Company's financial position has continued to strengthen during the last year. Net assets increased to £12.28m at 30 April 2013 (2012: £5.79m) following the £6m share placing completed in January 2013 and the acquisition of Plumtree. Cash balances at 30 April 2013 were £6.37m (2012: £1.50m) and the Group had net current assets at 30 April 2013 of £4.95m (2012: net current liabilities of £0.79m).

Operating cash flows for the year ended 30 April 2013 were strong with cash generated by operations of £2.24m (2012: £1.26m) which represents 111% (2012: 107%) of adjusted EBITDA*.

Following the recent termination for convenience of the PRISM contract with the US Department of Veterans Affairs, the Group has reviewed the value of its intangible assets and an exceptional impairment charge of £2.09m has been made in the year ended 30 April 2013. The effect of this impairment is reduced by a deferred taxation credit of £0.67m and a further £0.1m credit to the Statement of Comprehensive Income in respect of a contingent consideration liability which is no longer required. In addition, the remaining balance of £1.34m on the deferred equity consideration reserve is no longer required and has been transferred to retained earnings. The overall net effect of this is therefore neutral on retained earnings.

The other exceptional items in the Statement of Comprehensive Income were the costs of acquiring Plumtree of £87,224 (2012: £111,099 to acquire Proquis Ltd) and a gain of £150,299 in the fair value of contingent consideration linked to business combinations of which £100,000 has been referred to above. All of the costs associated with the Company's flotation on AIM, which amounted to £247,353, were charged in the 2012 accounts.

Amortisation of acquisition intangibles increased to £983,859 (2012: £367,361) as a result of the additional intangibles acquired with both Plumtree and Proquis. Share-based payment charges amounting to £178,000 (2012: £78,000) in respect of the Company's share option scheme were also made in the Statement of Comprehensive Income. These are both charges required by accounting standards and are not cash transactions.

*Before share based payments and exceptional items.

**Before share based payments, amortisation of acquisition intangibles and exceptional items.

Company Strategy

The Directors' strategic objective is for the Company to become a leading supplier of Compliance based Information Management ('CIM') solutions. CIM is focused on the capture, storage, retrieval and distribution of 'unstructured' and 'semi-structured' information such as documents, electronic forms and content, email, video and scanned images. It has been independently estimated that 'unstructured' and 'semi-structured' information accounts for more than 80 per cent of all data within an organisation and the Directors believe that its effective management is a corporate necessity. The Company is focused on providing Information Management solutions to organisations that are highly regulated and have a high consequence of failure.

Increasingly such organisations are obliged to demonstrate compliance with industry standards, regulations and KPIs which acts as a compelling driver for investment in the Company's products. The Directors believe that the Company's portfolio of products occupy a niche that comprises elements of two recognised market sectors; Enterprise Content Management (ECM) and Governance, Risk and Compliance (GRC). Our Intellectual Property includes formal document control combined with business process management in the areas of competency, audit, incident reporting and corrective action which provides a fully integrated compliance proposition. Additionally with the acquisition of Plumtree the Company has established a strong position in the formal management and distribution of patient information.

The Company intends to deliver its strategy through a combination of organic and acquisitive growth which will enhance and compliment the Group's product set and provide scale within the business. The Directors are of the opinion that the market is fragmented with no dominant CIM supplier and that consolidation in this sector will offer attractive opportunities over the next few years. Furthermore, the emergence of "cloud" based computing has provided the Company with the opportunity to develop a SaaS business model which we expect to drive significant new business growth and recurring revenue opportunities.

In July 2013, the Company acquired MSS Management Systems Services Ltd ("MSS"), a supplier of Accident and Emergency software solutions. This acquisition has greatly enhanced the Company's value proposition within healthcare, adding 10 acute trust customers and increasing the Company's recurring revenues to approximately £3.4m per annum. The Company now has over 500 customers many of which are blue chip organisations operating in highly regulated industries.

Sectors and Market Opportunity

Standards Management

The Company is focused on providing CIM solutions to businesses within highly regulated industries. The Company's solutions are used by companies to help them maintain compliance with internationally recognised standards and internal business processes.

There are over 19,000 ISO standards which are published by the International Organisation for Standardization. Whilst the Group's software covers a number of specific standards relating to health and safety, information security and environmental compliance, the main standards which the Group's products help customers comply with are based around ISO9000 Quality Management. The ISO9000 family of standards are related to quality management systems and are designed to ensure that organisations meet the needs of customers and other stakeholders.

In the Directors' experience successful Quality Management can improve business performance, often having a positive effect on investment, market share, sales growth, margin, competitive advantage and the avoidance of litigation.

Any organisation which has implemented a standards based quality management system, in the Directors' opinion, represents a potential customer for the Company products. As of December 2009, more than one million organisations worldwide were independently certified for ISO9001 suggesting that this standard is one of the most widely used management tools in the world today.

Additionally, there are many industry specific standards, which are often based on ISO, which the Company's product can manage in an effective manner. Industries such as Pharmaceutical, Aerospace and Defence, Healthcare, Utilities and Manufacturing representing focus areas.

Clinical Information Management

Through the recent acquisitions of Plumtree and MSS the Company has established a footprint in the UK Healthcare sector. The failure of the National Programme for IT (NPfIT) to deliver an integrated patient records solution has provided an opportunity for agile vendors to provide point solutions to address specific information challenges. This opportunity has been confirmed recently by Jeremy Hunt, Minister of State for Health who has set objectives for a paperless NHS by 2018 with budget being made available to achieve this. The Company is focused on providing digitised solutions in three key areas:

1) Clinical Enterprise Repository to provide a single Electronic Medical Record

2) Order communications to provide automated ordering of services between GPs and Hospitals

3) Emergency Department Management

The primary market for these solutions are the 166 Acute Trusts within England, the 14 Regional Health Boards in Scotland, 7 Local Health Boards in Wales and 5 Health Trust in Northern Ireland. The Company has also identified an emerging opportunity for Order Communications software at hospitals in the Benelux region and private laboratories within the UK.

Staffing and Infrastructure

The Company has implemented a fully integrated company structure with functions covering Sales and Marketing, Customer Services and Support, Research and Development and Finance and Administration represented on the executive management team.

Currently the Company has 73 employees across the following functions - Sales and Marketing, 17 Customer Services and Support - 25, Research and Development - 19, Finance and Administration - 11, Chief Executive - 1. It is envisaged that headcount will increase over the coming year to generate and support future growth.

The Company currently has 6 locations, Stevenage, Matlock, Bristol, Sittingbourne, Nottingham and Schaumburg (USA). The Company has outsourced the delivery of our SaaS platform to Rackspace, a global provider of Data Centre services.

 Current Trading & Outlook

The company has a strong pipeline of business, and we have secured a number of new contracts in the new financial period including the £150,000 DartOCM contact announced in June 2013 and the £300,000 DartEDM contract announced separately today. In addition our recurring revenues and contract renewal rates remain high.

We were also pleased to announce the acquisition of MSS Management Systems Services Ltd, a leading supplier of Accident and Emergency software solutions to the NHS, earlier this month and we continue to seek out further earnings enhancing acquisitions. Current trading is in line with market expectations and the Directors look to the future with confidence.

David Hornsby

16 July 2013

The Directors of the Issuer accept responsibility for this announcement.

Ideagen plc

Consolidated Statement of Comprehensive Income for the year ended 30 April 2013

Ideagen plc

Consolidated Statement of Financial Position at 30 April 2013

Ideagen plc

Consolidated Statement of Financial Position at 30 April 2013 (continued)

Ideagen plc

Consolidated Statement of Cash Flows for the year ended 30 April 2013

Ideagen plc

Consolidated Statement of Changes in Equity for the year ended 30 April 2013

Ideagen plc

Consolidated Statement of Changes in Equity for the year ended 30 April 2012

Notes

1 Basis of information

The financial information included in this preliminary announcement is unaudited. This information does not constitute the annual report and accounts of the Company for the year ended 30 April 2013 within the meaning of section 434 of the Companies Act 2006. This will be available from www.ideagenplc.com in due course. The audited annual report and accounts of the Company for the year ended 30 April 2012 has been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis. Consistent accounting policies have been applied in the preparation of this information over the two years ended 30 April 2013 unless otherwise stated below.

2 Earnings per share information

Basic earnings per share is calculated by dividing the (loss)/profit for the year attributable to the owners of the Company ('Earnings') by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing Earnings by the weighted-average number of ordinary shares outstanding during the year as adjusted for the effect of all potentially dilutive shares, including share options.

In order to better demonstrate the performance of the Company, adjusted earnings per share calculations have also been presented which take into account items typically adjusted for by users of financial statements. The adjusted earnings and earnings per share information are shown below.

The calculation of adjusted earnings has been amended in 2013 to include an additional adjustment to deduct the deferred taxation credit associated with the amortisation of acquired intangibles. The directors consider that this approach better demonstrates the performance of the Group. This amended approach reduces the amount of adjusted earnings previously reported in 2012 by £69,952 to £842,391 and reduces Adjusted basic earnings per share for 2012 to 1.17 pence (previously 1.26 pence) and Adjusted diluted earnings per share to 1.11 pence (previously 1.20 pence).

3 Taxation

Further information on the taxation (credit)/expense for the year is as follows: