5th May 2006 07:00
IDOX PLC05 May 2006 IDOX Trading Update for release May 5th 2006-------------------------------------------------------------------------------- IDOX plc ("IDOX"), the information and knowledge management group, announcesthat revenues for the first six months to 30 April 2006 will be around the samelevel as the corresponding period of 2005. This is due to a somewhat slower thanexpected growth rate and the fact that the larger contracts that IDOX is nowattracting are more complex and taking longer to secure. While the Companyexpects trading during the second half to be strong due to the higher levels ofwork in progress, the shortfall from the first half will not be recovered in thesecond half. Profitability will also be affected, however the group remainsstrongly cash positive. The cost base remains well within budget. The first half has seen a number of significant contract wins with new andexisting customers, illustrating IDOX's ability to attract larger assignments.IDOX has secured contracts in its traditional area of expertise of planningsystems, such as Leeds City Council, Glasgow City Council, Aylesbury ValeDistrict Council and the New Forest Park Authority amounting to more than£800,000 for these four contracts alone. The Company is also increasinglyextending its contracts into other Council departments. It is thereforeprogressively being recognised as a corporate-wide solutions provider, securingcontracts with Kings Lynn & West Norfolk Borough Council, Oadby & WigstonBorough Council, as well as an important contract extension for its new RecordsManagement System with Colchester Borough Council. The initial implementationstotal more than £400,000. As mentioned above, the revenues for the software division during the first halfare expected to be similar for the same period last year due to the increasedsales cycle, thereby pushing revenue into the second half. IDOX continues toexpect revenue growth for the year to remain above the industry growth forecastsfor Local Authority IT spend. The information solutions division has continued to grow with contracts in boththe wider public and the private sector, which is reducing the Company's overalldependence on the local authority market - down from 81% in 2003 to under 50% in2005. The local authority market will remain a primary market for IDOX in theforeseeable future, while the Company broadens its presence in the wider publicsector. The recruitment business has shown continued progress. Some clients are movingto direct engagement, and together with a significant recovery in permanentappointments has had a positive impact on margins. Overall the sales pipeline has continued to grow across all divisions but mostnotably in the government sector. Our clients continue to invest following theexpiry of the government's 2005 e-government deadline. The outlook for thesecond half remains encouraging with a continued inflow of opportunities acrossall divisions. - ENDS - For further information please contact: Martin Brooks, Chairman 0870 333 7101Andrew Fraser, CEO 0870 333 7101Richard Kellett-Clarke, CFO 0870 333 7101Nadja Vetter / Emma Consett, Cardew Group 020 7930 0777 Notes to editors IDOX plc is a fast-growing information and knowledge management company,specialising in the development and delivery of software products, services andpeople for information management and knowledge sharing for both the public andprivate sectors. The Group's focus is on managing the world of structured andunstructured information for, and on behalf of, its clients. The TFPL Advisory team specialises in devising creative and innovative solutionsto problems associated with records, information, knowledge and contentmanagement. Where a skills gap is identified, the Recruitment teams placecandidates of all levels into permanent, contract, and interim managementpositions. Training is also a core offering and is delivered in a variety offormats using experienced facilitators and leading industry practitioners. IDOX Software is one of the leading players in the local government market formanaging paper and electronic records. IDOX Software has several modulesdesigned to capture, manage, store, preserve and deliver information for usewithin an organisation, and for access externally - by the public or otherpartners. The Group maintains a comprehensive database of bibliographic abstracts,supported by the largest collection of information in the UK, on all aspects ofbest practice and governance in the public sector. Expert informationprofessionals identify, summarise and manage a vast resource of information fromall sectors to save member organisations time and money. This outsourced libraryservice is available via annual subscription. The Group has a leading position in putting the Local Government Planningprocess online (its flagship Managed Services solution) and has developed thefirst true end-to-end e-Planning solution for Local Authorities and theircitizens - UKPlanning. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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