19th Nov 2007 07:02
IDOX PLC19 November 2007 IDOX plc19 November 2007 IDOX plc (the "Company" or "IDOX") Trading Update and Directorate Change IDOX plc, the supplier of software solutions and services principally to the UKpublic sector, announces a strong end to trading for the year ended 31 October2007. Progress in integrating CAPS Solutions, acquired in June 2007, is ahead ofschedule and with better than anticipated cost savings. Operating profit isexpected to be ahead of the Board's expectations. Profit before tax is expectedto benefit from the Company's very strong working capital management and theBoard expects to close the year with a positive net cash position compared to aforecast net debt of £4.0 million. Revenues are expected to be slightly lowerdue to the timing of new system installations. Trading • IDOX Software - the Board is pleased to report that orders were especially strong in the second half and margins have been maintained. The successful integration of the IDOX and CAPS sales teams is already delivering improved sales for CAPS and continued strong double digit growth in IDOX's electronic document and records management system business. With 10 contracts either installed or to be installed IDOX Software has established itself as a serious player in the revenues and benefits market. Overall this expanding revenues and benefits business complements the Company's established and growing client base of over 300 customers in planning and other land and property related local government sectors. The Board is also pleased to advise that IDOX Software has won two further significant contracts: • Bromsgrove County Council, a seven-year contract worth more than £1 million to IDOX, most of which will be recognised in the year ended 31 October 2008; and • Phase 1 of the Scottish Government's contract to upgrade and digitise all planning departments in Scotland. This, the first of five phases in the project, is worth approximately £600,000 to IDOX, most of which will be recognised in the year ended 31 October 2008. IDOX has been shortlisted for Phase 2. These contract wins, along with the Cambridge City Council contract announced on 9 October 2007, represent the three largest contracts made to date by IDOX and further evidence the growing sales opportunities from the combined IDOX and CAPS product offering. • Information Solutions revenue is expected to be in line with the previous year and the Board's expectations for the current year. Information Solutions gross margin have continued to improve through the concentration on higher margin contracts and improved utilisation of consulting resources. • Recruitment - contract recruitment continued its recovery with double digit growth over the first half. In permanent recruitment, revenues were below expectations, but some recent sales wins have just missed the year-end cut. Segment gross margins have been maintained. • Cash levels should again be strongly positive and the Board expects to have a healthy net positive cash position at the year end. Integration of CAPS Solutions • The integration of CAPS Solutions has been substantially completed ahead of schedule and the combined business is already delivering increased sales. Recurring cost savings, originally forecast at £1.5 million will be substantially ahead of this number when fully implemented by mid-year 2008. • One-off costs of this reorganisation are currently running in line with the Board's original expectations. Directorate Change • Steve Ainsworth, who originally joined from CAPS, is stepping down as Group CEO following the end of the 31 October 2007 financial year. • Richard Kellett-Clarke, CFO and COO, will take over as CEO with immediate effect and Martin Brooks will continue as executive chairman. The Company will be seeking candidates to succeed Richard Kellett-Clarke as CFO. Steve Ainsworth, outgoing CEO, said: "Having assisted with the rapid integrationof CAPS and IDOX and achieving a successful year-end trading result, I havedecided that it is now time for me to pursue other business opportunities. Wehave established the enlarged IDOX business with a solid platform for futuregrowth and I wish the Company every success in the future." Martin Brooks, Chairman, said: "Management have substantially achieved the fullintegration of the IDOX and CAPS businesses ahead of schedule and budget whilstgrowing sales for the combined business. We end the year with a strong orderpipeline and a revitalised business with increasing recurring revenues. I wouldlike to thank Steve for his key role in bringing CAPS and IDOX together and forleading us through the transition. We wish him well in his next pursuits." For further information, please contact: IDOX plc Martin Brooks, Chairman 0870 333 7101 Richard Kellett-Clarke, CEO and CFO 0870 333 7101 Noble & Company Limited Matthew Hall, Director 020 7763 2200 Notes for Editors IDOX plc is a supplier of software solutions and services principally to the UKpublic sector and the leading applications provider to local government for corefunctions relating to land, people and property through its UNI-form and IDOXproduct range. Some 70% of UK local authorities are customers. The Company gives public-sector organisations the tools to manage informationand knowledge, documents and content, business processes and workflow as well asconnecting directly with the citizen via the web. It also supplies decision support content and additional specialist services viathe IDOX Information Service. Under the TFPL brand the company is transforming approaches to knowledge andcontent management via consultancy and training as well as providing thesespecialist skills to customers through its recruitment division. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Idox Group