20th Feb 2007 07:03
IDOX PLC20 February 2007 IDOX PLC20 February 2007 IDOX plc ('IDOX', the 'Company' or the 'Group') TRADING UPDATE The directors are pleased to report that the strategy of returning the principalfocus of the Company to the Software division has been validated by new customerwins in IDOX's core government market place. Overall first quarter trading hasdelivered a strong performance, with excellent revenue growth in the Softwareand Information Solutions divisions. Software division Following a management reorganisation, the Software division has had newcontract wins from its new Planning, Licensing and Building Control publicaccess system and three new contract wins with its Revenues and Benefitssystems, the new corporate system at Caerphilly County Borough Council being thelargest Revenues and Benefits order yet. Other recent contracts secured sinceOctober 2006 have included a corporate Electronic Document Record ManagementSystem (EDRMS) for Chichester City Council and a corporate solution for FifeFire and Rescue. The Software division has a growing prospect pipeline from newand existing clients interested in our new products, which deliver real costbenefits through enhanced efficiency and productivity savings. New orders haveexceeded £850k since the start of the trading year. Overall first quarterrevenues in the Software division were 18% above the same period last year andare expected to be sustained at double digit growth levels through the tradingyear. Information Solutions division Following its reorganisation in 2006, the Information Solutions division isincreasingly specialising in Enterprise Content Management (ECM) consultancy andsolutions. The division saw strong growth in orders from Government and Mediaclients and has an increasing pipeline for the second quarter. Consultancycontract wins, including the Army, Department of Education and Skills and Yellamongst others, are delivering double digit revenue growth compared to the firstquarter of last year. Recruitment division The higher margin permanent recruitment business continues to expand in both thetraditional markets and specialist IT appointments. The lower margin contractrecruitment business revenues remain below levels enjoyed in 2005 but themonthly revenue run rate has recovered from the low point in mid 2006. Asreported in December, the Recruitment division is being prepared fordivestiture. Cash, costs and contribution continue to be tightly controlled across the wholeGroup. Martin Brooks, Chairman and CEO, commented, "We are pleased with our recent newbusiness wins, which have put our core businesses back on a growth path. We arealso benefiting from a significantly lower cost base than during last year. TheCompany is working very hard to make this a sustainable and firm platform forcontinuing business development. We continue to look for suitable, valueenhancing acquisition opportunities." For further information please contact: Martin Brooks, Chairman and CEO, IDOX plc Tel: +44 (0)870 333 7101Richard Kellett-Clarke, CFO, IDOX plc Tel: +44 (0)870 333 7101Matthew Hall, Noble & Company Ltd Tel: +44 (0)207 763 2200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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