Financial & Operational Highlights
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Idox plc – Full year results to 31 October 2023
Financial highlights
Reconciliations between adjusted and statutory earnings are contained at the end of this announcement.
Revenue
- Revenue increased by 11% to £73.3m (2022: £66.2m), driven by growth in Land, Property & Public Protection (LPPP).
- Recurring revenue1 increased by 8% to £43.6m (2022: £40.5m), accounting for 60% of the Group’s total revenue (2022: 61%).
Profit
- Adjusted2 EBITDA increased by 9% to £24.5m (2022: £22.5m).
- Adjusted2 EBITDA margin stable at 33% (2022: 34%).
- Statutory operating profit increased by 8% to £9.3m (2022: £8.7m).
- Statutory operating profit margin unchanged at 13% (2022: 13%).
- Statutory profit before tax increased by 18% to £7.8m (2022: £6.6m).
- Adjusted3 diluted EPS increased by 7% to 2.62p (2022: 2.44p).
- Statutory diluted EPS decreased by 1% to 1.23p (2022: 1.24p).
Cash and debt
- Net debt4 at 31 October 2023 was £14.7m (2022: £6.7m), following payment of the initial cash consideration (£14.8m) for the Emapsite acquisition in August 2023.
- Cash generated from operating activities before taxation represented 82% of Adjusted EBITDA (2022: 81%).
- Free cashflow5 generation of £9.1m (2022: £7.2m).
- Refinancing completed in October 2023 for a £75m revolving credit facility and £45m accordion, providing the Group with significantly increased resources to fund strategic M&A ambitions.
Dividend
- Proposed final dividend increased by 20% to 0.6p per share (2022: 0.5p), reflecting our strong financial position and our confidence in the future.
Alternative Performance Measures (AMPs)
The Group uses these APMs, which are not defined or specified under International Financial Reporting Standards, as this is in line with the management information requested and presented to the decision makers in our business; and is consistent with how the business is assessed by our debt and equity providers.
1. Recurring revenue is defined as revenues associated with access to a specific ongoing service, with invoicing that typically recurs on an annual basis and underpinned by either a multi-year or rolling contract. These services include Support & Maintenance, SaaS fees, Hosting services, and some Managed service arrangements which involve a fixed fee irrespective of consumption.
2. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is defined as earnings before amortisation, depreciation, restructuring, acquisition costs, impairment, financing costs and share option costs. Share option costs are excluded from Adjusted EBITDA as this is a commonly used measure in the industry and how management and our shareholders track performance.
3. Adjusted EPS excludes amortisation on acquired intangibles, restructuring, financing, impairment, share option and acquisition costs.
4. Net debt is defined as the aggregation of cash, bank borrowings and long-term bond. This differs from a similar measure under IFRS, which would also include lease liabilities as debt. The definition used is consistent with that used within the Group’s banking arrangements.
5. Free cashflow is defined as net cashflow from operating activities after taxation less capital expenditure and lease payments.
Operational highlights
Another strong performance in line with expectations despite the backdrop of continued geo-political and macro-economic uncertainty:
- Record full year order intake up 10% on FY22 to £82m, reflecting our high-quality customer base and, providing good visibility into FY24.
- New divisional structure has created a much better focus for our customer engagement, product strategy and marketing, delivering an improved sales performance.
- Idox’s Geospatial capabilities were further enhanced with the acquisition of Emapsite and the continued development of thinkWhere & Landhawk which have continued to onboard new projects and customers.
- Upscaling and embedding our India operations across the business continued throughout the year, with colleague growth in India up over 20% as we build upon our strong capabilities and future development plan.
- Customer engagement and communication has been a key part of our work in 2023 focussing on our strong customer relationships and market position.
Current trading and outlook
- With a strong foundation in property and asset-based solutions and data services we will continue to invest selectively to enhance and grow our capabilities, building on the Group’s already strong recurring revenues.
- Attractive M&A pipeline with significant financial resources for larger, accretive and enhancing acquisitions at appropriate valuations.
- Encouraging start to FY24, with trading in line with the Board’s expectations and we remain confident about the outlook for the year.
Rule 26
Information last updated: 26 January 2024