Ideagen PLC (AIM: IDEA), a leading supplier of Integrated Risk Management (IRM) software to highly regulated industries, announces its unaudited interim results for the six months ended 31 October 2018.
- First half performance in line with market expectations and outlook strong for second half
- Continuing revenue growth:
- Revenue increased by 22% to £21.0 million (2017: £17.2 million)
- Recurring revenues increased by 30% to £14.0 million (2017: £10.8 million)
- Recurring revenues now represent 67% of total revenue (2017: 63%)
- Like for like bookings* increased by 34% to £14.5 million (2017: £10.8 million)
- Like for like SaaS bookings* increased by 80% to £6.6 million (2017: £3.7 million)
- Underlying organic revenue growth of 8%
- Adjusted diluted eps*** increased by 14% to 1.98 pence (2017: 1.73 pence)
- Adjusted EBITDA** increased by 22% to £5.8 million (2017: £4.7 million)
- Adjusted PBT*** increased by 17% to £4.8 million (2017: £4.1 million)
- Cash generated from operations of £5.2 million (2017: £2.9 million)
- Net debt of £1.3 million (30 April 2018: net cash of £0.8 million; 31 October 2017: net cash of £5.9 million) after investing £24.3 million on acquisitions and raising £19.4 million net of costs from a share placing
- 15% increase in interim dividend to 0.09 pence per share (2017: 0.078 pence)
*New sales contracts won excluding the acquisitions of Medforce, InspectionXpert and Morgan Kai.
**Before share-based payments and exceptional items
***Before share-based payments, amortisation of acquisition intangibles and exceptional items
- Appointment of David Hornsby as Executive Chairman and Ben Dorks as CEO
- Acquisition of Morgan Kai, doubling the size of our Audit Management business
- Acquisition of InspectionXpert, doubling the size of our Quality Inspection business
- Strong momentum in global sales - 162 new logo wins, 121 outside of the UK
- 104 new logo SaaS wins (91 outside of the UK) including GlaxoSmithKline, Clydesdale Bank and Green Climate Fund
- 58 new logo on premise customer wins (30 outside of UK) including McLaren, Mercedes and Baxter Healthcare
- Strong customer account management with multiple new contracts from the base including Triumph Group, Sanofi, Pfizer and Thales
- Customer retention rate of 95%
- ·Increased investment in Malaysian R&D development team and supporting infrastructure
Ben Dorks, CEO of Ideagen, commented: "We are delighted to report on another strong performance from the Group across all of our vertical markets and geographies during the first half of the year.
The Group continues to generate significant international sales growth and momentum in our SaaS business driven by customer demand. This will enable the acceleration of our transition to a subscription licence model whilst maintaining high margins and organic growth.
Current trading is in line with market expectations and the acquisitions made in H1 are performing well. The IRM market continues to grow and our success in winning new business together with our levels of recurring revenue and repeat business from our 4,000 strong customer base provides the Board with confidence in the outlook for this year and beyond."