Ideagen finishes first half in line with forecasts
By Josh White
Date: Tuesday 26 Jan 2021
(Sharecast News) - Regulatory and compliance software company Ideagen reported a first-half performance in line with market expectations on Tuesday, as its revenue increased 7% to £29.2m.
The AIM-traded firm said it saw a continued expansion of recurring revenues in the six months ended 31 October, representing 83% of total revenues, up from 74% year-on-year.
Software-as-a-service revenues increased 38% to £13.4m.
Its annual Recurring Revenue book was 13% higher at £54.8m, with the board reporting organic recurring revenue growth of £3.2m, or 7%, and acquisition-led recurring revenue growth of £2.9m.
Adjusted EBITDA grew 25% to £10m, and adjusted profit before tax was 23% firmer at £7.4m.
Ideagen said its adjusted diluted earnings per share were 13% higher at 2.6p, while cash generated from operations rose to £10m from £5.9m year-on-year, representing 99% of adjusted EBITDA, up from 74% in the prior period.
Net bank debt at 31 October totalled £27.9m, up from £18m a year earlier, as the board declared an interim dividend of 0.12p, 15.4% higher than the prior year.
"That the business has continued to progress so strongly against our business objectives in the first six months is testament to the hardworking team at Ideagen," said chief executive officer Ben Dorks.
"We focus on annualised recurring revenue as our key growth metric, [and] I am delighted that this continues to show excellent progress.
"This was driven by a strong organic performance, further acquisitions and ongoing investment to support our product development."
Dorks also noted that the company was still achieving organic annualised recurring revenue growth across each of its key vertical markets.
"This is being complemented and strengthened by the successful integrations of acquired companies such as WorkRite, acquired late in our previous financial year, and Qualsys.
"The second half of the year has begun in line with our expectations and with the proceeds of our recent fundraise being swiftly and effectively deployed in the acquisition of Huddle."
The company was continuing to assess further opportunities within the acquisition pipeline, Dorks said.
"The 270 new customers and the continued expansion of our geographic presence, coupled together with repeat business derived from more than 5,700 customers and our strong annualised recurring revenue base gives the board confidence in the prospects for the Group for the current year and beyond."
At 0931 GMT, shares in Ideagen were down 3.85% at 275p.
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