News Column

IDOX Hikes Interim Dividend As Profit Rises Following Restructuring

June 12, 2014

Hana Stewart-Smith

LONDON (Alliance News) - IDOX PLC raised its interim dividend as it said Thursday its pretax profit rose in the half year ended April 30, following reorganisation and restructuring in 2013.

The software and services company proposed an interim dividend of 0.325 pence, up from 0.300 pence in the previous year.

It posted a pretax profit of GBP3.5 million, up from GBP2.6 million in the same period a year earlier, as revenue rose to GBP29.6 million from GBP26.6 million, benefiting from good performances across its Public Sector Software and Engineering Information Management divisions, and from its acquisition of Artesys International SA in 2013.

The company posted restructuring charges of GBP200,000 due to the re-organisation of the EIM division and streamlining of its corporate functions between London and Newbury into its Theale office.

After a "disappointing" 2013 the company said it had opted to strengthen its management team, and improve its systems and controls.

The company said that the expansion of its service offering has given it smoother and more predictable revenue flows, which has improved visibility. The company's recurring revenues accounted for around 50% of its total revenues, which it expects to continue into 2013.

In the PSS division, revenues were up to GBP19.7 million from GBP18.3 million, driven by new contract wins and increased activity in its election business.

In the EIM division, revenues were GBP9.9 million, up from GBP8.2 million, benefiting from six months contribution from Artesys and improvements in the oil and gas, infrastructure and utilities sectors.

The company said that its restructuring during 2013 had secured GBP1 million in savings, and some of these savings should flow through into the second half of the year. The company's net debt position improved, shrinking to GBP8.7 million from GBP17.7 million as at April 30.

In its second half, IDOX said it expects to continue to improve its business, focusing on product development and adding value added services.

Shares in IDOX were trading down 1.2% at 42.50 pence.

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Source: Alliance News

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