Public sector software specialist IDOX appears to be successfully side-stepping government austerity measures. Indeed, chief executive Richard Kellett-Clarke says the group has been a "main beneficiary" of local government's increased focus on productivity and efficiency.
So, with 90 per cent of local authorities using IDOX's software, the group was able to report an impressive 8 per cent year-on-year sales increase, to £26.1m, at its core public sector software business. However, to combat potential vulnerabilities, Mr Kellett-Clarke has worked to win more managed services contracts – these span longer periods and offer more reliable revenues. That helped drive recurring revenues in the unit up 15 per cent, to account for 66 per cent of the group's public sector revenues.
There's also a growing focus on overseas markets and the year saw maiden sales from the US and Australia. Overseas sales now generate 12 per cent of group revenues and that's expected to rise to 30 per cent in 2012. Meanwhile, the solutions division recorded sales growth of 12 per cent to £4.7m, while the recruitment software unit grew revenue 3 per cent to £3.1m.
Broker finnCap expects 2012 adjusted pre-tax profit of £13.5m, giving adjusted EPS of 2.8p (from 10.5m and 2.3p in 2011).
IDOX (IDOX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 27p | MARKET VALUE: | £93.2m | |
| TOUCH: | 26.75-27p | 12-MONTH HIGH: | 28p | LOW: 14p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 10p* | NET DEBT: | 7% | |
| Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 20.6 | 1.12 | 0.34 | 0.10 |
| 2008 | 34.0 | 6.66 | 1.40 | 0.12 |
| 2009 | 32.2 | 4.48 | 1.01 | 0.20 |
| 2010 | 31.3 | 4.94 | 1.07 | 0.45 |
| 2011 | 38.6 | 5.61 | 1.31 | 0.60 |
| % change | +23 | +14 | +22 | +33 |
Ex-div: tba Payment: tba *Includes intangible assets of £48.6m, or 14p a share | ||||
