IDOX delivered an impressive first-half performance, thanks to a combination of organic growth and acquisitions. And the public sector software specialist continues to build new revenue streams outside its core UK business, with overseas revenue jumping from 9 per cent in the first half of the previous year to 31 per cent. The three acquisitions completed during the six months are already earnings enhancing, and with a strong growth profile, the shares retain their attraction.
Over 90 per cent of UK local authorities are already customers, but IDOX still pushed turnover ahead by 16 per cent to £14.6m in the public sector software division, thanks mainly to the acquisition of LalPac and Opt2Vote, both specialists in local government elections, leaving organic growth of 3 per cent. Total recurring revenue on a like-for-like basis was maintained at 65 per cent of turnover.
There was also strong growth within the engineering information management division, where acquisitions boosted revenue from £1.5m to £8.9m, which included a more than doubling in organic revenue to £3.7m. Moreover, the successful integration of CTSpace and cost synergies helped to push cash profits ahead from just £100,000 to £2.6m. And the information services division boosted sales by 44 per cent to £3.6m.
Analysts are currently reviewing their estimates.
| IDOX (IDOX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 40p | MARKET VALUE: | £138m | |
| TOUCH: | 39-40p | 12-MONTH HIGH: | 41p | LOW: 20p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 10p* | NET DEBT: | 34% | |
| Half-year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 18.1 | 1.97 | 0.41 | 0.24 |
| 2012 | 28.6 | 3.47 | 0.69 | 0.28 |
| % change | +58 | +76 | +68 | +15 |
Ex-div: 8 Aug Payment: 22 Aug *Includes intangible assets of £65m, or 19p a share | ||||
