In a trading update for the half-year to October, Ideagen (IDEA) said it expects revenues and cash profits to be significantly ahead year on year – in keeping with management expectations. This momentum was driven by organic growth of 8 per cent, and the acquisitions of Medforce, InspectionXpert and MK Insight.
We also learnt that the group, which supplies information management software to highly regulated industries, will henceforth report on total bookings growth and software-as-a-service (SaaS) bookings growth. Accordingly, overall like-for-like bookings grew by 34 per cent, and SaaS bookings grew 80 per cent.
Thanks to the expansion of this SaaS offering, Ideagen now expects recurring revenues to constitute 74 per cent of its top line by the end of 2020 – up from its previous estimate of 70 per cent.
Having spent £24.3m on acquisitions and raising £19.4m via a share placing, the company’s net debt came in at £1.3m – against £800,000 net cash a year earlier.
