Shares in Idox (IDX) lost of a fifth of their value after the information management specialist warned on profits for the full year. Management said customer disruption following June’s general election meant sign-off on some contracts was pushed into next year – particularly in health and transport. Bosses anticipate cash profits of £23m for 2017, against £21.5m in 2016.
The group said it had grown revenues and profits during the year ending 31 October, with various contract wins. However, net debt was also up year on year, at £32.7m versus £25.1m – attributed to acquisitions (including 6PM, a healthcare solutions business) and also the costs of the aforementioned delayed contract wins.
There was some positive news – management said it expected the affected contracts to be completed in the weeks ahead, and the start of 2018 with “strong momentum”. The company has won a contract to deliver electronic counting for elections in Malta, in a deal valued at £2.1m. An, the integration of Halarose, acquired in August, is going well. Halarose supplies electoral back-office software to UK local authorities.
