Ideagen’s (IDEA) recurring revenues constituted 67 per cent of the top line for the year to April 2019, up from 62 per cent. Meanwhile, software-as-a-service (SaaS) revenues increased by almost two-thirds to £13.7m, in line with the group’s transition towards a SaaS-based model. This shift should bring greater visibility, although it contributed to a dip in the organic growth rate from 11 per cent to 8 per cent.
Lower pre-tax profits stemmed partly from an increase in the cost of acquiring businesses, from £0.4m to £1.3m. The first of Ideagen’s purchases during the period was SaaS company InspectionXpert (IX) in North Carolina, USA, for up to $7m (£5.6m). Next it picked up Morgan Kai, which boasts a leading internal audit management product, for £20.5m. In January, Ideagen acquired Scannel Solutions – a SaaS business with an environmental, health and safety platform – for £3.5m. Post-period-end, it announced its purchase of Redland – a regulation technology business – for £15.8m.
Panmure Gordon expects adjusted pre-tax profits of £15.7m and EPS of 5.9p for April 2020, up from £12.2m and 4.8p in FY2019.
| IDEAGEN (IDEA) | ||||
| ORD PRICE: | 147p | MARKET VALUE: | £323m | |
| TOUCH: | 146-148p | 12-MONTH HIGH: | 174p | LOW: 119p |
| DIVIDEND YIELD: | 0.2% | PE RATIO: | 221 | |
| NET ASSET VALUE: | 34p* | NET DEBT: | £1.3m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 14.4 | 0.6 | 0.4 | 0.165 |
| 2016 | 21.9 | 1.0 | 0.7 | 0.183 |
| 2017 | 27.1 | 0.7 | 0.4 | 0.210 |
| 2018 | 36.1 | 1.4 | 0.8 | 0.241 |
| 2019 | 46.7 | 1.4 | 0.7 | 0.278 |
| % change | +29 | -1 | -14 | +15 |
| Ex-div: | 7 Nov | |||
| Payment: | 26 Nov | |||
| *Includes intangible assets of £90.7m or 41p a share | ||||
