Interim Results

IDOX PLC 20 June 2005 IDOX plc ANNOUNCEMENT OF INTERIM RESULTS FOR IMMEDIATE RELEASE 20 June 2005 IDOX plc ('IDOX'), the information and knowledge management company, today announced its interim results for the half year ended 30 April 2005. Highlights: â€¢ Turnover up 114% to Â£7.02m (2004: Â£3.28m) â€¢ A Â£0.4m turnaround in profit before tax to Â£0.21m (2004: loss Â£0.19m) â€¢ Cash up 54% to Â£3.72m (2004: Â£2.41m) â€¢ Earnings per share rose to 0.12p (2004: 0.03p) â€¢ Continued new client wins and successful expansion of services amongst existing client base â€¢ We expect the Group's performance in the second half of the year to be in line with market expectations. Andrew Fraser, Chief Executive of IDOX, said: 'IDOX has continued to build upon its achievements and we are pleased with the progress that the Company has delivered in this half year. Our strategy of enhancing our offering through the unique combination of software and content along with advisory and recruitment services is beginning to pay off. Our track record of delivering value added services to local government and our recent successful expansion into other public sector markets, ideally equips us to benefit from the exciting developments in this area.' ENDS For further information please contact: Andrew Fraser, CEO, IDOX plc T: 020 7954 3800 Martin Brooks, Chairman, IDOX plc T: 020 7954 3800 Nadja Vetter / Sofia Rehman, Cardew Group T: 020 7930 0777 Notes to editors IDOX plc is a fast-growing information and knowledge management company, specialising in the development and delivery of software products, services and people for information management and knowledge sharing for both the public and private sectors. The Group's focus is on managing the world of structured and unstructured information for, and on behalf of, its clients. The TFPL Advisory team specialises in devising creative and innovative solutions to problems associated with records, information, knowledge and content management. Where a skills gap is identified, the Recruitment teams place candidates of all levels into permanent, contract, and interim management positions. Training is also a core offering and is delivered in a variety of formats using experienced facilitators and leading industry practitioners. IDOX Software is one of the leading players in the local government market for managing paper and electronic records. IDOX Software has several modules designed to capture, manage, store, preserve and deliver information for use within an organisation, and for access externally - by the public or other partners. The Group maintains a comprehensive database of bibliographic abstracts, supported by the largest collection of information in the UK, on all aspects of best practice and governance in the public sector. Expert information professionals identify, summarise and manage a vast resource of information from all sectors to save member organisations time and money. This outsourced library service is available via annual subscription. The Group has a leading position in putting the Local Government Planning process online (its flagship Managed Services solution) and has developed the first true end-to-end e-Planning solution for Local Authorities and their citizens - UKPlanning. Chairman's Statement I am pleased to report good progress for the first six months of the financial year, which puts us in a strong position for the remainder of this year to meet market expectations. Our efforts in the first half of the year have focused on improving the Group's cash generation through ensuring that top line improvements flow to the bottom line. Our success in this area has been encouraging, as shown by the good progress achieved in the Group's earnings per share and strong cash generation. Our achievements in this domain will allow IDOX to enhance value to shareholders in the short term and extend its strategic options thereafter. IDOX has continued to extend its presence in the public sector through offering additional products and services that have a solid record of capability and dependability. We have concluded, in revisiting our strategy, that local government continues to be the Group's core market with further considerable opportunities. With nearly 200 clients, this sector provides IDOX with a solid platform on which to display its increasingly resource-efficient information and knowledge management solutions. As a consequence, IDOX is becoming recognised for its complete portfolio of services and the value enhancing benefits that it delivers across the length and breadth of the sector. We are also excited by opportunities now becoming available in the wider government marketplace, particularly for IDOX's advisory, recruitment and training services. In addition to underlining our presence in the public sector, the Group's skills and capabilities are also increasingly applicable to some of the key private sector industries such as professional services and finance, as well as the not for profit sector, where opportunities are emerging. Apart from sharpening its strategic focus, IDOX is also working on strengthening its senior management, in preparation for the next phase of the Group's development. In relation to this we will be updating our remuneration policies to align the interests of senior managers and all other employees with those of our shareholders. Furthermore, we will be paying particular attention to improving our risk management and resilience as a consequence of our becoming a larger and more complex organisation with a considerable pool of valuable intellectual property to protect. We will report further progress on all these matters by the financial year end. Finally, I would like to express my excitement in assuming the role as the new chairman and look forward to closely working with the Board, our customers and very talented staff. Martin Brooks Chairman 17 June 2005 Chief Executive's Report Financial Review IDOX revenues increased from Â£3.28 million to Â£7.02 million, an increase of 114%, for the six months ended 30 April 2005. Profit before tax amounted to Â£0.21 million (2004: loss of Â£0.19 million). Earnings per share was 0.12 pence (2004: 0.03 pence). The gross margin for the period was 63%, down from 85% in 2004, as anticipated after the TFPL acquisition. Net cash at 30 April 2005 amounted to Â£3.72 million (2004: Â£2.41 million). We are pleased to report that the Group traded profitably for 4 out of the 6 months under review (2004: 3 out of 6 months). IDOX Software and Information Services increased its annualised recurring revenue from Â£2.4 million at the end of April 2004 to Â£2.7 million at 30 April 2005. Client Wins and Market Dynamics The Group continued to increase its market share within local government and, through its acquisitions, is developing relationships within central government departments, other public agencies and some private sector organisations. In the local authority market we have contracted 12 new software clients since October 2004 and provided information, advisory, training and recruitment services to many others. The Group has extended its penetration within existing clients and now has 190 local authority clients out of a possible 468 in the UK. In the six month period the Group has provided knowledge and information management advisory, training and interim management services to over 60 central government departments and agencies. As a result of our acquisition strategy, 80% of IDOX's revenue has been derived from the public sector (including local authorities). The Group believes that it has the potential to continue to expand its offering in the local authority market. This expansion will be through both our existing customer base and into new clients where there are large numbers of information projects and systems still to be procured. Our strong presence in this market will enable us to continue to win work. The drive for efficiency and effectiveness, the Freedom of Information Act, the Children's Bill, Priority Service Outcomes, the e-Government deadlines and other similar initiatives will all continue to create opportunities for the Group in local authorities and the wider public sector. The recent approval of our Records Management Software product by The National Archives will further strengthen our position in local authorities and open new opportunities in other government departments and agencies. We believe that the strength of our knowledge and information management capability, combined with our technical expertise, will provide IDOX with a solid platform from which to further extend its innovative solutions in the public and, where appropriate, the private sector. Product and Service Offerings The Group's respective divisions have made considerable progress during the period. We are particularly pleased with The National Archives approval of IDOX's Records Management Software product. In addition, our recent acquisitions have allowed us to benefit from the development of a new content management and audit service. The Group's capability now includes advisory services, specialist information recruitment and training, content provision, information and records management software and managed services. This unique blend has earned the Group recognition as a major information and knowledge management specialist within local government departments and public sector agencies. Product and Services Development IDOX believes that its new Records Management Software will open new market segments such as central government. This product will provide IDOX's customers with the capability of meeting the Public Records Offices' 2002 specification concerning compliance with the Freedom of Information Act and other related legislation. To date there are less than 10 companies in the country with this accreditation. This state of the art J2EE application, designed using the very latest software development techniques, provides significant technical and operational benefits to our clients. Our outsourced library service is now enabling us to create and manage specialist web-based libraries for a range of public sector clients. To date, 17 local authorities now outsource to us the processing and presentation of their planning applications on the web. In response to client demand we have combined our consultancy expertise in content management and information architecture with our technical capability to develop a new web and content management audit service. Our team has developed specialist tools and techniques to identify and collect large quantities of content in many different platforms, clean it, structure it and migrate it to new platforms, making it easier to access. Strategic Alliances The Group will continue to develop strategic partnerships, where appropriate, in order to widen its offering to other markets. IDOX has entered into such a partnership with CAPS Solutions Ltd (a subsidiary of ESRI (UK) Ltd). Discussions are regularly held with other potential partners. Personnel The Group's employees totalled 140 at 30 April 2005, compared with 93 at 30 April 2004. The Group possesses a team and infrastructure capable of delivering and managing rapid business growth. A number of small cost efficiencies have been implemented in the last few months. An example of this is the rationalisation of the software development team from three offices down to two. The Manchester office will continue to focus on electronic forms development, while all other software development will be carried out in our Glasgow office. This provides a more cost-effective and efficient software development team for the future. We would also like to welcome Martin Brooks, our new chairman to the Board, who joined during the period. Strategy and Outlook The acquisition strategy has helped to strengthen our sales proposition within the local authority sector and we have a growing presence in the wider public sector. We will continue to focus and develop our strengths in these strategic markets. The diversification of revenue and revenue opportunities from these acquisitions helps mitigate against the risks associated with our reliance on the local authority market and a single product line. We will continue to strengthen our partnership arrangements, and seek opportunities that will allow us to gain further market penetration in areas where the Group has limited skill and reference ability. As a Group we now have the capability to deliver an integrated range of sophisticated information and knowledge management products and services to the public and private sectors. The organic business has continued to grow as IDOX gains market share through winning new business. The Group will endeavour to further expand its market share, revenue and profitability through organic growth and appropriate accretive acquisitions. We believe that IDOX is strongly positioned with a clear strategy to continue its success and we remain optimistic about future growth plans. Andrew Fraser Chief Executive 17 June 2005 The Interim Report was approved by the Board of Directors on 17 June 2005. IDOX plc Consolidated Profit and Loss Account For the six months ended 30 April 2005 Note 6 months to 6 months to 12 months -------- 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Turnover 7,024 3,284 9,555 -------------------- -------- --------- --------- --------- External charges (2,613) (505) (2,636) -------------------- -------- --------- --------- --------- 4,411 2,779 6,919 -------- --------- --------- --------- Staff costs (2,874) (2,068) (4,778) -------------------- -------- --------- --------- --------- Other operating charges (1,371) (937) (2,134) -------------------- -------- --------- --------- --------- Operating profit/(loss) 166 (226) 7 -------------------- -------- --------- --------- --------- Net interest 48 33 82 -------------------- -------- --------- --------- --------- Profit/(loss) on ordinary activities before taxation 214 (193) 89 -------------------- -------- --------- --------- --------- Tax on profit/(loss) on ordinary activities (3) - 244 292 -------------------- -------- --------- --------- --------- Profit for the period transferred to reserves 214 51 381 -------------------- -------- --------- --------- --------- Earnings per share -------------------- -------- --------- --------- --------- Basic and diluted (4) 0.12p 0.03p 0.23p -------------------- -------- --------- --------- --------- IDOX plc Consolidated Balance Sheet At 30 April 2005 At At At 30 April 30 April 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Fixed assets ------------------------------ --------- --------- --------- Intangible fixed assets 4,976 1,590 5,265 ------------------------------ --------- --------- --------- Tangible assets 246 279 247 ------------------------------ --------- --------- --------- 5,222 1,869 5,512 --------- --------- --------- Current assets ------------------------------ --------- --------- --------- Debtors 3,804 2,172 3,312 ------------------------------ --------- --------- --------- Cash at bank and in hand 3,724 2,414 2,797 ------------------------------ --------- --------- --------- 7,528 4,586 6,109 --------- --------- --------- Creditors: amounts falling due within one year (4,182) (3,159) (3,266) ------------------------------ --------- --------- --------- Net current assets 3,346 1,427 2,843 ------------------------------ --------- --------- --------- Total assets less current liabilities 8,568 3,296 8,355 ------------------------------ --------- --------- --------- Creditors: amounts falling due after more than one year (20) (30) (20) ------------------------------ --------- --------- --------- Net assets 8,548 3,266 8,335 ------------------------------ --------- --------- --------- Capital and reserves ------------------------------ --------- --------- --------- Called up share capital 1,872 1,537 1,821 ------------------------------ --------- --------- --------- Capital redemption reserve 1,112 1,112 1,112 ------------------------------ --------- --------- --------- Share premium account 8,162 5,159 7,614 ------------------------------ --------- --------- --------- Shares to be issued 1,400 - 2,000 ------------------------------ --------- --------- --------- Other reserves 1,294 1,294 1,294 ------------------------------ --------- --------- --------- ESOP trust (79) (79) (79) ------------------------------ --------- --------- --------- Profit and loss account (5,213) (5,757) (5,427) ------------------------------ --------- --------- --------- Shareholders' funds 8,548 3,266 8,335 ------------------------------ --------- --------- --------- IDOX plc Consolidated Cash Flow Statement For the six months ended 30 April 2005 Note 6 months to 6 months to 12 months ----- 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Net cash inflow/(outflow) from operating activities (5) 1,000 (185) (801) --------------------------- ----- --------- --------- --------- Returns on investments and servicing of finance --------------------------- ----- --------- --------- --------- Interest received 48 35 82 --------------------------- ----- --------- --------- --------- Net cash inflow from returns on investments and servicing of finance 48 35 82 --------------------------- ----- --------- --------- --------- Taxation - 244 244 --------------------------- ----- --------- --------- --------- Capital expenditure and financial investment --------------------------- ----- --------- --------- --------- Purchase of tangible fixed assets (121) (149) (240) --------------------------- ----- --------- --------- --------- Sale of tangible fixed assets - - 12 --------------------------- ----- --------- --------- --------- Purchase of investment - (51) (51) --------------------------- ----- --------- --------- --------- Net cash outflow from capital expenditure and financial investment (121) (200) (279) --------------------------- ----- --------- --------- --------- Acquisitions --------------------------- ----- --------- --------- --------- Purchase of companies - - (1,668) --------------------------- ----- --------- --------- --------- Net cash balances acquired with companies - - 380 --------------------------- ----- --------- --------- --------- Deferred consideration paid for previous acquisition - (127) (10) --------------------------- ----- --------- --------- --------- Net cash outflow from acquisitions - (127) (1,298) --------------------------- ----- --------- --------- --------- Financing --------------------------- ----- --------- --------- --------- Issue of shares - - 2,202 --------------------------- ----- --------- --------- --------- Net cash inflow from financing - - 2,202 --------------------------- ----- --------- --------- --------- Increase/(decrease) in cash 927 (233) 150 --------------------------- ----- --------- --------- --------- IDOX plc Notes on the Interim Report For the six months ended 30 April 2005 1 BASIS OF PREPARATION The interim financial information has been prepared in accordance with applicable United Kingdom accounting standards and under the historical cost convention. The principal accounting policies of the Group are set out in the Group's 2004 annual report and financial statements. The policies remain as stated in the annual report for the year ended 31 October 2004. The financial information set out in this report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ended 31 October 2004 have been extracted from the statutory accounts, which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain a statement under section 237(2) of the Companies Act 1985. The interim financial statements have been reviewed by the Company's auditors. A copy of the auditors' review report is attached to the Interim Report. 2 SEGMENTAL ANALYSIS Turnover, operating profit and net assets by class of business are set out below: 6 months to 6 months to 12 months 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Turnover ---------------------------- Information Management Solutions 4,464 3,284 7,142 ---------------------------- --------- --------- --------- Information Management Recruitment 2,560 - 2,413 ---------------------------- --------- --------- --------- 7,024 3,284 9,555 --------- --------- --------- Operating profit/(loss) ---------------------------- --------- --------- --------- Information Management Solutions 318 (137) 111 ---------------------------- --------- --------- --------- Information Management Recruitment 137 - 275 ---------------------------- --------- --------- --------- 455 (137) 386 --------- --------- --------- Goodwill amortisation (289) (89) (379) ---------------------------- --------- --------- --------- 166 (226) 7 --------- --------- --------- Net assets ---------------------------- --------- --------- --------- Information Management Solutions 3,014 1,676 2,416 ---------------------------- --------- --------- --------- Information Management Recruitment 558 - 654 ---------------------------- --------- --------- --------- 3,572 1,676 3,070 --------- --------- --------- Goodwill 4,976 1,590 5,265 ---------- --------- --------- --------- 8,548 3,266 8,335 --------- --------- --------- 3 TAX ON PROFIT/(LOSS) ON ORDINARY ACTIVITIES The tax credit is made up as follows: 6 months to 6 months to 12 months 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Current tax ---------------------------- --------- --------- --------- UK corporation tax - - (27) ---------------------------- --------- --------- --------- Research and development tax credits - (244) (244) ---------------------------- --------- --------- --------- Total current tax - (244) (271) ---------------------------- --------- --------- --------- Deferred tax - origination and reversal of timing differences - - (21) ---------------------------- --------- --------- --------- Tax on profit/(loss) on ordinary activities - (244) (292) ---------------------------- --------- --------- --------- During the year ended 31 October 2004, Â£1,514,000 of tax losses relating to prior periods (years ended 31 October 2001 and 31 October 2002) were surrendered in exchange for the research and development tax credit. The tax credits in relation to the year ended 31 October 2002 may be subject to claw back by the Inland Revenue but if this occurred 2/3 of the tax losses surrendered in respect of that year would be reinstated. 4 EARNINGS PER SHARE The earnings per share is calculated by reference to the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during each period, as follows: 6 months to 6 months to 12 months to 30 April 2005 30 April 2004 31 October 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Profit for the period 214 51 381 ---------------------------- --------- --------- --------- Weighted average number of shares in issue 182,949,266 153,324,507 166,384,328 ---------------------------- --------- --------- --------- Basic and diluted earnings per share 0.12p 0.03p 0.23p ---------------------------- --------- --------- --------- The share options are anti dilutive under FRS 14. 5 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 6 months to 6 months to 12 months 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Operating profit/(loss) 166 (226) 7 ---------------------------- --------- --------- --------- Depreciation 122 124 256 ---------------------------- --------- --------- --------- Goodwill amortisation 289 89 379 ---------------------------- --------- --------- --------- Goodwill adjustment - - 34 ---------------------------- --------- --------- --------- Loss on sale of fixed assets - 1 1 ---------------------------- --------- --------- --------- Increase in debtors (492) (643) (739) ---------------------------- --------- --------- --------- Increase/(decrease) in creditors 915 470 (739) ---------------------------- --------- --------- --------- Net cash inflow/(outflow) from operating activities 1,000 (185) (801) ---------------------------- --------- --------- --------- 6 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 6 months to 6 months to 12 months 30 April 30 April to 31 October 2005 2004 2004 (unaudited) (unaudited) (audited) Â£000 Â£000 Â£000 --------- --------- --------- Increase/(decrease) in cash in the period, being movement in net funds in the period 927 (233) 150 ---------------------------- --------- --------- --------- Net funds at 1 November 2004 2,797 2,647 2,647 ---------------------------- --------- --------- --------- Net funds at 30 April 2005 3,724 2,414 2,797 ---------------------------- --------- --------- --------- 7 FURTHER COPIES Copies of this announcement and the interim report and accounts are available, free of charge, for a period of one month from the Company's Nominated Adviser and Broker Noble & Company Limited, 120 Old Broad Street, London, EC2N 1AR, Tel: 020 7763 2200 or from IDOX plc, 17-18 Britton Street, London EC1M 5TL, Tel: 020 7954 3800. Copies of the interim report and accounts will be posted to shareholders on 20 June 2005. This information is provided by RNS The company news service from the London Stock Exchange

Companies

IDOX (IDOX)

Friday, 10th May 2024

COMPANIES COVERED:

RMV MTC SFOR

Rightmove slumps as high mortgage costs continue to drag on sentiment, Mothercare falls amidst slowing sales but S4 Capital jumps higher despite market woes as promises of a better second half lend support.

Full Archive

UK 100

Latest directors dealings

12 hours ago Mattioli Woods
12 hours ago Morgan Advanced Materials
13 hours ago Capita
13 hours ago Judges Scientific
13 hours ago Me Group International

All directors dealings today