Trading Update

RNS Number : 5478S

IDOX PLC

20 May 2009

 



20 May 2009 

IDOX plc

Order book ahead of expectations, early repayment of some debt and intention to pay a maiden interim dividend

IDOX plc (AIM: IDOX), the supplier of software and services to the UK public sector, announces a trading update for the six months to 30 April 2009.

The first-half contracted order book is ahead of the Board's expectations, IDOX having bid successfully on a number of larger and more complex contracts from new unitary authorities created by the Local Government Review. 

Since the period end, IDOX has announced contracts totalling £1.65 million with the new authorities of Cornwall and Central Bedfordshire. 

As indicated at the AGM in February, the delivery schedule of contracts and recognition of their revenues will be weighted to the second half of the financial year.  

IDOX's contracted work in progress, awaiting revenue recognition on delivery, has increased by £1.8 million since the start of the financial year. Despite uncertainties in the wider economy, local authorities are continuing to invest in service improvements and internal efficiencies, prompting the Board to maintain its expectations for the full year. 

Costs have been tightly controlled and after good management of working capital, IDOX ended the first half of 2009 with a strong cash position, even after a one-off charge related to further acquisition restructuring, the purchase of J4B for £0.8 million and the early repayment of £2.5 million of debt. 

As a result, IDOX plans to pay a maiden interim dividend that reflects the Board's confidence in trading.  

J4B, whose acquisition was announced on 23 April 2009, has made an encouraging start, having signed its largest contract - for £0.9 million - in the month before it was acquired. The Board continues to look for larger acquisition opportunities that will enhance shareholder value by adding new capabilities to IDOX's already strong product and service portfolio in the local authority market. 

Martin Brooks, IDOX Chairman, said:

'Our order book is ahead of expectations and we are delighted to be in a financially strong position allowing for a maiden interim dividend distribution to be made. The business has done especially well in winning large open tenders from new authorities that faced the challenges of migrating and integrating data from their predecessors. 

'I am pleased to report that IDOX's project management and integration skills have recently been demonstrated in the successful launch of the Scottish Executive's hosted E-planning system, which was delivered on time in April.'

For further information, call:

IDOX plc
Martin Brooks, Chairman	020 7332 6000
Richard Kellett-Clarke, CEO William Edmondson, CFO
Noble & Company Limited
JohnLlewellyn-Lloyd Sam Reynolds	020 7763 2200
College Hill Adrian Duffield Carl Franklin	020 7457 2020

Notes for Editors

IDOX plc

IDOX plc is a supplier of software solutions and services principally to the UK public sector and the leading applications provider to local government for core functions relating to land, people and property through its UNI-form and IDOX product range. Some 70% of UK local authorities are customers.

The Company gives public-sector organisations the tools to manage information and knowledge, documents and content, business processes and workflow as well as connecting directly with the citizen via the web.

It also supplies decision support content and additional specialist services via the IDOX Information Service.

Under the TFPL brand the company is transforming approaches to knowledge and content management via consultancy and training, as well as providing these specialist skills to customers through its recruitment division.

 

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