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Idox fails to meet expectations as profit falls

By BFN News | 10:21 AM | Thursday 01 March, 2018

Idox plc said statutory pre-tax profit fell to £3.5m for the financial year ended 31 October 2017, from $13m in the prior year period, amid an increase in finance costs and an impairment charge following the acquisition of 6PM. Finance costs increased to £2.0m for the period from £1.4m due to the 6PM bond interest payment of £0.8m. Adjusted EBITDA decreased 14% to £18.5m from £21.5m, while adjusted EBITDA margin fell to 21% from 28%. Adjusted profit before tax was £12.1m down from £16.7m. Group revenues grew by 16% to £88.9m from £76.7m, driven by the impact of two acquisitions; 6PM, providing software and services to the NHS and Halarose supplier of electoral back office software and services to UK local authorities. Richard Kellett- Clarke, Interim Chief Executive of Idox said: 'The failure to achieve the year end numbers has been disappointing and is the result of a perfect storm of issues including a recent complex acquisition.' 'However, in the early months of the new financial year the business has had an encouraging start with new contracts signed on the Bristol transport solution, the e-Count solution for the Government of Malta, and new solutions for the Isle of Man, Western Isles, Croydon and the South Downs National Park and Dorset Councils partnership.' 'Overall, the Board is confident that the Group will deliver an improved performance in the current financial year, driven by a combination of new contract momentum, management and organisational changes, savings made since the year end and the full year contributions from the 2017 acquisitions.' 'I remain confident of Idox's prospects and believe that the Group has good growth opportunities, through its continued focus on digital transformation and channel shift in the public sector, increasing market shares, ensuring existing acquisitions are fully bedded in, cross selling, and geographical expansion.' At 10:21am: (LON:IDOX) Idox Plc share price was +1.55p at 35.55p Story provided by

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