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Idox suspends dividend after swinging to loss

By BFN News | 09:37 AM | Thursday 21 February, 2019


Information management services supplier Idox swung to a loss for the year and suspended its dividend as asset write downs and declining revenue in its public sector software division hurt performance. For the year ended 31 December, the company reported a statutory loss before tax of £29.5m compared with a profit of £2.8m a year earlier. Revenues fell by 9% to £67.4m, mainly due to a fall in revenue within its public sector software division. The downbeat performance comes as the company had to grapple with a number of challenges resulting from previous leadership decisions, which had since been corrected. The digital operation was disposed of, eliminating future liabilities and ensuring the business remained focused on its software assets and related services which were at the core of the company's business model. 'We have established a more integrated model for future sales, development, delivery and support activities, allowing the business to benefit more substantially from a unified approach,' the company said. Adjusted profit, which excluded impact of asset write downs of £6.2m, fell to £7.9m from £10.3m. Full year adjusted earnings (Ebitda) of £11.6m missed was below guidance of £13m to £15m weighed a £5m hit from the company's digital division. The company suspended its dividend for the year, as it sought to transition to a more stable platform. 'We ended FY2018 in a much stronger position than we started it. The markets in which we operate remain resilient and we now have a strong leadership team with a clear focus on clients and execution of our strategy of product and operational execution to drive increased profitability and cash generation, the company said.' At 9:37am: (LON:IDOX) Idox Plc share price was +0.55p at 30.55p Story provided by StockMarketWire.com

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