IDOX (IDOX) H1 2024 earnings summary

Executive summary

• Revenue grew 21% year-over-year to £43.1m, driven by strong recurring revenue and the integration of Emapsite, in line with expectations.

• Adjusted EBITDA increased 8% to £13.1m, with a margin of 30%, and statutory operating profit up 15% to £5.7m.

• Recurring revenue rose 29% to £27.4m, now 63% of total revenue, reflecting a focus on long-term customer relationships and SaaS.

• Order intake increased 4% to £54.1m, providing good visibility and supporting a healthy M&A pipeline.

• Integration of Emapsite progressed well, expanding geospatial capabilities and contributing to growth.

Financial highlights

• Revenue up 21% to £43.1m; recurring revenue up 29% to £27.4m; adjusted EBITDA up 8% to £13.1m with a 30% margin.

• Adjusted EPS at 1.26p, down 5% due to higher tax and borrowing costs; statutory diluted EPS at 0.71p.

• Net debt reduced to £6.6m from £14.7m, leverage ratio at 0.3x.

• Net cash from operations before tax at £19.5m, with 149% EBITDA conversion; free cash flow at £13.0m.

• Dividend paid at 0.6p per share, total outflow £2.8m; no interim dividend proposed.

Outlook and guidance

• Targeting double-digit revenue growth for 2024, including full-year Emapsite contribution.

• Short-term margin reduction expected post-Emapsite, but targeting 35% adjusted EBITDA margin medium-term.

• Continued strong cash generation anticipated, aiming to move to a net cash position after 2025.

• On track to meet board expectations for the full year; strong recurring revenue and order pipeline provide good visibility.

• Significant financial resources in place to support organic and inorganic growth.