IDOX (IDOX) H1 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year to £45.0m for H1 FY25, with recurring revenue up 9% to £29.8m, now 66% of total revenue.

• Adjusted EBITDA increased 6% to £13.9m, with margin improving to 31%.

• Record order intake of £58.7m, up 9% year-over-year, driven by strong wins in LPPP and assets divisions.

• Net cash position improved to £0.2m at period end, compared to £9.9m net debt at FY24 close.

• Strategic acquisition of Plianz post-period strengthens social care offering and recurring revenue base.

Financial highlights

• Adjusted diluted EPS increased 17% to 1.48p per share; statutory diluted EPS up 30% to 0.92p.

• Operating cash conversion rate at 141% of adjusted EBITDA; free cash flow rose 5% to £13.6m.

• No interim dividend proposed, but intention to declare a full-year dividend remains; paid final dividend of 0.7p per share in April 2025.

• Net assets increased to £80.0m from £78.3m at FY24 year-end.

• Five-year revenue CAGR of 9%, with recurring revenue CAGR also at 9%.

Outlook and guidance

• Expecting mid-to-high single-digit revenue growth for FY2025, excluding further M&A.

• Targeting 35% adjusted EBITDA margin over the medium term; short-term margin stable due to higher national insurance costs.

• Continued strong cash generation anticipated, with some working capital unwind and £8m investment in Plianz in H2.

• Positive momentum and strong revenue visibility into H2 2025 and 2026; trading remains in line with Board expectations.

• M&A pipeline remains healthy, with further acquisitions anticipated.