IDOX (IDOX) H2 2024 earnings summary

Executive summary

• Delivered strong full-year results for FY2024, with revenues up 20% year-over-year to £87.6m and recurring revenue also up 20% to £54.5m, representing 62% of total revenue.

• Significant growth in Land, Property, and Public Protection (LPPP) division, with a 27% revenue increase; Communities division up 16%, and Assets division stable.

• High customer retention and new business win rates above 100% in core markets, benefiting from public sector digitization and local authority consolidation.

• Order intake increased 23% to £101.7m, reflecting robust demand and market expansion.

• Expanded offshore capabilities and invested in leadership to support future growth.

Financial highlights

• Group revenue grew 20% year-over-year to £87.6m; recurring revenue at £54.5m, 62% of total.

• Adjusted EBITDA up 7% to £26.1m, with a 30% margin; adjusted EPS at £2.61, flat year-over-year.

• Order intake rose 23% to £101.7m, providing strong visibility into 2025.

• Operating cash conversion rate at 97%; net debt reduced to £9.9m.

• Proposed full-year dividend up 17% to £0.7 per share.

Outlook and guidance

• Expecting mid to high single-digit revenue growth in 2025, excluding further M&A.

• Short-term EBITDA margin to remain broadly consistent, with a medium-term target to return to 35% as efficiencies and geospatial margins improve.

• Continued strong cash generation expected, with net debt reduction and potential move to net cash position.

• Significant resources for M&A from £75m RCF and £45m accordion facilities.

• Encouraging start to 2025, with trading in line with board expectations.