Idox : Annual Report 2021

IDOX PLC

ANNUAL REPORT & ACCOUNTS 2021

Company Number: 03984070

Contents

Strategic Report

1. Financial and operational highlights

1. Chairman's statement

1. Investment case
2. Business model

1. KPIs

1. Chief Executive's Review

1. Section 172 and stakeholder engagement

1. Responsible business

1. Financial review

1. Principal risks and uncertainties

Governance

1. Board of Directors
2. Directors' report

41 Corporate governance report

1. Directors' responsibilities statement
2. Report of the Audit Committee

Financial Statements

1. Independent Auditor's report to the members of Idox plc

1. Consolidated statement of comprehensive income
2. Consolidated balance sheet
3. Consolidated statement of changes in equity
4. Consolidated cash flow statement
5. Notes to the accounts

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

Other Information

120 Alternative performance measures

Company Information

Company Secretary and Registered Office: R Paterson

	2nd Floor
	1310 Waterside
	Arlington Business Park
	Theale
	Reading
	RG7 4SA
Nominated Adviser and Broker:	Peel Hunt LLP
	Moor House
	120 London Wall
	London
	EC2Y 5ET
Auditor:	Deloitte LLP
	Statutory Auditor
	110 Queen Street
	Glasgow
	G1 3BX
Corporate Solicitors:	Pinsent Masons LLP
	30 Crown Place
	Earl Street
	London
	EC2A 4ES
Registrars:	Neville Registrars Ltd
	Neville House
	Steelpark Road
	Halesowen
	B62 8HD
Company Registration Number:	03984070

Strategic Report - Financial and Operational Highlights

For the year ended 31 October 2021

__________________________________________________________________________________

Idox plc (AIM: IDOX), a leading supplier of specialist information management software and solutions to the public and asset intensive sectors, is pleased to report its financial results for the year ended 31 October 2021.

Financial highlights

Reconciliations between adjusted and statutory earnings are contained on pages 120 to 121.

Continuing operations (excluding disposed Idox Content businesses1):

Revenue

• Revenue increased by 9% to £62.2m (2020: £57.3m), including 5% organic increase.
• Recurring revenue2 increased by 2% to £36.3m (2020: £35.7m).

Profit

• Adjusted3 EBITDA increased by 13% to £19.5m (2020: £17.2m).
• Adjusted3 EBITDA margin improved to 31% (2020: 30%).
• Operating profit increased by 90% to £7.6m (2020: £4.0m). Operating profit margin improved to 12%
  (2020: 7%).
• Adjusted4 diluted EPS increased by 54% to 2.27p (2020: 1.47p).
• Diluted EPS increased to 1.34p (2020: 0.11p).

Cash and debt

• Free cashflow5 of £7.1m (2020: £11.2m) following planned repayment of 2020 VAT deferrals.
• Disposal of Content businesses generated net proceeds of £10.7m; 3 acquisitions completed in the year with initial net consideration of £10.5m.
• Net debt6 at 31 October 2021 reduced by 50% to £8.1m (2020: £16.1m).

Dividend

• Final dividend of 0.4p per share (2020: 0.3p) declared, reflecting the strong cash generation and healthy financial position of the Group.

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Strategic Report - Financial and Operational Highlights (continued)

For the year ended 31 October 2021

__________________________________________________________________________________

Operational highlights

Idox has maintained good progress against the Group's strategic goals whilst delivering successful operational execution:

• Material advancement in our M&A strategy to focus capital on core software businesses with high margin operations and good growth potential:

1. Disposal of Content businesses, in line with our continued simplification and focus on software operations.

1. Acquisition of Aligned Assets, thinkWhere and exeGesIS, which enhance our Public Sector offering and provide greater focus and depth of expertise in the GIS (geospatial information services)

market.

• 1. Further development of our M&A ambitions in both sourcing and managing pipeline opportunities.
• Improvements to our product and go-to-market efforts; now fully managed and reported in our new Group- wide CRM platform.
• Consolidated all offshore activity to a single Idox centre in Pune, India.
• Clear focus on innovation and consolidation of our product portfolio, including continuing our journey to cloud across our portfolio.
• Further investment in our people promoting higher levels of engagement, and leadership.
• Increasing our commitments to Environmental, Social and Governance initiatives; conducting business responsibly is core to our business model and long-term strategic goals.

Current trading and outlook

• FY22 has started well, in line with expectations
• Combination of recurring revenue and orderbook, driven by H2 sales orders, and resilient public sector markets, provides good viability for FY22 revenue.
• The sales pipeline for FY22 remains encouraging.
• FY21 acquisitions integrating well and to plan, and good line of sight over an attractive M&A pipeline.

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