IDE : Annual financial report 2021

IDE Group Holdings plc

Annual report and financial statements

Registered number SC368538 Year ended 31 December 2021

	IDE Group Holdings plc
	Annual report and financial statements
	31 December 2021
Contents
Directors and Advisers	1
Company Profile and Summary	2
Chairman's Statement	3
Financial Review	6
Strategic Report	9
Directors' Report	13
Remuneration Committee Report	16
Corporate Governance Statement	18
Statement of Directors' Responsibilities	25
Report of the Audit Committee	26
Independent Auditor's Report	28
Consolidated Statement of Comprehensive Income	34
Statements of Financial Position	35
Statements of Changes in Equity	36
Statements of Cash Flows	38
Notes to the Consolidated Financial Statements	40

IDE Group Holdings plc

Annual report and financial statements

Year ended 31 December 2021

Directors and Advisers

Directors

Andy Parker (Non-Executive Chairman)

Ian Smith (Executive Director)

Company Secretary

Delgany Corporate Services Limited

Registered Office

24 Dublin Street

Edinburgh EH1 3PP

Company Number SC368538

Nominated Adviser and Broker

finnCap Limited

1 Bartholomew Close London EC1A 7BL

Solicitors

DAC Beachcroft LLP

25 Walbrook London EC4N 8AF

Auditor

RSM UK Audit LLP

Portland

25 High Street

Crawley

West Sussex

RH10 1BG

Share Registrar

Computershare Investor Services PLC

44 North St. Andrew Street

Edinburgh EH2 1HJ

Principal Banker

RBS NatWest Plc

250 Bishopsgate London EC2M 4AA

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IDE Group Holdings plc

Annual report and financial statements

Year ended 31 December 2021

Company Profile

The principal activities of IDE Group Holdings plc are the provision of end-to-end solutions to enterprise scale end-customers, public and private, concentrating on end-user device management and on-site support solutions.

The country of incorporation is Scotland; the Company's registered number is SC368538 and the Company is limited by shares. The main country of operation is the United Kingdom.

Further information on the Company can be found at www.idegroup.com.

Business summary

• IDE Group is a UK based managed services provider delivering outsourced services as a strategic technology partner primarily on behalf of system integrators. After a series of acquisitions and divestments, the group is now wholly focused on IDE Group Manage Limited.
• Within its portfolio of services, IDE specialises in activities including the storage, build, configuration, and shipping of all end- user devices as well as the provision of on-site support engineers, tech bars, server maintenance and fully managed project deployments.
• Its support services have been developed to support clients with all IT requirements, to either complement an existing in- house IT team or act as a fully dedicated IT team on its customers' behalf.
• On 19 October 2021 IDE Group Connect Limited, Nimoveri Limited and Nimoveri Holdings Limited were sold to CloudCoCo Group plc for a consideration of £250,000 payable in 60 monthly instalments commencing April 2022.
• In 2020 IDE invested in software licences at the year-end amounting to £1.8 million. These licences were purchased with a view to a planned expansion of the group, resale to our clients in our Connect Business and for operational use in the
  Connect Business. However, the planned expansion didn't materialise and the Connect Business was sold in 2021.
  Therefore, the directors believe that the Group would be unable to obtain the full benefit of the licences in its remaining business. Accordingly, these software licenses have been impaired and written down to £nil.
• Revenues from continuing operations increased by 25.4% or £2.9 million in 2021 to £14.5 million from £11.5 million in 2020, gross margins were also increased by 7% to 43% (2020: 39%) reflecting continued strong performance of our Manage business. Adjusted EBITDA** increased to £3.1 million from £1.4 million in 2020. Losses on ordinary activities before taxation amount to £3.0 million (2020: £2.8 million).
• We have made an excellent start to 2022 within our Manage business, demonstrating significant growth in revenues and profitability. These results are based on developing long-term relationships with third-party system integrators and supply contracts typically with 3-5-year terms. Therefore, as we experience further growth, we are generating a strong annuity income stream, with a strong pipeline of prospects.

We have built a strong base to support a period of sustained growth and we are exploring organic and acquisitive methods to accelerate this development.

• Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation, impairment charges, non-underlying items, loss on disposal of fixed assets and share-based payment charges.

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