Idox : Annual Report 2022

IDOX PLC

ANNUAL REPORT & ACCOUNTS 2022

Company Number: 03984070

Contents

Strategic Report

1. Financial and operational highlights

1. Chair's statement

1. Chief Executive's review

1. Investment case
2. Business model
3. KPIs

1. Chief Operating Officer'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

118 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
	100 Liverpool Street
	London
	EC2M 2AT
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 2022

__________________________________________________________________________________

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 2022.

Financial highlights

Reconciliations between adjusted and statutory earnings are contained on pages 118 to 119.

Revenue

• Revenue increased by 6% to £66.2m (2021: £62.2m), driven by growth in Public Sector Software.
• Recurring revenue1 increased by 12% to £40.5m (2021: £36.3m), and now account for 61% of the Group's
  total revenue (2021: 58%).

Profit

• Adjusted2 EBITDA increased by 15% to £22.5m (2021: £19.5m).
• Adjusted2 EBITDA margin improved to 34% (2021: 31%), driven by operational improvements, acquisitions, and business mix.
• Statutory operating profit increased by 13% to £8.7m (2021: £7.6m).
• Statutory operating profit margin improved to 13% (2021: 12%).
• Statutory profit before tax £6.6m (2021: £7.3m).
• Adjusted3 diluted EPS increased by 7% to 2.44p (2021: 2.27p).
• Statutory diluted EPS decreased to 1.24p (2021: 1.34p).

Cash and debt

• Net debt4 at 31 October 2022 reduced by 18% to £6.7m (2021: £8.1m).
• Free cashflow5 generation of £7.2m (2021: £9.7m).
• Acquisition of LandHawk in the year for £1.1m.

Dividend

• Final dividend of 0.5p per share (2021: 0.4p) declared, reflecting continuing growth opportunities, our strong financial position and our confidence in the future.

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Strategic Report - Financial and Operational Highlights (continued)

For the year ended 31 October 2022

__________________________________________________________________________________

Operational highlights

Idox has delivered a resilient performance in a year of economic uncertainty and maintained good progress against the Group's strategic goals:

• Record full year order intake up 19% on FY21 to £74m, with good wins across the Group, providing good visibility into FY23.
• Good growth of revenue and profit in Public Sector Software (PSS) buoyed by FY21 acquisitions; stable performance in Engineering Information Management (EIM) despite difficult market conditions.
• Contract wins and extensions which increase average tenure across both our PSS and EIM businesses.
• Further enhancement of the Group's geographic information system mapping (GIS) capabilities with the acquisition of LandHawk, following on from the three FY21 acquisitions of Aligned Assets, thinkWhere and exeGesIS.
• Continued upscaling of the Pune, India, centre of excellence to increase capacity, efficiency, capability, and knowledge sharing.
• Clear focus on innovation and consolidation of our product portfolio, including our continuing journey to transition to cloud across the portfolio.

Current trading and outlook

• The Group has enjoyed an encouraging start to FY23, with trading in line with the Board's expectations.
• High levels of recurring revenue, contract renewals, orderbook and pipeline, providing good visibility which leaves us well placed in our aim to grow the business by double digits in FY23.
• We continue to target further acquisitions to leverage our platform.

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