Ideagen revenues boosted in first half

Information management software supplier Ideagen announced its unaudited interim results for the six months to 31 October on Tuesday, with revenue increasing by 22% to £12.02m.

The AIM-traded firm also claimed underlying organic revenue growth of 16%.

Recurring revenues represented 56% of overall revenues, up from 52%, and were now equivalent to 90% of fixed operating costs, up from 87%.

Adjusted diluted earnings per share increased by 28% to 1.25p, and adjusted EBITDA increased by 29% to £3.11m.

Ideagen posted adjusted profit before tax as increasing by 23% to £2.63m.

Cash generated by operations was £2.98m, up from £1.15m.

Net cash stood at £4.82m, down from £6.32m at the end of April and £5.44m at the same time on 2015.

The board declared an 11% increase in the interim dividend to 0.068p.

“We are delighted to report on another strong performance from the group across all of our vertical markets during the first half of the year,” said CEO David Hornsby.

“As well as recording significant organic growth and a further increase in revenues, the group has successfully acquired and integrated two companies in the period which marks a return to our strategy of acquiring businesses with strong IP and recurring revenues.”

In addition, Hornsby said the company had achieved strong momentum within its software-as-a-service based business which helped increase recurring revenues, and supported the group's medium-term strategy to transition from a predominantly perpetual to a predominantly service-based licence model.

“Current trading is robust and remains in line with both market and management expectations.

“As such, long term prospects for the group remain positive and we are confident in the outlook for the rest of the year.”