Last checked at 
(Alliance News) - Risk management software provider Ideagen PLC on Wednesday said it swung to a nominal profit in the first half of financial 2020, in line with market expectations.
For the six months to October 31, revenue climbed 30% year-on-year to GBP27.3 million from GBP21.0 million.
Ideagen reported pretax profit of GBP93,000, compared to a GBP635,000 loss the year before.
On an adjusted basis, excluding amortisation expenses and one-off costs, pretax profit was 25% higher year-on-year at GBP6.0 million from GBP4.8 million.
Restructuring costs fell 87% year-on-year to GBP34,000 and acquisition fees fell 70% to GBP236,000.
However, depreciation and amortisation expenses were 51% higher year-on-year at GBP6.5 million.
Ideagen said its annual recurring revenue book at October 31 was up 20% to GBP43.9 million from GBP36.4 million at the end of April.
The company boosted its interim dividend by 16% to 0.104 pence per share from 0.09p the year before.
Chief Executive Ben Dorks said: "I am delighted with the progress we have made against our business objectives in the first six months. A key growth metric is annual recurring revenue, in which we have delivered excellent growth. This was driven by a strong organic performance, further acquisitions and ongoing investment to support our product development."
The company's first-half was boosted by June's GBP15.8 million acquisition of software-as-a-service company Redland Solutions Ltd.
Ideagen said: "Since the acquisition, Redland has performed strongly securing twelve new logo wins with a combined contract value of GBP1.6 million."
Ideagen said Redland secured contract wins from from clients including online trading firm IG Group Holdings PLC and French investment bank Natixis SA.
Shortly before the end of the interim period, the company bought Optima Diagnostics Ltd for GBP1.8 million. Optima is a software-as-a-service company that has developed Oshens, a health & safety compliance solution.
Ideagen explained: "The global quality, health, safety and environmental market is valuable yet fragmented and the acquisition will further enhance our market position as we aim to further consolidate this sector."
Shares in the company were 0.2% higher at 187.45p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
