Another cracking trading update18 May 2016 08:11
RNS Number : 5314Y
Ideagen PLC
18 May 2016
18 May 2016
Ideagen PLC
("Ideagen," "the Company" or the "Group")
Pre-Close Trading Update
Ideagen PLC (AIM: IDEA), a leading supplier of Information Management software to highly regulated industries, is pleased to provide an update on trading for the year ended 30 April 2016 ahead of the announcement of its full year results.
The Board is pleased to report that trading for the year was robust and results to 30 April 2016 are expected to be in line with market expectations. The Group delivered strong organic revenue growth of 10 per cent., and a full year contribution from Gael which was acquired in January 2015.
The Group expects to report revenue of approximately GBP21.9 million (FY2015: GBP14.4 million), an increase of 52 per cent. resulting in adjusted EBITDA* of approximately GBP6.3 million (FY2015: GBP4.0 million), an increase of 57 per cent. This represents the Group's seventh consecutive year of revenue and EBITDA* growth. In addition, the Group expects to show a significant increase in adjusted EPS** which continues to be an important financial metric for the Group.
Cash generation remained strong, particularly in the second half of the year, and net cash at 30 April 2016 was GBP6.3 million (31 October 2015: GBP5.4 million), after paying GBP1.7 million of deferred consideration, principally for the Gael acquisition, and GBP0.3 million in dividends. The Group continues to maintain a debt-free balance sheet.
The strong trading results have been driven predominately by healthy demand across the Group's Governance, Risk and Compliance ("GRC") markets, including the manufacturing, life sciences, aviation and rail verticals. The Board is also encouraged by the success of the Group's newly launched SaaS platform, Enlighten, which is allowing the Group to win larger contracts and grow high visibility, subscription-based revenue. As a result, the Board remains confident in the long term growth prospects for the Group.
David Hornsby, Chief Executive, commented: "The Group has once again delivered another year of high quality earnings growth, demonstrating the strength of our business model, the quality of our products and the talent of our employees. The Group has significant contracted work in progress, a growing recurring revenue base and a healthy pipeline of new business, which leaves me optimistic about the continued growth opportunities for the Group."
*Earnings before interest, tax, depreciation, amortisation, share based payments, acquisition costs and exceptional items.
**Adjusted diluted earnings per share