Ingenta Regulatory News (ING)

7 February 2025

Ingenta plc

("Ingenta" or the "Company")

Trading Update

Ingenta plc (AIM: ING), a leading provider of software and services to the publishing and media industries, provides the following trading update for the year ended 31 December 2024 ("FY24").

In line with previous guidance, the Group expects to report revenues for FY24 of £10.2m (2023: £10.8m) and EBITDA of £1.8m (2023: £2.2m). The Group generated substantially improved positive cash flow during FY24 of £0.9m (2023: £0.3m), providing closing cash balances at 31 December 2024 of £3.6m. The Group has no debt.

The Board expects to recommend the payment of an unchanged final dividend for the year of 2.6 pence per share, taking the dividend for the year to a total of 4.1 pence.

During 2024, the Group's focus remained on implementing new projects based on new generation software platforms to offset the anticipated reduction in revenues from certain legacy services. As announced in September 2024, the Company experienced delays in implementing a number of these new projects and therefore did not fully offset the effects of legacy revenue reductions within FY24.

The Company is prioritising acceleration of new business acquisition to offset the expected larger scale reduction in revenues from legacy platforms in the current year and beyond and return the Company to growth in revenues and profits.

The momentum of new business wins is already accelerating: the Board is pleased to report four substantial new contracts won since the year end, with aggregate contract values of £1.9m over 2-5 years, broadly spread across the Edify, IngentaConnect and Commercial platforms. This equates to the total amount of new business won in the first half of 2024 and underpins management's confidence that the Group will resume growth in top line revenues in 2025.

In order to continue the Group's overall growth momentum beyond 2025, the Board has sanctioned a £0.5m investment in the Group's sales and marketing activities during 2025 in order to build a larger and longer term pipeline of new business. As a result of this investment, the Board expects that EBITDA for 2025 is likely to be lower than in 2024, despite the expectation of increased revenues referred to above.

Subject to trading remaining in line with expectations, the Board intends to retain the level of dividends for 2025 at the current level of 4.1p per share for the year.

Scott Winner, CEO of Ingenta, commented:

"I am pleased to report that we have won substantial new business in 2024, broadly based across all the Group's current platform offerings, and it is disappointing that delays in implementing these new services due to customer-induced delays have resulted in this impacting on the overall results for the year. The rate of new business wins has accelerated since the year end with four new clients, and an aggregate of £1.9m contract values, already in 2025, which provides us with a firm foundation on which to invest further in our sales and marketing resources.

Looking ahead to the longer term, this new investment will further reduce our reliance on revenues and profits from legacy platforms and aim to ensure that the transition of long-standing customers away from higher-value legacy products will be more than offset by increasing new business from our current and next generation offerings. Although this will impact on profits in 2025, it is an investment in the future which we expect to bear fruit in accelerating growth in future years."

Certain information contained in this announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this announcement.

For further information please contact:

Ingenta plc Tel: 01865 397 800

Scott Winner/Jon Sheffield

Cavendish Capital Markets Limited Tel: 0207 220 0500

Katy Birkin / Callum Davidson