Progressive Equity Research Limited

IDOX plc

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Description

Idox plc is a supplier of specialist document management collaboration solutions and services to the public sector and to highly regulated asset intensive industries around the world.

Company Presentations

Progressive Presents the management team of Idox, a leading developer of software solutions
Dec
 9

Progressive Presents the management team of Idox, a leading developer of software solutions

Idox is a leading provider of specialist software solutions for the UK public sector and other asset intensive industries. Idox helps clients become more productive by transforming their digital processes.

Presenters:

David Meaden, CEO
Rob Grubb, CFO

  • Introduction to the business
  • Recent financial highlights
  • Strategy for growth
  • Delivering on our promises
  • Demand trends
  • Summary & outlook
  • Who do you compete against and how, and why, do you win?
  • Do your customers still have any reservations about cloud delivery of software platforms?
  • Is there any opportunity before 2025 to repay the 5.1% bond, and refinance this on lower interest costs
  • How much debt is still in the business, and how much revenue is non-cloud? Typically how long does it take your customers to pay an invoice, and is there a general cash conversion rate?
  • What have you learnt from some of the less successful acquisitions the business has made in the past, before your arrival!
  • I noticed that you’ve included an ESG slide in the appendix. What do you see as the most important ESG aspects of the business?
  • What are the two potentially big threats to your ambitions that you’re keeping a strong eye on?
  • Given your large exposure to the UK public sector, what proportion of revenues is generated by your 14 offices worldwide?
  • What is the logic in having a Dutch and German business?
  • Is the path to artificial intelligence and machine learning via acquisition?
  • What sort of things do you look for in potential acquisitions?
    • Presentation Research

    Our view

    IDOX’s market-leading positions within Local Government software provision should allow it to drive growth and shareholder value over time. The group continues to report good commercial traction across the key Public Sector Software business and its operations in Engineering Information Management and various online Content businesses are also seeing success in their respective niches.

    Recent Research

    18/11/2020

    Further evidence of success

    15/06/2020

    Rejuvenation is bearing fruit

    20/04/2020

    A new dawn

    View all research for IDOX plc

    Financial Summary

    Year end: October (£m unless shown)
    20182019202020212022
    Revenue66.465.568.071.576.5
    Adj EBITDA13.614.419.520.523.0
    Fully Adj PBT7.57.710.412.114.7
    Fully Adj EPS (p)2.21.31.92.22.6

    Profit & Loss

    Year end: October (£m unless shown)
    20182019202020212022
    Revenue66.465.568.071.576.5
    Adj EBITDA13.614.419.520.523.0
    Adj EBIT12.513.518.519.321.7
    Reported PBT(30.2)(0.0)2.86.18.4
    Fully Adj PBT7.57.710.412.114.7
    NOPAT8.89.410.210.712.4
    Reported EPS (p)(8.8)(0.4)0.31.11.5
    Fully Adj EPS (p)2.21.31.92.22.6
    Dividend per share (p)0.00.00.30.40.5

    Cash Flow & Balance Sheet

    Year end: October (£m unless shown)
    20182019202020212022
    Operating cash flow9.912.320.820.523.0
    Free Cash flow4.14.310.810.813.1
    FCF per share (p)1.01.02.42.42.9
    Acquisitions(0.2)(6.4)(0.6)0.00.0
    Disposals0.00.00.00.00.0
    Shares issued(0.1)7.40.00.00.0
    Net cash flow1.25.410.28.811.1
    Overdrafts / borrowings(37.3)(33.4)(33.4)(33.4)(33.4)
    Cash & equivalents5.57.017.226.037.1
    Net (Debt)/Cash(31.8)(26.4)(16.1)(7.4)3.7

    Nav & Returns

    Year end: October (£m unless shown)
    20182019202020212022
    Net asset value47.944.645.848.252.0
    NAV/share (p)11.510.010.310.811.7
    Net Tangible Asset Value1.21.21.21.00.6
    NTAV/share (p)0.30.30.30.20.1
    Average equity23.946.244.746.249.8
    Post-tax ROE (%)32.2%22.6%27.0%31.8%0.0%

    Metrics

    Year end: October (£m unless shown)
    20182019202020212022
    Revenue growth(1.4%)3.9%5.1%7.0%
    Adj EBITDA growth5.3%35.8%5.1%12.3%
    Adj EBIT growth7.9%36.8%4.4%12.2%
    Adj PBT growth3.2%35.2%15.7%21.8%
    Adj EPS growth(41.8%)45.4%15.7%21.8%
    Dividend growth N/A N/A40.0%26.2%
    Adj EBIT margins20.6%27.2%27.0%28.3%