Ideagen PLC Pre-Close Trading Update and Board Change (4527Y)

TIDMIDEA

RNS Number : 4527Y

Ideagen PLC

13 May 2021

13 May 2021

Ideagen PLC

("Ideagen," "the Company" or the "Group")

Pre-Close Trading Update and Board Change

SaaS model driving organic growth; performance in line with expectations; enhanced banking facilities

Ideagen PLC (AIM: IDEA), a leader in compliance software for regulated industries, is pleased to provide an update on trading for the year ended 30 April 2021 and extended borrowing facilities to fund the Group's development.

Trading Update

The Board is pleased to report a year of continuing growth, organically and by adding three significant acquisitions, and closing with a robust financial position despite the challenges brought by the pandemic. Ideagen's customers operate in highly regulated industries, and the Company's software and services are crucial in providing assurance in critical areas such as sustainability and supply chains.

As a SaaS business, the Board considers recurring revenue as the Group's primary metric and the driver for long-term value. ARR recognised during the financial year is expected to be GBP54.2m (30 April 2020: GBP43.1m), representing 83% of total revenues, up from 76% in the comparative prior period.

The ARR book of contracted revenue to be recognised over the coming 12 months increased by 50% during the financial year to approximately GBP69.3m (30 April 2020: GBP46.2m on a like for like basis, excluding currency movements(1) ), reflecting strong organic growth of approximately 13% in addition to acquisitions.

The Group expects to report total revenue up 16% at approximately GBP65.6m (FY 2020: GBP56.6m) and adjusted EBITDA(2) up 24% to approximately GBP22.9m (FY 2020: GBP18.5m). Organic growth was driven by both customer expansion and new customer logo wins across verticals including Life Sciences, Healthcare and Financial Services. The Group won 557 new customers in the period, including KPMG, Sands Las Vegas, St James Place, Bank of Greece, Staffordshire County Council, Covance and Morningside Pharmaceuticals.

Cash generated by operations during the financial year is expected to be more than 105% of adjusted EBITDA(2) resulting in a gross cash balance at 30 April 2021 of GBP9m and gross bank borrowings of approximately GBP20m.

The Group is in an excellent position to fund organic growth and pursue its strategy of acquiring businesses that extend or reinforce its leadership in compliance software for regulated industries, with a robust balance sheet and net bank debt at the period end of GBP11m. The Group has extended its total available debt facilities to GBP100m through a new committed credit facility of GBP75m with an approved but uncommitted accordion facility of up to GBP25m, on enhanced commercial terms. This replaces the Group's previous banking facilities of up to GBP50m.

The Board remains confident in the Group's prospects for the future based upon the structural drivers in the sector, as well as the continued execution of the Group's strategy.

The Group expects to announce its preliminary full year results on or around 22 July 2021.

Board Change

The Board is pleased to confirm that Richard Longdon will, effective from today, succeed David Hornsby as Chairman in a non-executive capacity. Richard joined Ideagen after a highly successful career in the technology sector, having spent 33 years with AVEVA Group plc, where he was Chief Executive Officer for 17 years until December 2016. David Hornsby retires as Chairman and steps down from the Board having led the Company as Chief Executive since 2009 and as Executive Chairman since 2018.

Ben Dorks, Chief Executive Officer of Ideagen, said:

"I am pleased to report another strong year for Ideagen. Growth in organic and recurring revenue, in addition to excellent cash generation, reflects Ideagen's resilience during the pandemic. As a SaaS business, we remain focussed on growing recurring revenues and expanding our customer base. We continued to execute our strategy, achieving growth organically and through acquisitions, and I am grateful to our team for their effort this year.

We are excited to welcome Richard as our new Chairman. He brings extensive experience from the technology sector and we look forward to his contribution to the Company in his new role. On behalf of the Board, I would like to express our gratitude to David for his leadership, strategic insight, and guidance. David led Ideagen through a period of significant growth and we wish him all the very best in his future endeavours."

Enquiries:

 
 
Ideagen plc                                   01629 699 100 
Richard Longdon, Non-Executive 
 Chairman 
Ben Dorks, Chief Executive 
 Officer 
Emma Hayes, Chief Financial 
 Officer 
 
finnCap Limited                               020 7220 0500 
Henrik Persson / James Thompson 
 (Nomad) 
Alice Lane (ECM) 
Alistair Hay / Graham Cooke 
 (Debt Advisory) 
 
Canaccord Genuity                             020 7523 8000 
Simon Bridges 
 
FTI Consulting                                020 3727 1000 
Jamie Ricketts                    [e-mail] 
Dwight Burden 
 Valerija Cymbal 
 

About Ideagen plc

Ideagen's software helps companies comply with regulation and manage risk.

Ideagen is a leader in the GBP3 billion regulatory and compliance software market, serving highly regulated industries such as life sciences, healthcare, banking and finance and insurance. Ideagen has made twenty acquisitions to build its market leadership.

More than 5,700 organisations use Ideagen's software, including nine of the top 10 UK accounting firms, all of the top aerospace and defence companies and 75% of leading pharmaceutical firms.

Ideagen has a diversified customer base including blue chip, global brands such as Heineken, British Airways, BAE, Aggreko, US Navy, Bank of New York and Johnson Matthey, as well as 250 hospitals across the UK and US.

Ideagen is headquartered in the UK, listed on the London Stock Exchange AIM market (Ticker: IDEA.L), and has key hubs in the UK, EU, US, Middle East and South East Asia. For further information please visit www.ideagen.com .

Notes

1. The April 2021 ARR book of GBP69.3m comprises contracted revenue that will be recognised over the coming 12 months. The April 2020 comparative of GBP46.2m is calculated on a like for like basis at constant currency rates. The Group's previous ARR calculations (30 April 2020: GBP48.7m) comprised all contracted annual recurring revenue, valued at prevailing exchange rates. A portion of this revenue was due for recognition beyond a 12 month period, allowing for set up and installation.

2. Earnings before interest, tax, depreciation, amortisation, share based payments, acquisition costs and other exceptional items.

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May 13, 2021 02:00 ET (06:00 GMT)