Idox Share Discussion Threads

[phillis] 06/6/2017 15:16

Results are terrible
Explanations worse
You wonder what would have happened without the acquisitions
V disappointing

[alphabeta4] 06/6/2017 12:56

Sorry, I'm with Boros, I found those accounts very hard to make head or tail of when you would be expecting adjusted profit to rise not fall, if you take the 7.9m vs the 8.9m being generous you could view the 1m investment as a one off expense item and the 0.6m finance charge as not ongoing (on the EBITDA it should clear in around a year) but that's still 9.5m vs 8.9m which is unimpressive given the extra acquisitions. Organic is only mentioned at one point in the financial review which is for a sub part of one area. The cynic in me takes this as a cause for concern (deliberate omission?)

IDOX has a great acquisition track record but also has a new CEO. I'm not sure I'm prepared to invest in something which looks to have a high level of uncertainty and execution risk at the moment.

[dlku] 06/6/2017 10:37

Idox (BUY)
Interims demonstrate expansion potential

Ticker: IDOX Market Cap: £293.8m
Price: 72.5p Target Price: 87.0p
Andrew Darley
020 7220 0547
[e-mail]



Interims in line with unchanged consensus expectations, with the core strength in public sector software further encouraged by both digital services as central government drives local authorities to greater cloud delivery of services. The Idox platform delivers services on a specific "when, where and to whom" logic: the creation of Idox Health (based on 6PM, acquired in February) extends the “what” is delivered into an adjacent public sector platform. Management remains hungry for acquisitions to further utilise the potential scale of the existing platform, in addition to the steady performance of the current divisions, delivering efficiency into the public sector. With rising peer group multiples, Idox's elections division may focus investor attention, despite the potential drag in public sector spend typically associated with a new government, softened if the political colour is unchanged. We update our forecasts and target price: Buy (Hold), with a target price of 87p (68p).

[boros10] 06/6/2017 08:26

These are an unimpressive set of numbers. Adjusted pre-tax profits are down for the half year at £6.9m (2016 H1: £7.9m). Free Cashflow in H1 was also down but this time by a whopping 32% at £7.26m (2016 H1: £10.62m). No explanation is given for the deterioration in the trading performance although I note from the segmental breakdown that three divisions are now generating losses. The highly contentious acquisition 6pm made a loss in the period. Management estimates that had it been owned for the entire half year, losses would have been £1.24m on sales of £4.86m.Trade and other receivables continue to increase and are now at £52m. This includes recoverable contracts which have not been separately disclosed in the interim statements. Recoverable contracts is for work judged to have been done for local authorities but which has not been invoiced (and which may not be invoiced for up to five years). Recoverable contracts rose from £1.7m to £18.7m between 2011 and 2016 by which time it represented 50% of total receivables. Idox's estimated debtors days are now a staggering 207 days (based on pro-rate sales not forecast sales and after deducting my estimate of £2m for prepayments etc). This is up from 162 days at the year end. The new CEO assured me a few months ago that no further deals would be done with local authorities involving deferred invoicing and payment. These figures suggest otherwise. IDOX also continues to capitalise a hefty chunk of its spending on software at £2.3m in H1 (2016 H1: £1.9m). At the 2016 year end capitalised development spending exceeded the amortisation charge on software by around £2m. IDOX accounting policies continue to be a cause of concern.

[quepassa] 21/4/2017 05:55

una hija de chingada.

verdad.

[phillis] 21/4/2017 01:30

Bless!
Google translate not so good eh?

[quepassa] 20/4/2017 10:13

Non. sin cojones.

hija.

feminino como la puta quien es.

QP

[phillis] 19/4/2017 21:27

Hijo
Miaow!

[quepassa] 19/4/2017 19:43

Phillis es una hija de chingada

[phillis] 18/4/2017 18:43

KC doesn't want to stay for the ride

[strollingmolby] 18/4/2017 12:16

Small boost to revenues and margins from a snap election on 8 June - every little helps...

[tomps2] 24/2/2017 14:44

Video of presentation by Andrew Riley, CEO for PIWorld on 21.2.17



Introduction - 00:16
History of idox - 1:09
Idox today - 02:07
Renewed focus on the public sector – 04:40
Acquisition of 6pm - 04:45
Idox business model - 09:45
Services to Local Government- 11:40
Local Government market share - 13:56
Idox customers – 14:38
Financial highlights (year ended 31st October 2016) – 16:10
Summary and outlook – 17:57
Q&A – 19:23

[roger-lawson] 30/1/2017 20:49

With the AGM coming up on the 24th February, I hope all private investors who hold IDOX shares will go along and complain about the recent placing that diluted you and enabled institutions to pick up shares cheaply when you could not. Call me on 0208-295-0378 if you want more information or need a proxy to gain admittance.

[petewy] 30/1/2017 16:25

heavy trading today?

[tomps2] 30/1/2017 15:35

PI World have arranged a presentation by IDOX on Tuesday 21st February, afternoon. Central London. (Together with Creightons (CRL) and Cohort (CHRT).)

If you'd like to join us to hear them speak, email [e-mail] (although places are limited.)

[briangeeee] 17/1/2017 19:06

Boros10, IMO two things need to change in this regard:
1. Shareholders should not dis-apply preemption rights routinely at each AGM. To an extent, they've really only got themselves to blame if they do.
2. Regulations should change, so that only shareholders not conflicted by participating in the placing may vote to authorise the shares issuance on a pre-emptive basis.

In this instance, the issuance was sufficiently large that it required a GM. However, there is no realistic possibility of objecting, as those voting FOR will be the conflicted beneficiaries of the discounted issuance. Note that HH are defined as a 'related party' under AIM rules, but all that means is that the conflicted Nomad has to give them the Nod. If it was a premium listed company, they'd be barred from voting, so what's the difference on AIM?

[clocktower] 16/1/2017 17:13

Maybe a good time to take profits and let those that stumped up the funds for the acquisition run with it for the time being, or they may be taking their profits sooner rather than latter.

Expensive acquisition and this one could be the one that does not pay off, DYOR.

[boros10] 16/12/2016 06:19

I am also annoyed at the absence of an Open Offer. A deeply discounted placing represents a straight transfer of value from private investors to the institutions. I tried to participate in the accelerated book build without success. I was told that priority had been given to existing institutional shareholders. Really galling. Its why I prefer companies that are able to grow organically. I made an exception here because Richard Kellett Clarke had undoubted ability and was private investor friendly. Yet to form a view on his replacement. The acquisition looks expensive if you add in the corporate bond debt. The headline numbers in the final results look good but free cash flow was poor. Receivables were up heavily. I may have missed it but I can't see any commentary explaining the poor FCF. Nothing in the N+1 Singer note either. At least the Company now only adds back amortisation on acquired intangibles to calculate its adjusted EPS. A big improvement on its previous practice of adding back all amortisation including that arising on capitalised software development costs.

[alphabeta4] 14/12/2016 15:33

Snn had something a couple of weeks back where as part of the deal all holders at the time of the rns got the chance to get 1 share for every 14 held at a fixed price. It was a nice touch especially seeing as they've gone up 30% since.

[roger-lawson] 14/12/2016 14:53

Phillis: well I bought some at 6.65p so I had a ten bagger yesterday but not this morning. But they do not have to rely on lots of small investors if they do an Open Offer alongside a Placing - they just need to have enough shares available to satisfy demand. Other companies have done this with no difficulty.