12/02/2024 "Meanwhile shareholders here have seen the share price do absolutely nothing for the past three years." In the past three years, the dividend has doubled. Personally I rather have a static share price and a rising dividend than a volatile share price and an uncertain dividend. |
Idox (IDOX) Half Year results presentation - June 2024
Idox CEO, David Meaden and CFO, Anoop Kang present the group’s half-year results for the six months ended 30 April 2024, followed by Q&A.
Watch the video here:
Or listen to the podcast here: |
A pretty unexciting update today. Looks like there's not much organic growth going on, all from acquisitions. I'm sure the board will reward themselves with some nice options soon though. |
Good TU taking the wind out of the results in 3 weeks.
We are pleased to report that the Group has delivered strong growth during the first six months of the year, generating revenue of c.£43m, representing year-on-year growth of over 20% and an increase in adjusted EBITDA1 to over £13m, in line with management expectations.
The Group recorded a good order intake during the period of c.£54m providing increasing levels of recurring revenue visibility for the remainder of FY24 and into FY25.
The Group continued to generate strong cash flow during the period and ended the half with a net debt2 position of c.£6.6m compared to a net debt position of £14.7m as at 31 October 2023. |
More conditional share awards made today, although some of the performance criteria are laughable. The revenue element starts to vest of the revenue for the 2026 financial year hits £95.28 million -- way less than the £99 million that analysts are predicting. The adjusted EPS element starts to vest at 2.95p for 2026 -- again, analysts are already estimating 3.14p. Hardly stellar growth from the 2.62p EPS achieved in 2023.
Maybe Meaden and Kang will dip their hands into their own pockets and buy some before 2026. I won't hold my breath for that. |
More free share options exercised and shares sold... Are the directors ever going to actually buy any shares? |
Another 600k free share options exercised by Meaden -- of course selling about half of them, so that he doesn't have to dip his hands into his pockets for any tax. Now holds 1.4 million shares and I struggle to remember him actually buying any himself. With a share price that's gone nowhere for 3 years, looks to me like it's just rewarding failure. |
A blast from the past, a pretty stale business now days. |
In fact, when are Meadon and Kang going to put their own money into this company? No share purchases for years. Kang has been CFO for 2 years now and is still just relying on free share options. Hasn't bought any shares himself despite his £280k plus comp package. |
I'm a holder here, but they are taking the mick with the constant share issues under the LTIP, aren't they? 420k shares this month (£265k onto the market cap for nothing), 330k shares last month. Seems to me the company is being run for teh benefit of the employees, not the external shareholders. Look how many options Meaden and Kang were granted back in October, with some pretty undemanding performance criteria. Meanwhile shareholders here have seen the share price do absolutely nothing for the past three years. |
Idox (IDOX) Full Year 2023 results presentation - January 24
Idox CEO, David Meaden and CFO, Anoop Kang present full year results for the period ended 31 October 23, followed by Q&A
Watch the video here:
Or listen to the podcast here: |
 Pleased to read the recent year-end trading update, with increases in top line growth and recurring revenue, adjusted EBITDA (& hope PBT is also...).
The Group delivered a record order intake of over £82m in FY23, an increase of c.11% on the prior year, reflecting our high-quality customer base and strong market positions.
The Board expects to report (subject to external audit) revenue and profit in line with expectations; revenue is expected to be up c.11% to c.£73m, with recurring revenue up c.8% over the period to c.£44m, delivering a c.9% increase in full year adjusted EBITDA to c.£24.5m and a robust adjusted EBITDA margin of c.34% (FY22: 34%).
With good visibility on recurring revenue, a refinancing completed (and facility increased), and a likely UK general election, 2024 is shaping-up to be another year of growth. There is much cash available to continue with acquisitions, so need to avoid any missteps and overpaying.
There is also a fair few local elections scheduled, on the usual rota - |
Just has the usual check from te county council for voting, only this time I did it online via an Idox product. At the end of which was a survey, which because it was Idox I completed (depsite no longer a shareholder). Efficient experience. |
Idox (IDOX) Interim results 2023 presentation - June 23
Idox CEO, David Meaden and CFO, Anoop Kang, present interim results for the six months ended 30th April 2023, followed by Q&A. It’s a good first-half performance, with encouraging organic growth and continued cash generation.
Watch the video here:
Or listen to the podcast here: |
It has been a long time since I invested in this but it seems to me that with the improved cash situation and contract like in post 3376 it looks a good time to revisit and review the potential once again. |
Idox is Proud to Announce Selection as Electoral Management System Supplier to Three New Unitary Authorities
Cumberland Council, Westmorland and Furness Council, and Somerset Council have each appointed Idox as their selected Electoral Management System (EMS) supplier.
Idox, a leading supplier of electoral management systems, is pleased to announce it has been chosen as the EMS supplier to three newly formed unitary authorities in the UK – Cumberland Council, Westmorland and Furness Council, and Somerset Council.
The new authorities, each formed from several former districts or boroughs that had used a full range of operational EMS solutions, based their selection on hands-on experience of all the working systems available on the market. Idox’s EMS stood out from the rest, demonstrating its reliability, accuracy, and efficiency in electoral processes.
At Idox, we understand the importance of providing solutions that meet the needs of electoral administrators while ensuring reliability and are committed to delivering innovative products and services that add value to our clients. We are excited to build strong, long-lasting relationships with the newly formed unitary authorities with the confidence that our EMS ecosystem of products will provide the best solutions for their electoral processes.
The three new customers are currently in the migration process and are expected to go live in the next few weeks. They will benefit from all the core changes for the Elections Act 2022 that have already been deployed to our customers, and they will benefit from further changes coming down the line based on policy that is still being developed by DLUHC as we continue to collaborate with the UK Government and devolved administrations.
We look forward to working closely with the newly formed unitary authorities, providing them with the support and solutions they need to ensure their electoral processes run smoothly and efficiently. |
Very quiet here- thoughts re D&D returning for another crack? Or a different suitor? |
Idox (IDOX) full year 2022 results presentation – January 2023
Idox Chief Executive, David Meaden and CFO, Anoop Kang, present the results for the year ended 31 October 2022. “A solid performance, with strong recurring revenue and margin expansion”
Watch the video here:
or listen to the podcast here: |
Worth watching today's results webinar imo. Management confident of hitting a 10% increase in evenue and 35% operating margin in the current FY. Definitely feels to me like we're in the 'fly' phase now, as management has been saying for a year or so. |
Loss making tiddler |
Chart looks like it might be turning here imo -- someone accumulating the last few weeks imo |
..from last month...
IDOX Plc encompasses subsidiaries providing software solutions and information services for the management of local government and other organisations. As a result, the firm is segmented into three corporate areas: Public sector software, engineering information management and content, which in turn results in plausible cloud-based solutions and offers on-premises. Consequently, it implies that the firm is involved in the operation of building, environmental health, trading standards, licensing, address management and other geospatial information services. This effective and diversified infrastructure enabled the firm to optimise operating profit margin by 13% while reducing net debt by 54%, hence the firm is lowly geared. Considering that three acquisitions have been successfully completed lately, Idox Plc was able to use cash efficiently to fund corporate activities, leading to a robust order book. Given the multiple sources of income, the group managed to capture intrinsic value, explained by the organic solid EV/EBITDA of 15.27x. Considering the enriching initiatives and highly innovative acquisitions, the firm enhanced its organic EPS growth by 26.7%. This evidence suggests that the firm is able to capitalise on market opportunities well, hence the firm’s P/B value was forced up to 4.22x. The conservative working capital policy performed, enabled the group to continue as a going concern. Despite these enriching and stimulating initiatives, International Holdings is still undervalued with respect to its peers, since the firm’s P/E ratio stands at 22.1x, lower than its information technology industry benchmark of 51x, hence investors can purchase the stock cheaply.
Brief Analysis:
P/E = 22.1x, below the sector threshold.
P/B = 4.22x, higher than information technology threshold
P/FCF = 72.6x, above information technology benchmark.
EV/BITDA = 15.27, capturing intrinsic value.
EPS growth = 26.7%.
Operating margin of 13%...
...from WealthOracleAM |
The base business is ex growth isn’t it |
I wonder if the recent grant of share options exercisable at £1.20 is a stunt designed to deter existing shareholders from selling and encourage new investors o buy by thinking the share price would at least reach that level. In the recent results, CEO mentions acquisition opportunities which rather implies that without add-ons the potential for organic growth such as it is is limited. |
Paul Scott's recent view worth a read. I'm a holder, so finding the share price decline frustrating. A good business, but the only people benefitting are the management:
"Outlook is fine, with “good revenue visibility for the remainder of FY22”, and trading in line with expectations. CFO review - You have to travel quite a long way down the results statement before you find the most interesting numbers. For example, continuing revenue growth is 7%, but this includes the effect of acquisitions. The CFO review, much further down the statement, lets us know that “On a 'like for like' basis the Group delivered £30.0m of revenue, slightly down on the prior period.” So there is no organic revenue growth to speak of, only growth by acquisition. Also, why is PBT down 1% despite “adjusted EBITDA” rising 8%? The main reason is nearly £500k in additional share option costs from the company’s LTIP. My view – I’m less enthused by this one than I was before. The only thing I can see in its favour is the sticky public sector contracts. I note that the company paid out £1.8 million in total to shareholders for last year’s performance, while the LTIP has cost the company £1.25 million in just six months."
I'm sure Meadon and Grubb, who hold very few shares between them, will continue to do very well for themselves. |
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