Sales and profits rocket at IDOX

Software and services provider IDOX saw revenues and adjusted profits jump by over a half in the first half, helped by recent acquisitions and its increasing international exposure.

Revenue in the six months to April 30th jumped by 58% from £18.1m to £28.6m. On an organic basis, revenues increased by 10%.

International revenues now account for 31% of total sales, up from just 9% in the first half of last year.

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Meanwhile, adjusted pre-tax profits jumped by 54% from £4.7m to £7.3m despite operating costs rising from £10.4m to £17m as a result of acquisitions.

"The first half of 2012 saw the group report significant growth in both revenue and profitability. As well as the group recording strong organic growth, our recent acquisitions have quickly and effectively been integrated, allowing us to expand our operations across an international market place. This new international focus allows revenue to be spread across a number of sectors and geographies, reducing our reliance on the UK public sector," said Chairman Martin Brooks.

Gross margins improved from 86% to 88%, reflecting the shift in mix across all divisions toward higher-margin recurring revenues, aided by the acquisitions.

"Orders closed in the first half of the financial year, together with continued robust recurring revenues and professional services order backlog, gives us good visibility and confidence in the achievement of management expectations for the full year despite the current Eurozone and potentially wider economic turmoil," the company said.

The interim dividend was raised by 15% from 0.24p to 0.275p.

BC