Ideagen PLC (AIM: IDEA), a leading supplier of Information Management software to highly regulated industries, announces a trading update for the year ended 30 April 2015.
Trading for the year to 30 April 2015 was robust and in line with expectations with both continued organic growth and contributions from EIBS and Gael. The results will therefore show the Group's sixth consecutive year of revenue and EBITDA* growth, with revenue expected to be up 59 per cent. to approximately £14.3 million and adjusted EBITDA expected to be up by 42 per cent. to approximately £4 million. This will lead to a significant increase in adjusted EPS** which continues to be an important financial metric for the Group and has averaged growth of 24 per cent. per annum since 2012.
Cash at 30 April was £5.25m and with no debt our strong balance sheet provides the Group with the capacity to pursue further strategic opportunities in the current financial year.
*Earnings before interest, tax, depreciation, amortisation, share based payments, acquisition costs and exceptional items.
** Adjusted fully diluted earnings per share,
Performance and Integration of Gael
The acquisition of Gael has transformed the Group and has made a strong and positive contribution both financially and in terms of product capability. Integration is well underway and a number of existing Ideagen customers have upgraded their existing installations to take advantage of the enhanced proposition that the Group can now offer. Having successfully executed our immediate objectives we can now accelerate the integration of Gael into the Group. To enable this Ashley Marron, Chief Executive of Gael has been appointed Group Chief Operating Officer with responsibility for all of Ideagen's Product Strategy and Development and Customer Services.
The Group has significant contracted work in progress, a growing recurring revenue base and a strong pipeline of new business. We have experienced robust growth within our Commercial Markets such as Manufacturing, Life Sciences, Aviation and Banking which, we expect to continue. We are also seeing renewed momentum within a number of sales opportunities at NHS Hospital Trusts, which had slowed prior to the election. The Board is therefore confident that the Group will continue to meet its growth objectives for this financial year and beyond.
David Hornsby, Chief Executive, commented:
"The Group has once again met market expectations, demonstrating the strength of our business model and products and the talent and dedication of our employees. I am delighted with the contribution from our newly acquired businesses, Gael and EIBS, and look forward to an exciting year ahead."