Edison Investment Research

IDOX

Company overview

IDOX is a leading developer and supplier of software and services for the management of local government and other organisations.

Date	Reports available	Download
Dec 08 2008	Sole survivor IDOX has reported annual results slightly ahead of our expectations on the back of healthy organic growth and the benefits of two recent acquisitions. Over the medium term, we continue to believe margins in the core software business can approach 30%, which suggests a substantial uplift in profitability from current levels. In addition, recent corporate activity also highlights the potential valuation upside. Research type: Review - Final results	Log in to download 8 page note available
Jun 23 2008	Interim results Interim results have come out in line with our expectations, following the upgrades that we made after the recent positive trading statement. Software margins are now approaching 30%. Meanwhile most of IDOX’s quoted competitors have been taken over in recent months and which leaves the stock as the only remaining pure-play in the public sector software space. Research type: Update - Interim results	Log in to download 2 page note available
Jun 04 2008	Profit delivery Well-executed acquisitions combined with a more disciplined sales and cost approach have boosted H1 earnings and cash generation beyond expectations. We believe margins in the core software business can approach 30%. Meanwhile most of IDOX’s competitors have either been bought by private equity or are currently in play. The industry is, therefore, going through a period of substantial change and potentially with significant consolidation about to take place. Research type: Update - Trading update	Log in to download 6 page note available
Dec 14 2007	Consolidating sector The highly successful integration of CAPS highlights the scale of benefits achievable from mergers. We believe IDOX is well positioned to benefit from further consolidation in its sector. FY07 net cash was ahead of our forecasts and with significant momentum in the core software division the shares look undervalued trading on a single digit P/E. Research type: Update - Full year results	Log in to download 5 page note available
Nov 19 2007	Positive update IDOX’s trading statement has confirmed that management has achieved continued growth in the IDOX business, integration of the CAPS acquisition and cost savings at the top end of our expectations. The successful acquisition of CAPS combined with new key contract wins increases our confidence in our 2008 PBT forecast. We view the management changes as positive. Research type: Update - Trading statement	Log in to download 4 page note available
Jul 09 2007	Interim progress IDOX’s interim results showed good progress in the software business and a return to profit in the information solutions business. More importantly the consolidation of the acquired CAPS business is on track and management are confident of achieving at least the target £1.5m of run-rate cost savings through H2. Research type: Update - Interim results	Log in to download 4 page note available
May 14 2007	Complementary deal IDOX has announced the acquisition of complementary public sector software and services business CAPS for £21m. Not only does this transform the scale of the business, it provides opportunities for cross-selling and cost reduction. If management can execute on cost cutting objectives, we forecast that in FY08 the group will have revenues of £33m, EBITDA of £6.7m and that the acquisition will enhance EPS for IDOX by nearly 50%. Research type: Update - Acquisition	Log in to download 9 page note available
May 05 2006	H1 trading update A lengthening sales and implementation cycle of increasingly large and complex software contracts means that trading will be H2 weighted. We have adjusted our forecasts to reflect a flat H1 but we continue to believe that demand from the public sector for document and records management solutions remains strong and IDOX is well positioned to grow market share and generate further cashflow. Research type: Update	Log in to download 4 page note available
Dec 12 2005	Public delivery Full year profits were ahead of our forecast, reflecting management focus on costs and growing demand for IDOX’s product and services. With positive recent management additions, a solid demand backdrop and potential alliances, we maintain our forecasts and believe the shares are +20% undervalued. Research type: Update - Full year results	Log in to download 4 page note available
Nov 08 2005	Full year in-line IDOX’s statement confirmed that trading has been as expected. As in our report of 19 September, our revenue forecast of £14.4m assumes organic growth across the group of 15% together with the first contribution from TFPL. We keep our pre-tax forecast of £1.4m unchanged. Our net earnings forecast (0.8p in 2005) assumes no tax as the company utilises tax losses. Research type: Update - Revenue forecast	Log in to download 2 page note available
Sep 19 2005	Public recognition IDOX is one of the market leaders in the provision of information management software and services for the UK public sector. Research type: Outlook - Initiation of Coverage	Log in to download 12 page note available

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Edison's research ... is balanced, objective and provides a level of detail not normally associated with smaller companies.

Peter Knowles
Director, Fyshe Horton Finney