14 June 2011 – interim results

Very strong results have been reported by IDOX, covering the six months ended 30 April 2011.  Revenue was up 21% to £18.1m (2010: £15.0m) and recurring revenues were 65% of group revenue versus 61% a year earlier.   Adjusted pre-tax profits were up 56% to £4.7m (2010: £3.0m) but reported pre-tax profit was down 8% to £2.0m (2010: £2.1m) due to higher non-cash intangible amortisation and share option charges.  Adjusted earnings per share came in at 1.01p and basic earnings per share were 0.41p (2010: 0.42p).  The interim dividend was lifted by 140% to 0.24p per share (2010: 0.1p). 

We believe that IDOX has a bright future.  Four earnings-enhancing acquisitions were completed in 2010, followed by another in early May.        Cash stood at £4.1m after funding the acquisitions in 2010, increasing the dividend and paying off remaining debt early.  We continue to rate the shares as GOOD VALUE despite their strong run.