15 November 2011 – trading update and acquisition
A trading update has been provided for the year ended 31 October 2011. The trading year ended strongly and the company expects to report EBITDA and normalised pre-tax profit in line with market expectations and well ahead of the 2010 financial year. Results are due out on 14 December.
Perhaps more importantly, the acquisition of CTSpace, an engineering and construction sector document management and control business, has also been revealed. The business is being bought for £11.6m in cash from Sword Group. CTSpace is headquartered in London and had revenues of £12.7m, which generated pre-tax profit of £1.3m for the year ended 31 December 2010. CTSpace had cash at completion of £0.5m. IDOX will fund the acquisition entirely from a new term and revolving credit facility through its existing relationship with Lloyds Banking Group. The shares remain a BUY.