14 December 2011 – final results
One of our favourite stocks, the software and IT services group IDOX, has announced final results for the year to 31 October revealing a 23% increase in revenues to £38.6m (2010: £31.3m) and a 36% jump in adjusted pre-tax profits to £10.9m (2010: 8.0m). Earnings per share on the same basis rose by 41% to 2.47p (2010: 1.75p) and the total dividend was raised by 33% to 0.60p (2010: 0.45p). At the end of the period net debt was £2.4m (2010: £0.90m) after funding £4.3m of acquisitions. These are clearly excellent results for the group with last year being a transformational period for the company. The acquisitions that have been made have helped to move the group away from its core public sector customer base into the wider corporate sector thus reducing its dependence on local government. The new financial year has started well with a strong order book and we continue to rate the shares as a BUY.