CEO of Ideagen, Ben Dorks
- Adjusted EBITDA** on an IFRS16 basis grew 38% to £8.0 million (H1 2018: £5.8 million on an IAS17 basis)
- Adjusted EBITDA** on a like for like IAS17 basis (note 2) grew 30% to £7.5 million (H1 2018: £5.8 million).
- Adjusted diluted EPS*** increased by 17% to 2.31pence (H1 2018:1.98pence)
- 30% rise in revenues to £27.3m (£21m in H1 2018)
- Recurring revenues represented 74% of total revenue (67% in H1 2018)
- Annual Recurring Revenue book (ARR) was up 20% at approximately £43.9 million (£36.4 million at 30 April 2019)
- Acquisition-led growth of £3.8 million
- Organic growth of £3.7 million – 10% in period (H1: 2018 7%) 20% annualised
- 48% increase in SaaS bookings (H1 2018: 80%)
- Software as a Service (SaaS) bookings increased by 76% to £9.7m (H1 2018: £5.5m)
Last Wednesday Ideagen announced a strong performance in the first half of 2019, with both revenue and EBITDA significantly ahead of the same period last year, in line with expectations.
Revenues increased by 30% to £27.3m, recurring revenues represented 74% of total revenue (up from 67% in the same period in 2018) and SaaS (Software as a Service) bookings increased by 76% to £9.7m. This resulted in the business being able to deliver Adjusted PBT of £6m (up 25% from 2018), Adjusted EBITDA up 38% on 2018 to £8m and an increased Adjusted Diluted EPS of 2.31p (up 17% from 2018).
The success in 2019 was driven by both organic revenue growth and a number of acquisitions, including Redland Business Solutions Ltd (which was acquired in June 2019). The acquisition of Optima Diagnostics Ltd (acquired in October 2019) is expected to show a positive impact by the full year results
CEO of Ideagen, Ben Dorks, said: “We are pleased to report that we have achieved our objectives this year, significantly increasing the Group’s global footprint, particularly in the US, and delivered another year of strong revenue and profit growth, underpinned by excellent cash generation.
“Trading since the year end has remained robust and we continue to see strong demand for our products from new potential customers. The acquisition of Redland has further enhanced the Group’s portfolio of products and growing recurring revenues. Furthermore, the repeat business derived from more than 4,000 customers, provides the Board with confidence in the prospects for the Group for the current year and beyond.”
Ideagen enjoyed strong momentum in global sales with 273 ‘new logo’ SaaS customer wins and 140 ‘new logo’ on premise customer wins, including major companies such as Oxford Saudia and ExecuJet.
Mr Dorks added: “The Group has a clear and proven strategy to grow the business organically while continuing to identify and acquire businesses that offer strong synergies in terms of product, customers and geographical reach.
“Our markets remain significant and Ideagen is well positioned to deliver on opportunities across our strategic verticals and geographies.”
Ideagen develops software that allows businesses in regulated sectors, such as aviation, aerospace & defence, banking, manufacturing and pharmaceuticals, to meet their safety, compliance, audit and risk requirements. Household names, including the International Airlines Group, owners of British Airways and Iberia among others, Heineken and European Central Bank trust Ideagen to provide them with crucial software solutions.
Read the interim results report in its entirety here.
* Comparison calculated on a pro-forma basis as if acquisitions had been in the Group for the same period in the previous year
** Before share-based payments and exceptional items
*** Before share-based payments, amortisation of acquisition intangibles and exceptional items
