Ideagen (IDEA)

Sector:

IT Services

Index:

FTSE AIM 100

165.50p
   
  • Change Today:
      0.50p
  • 52 Week High: 207.00
  • 52 Week Low: 138.00
  • Currency: UK Pounds
  • Shares Issued: 226.62m
  • Volume: 266,731
  • Market Cap: £375.05m

Ideagen's revenue leaps as SaaS transition steams ahead

By Duncan Ferris

Date: Wednesday 17 Jul 2019

LONDON (ShareCast) - (Sharecast News) - Ideagen on Wednesday reported a jump in annual sales on the back of higher recurring revenues, though profits were flat following an increase in costs.
The integrated risk management software supplier's revenue for the year ended 30 April came in at £46.7m, up 29% compared to the year before, as the annual recurring revenue book was up 44% at approximately £36.4m, representing 67% of total revenue.

Shifting to an SaaS model, Ideagen is targeting £100m in run rate revenue by 2022, with recurring revenues representing a minimum of 75% of the total.

However, revenue growth over the past financial year was largely offset by a 30% increase in operating costs to £28.5m and a 23% jump in cost of sales to £3.9m after the acquisition of InspectionXpert, Morgan Kai, Scannell Solutions and IPI.

Consequently, profit before tax edged 1% lower to £1.4m.

Ben Dorks, chief executive of Ideagen, said: "The group's focus this year was on the execution and delivery of our growth strategy, both organically and through acquisitions, whilst continuing the transition to a SaaS based business model. 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."

The AIM traded company added that the board remained confident in the group's prospects as trading since the year end had remained robust as strong demand continues, while acquisitions made during the previous year were performing well, and the company's base of over 4,700 customers continues to generate growing recurring revenues and repeat business.

Analysts at Canaccord stated that the stock was "attractive" due to the growth of its contractually recurring revenues and scope for organic growth acceleration in the next 12-24 months as the company begins to convert its maintenance base to a SaaS model.

In a research note, the broker added that most listed enterprise software peers with similar characteristics traded on materially higher valuations, with analysts now seeing the potential for an 80% market cap uplift on a two to three-year view should management deliver on its revenue ambitions in 2022.

Ideagen's shares were up 1.18% at 146.20p at 1153 BST.

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Ideagen Market Data

Currency UK Pounds
Share Price 165.50p
Change Today 0.50p
% Change 0.30 %
52 Week High 207.00
52 Week Low 138.00
Volume 266,731
Shares Issued 226.62m
Market Cap £375.05m

Ideagen Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.53% below the market average99.53% below the market average99.53% below the market average99.53% below the market average99.53% below the market average
95.83% below the sector average95.83% below the sector average95.83% below the sector average95.83% below the sector average95.83% below the sector average
Price Trend
66.14% above the market average66.14% above the market average66.14% above the market average66.14% above the market average66.14% above the market average
47.57% above the sector average47.57% above the sector average47.57% above the sector average47.57% above the sector average47.57% above the sector average
Income
95.34% below the market average95.34% below the market average95.34% below the market average95.34% below the market average95.34% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
84.32% above the market average84.32% above the market average84.32% above the market average84.32% above the market average84.32% above the market average
84.95% above the sector average84.95% above the sector average84.95% above the sector average84.95% above the sector average84.95% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Ideagen Dividends

  Latest Previous
  Interim Final
Ex-Div 27-Feb-20 07-Nov-19
Paid 18-Mar-20 26-Nov-19
Amount 0.10p 0.19p

Trades for 10-Jul-2020

Time Volume / Share Price
16:04 46,260 @ 165.00p
17:04 5,000 @ 165.50p
16:28 8,500 @ 165.50p
16:28 8,500 @ 165.50p
16:28 8,500 @ 165.50p

Ideagen Key Personnel

CEO Ben Dorks
COO Barney Kent
CFO Emma Hayes

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