Idox Plc · LSE:IDOX
Idox — H1 FY2022 Earnings Presentation
20 slides from Idox's earnings presentation, June 2022
Slide 1: Half Year FY22 Results Presentation
Idox plc Half Year FY22 Results Presentation
Slide 2: Agenda
Agenda • H1 FY22 Highlights • Financial Review • Strategy and Operations • Buy and build • ESG • Outlook David Meaden Anoop Kang CEO CFO 2
Slide 3: Good performance whilst advancing strategy to focus on software businesses
Idox plc “Good performance whilst advancing strategy to focus on software businesses” Over 90% of local UK authorities are customers for one or more of our products 1,200+ customers & 500+ employees with offices in the UK, Europe and India Continuing revenues c.£70 million* & adjusted EBITDA margin
Slide 4: H1 FY22 Highlights
H1 FY22 Highlights • Order intake of c.£40m, up 15% from H1 FY21, with strong pipeline underpinning The first half of FY22 has seen a our confidence over the medium term. robust operational and financial performance. • Contract wins and extensions with increased average tenure across both our Public
Slide 5: H1 FY22 Highlights
H1 FY22 Highlights • Revenues up 7% in the period, driven by strong contribution from FY21 acquisitions Revenue Recurring Revenue Adjusted EBITDA* • Recurring revenues now account for 60% of Group £33.2m £19.8m £11.0m revenues +7% +13% +8% • Step up in earnings driven by FY21 acquisitions H1 FY21: £
Slide 6: Financial Review Public Sector Software
Financial Review Public Sector Software Comprising Local Authority, Idox Cloud, Elections, CAFM, Social Care, Transport, UK Databases, Health and FY21 GIS acquisitions. Revenue increased 10% in the period due to ongoing solid execution following the changes and investments made over the past 36 mont
Slide 7: Financial Review Engineering Information Management
Financial Review Engineering Information Management Comprising on-premise McLaren and cloud-native Fusion Live • Revenue decreased in the period: • Recurring revenues down due to continued challenging market conditions and the non-renewal of two key clients. The broader energy market remains challen
Slide 8: Financial Review Income Statement
Financial Review Income Statement £'m H1 FY22 H1 FY21 Variance Revenue 33.2 31.1 2.1 Adjusted EBITDA 11.0 10.1 0.9 • Adjusted EBITDA up 8% due to revenue improvements positively impacted Depreciation & Amortisation (3.4) (3.3) (0.1) by FY21 acquisitions. Adjusted EBIT 7.6 6.8 0.8 Interest (0.7) (0.4
Slide 9: Financial Review Balance Sheet
Financial Review Balance Sheet £'m H1 FY22 H1 FY21 Variance Fixed Assets 92.9 72.6 20.3 Deferred tax assets & liabilities (4.1) (2.0) (2.1) • Fixed asset increase due to acquisitions the second half of FY21 – goodwill, other intangibles and development costs. Trade & other receivables, and prepaymen
Slide 10: Financial Review Cashflow
Financial Review Cashflow £'m H1 FY22 H1 FY21 Variance Adjusted EBITDA 11.0 10.4 0.6 Restructuring, acquisition & finance costs (0.2) (0.1) (0.1) • Working capital lower due to the timing of certain creditor payments falling into H1 FY22 Working capital 2.7 7.5 (4.8) compared to the second half of F
Slide 11: Financial Review Future guidance
Financial Review Future guidance Revenue organic growth targets Margin targets • PSS aiming for organic, mid-single digit growth. • Targeting adj. EBITDA margin of 35% over the medium term as operational improvements • EIM continued transition to SaaS; net overall continue, and bolt-on acquisitions
Slide 12: Strategy and Operations Delivering Success
Strategy and Operations Delivering Success EV £500m+ Fly Recurring revenue 75% EBITDA margin 35% Market Cap £280m Revenue £66.1m Adj. EBITDA £19.8m Run Net Debt £8.1m ARR 56% Market Cap £235m EBITDA margin 30% Revenue £68.0m Focus on core software businesses Walk Adj. EBITDA £19.6m Focus on Product
Slide 13: Strategy and Operations Four Pillars
Strategy and Operations Four Pillars Revenue expansion Margin improvement Simplicity Communication • Order intake continued to grow, • Continued investment in Idox • Stratification of the sales teams • Regular and open helping to support the in-year India expanding our operational has provided a gre
Slide 14: Strategy and Operations Fly Phase
Strategy and Operations Fly Phase Within our ‘Fly’ phase, our aims, under our organisational Four Pillars, are: Organic growth Buy and build Improved MI and Invested in Idox India more automation Industry Product Public Own IP Move products to cloud Sector Software Increase market shares and away fr
Slide 15: Buy and Build Progress to-date
Buy and Build Progress to-date July 2019 June 2021 August 2021 October 2021 Integration Extensive expansion Dedicated Consultancy and Legal, finance, HR of selling capacity, marketing Support provided and admin commercial campaigns by existing Idox transferred to Idox engagements earlier resources G
Slide 16: Buy and Build Growth plans
Buy and Build Growth plans Sourcing a number of bolt-on acquisitions to accelerate growth. Example target acquisition profile • Targeting niche, well-respectedExample softwaretarget acquisition businesses with theprofile opportunity to Owner-manager business that has scaled to 30 – 50 take to a wide
Slide 17: ESG Responsible Idox
ESG Responsible Idox Conducting business responsibly is core to Idox’s business model and long-term strategic goals. Our people Our community Our environment Our organisational responsibility To build a diverse and To support and enable our As a naturally low emission To be a responsible inclusive w
Slide 18: ESG Responsible Idox
ESG Responsible Idox Idox has been building its approach to ESG over several years. Its vision in building and enabling a responsible business is to focus its efforts on grassroot approaches, that create value for all stakeholders. Environmental Protection Social responsibility • Reporting within th
Slide 19: Positive and resilient outlook
Positive and resilient outlook Good performance whilst advancing strategy to focus on software businesses. Cognisant of wider macro factors but our markets, software solutions and high levels of recurring revenues provide resilience and visibility for the remainder of FY22. Sales pipeline is positiv
Slide 20: Q&A
Q&A For further information please contact: investorrelations@idoxgroup.com © Idox plc. Ideas, solutions, suggestions, hints and procedures from this document are the intellectual property of Idox plc and thus protected by copyright. They may not be reproduced, transmitted to third parties or used i