Idox Plc · LSE:IDOX
Idox — FY2022 Earnings Presentation
20 slides from Idox's earnings presentation, Jan 26, 2023
Slide 1: Idox plc Financial Year Ended 31 October 2022
Idox plc Financial Year Ended 31 October 2022 26 January 2023
Slide 2: Agenda
Agenda • FY22 Highlights • Financial review • Strategy and operations • Buy and build • ESG • Outlook David Meaden Anoop Kang CEO CFO Financial Year Ended 31 October 2022 2
Slide 3: Operational highlights FY22
Operational highlights FY22 Record full year order intake in up Further enhancement of the Group’s Continued upscaling of Pune, India, 19% to £74m on FY21 (£62m), geographic information system centre of excellence to increase providing good visibility into FY23. mapping (Geospatial)capabilities with
Slide 4: Financial review
Financial review Anoop Kang Idox plc – FY Results presentation 4
Slide 5: Financial highlights FY22
Financial highlights FY22 • Positive impact of FY21 acquisitions on revenue. • Recurring revenues increased in the year £66.2m £40.5m £74m with strong performance in local FY21: £62.2m FY21: £36.3m FY21: £62m government, Idox Cloud and FY21 acquisitions. Revenue Recurring revenue Order book +6% +12%
Slide 6: Financial review Public Sector Software
Financial review Public Sector Software Revenues £m Adj. EBITDA £m 70.0 25.0 60.0 20.0 Revenue increased 8% in the year due to continued 50.0 15.0 40.0 30.0 54.1 58.3 21.0 implementation of our strategic initiatives, and strong contribution 18.0 10.0 48.4 20.0 5.0 15.5 from FY21 acquisitions. 10.0 -
Slide 7: Financial review EIM
Financial review EIM Revenues £m Adj. EBITDA £m 10.0 1.8 9.0 1.6 8.0 1.4 7.0 FY22 Revenue broadly flat at £7.9m with improved 1.2 6.0 1.0 1.7 5.0 8.9 8.1 1.6 1.5 second half performance. 0.8 4.0 7.9 0.6 3.0 0.4 2.0 • Recurring revenues stable with good wins in the H2 FY22. While 0.2 1.0 - - FY20 FY2
Slide 8: Financial review Income Statement
Financial review Income Statement • Adjusted EBITDA up 15% due to mix and pricing. • Increased finance charges driven by reversal of 2021 FX gains on Euro denominated bond. • Adjusted Tax ETR stable at c.19%. • Restructuring costs driven by corporate simplification initiatives. • Share option charge
Slide 9: Financial review Net debt movement
Financial review Net debt movement 15 18.3 10 2.6 5 2.4 £m 0 7.6 (5) 1.8 1.1 0.9 0.5 6.7 8.1 (10) FY21 Cash generated by Tax M&A Capex including Dividends Interest Lease costs Other FY22 operations R&D Financial Year Ended 31 October 2022 9
Slide 10: Financial review Balance Sheet
Financial review Balance Sheet • Deferred tax movements attributable to finalisation of FY21 acquisition accounting, share options and tax rate movements. • Trade and other receivables down due to finalisation on disposal of Content businesses. • Provisions movements driven by finalisation of legacy
Slide 11: Financial Review Future guidance
Financial Review Future guidance Revenue organic growth targets Margin targets • PSS aiming for organic, mid-single digit growth over the medium term. • Targeting a sustained adj. EBITDA margin of 35% over the medium term as operational improvements continue, and bolt-on acquisitions • EIM continued
Slide 12: Strategy and Operations
Strategy and Operations David Meaden Idox plc – FY Results presentation
Slide 13: Our strategy at a glance
Our strategy at a glance Our strategy Walk, run, fly The Four Pillars Walk (FY19) Create momentum in the plan Run (FY20) Revenue Margins Simplification Communication Build momentum in the plan Fly (Now) Develop and grow core software businesses Our values Financial Year Ended 31 October 2022 13
Slide 14: Strategy and Operations Delivering Success
Strategy and Operations Delivering Success EV £500m+ Fly Recurring revenue 75% EBITDA margin 35% Market Cap c£300m Revenue £66.2m Adj. EBITDA £22.5m Run Net Debt £6.7m ARR 61% Market Cap £235m EBITDA margin 34% Revenue £68.0m Focus on core software businesses, promoting digital and path to cloud Wal
Slide 15: Our focus on growth
Our focus on growth Our specialist software solutions, built on insight, power the performance of government and industry, driving productivity and a better experience for everyone. Our software supports: Over 90% of local UK authorities are customers for Land, property and public Community Assets o
Slide 16: Strategy and Operations M&A
Strategy and Operations M&A Recently, by adding In H2 FY22 we held more domain and Investment in M&A The pipeline remains discussions with circa 40 product knowledge in to Three acquisitions in process in early FY22 Acquired LandHawk in active, with businesses advancing to the process, we are FY21 w
Slide 17: Exploring our investment in Geospatial
Strategy and Operations Exploring our investment in Geospatial Following our five acquisitions in recent years, we now consider we have some of the best Geospatial capabilities and products in the UK which are essential to UK land & property infrastructure. The story so far Future plans Our solution
Slide 18: ESG Responsible business
ESG Responsible business Idox has committed to achieving net zero carbon emissions by 2040, we are currently working in advance of this target. Total CO2 (Tonnes) Year on Year change Change from baseline year • Underpinning all our environmental protection 253 68% (65%) and impact reduction initiati
Slide 19: ESG Our people inspire our journey
ESG Our people inspire our journey In FY22, we created our Dare to be Different survey. The optional survey is the beginning of our DEI measurement. We found out more about our colleagues including that we have: 15 13% 13% 16 ethnicities of colleagues of colleagues religious within the are from the
Slide 20: Outlook
Outlook • FY23 has started well, in line with the Board’s expectations. • High levels of recurring revenue, contract renewals, orderbook and pipeline, providing good visibility which leaves us well placed to grow the business by double digits in FY23. • Continued investment and growth of products, i