IDOX shares increased 0.6% to 62.8p in early afternoon trading on Thursday, following an expected revenue growth of 7% to £33 million reported in its HY1 2022 trading upate.
The software company announced an anticipated adjusted EBITDA uptick of 8% to £11 million, alongside a net debt reduction of over 50% to £4 million from £8.1 million on 31 October 2021.
IDOX confirmed that its robust performance was currently in line with executive expectations, with a selection of operational highlights driving its positive growth.
The group commented that its order intake increased 7% year-on-year, with a strong pipeline underpinning its confidence over the medium term.
The firm also mentioned a series of contract wins and extensions with increased average tenure across its Public Sector Software and Engineering Information Management sectors.
IDOX further reported the successful integration of its 2021 acquisitions and the continued upscaling of its Pune, India centre of excellence to boost efficiency, capability and knowledge-sharing.
“Following the disposal of the Content businesses in 2021 Idox entered 2022 as a focused software and related services business. As a result of the focus on our core strengths and attention to operational excellence, we have delivered another solid financial performance for the first half of our financial year,” said IDOX CEO David Meaden.
“Idox benefits from an extensive customer base, a healthy orderbook, and a strong pipeline. In addition, we continue to explore a number of attractive M&A opportunities and maintain a strong balance sheet to execute upon the ‘fly’ phase of our journey.”
“Whilst we continue to be cognisant of ongoing challenges in the wider macro environment, we remain focused on, and are on track to deliver on our plans for the remainder of 2022.”
IDOX is reportedly scheduled to announce its HY1 2022 full results on Wednesday 15 June 2022.
