Idox : Investor factsheet 2021

Spring 2022

Investor Factsheet FY21

In FY21, we reported another year of strong financial performance and operational execution, continuing to deliver good progress against the Group's strategic goals.

Overview

Our business process engines drive the performance of public sector and industry. Through our deep understanding of operations and regulatory requirements in our chosen markets, our software joins teams together, automates tasks and enables better ways of working.

The value we create for our customers supports improved efficiency, reduced operational costs, greater accuracy, and faster delivery.

Financial review

• Revenues up 9% in the year, driven by strong increase in non-recurring revenues.
• Recurring revenues continue to grow following a focus on SaaS solutions across our business, and contributions from our acquisitions made in the second half of the year.
• Step up in earnings due to high quality revenue expansion and ongoing operational diligence across the Group.
• Another strong cash performance leading to a further material reduction in Net Debt.
• Good financial resources to transact further bolt-on acquisitions.
• Final dividend of 0.4p per share (2020: 0.3p) declared, reflecting the strong cash generation and healthy financial position of the Group.

* Adjusted EBITDA is defined as earnings before amortisation, depreciation, restructuring, acquisition costs, impairment, financing costs and share option costs.

Financial review

Public Sector Software

Comprising Local Authority, Idox Cloud, Elections, CAFM, Social Care, Transport,

Databases UK, Health and FY21 GIS acquisitions

Revenue increased strongly again in the year due to ongoing improved execution across all functions following the changes and investments made over the past 36 months, plus a partial-year contribution from acquisitions made in the second half of the year (£1.8m).

• Recurring revenues up in Local Authority (including Idox Cloud), and due to partial-year contribution from acquisitions made in the second half of the year, but this was tempered by small decreases in elections (planned consolidation of products), in social care (COVID-19 impacted) and health (planned exit from Malta).
• Non-recurringrevenues were up across the portfolio, with a large increase YoY in Local Authority. Approximately half the increase was due to signing new term agreements from existing customers which whilst repeating over time, can fluctuate from one period to the next.
• Closing order book of contracted, non-recurring revenues of £8.5m (FY20: £12.0m), as our large Metrolinx and Scottish eCount projects were delivered in FY21.

Adj. EBITDA significant increase of £2.4m largely due to the high-margindrop-through of incremental revenue, and continued discipline on costs.

Engineering Information Management

Comprising on-premise McLaren and cloud-native FusionLive

Revenue decreased slightly in the year as the business reorganised in late FY20/early FY21.

• Recurring revenues down due to cancellation of two existing customers (one per the investor presentation and COVID-19) impact due to corporate activity, which was not mitigated to the extent anticipated in new sales. The broader energy market is still difficult, however the business is continuing to win new engagements in alternative sectors.
• Non-recurringrevenues were up as order intake for new business improved, and utilisation rose with the integration in to Idox Software.
• Closing order book of contracted, non-recurring revenues of £1.0 million (FY20: £1.4m).

Adj. EBITDA slight decreased despite the decrease in revenues as the benefits of integration to Idox Software operations and management structure are realised.