IDOX (AIM: IDOX) – mildly disappointing results, but remaining highly cash generative.
IDOX is a supplier of software solutions and services to the UK public sector and increasingly to the wider corporate sector. Today the Group has released its financial results for the six months ended 30th April 2015. Although financially the results are not all that positive, the Group maintains a positive outlook for the remainder of the financial year and with cash flowing it could be an interesting one to follow at current levels.
Revenue remains unmoved from the previous year at £29.6m, although public sector revenue increased 14% to £22.5m. This increase was largely driven by the UK general and local elections, as IDOX delivered services to 25% of councils across the UK. Elections business continues in the second half of the financial year, as they have been appointed to offer software services during the Norwegian elections taking place later this year. The Group also added further software services contracts, with a combined value of £1.4m, to the existing customer base. The Local Government market remains key to the Group, but IDOX has…