Idox plc
Analysts
Company Descriptions
Idox is a software business selling to UK public sector and global engineering clients. Idox has a strong position in software for Local Authority and other UK governmental organisations, including a significant presence in the market for voting software and in software for the NHS, through its Public Sector Software (PSS) division. The group is also active in the market for Engineering Information Management software (EIM), on a more global basis. The group is now transitioning to the third stage of its three-stage plan, involving both organic and inorganic revenue growth, focus on margin expansion and ongoing migration towards more Cloud-delivered and Software-as-a-Service (SaaS) offerings. In addition to revenue growth and margin enhancement, Idox sees organisational simplicity and information/communication as key pillars of its strategic framework.
Investment Summary
The group has been through a significant period of refocus and revitalisation over the past few years. The new management team has driven a process of material change, and has refined the focus and strategic outlook for the business; this has resulted in clear plans for the Government and Engineering segments, and the disposal of the previously-owned Compliance businesses. In the Government arena, we see more spending on technology to transform and improve public service delivery; this should provide opportunities for both organic growth and M&A activity to continue consolidating the space. In the Engineering market, we expect organisations to continue to evolve their offerings and digitalise both their information databases and their workflows, all of which should play to the Idox Engineering division's strengths.
