Published on: June 15, 2021
Cloud-first approach is delivering results
Idox had previously announced that its continuing operations (excluding the disposed Content businesses) produced H1 2021E revenue and adjusted EBITDA of £31.1m (up 4% on H1 2020) and £10.1m (up 17%) respectively in the six months to the end of April 2021. The interim results also show that Idox continued to deliver on its strategic aims and ended the period with a strong balance sheet following the disposals. To us, Idox looks very well placed to continue good organic growth and to seek complementary businesses to add to the Group. We think that the strong momentum evident in the first half should combine with the recent earnings-enhancing acquisition of Aligned Assets to produce a good full year performance. To that end, we take the opportunity to nudge up our revenue expectations and positively adjust margin expectations, resulting in 3% upgrades to our adjusted EBITDA estimates and 4-5% to adjusted PBT.