Compliance software supplier Ideagen continues to report growth in revenues and profit.
Ideagen made the move from Plus-quoted to Aim at the beginning of July. The document management, compliance and standards management software supplier had already stated its intention to move to AIM last year in order to attract additional investors.
The company is two decades old and founder Les Paul is still on the board. It was known as Datum International when it joined Plus-quoted in 2005 and the name was changed last year. The pace of growth increased after chief executive David Hornsby joined the board in 2009.
Ideagen has made three acquisitions since 2010 with the most recent being web-based compliance software supplier Proquis in January. Just before it was bought Proquis won a contract with the US Department of Veterans Affairs potentially worth $10.7m over five years. The contract covers reusable medical equipment in the departmentís hospitals and provides a base to expand into the rest of the US healthcare market.
Proquis is an important element of the companyís growth strategy because it provides access to larger clients via its web-based services. Ideagen will cross-sell between users of Proquis and Ideagenís KnowledgeWorker enterprise content management software. Further acquisitions are likely. These could add new customers and products.
In the year to April 2012, revenues were 78% higher at £4m with organic growth of the core operations of 38%. Recurring revenues of £3.3m cover 90% of the fixed cost base. Underlying pre-tax profit more than doubled to £1.08m. This excludes the cost of moving to AIM and acquisition costs.
There was £1.5m in the bank at the end of April 2012. Net cash is £1.1m.
House broker finnCap forecasts a £1.7m profit in 2012-13.
At 16.5p a share, up 1.5p, Ideagen is valued at £13.3m and the shares are trading on ten times prospective 2012-13 earnings.
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