Compliance-based information management software provider Ideagen is set to continue to grow strongly this year even though it has lost business with the US department of Veteran Affairs (VA).
This contract contributed to last year’s figures but the second year is not going ahead because of a lack of funds.
In the year to April 2013, revenues improved from £4m to £6.51m through a combination of organic and acquisitive growth. Underlying pre-tax profit jumped from £1.08m to £1.87m, although this does not include the £2.09m impairment of acquisition goodwill of Proquis, which had the VA laboratories software contract.
Healthcare is the largest generator of revenues followed by aerospace and defence. The rest is made up of a range of other sectors.
Net cash was £6.37m at the end of April 2013. This was before the payment for recent healthcare software acquisition MSS. More acquisitions are likely.
Last year’s acquisition of healthcare software provider Plumtree has provided additional management for the group.
Recurring revenues are running at £3.4m a year. A deal with medical devices company Abbott Laboratories will provide additional recurring revenues from software for pathology results.
House broker finnCap forecasts a 2013-14 profit of £2.6m. The shares are trading on less than 13 times prospective 2013-14 earnings.
At 19.75p a share, Ideagen is valued at £24m.
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