Idox Plc · LSE:IDOX
Idox — FY2020 Earnings Presentation
29 slides from Idox's earnings presentation, February 2021
Slide 1: Idox plc Financial Year Ended 31 October 2020 (FY20)
Idox plc Financial Year Ended 31 October 2020 (FY20)
Slide 2: Idox plc
Idox plc A leading supplier of specialist information management software and solutions Over 90% of local UK authorities are customers for one or more of our products 8,000+ customers & 600+ employees with offices in the UK, USA, Europe and India Revenue £68 million for FY20 with an Dave Meaden Rob
Slide 3: Introduction to Idox
Introduction to Idox Dave Meaden Chief Executive Officer
Slide 4: Summary of Idox
Summary of Idox Healthcare Grants Consultancy Idox Software Transport Compliance Content • Public Sector Software (PSS) - providing legislative compliance and FY20 revenues £10.7m document process management software, in a variety of applications within local government and NHS UK Grants Databases S
Slide 5: Investment Case
Investment Case • Significant UK market brand and presence in stable core domains • Refreshed management team and board delivering ongoing change • Good organic revenue growth (mid to high single digit) • Strong visibility of revenues from high levels of recurring revenues • High operating margins w
Slide 6: Delivering Our Three-Phase Strategy
Delivering Our Three-Phase Strategy Fly Run Market Cap £235m Revenue £68.0m EBITDA £19.6m Net Debt £16.1m Walk Market Cap £130m Improved Management Information for better decisions Revenue £65.5m Tighter product and infrastructure management EBITDA £14.4m Net Debt £26.4m Tighter management of sales
Slide 7: FY20 Financial Highlights
FY20 Financial Highlights Recurring • Strong strategic delivery following the extensive transformation Revenue across the Group in FY2019 Revenue £37.4m Net Debt • Improved operating margins following improvements to 2019: £35.7m revenue governance and cost control £68.0m Adjusted £16.1m • Further m
Slide 8: Financial review
Financial review Rob Grubb Chief Financial Officer
Slide 9: FY20 Financial highlights
FY20 Financial highlights Strong financial performance despite COVID-19 Revenue Recurring Revenue Adjusted EBITDA* disruption • Recurring revenues continue to grow following more £68.0m £37.4m £19.6m normalised revenue recognition and a focus on SaaS solutions across our business. +4% +5% +36% FY19:
Slide 10: Idox Software – Public Sector
Idox Software – Public Sector Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 60.0 18.0 40 .0 % 16.0 35 .0 % 50.0 14.0 30 .0 % 40.0 12.0 25 .0 % 10.0 16.6 30.0 20 .0 % 20.0 44.9 48.4 8.0 6.0 12.4 15 .0 % 27.6% 34.3% 10 .0 % 4.0 10.0 2.0 5.0% - - 0.0% FY19 FY20 FY19 FY20 FY19 FY20 Comprising Local Au
Slide 11: Idox Software – Engineering Information Management
Idox Software – Engineering Information Management Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 10.0 2.5 25 .0 % 9.0 8.0 2.0 20 .0 % 7.0 6.0 1.5 15 .0 % 9.2 8.9 5.0 4.0 1.0 2.0 10 .0 % 22.4% 3.0 2.0 0.5 1.4 5.0% 15.4% 1.0 - - 0.0% FY19 FY20 FY19 FY20 FY19 FY20 Comprising our existing on-premise M
Slide 12: Idox Content – Compliance and Grants
Idox Content – Compliance and Grants Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 12.0 1.2 10 .0 % 9.0% 10.0 1.0 8.0% 7.0% 8.0 0.8 6.0% 6.0 4.0 11.4 10.7 0.6 0.4 1.0 5.0% 4.0% 9.3% 0.6 4.9% 3.0% 2.0% 2.0 0.2 1.0% - - 0.0% FY19 FY20 FY19 FY20 FY19 FY20 Comprising Compliance (Germany and Belgium) a
Slide 13: Income Statement – Financial review
Income Statement – Financial review • Adjusted EBITDA up due to revenue improvements primarily in Idox Software: £'ms FY20 FY19 Variance Public Sector, margin improvements across the Group, and adoption of IFRS Revenue 68.0 65.5 2.5 16 Leases which contributed an additional £1.4m. Adjusted EBITDA 19
Slide 14: Balance Sheet – Financial review
Balance Sheet – Financial review £'ms FY20 FY19 Variance • Continued focus on cash management has trade receivables remain consistent Fixed Assets 82.9 87.2 (4.3) despite the increase in revenue. Deferred tax assets & liabilities (2.8) (2.6) (0.2) Stock - 0.1 (0.1) Trade & other receivables, and pre
Slide 15: Cashflow – Financial review
Cashflow – Financial review £'ms FY20 FY19 Variance • Restructuring cash outflows in respect of Ireland and Malta exit; and refinancing Adjusted EBITDA 19.6 14.4 5.2 Restructuring, acquisition & finance costs (1.0) (2.8) 1.8 professional fees. Working capital 4.2 1.4 2.8 Taxation (2.1) 1.0 (3.1) Dis
Slide 16: Financial review – Future guidance
Financial review – Future guidance Revenue growth targets Margin targets Other income statement items • PSS high single digits for FY20, reducing to • Existing target adjusted EBITDA margin of • Currently no planned restructuring or mid-single digits longer-term. Looking to 30%. FY20 recorded 29% in
Slide 17: Operations and strategy
Operations and strategy Dave Meaden Chief Executive Officer
Slide 18: FY20 Operational highlights
FY20 Operational highlights Idox has continued to improve all areas of the business within its Four Pillars framework during FY20 • Fully integrating our 2019 Tascomi acquisition, recently rebranded as ‘Idox Cloud’; • Significant progress in delivering Digital Transformation to clients with several
Slide 19: Our Four Pillars Strategic Framework
Our Four Pillars Strategic Framework Gross margin Organisational Information and Revenue expansion improvement simplicity communication • Implementation of Idox’s first • Establishment of Idox Cloud and • Focus on efficient, common • Transparency and consistency are group-wide CRM. prioritising SaaS
Slide 20: Our Strategy – Firmly in Run Phase, preparing for Fly
Our Strategy – Firmly in Run Phase, preparing for Fly Walk Phase (FY19) • Create momentum in the plan • Be more ambitious about profitable growth • Execute with greater focus and discipline Run Phase (FY20) • Build momentum in the plan • Win bigger deals and make a step change in the business • Exte
Slide 21: Environmental, Social, Governance
ESG Social Governance Environmental • The Group participates in the • Wellbeing and mental health • In October 2020, Idox Energy Saving Opportunities is a key focus. The Idox received a Full Pass with no Scheme (ESOS) and meets Workplace Wellbeing team non-conformances under a the requirements of th
Slide 22: Run & Fly phases
Run & Fly phases As we move into the ‘Fly’ phase, our aims, under our organisational Four Pillars are: Organic growth Buy and build Improved MI and Improved on-shore / more automation off-shore mix Industry Product Public Own IP Move products to cloud and Sector Software Increase market shares away
Slide 23: Markets – demand trends
Markets – demand trends COVID 19 Idox Software Migration to cloud to reduce IT estate. Idox successfully manoeuvred the COVID-19 pandemic Public Sector Move to digital to improve resident and client flexibility. with little impact to the business internally. Idox did not utilise any government job r
Slide 24: Inorganic Growth Plans
Inorganic Growth Plans Idox planning for a number of bolt-on acquisitions to accelerate growth Example target acquisition profile • Looking to leverage the existing strong management team, Idox brand and Owner-manager business that has scaled to 30 – 50 market presence, and operational infrastructur
Slide 25: Summary and outlook
Summary and outlook Objectives achieved for FY20, with continuing strong financial performance within our Four Pillars framework Consolidation and operational improvements made across sales, product and delivery as all software assets moved to a single operating model: Idox Software Looking to exten
Slide 26: Q&A
Q&A 26 idox
Slide 27: Appendix
Appendix 27 idox
Slide 28: Markets - competitors
Markets - competitors Business Unit Competitive Landscape Local authorities, including: Idox is largest player, competing with large incumbents such as Northgate, Capita and Civica; supplemented by a sizeable community of nicheIdox successfully vendors (formanoeuvred example DEF,the CV-19 Agile pand
Slide 29: Significant shareholders as at 1 February 2021
Significant shareholders as at 1 February 2021 Canaccord Genuity Wealth Management 19.0% Soros Fund Management 12.5% Kestrel Partners 11.0% Long Path Partners 10.0% Herald Investment Management 7.0% Lombard Odier Asset Management 5.0% ORA Capital 4.8% Gresham House 3.9% Total > 3% 73.2% 29