Idox Plc · LSE:IDOX
Idox — FY2019 Earnings Presentation
35 slides from Idox's earnings presentation, January 2020
Slide 1: Idox Results: Full year ended 31 October 2019 (FY19)
idox Idox Results Full year ended 31 October 2019 (FY19) Idox Investor Presentation a>
Slide 2: Agenda
• Operating divisions and our vision • Financial review • Operational review • One Idox: Strategy for future growth • Summary & outlook
Slide 3: Idox: leading provider of software for planning and regulatory services
Engineering Information Idox is a leading provider of software Management solutions for planning and regulatory Public Sector £9.2m 2019 Revenues services to UK Local Government, high Software £41.6m growth Public Sector Niches and 2019 Revenues Content £14.7m selected Private Sectors 2019 Revenues
Slide 4: FY19 highlights
Recurring • A year of significant operational change Revenue and commercial progress across Idox. £35.7m • All material legacy issues resolved. Revenue Net Debt 2018: £30.6m (restated) • Material reduction in Net Debt from £65.5m £26.4m improved cash generation which is Adjusted 2018: £66.4m EBITDA1
Slide 5: Operating divisions: PSS, EIM and Content
Public Sector Engineering Information Content Software (PSS) Management (EIM) • Specialist information management solutions • Engineering document management and • Funding and compliance solutions to and services to the public sector. control solutions to asset intensive industry Corporate, public a
Slide 6: Next generation public sector software leader
• A leader in the supply of Next Generation Public Sector Software. • One Idox bringing together our 3 Operating Divisions under our four pillars framework to focus operational excellence and • Modern solutions that deliver deep domain knowledge of leverage resources. regulatory services to our cust
Slide 7: Rob Grubb, Chief Financial Officer
Rob Grubb Chief Financial Officer
Slide 8: Finance function progress and priorities
✓ ❑ Implementation of strong management controls ✓ ❑ Secured long-term refinancing ✓ Secured short-term refinancing ❑ ❑ Extend and Improve underlying systems to industrialise processes and automate MI further ✓ New senior finance team ❑ ❑ Increase granularity and detail of monthly reviews ✓ ❑ Revenu
Slide 9: Financial highlights
Annualised Recurring • Idox has benefitted from new operational and financial Revenue Revenue at Year End management teams, and better controls and governance across all areas £65.5m £38.9m -1.4% + 20.1% • Software revenues rebased for IFRS 15 resulting in higher 2018: £66.4m (restated) 2018: £32.4m
Slide 10: Public Sector Software results
Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 45.0 13.0 30.0% 40.0 11.0 25.0% 35.0 9.0 20.0% 42.5 41.6 11.1 24.6% 26.5% 30.0 7.0 10.5 15.0% 25.0 5.0 10.0% FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 • Contributed 64% of Group revenue in FY19 (FY18: 64%) Revenues £’ms • Comprising Local Authority, El
Slide 11: Engineering Information Management results
Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 11.0 1.5 16.0% 10.0 1.4 15.0% 9.0 14.0% 1.3 8.0 13.0% 10.0 1.2 1.4 1.4 15.4% 7.0 9.2 12.0% 13.6% 6.0 1.1 11.0% 5.0 1.0 10.0% FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 • Contributed 14% of Group revenue in FY19 (FY18: 15%). Revenues £’ms • Sales decline
Slide 12: Content results
Revenues £ms Adj. EBITDA £ms Adj. EBITDA margin 17.0 2.0 14.0% 15.0 1.8 13.0% 13.0 1.6 11.0 12.0% 13.9 14.7 1.4 1.8 1.9 13.0% 9.0 11.0% 12.9% 7.0 1.2 5.0 1.0 10.0% FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 • Contributed 22% of Group revenue in FY19 (FY18: 21%). Revenues £’ms • Comprising Business Se
Slide 13: Income statement
£'ms FY2019 FY2018* Variance Revenue 65.5 66.4 (0.9) Adjusted EBITDA 14.4 13.6 0.8 D&A (normalised) (4.9) (4.4) (0.5) Interest (normalised) (1.7) (1.3) (0.4) • Restructuring due to FY19 H1 Adjusted Profit before tax 7.8 7.9 (0.1) transformation. Includes costs relating to Tax (2.2) 1.6 (3.8) settlin
Slide 14: Cash flow
£'ms FY2019 FY2018* Variance • Restructuring due to FY19 H1 transformation. Includes Adjusted EBITDA 14.4 13.6 0.8 costs relating to settling people, surplus property and Restructuring, acquisition & corporate finance costs (2.7) 0.1 (2.8) Working capital 1.3 1.3 - historic litigation. Taxation 1.0
Slide 15: Balance sheet
£'ms FY2019 FY2018* Variance Fixed Assets 87.2 80.0 7.2 Deferred tax assets & liabilities (2.6) (2.6) - Stock 0.1 0.1 - • Fixed asset increase following the acquisition of Trade & other receivables, and prepayments 12.7 14.1 (1.4) Tascomi in the year. Capitalised R&D offset by Trade & other payables
Slide 16: New borrowing facilities
• New multi-year committed borrowing facilities to December 2022 with option to extend for two further one-year renewal periods • Santander added to existing arrangements with NatWest and Silicon Valley Bank • Improved commercial terms and include a larger overall facility: o £35 million revolving c
Slide 17: Q1 FY20 trading update
• Significantly stronger financial performance with improved revenues and earnings compared to the same period last year. • Q1 financial performance is consistent with the Board’s expectations for FY20 as a whole. • Material reduction in closing net debt as at 31 January 2020 of £27.5m (FY19: £35.5m
Slide 18: FY20 outlook and targets
Revenue organic growth targets Margin targets Income Statement items • PSS high single digits for FY20, • Expecting step-up in FY20 margin due • Adoption of IFRS 16 additive to adjusted reducing to low single digits longer-term. to transformation depressing margins in EBITDA, but neutral at profit b
Slide 19: Dave Meaden, Chief Executive Officer
Dave Meaden Chief Executive Officer
Slide 20: Operating divisions by revenue contribution
Grants Consultancy Transport Facilities Healthcare: iFit Compliance Content £14.7m Management Public Sector Local Government Regulatory Services Software Grants Databases £42.6m (includes Tascomi) Engineering £9.2m Healthcare: Sexual Health Social Care Elections Circle sizes represents FY2019 approx
Slide 21: A more integrated business
Healthcare: Healthcare: iFit Sexual Health Compliance Over the past 12 months we have delivered a Grants Consultancy more integrated business, sharing: Transport Content • Corporate resources; £14.7m Grants Databases • A unified development and professional services approach; Local Government • Sing
Slide 22: One Idox: Strategy for future growth
idox One Idox Strategy for future growth 22
Slide 23: Walk, Run, Fly phases
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 • Extend reach in to adjacent and existing markets Fly Phase
Slide 24: Achievements and next priorities
✓ ❑ Exited loss-making Digital ✓ ❑ Exited loss-making and non-core emCare and Irish scanning business ✓ ❑ Sales governance (stopped doing poor deals) ✓ ❑ Exited Malta ✓ ❑ New Board, including Executive Management Team ✓ ❑ Established bottom-up 3 year planning process ✓ ❑ New Finance senior team ❑ Im
Slide 25: Revenue expansion and margin improvement
Revenue Expansion Margin Improvement • Growing profitable revenues through the movement from • Medium term target 30%; Uniform to Tascomi in core markets; • Revenue protection activity ensuring that margin leakage is • Transition of incumbent competitive clients from analogue to minimized; the cloud
Slide 26: Summary & Outlook
idox Summary & Outlook 26
Slide 27: Summary and confidence in FY20
FY19 repair complete and confident no more material issues remain Business well placed to improve EBITDA and cash conversion in FY20 and beyond. Focus on improving margins with cloud, continued integration and cost control Pursing growth from our suite of strong IP, augmented by selective bolt-on ac
Slide 28: Q&A
Q&A
Slide 29: Thank you
Thank you
Slide 30: Appendices
idox Appendices
Slide 31: Idox solutions and impact
Our solutions ensure that over 53,000 children and young people have better Our solutions 666 employees support over across 17 access to education and Every year our care to meet their We track 1-million users offices in 10 11.5 Million worldwide solutions facilitate specific needs countries patient
Slide 32: Divisions and business units
Division Business Unit Description PSS Local Software enabling council and other local authority and their residents to interact with each other and progress Government planning, building control and environment protection applications and other matters. PSS Transport Bespoke, cost-effective solutio
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Slide 34: Employee engagement programmes
Core Values Project Board Presentations to staff Awards Programmes Staff well-being programmes Alignment of Quarterly CEO staff T&C’s Broadcasts CSR programmes Regional all-staff conferences Supporting staff fund-raising Staff surveys
Slide 35: Inside Idox
Inside Idox Inside Idox Award Winners Patina Sorviex ‘MarjoloinPistoor J Coboboraive Contour Auke Ten Bokum silent Hero Stephan Wack Inatoogue oftheir Own: Mami Sait (urine Munnich Glasgow Ufetne Achievement Pranum Sorvicx sk Coloboraive Conbuios Stacey ODennelt Silent Here, Audrey Campbell InaLeogu