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UK — IDOX claims resilience against government spending cuts

07 July 2010
IDOX Plc (IDOX:LSE), the supplier of software and services to the UK public sector, has announced a trading update for the six months to 30 April 2010.
 
Revenues were down by -5% from 15.74 million Pounds a year earlier to 14.96 million Pounds this year. Recurring revenues are now 61% of group revenues.

Reported pre-tax profits were up by +14% from 1.9 million Pounds in H1 2009 to 2.1 million Pounds in H1 2010. Normalised pre-tax profits were up by +10% from 2.8 million Pounds last year to 3 million Pounds this year.

IDOX Chairman, Martin Brooks, said "our continued focus on service and quality, combined with a growth in recurring revenues and a reduction in costs, has built a high degree of resilience against the uncertainties of the government's future spending plans."

"The new UK coalition government has outlined its initial plans for savings ahead of a three year comprehensive spending review to be published on 20 October 2010. The board's view is while this may cause delays in commitment, the healthy level of current tender activity indicates that many local authorities recognise that IDOX and other software suppliers are critical to achieving the necessary efficiencies demanded by government."

In early trading IDOX's shares were down by -2.13% to 11.50 Pence.

 

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