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UK – Idox recruitment revenues drop

12 December 2012

IDOX (AIM: IDOX), a supplier of software, recruitment and information & consultancy services, today reported that revenue for the year ended in October  grew by +50% to £57.9 million, following  five acquisitions made in 2012 and strong organic growth.

But revenues in the firm’s recruitment business dropped by -19% to £2.5 million, mainly driven by a decline in the contract recruitment business. Gross profit in this segment was flat at £1.3 million, due to a shift in mix toward the higher margin permanent recruitment business.

Overall, the firm’s profitability remained on track. Total gross profit in the period was up +54% to £51.4 million with the gross margin rose from 87% to 89%. Operating profit also rose by +41% to £8.2 million. Profit after tax, attributable to shareholders, increased +49% to £6.8 million.

Chairman Martin Brooks said: “We have enjoyed further transformation in 2012, driven by strong organic growth and our continuing acquisition programme in both our major software divisions.

“We have implemented a strategy of diversification for the future in order to increase our geographic spread and work towards revenue parity between our operations in the public and private sectors. This strategy is progressing well, as we report 31% of revenue coming from our Engineering Information Management business and 31% of revenue being derived outside the UK; an impressive leap from the 12% achieved in both measures in the previous year.”

The Public Sector software business, which represents just over half of group revenues, saw sales rise +15% to £30.2 million (2011: £26.1m). Organically, revenues increased + 6%.

The Engineering Information Management, the second-largest, more than tripled revenues to £17.8 million, following organic growth of +46%. The Information Solutions business increased revenues by +59% to £7.5 million due to several acquisitions.  

On the stock market this morning, the company’s share price rose +6.3% to 50.50 pence and set a new 52-week high. The firm has a market value of £165.31 million.  

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