 disappointed investors on Thursday, after reporting a fall in pre-tax profits for the 2017 financial year. ){kind=link}
Software solution supplier Idox (LON:IDOX) disappointed investors on Thursday, after reporting a fall in pre-tax profits for the 2017 financial year.
Adjusted profit before tax came in £12.1 million, down from £16.7 million in 2016, just short of expectations. Revenues rose by 16 percent to £88.9 million. The acquisition of two companies over the period, 6PM and Halarose, provided a positive contribution to group revenue.
Adjusted EBITDA fell 14 percent to £18.5 million from £21.5 million, while adjusted EBITDA margin fell to 21 percent.
Richard Kellett- Clarke, Idox’s Interim CEO, said the failure to achieve the year end numbers has been “disappointing”, and “is the result of a perfect storm of issues including a recent complex acquisition.”
He added that in the “early months of the new financial year the business has had an encouraging start with new contracts signed”, saying that overall the Board is “confident” that the Group will deliver an improved performance in the current financial year, “driven by a combination of new contract momentum, management and organisational changes, savings made since the year end and the full year contributions from the 2017 acquisitions.”
Idox shares are currently trading up 2.96 percent at 35.01 (1134GMT).