Alongside its half year results, Ideagen Plc announced its intention to become a force for compliance-based information management among regulated industries in the UK. Not content with that, it is also looking to build a reputation for itself in information management within the UK (and US) healthcare sectors which it sees as prime growth areas. That’s an ambitious plan for a small company.
It has done well since its AIM debut last July however (see here), and the latest results (for the six months to October 31 2012) confirm its upward trajectory with revenue up 51% to £2.58m, although it is not clear how much is due to organic growth. Operating profit is £240k, down from £385k (PBT is £230k vs £381k). The business looks like it is in good shape overall – recurring revenue represents 55% of total revenue and covers 90% of the fixed cost base and its Proquis acquisition is integrated and generating revenue In the US it is gaining more healthcare-based business. Post the period close it acquired Plumtree Group Ltd in the UK which took it into the healthcare business in the UK for the first time.
Management describes the results as “comfortably’ in line. In terms of its outlook, its niche focus on highly regulated sectors should be advantage (the broader area of enterprise content management has all but been consumed by broad based vendors). It has plenty of irons in the fire for future growth but managing them all could become challenging, particularly as is it racks up more acquisitions.