Despite the balance IDOX achieved in some areas of its diversified business by the end of its last financial year (see IDOX docks a more balanced year), its product sections are still moving at different rates.
According to today’s trading update, business within the core public sector area has been steady. New business has been generated as a result of software vendor consolidation by local authorities, which is expected to contribute to H1 growth and build the order book for contracted services for delivery in H2. Public sector division margins and recurring revenue were down last year (ending October 31 2012) so the company will be looking to the new business to help address those issues. The Engineering Information Management segment has not has such a good start to the year with licence sales “quieter” than last year as there are no global contracts due to be signed in H1.
2012 was a busy year for the company in terms of acquisitions and overseas expansion. Management now needs to focus on execution to bring its assets into line and working smoothly.