Tiny compliance-based information management specialist Ideagen looks to be carving a niche for itself in the healthcare sector. Its trading update for the year to 30 April 2013 reveals significant growth over the last year that is ‘comfortably ahead of market estimates’. Ideagen expects to report revenue growth of no less than 62% to £6.5m and adjusted EBITDA growth (excluding share based payments and acquisition costs) of 70% to £2m. Strong operational cashflow and a £6m equity fundraising also resulted in improved cash position at the year-end of £6.4m (2012: £1.5m).
Acquisitions have played an important part in Ideagen’s growth – it acquired Plumtree Group to enter the UK healthcare market at the beginning of H2 (see Ideagen juggles sectors & acquisitions), having previously acquired Proquis with the same aim in the US. But both have now been successfully integrated and delivered organic revenue and profit growth during the year. Indeed, the management reports particularly encouraging growth in both the US and UK healthcare sectors. Information management is an area where we expect the health sector to continue to invest (see our UK Healthcare SITS Market Trends and Forecasts report if you’re a PublicSectorViews subscriber), and Ideagen has ambitious plans despite its small scale. I’m sure we won’t be the only ones watching it with interest in the coming months.