Ideagen, provider of compliance-based information management (CIM) software, has released its maiden full year results since floating on AIM at the beginning of July 2012 (see Ideagen joins AIM). Its results for the year ending April 2013 reveal 63% top-line revenue growth to £6.5m boosted by a full year contribution from its acquisition of Proquis and a four-month contribution from Plumtree (see Ideagen enters UK healthcare market via Plumtree). At the organic level, the Group states that in the health business, organic growth was 25%. The overall organic growth rate is not revealed but, by our calculations, it looks likely to have been somewhere between 20% and 25%. Not bad going! And represents the fourth consecutive year of organic revenue and adjusted EPS growth. Adjusted EBITDA (including contribution from earnings accretive acquisitions) stood 71% higher at £2.02m. At the year end, net cash stood at £6.37m (compared to £1.5m), boosted by the £6m share placing completed in January.
Ideagen’s portfolio of products comprises elements of Enterprise Content Management (ECM) and Governance, Regulation & Compliance (GRC) software. The broader areas of ECM have all but been consumed by broad-based vendors, but Ideagen’s combination of ECM and GRC (or CIM!) should work well as it focuses sectors such as pharmaceuticals, aerospace & defence (A&D), healthcare, utilities and manufacturing where organisations must comply with strict regulations around document and file management.
So far, much of Ideagen’s focus has been on the health sector, as highlighted by the acquisitions of Plumtree, and more recently, MSS (see Ideagen takes on MSS for patient management solution). However, it has also had some good wins over the year within the A&D sector, with the MoD, BAE Systems and Northrop Grumman. The challenge going forwards will be managing its growth as it ventures into other vertical markets and further develops its SaaS business model.