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Consistent strength in delivery
- Published:
18 Jul 2017 -
Author:
Andrew Darley -
Pages:
12
Typically impressive prelims are in line with the May trading, pleasantly ahead of prior forecasts: EBITDA of £7.9m (£7.8mE); revenue of £27.1m (£26.2mE); net cash of £4.2m (vs £1.6mE) strong even after adjusting for an abnormal creditor of £0.8m. The year delivered 10% organic growth, enhanced by benefit of four acquisitions in the period, and supported by an oversubscribed £10m placing at 75p, a premium to the then shareprice. Ideagen management’s tried and tested methodology continues to deliver, evidenced by relentless execution at or ahead of forecasts; adding new customers and retaining existing customers; stable margins and increasing cash generation; and increasing visibility through a growing recurring revenue base. Target price 108p reiterated, with unmodelled inevitable acquisitions expected to continue to add to the strong core.