Ideagen, a leading supplier of quality, safety, audit, performance and risk management software to highly regulated industries, has successfully recorded its eighth consecutive year of revenue and EBITDA growth.
The UK-based organisation, which has offices in Dubai, the United States and Bulgaria and operates a global partner network, published its unaudited preliminary results for the year ended April 30, 2017.
In that report, Ideagen confirmed that it had increased revenues by 24% to £27.1 million, adjusted EBITDA rose 26% to £7.9 million while underlying organic growth remained at 10%. The company witnessed success in its software as a service (SaaS) business, with revenue increasing by 133% to £4.8 million.
Ideagen management said that success was due to significant investment in Ideagen Coruson, the company’s cloud based Governance, Risk and Compliance (GRC) platform.
The Group’s acquisition strategy – which last year saw the purchase and integration of Covalent, IPI, PleaseTech and Logen to add further IP, customers and recurring revenue – also had a substantial impact.
Chief Executive David Hornsby said: “The Group’s focus this year was on the delivery of our organic growth objectives whilst continuing the execution of our buy and build strategy by making four valuable acquisitions. This has resulted in another year of strong growth, which has been underpinned by excellent cash generation and augmented our position as a leader in the Governance, Risk and Compliance (GRC) market.
“Trading since the year end has remained robust and we continue to see strong demand for our products from new potential customers. Moreover, our growing recurring revenues and the repeat business derived from more than 3000 customers, an increase of over 800 from last year, provides the Board with confidence in the prospects for the Group for the current year and beyond.”
David said that total revenue and adjusted EBITDA growth were slightly ahead of expectations.
“Our early visibility of revenue ahead of expectations enabled the Group to bring forward the investment in a number of sales, marketing and technology initiatives that had been planned for the current year. This additional investment has provided additional resource, technology and infrastructure to further support the Group’s growth strategy,” he said.
Among the company’s other highlights included 45 new SaaS customer wins including British Airways, Ryanair, Johnson Matthey, Air Transat and Telefonica. New on-premise customer wins included Babcock, Doncasters Group, KLM and Argenta Bank while strong account management resulted in contract extensions within SABIC, BDO, Jaguar Land Rover, Imperial Tobacco and DHL.
Mr Hornsby said that the Group enlisted new customers in its key GRC verticals, with aviation, life sciences and financial services achieving notable success in the year.
“We continue to maintain a focus on product enhancement and innovation which has seen acceptance across the user base, resulting in significant revenues from strong retention of recurring contracts and new projects from our extensive customer base.
“As in the previous two financial years, the clinical management solutions market continues to be impacted by the uncertainty of funding for acute NHS Trusts. However, our existing customers in this market continue to provide us with strong levels of recurring revenues, adding to the underlying financial strength of the business.”
Non-Executive Chairman Jonathan Wearing said described the Group’s long-term prospects as ‘positive.’
“The Governance, Risk and Compliance (GRC) market was, according to Gartner, worth $4.4 billion globally in 2016 and is estimated to be growing at 13% per annum. We believe that we have established a compelling business platform that has been enhanced by the four acquisitions made this year and are well placed to participate in this growth. Highly regulated organisations require the tools that we provide to help them identify, assess and manage corporate risk while complying with international industry standards, and many are only in the early stages of adopting an enterprise-wide approach,” he said.
Mr Wearing said that the Board of Directors believes that the Group’s cloud solutions will be a particular growth area for the company which will increase the percentage of total revenues derived from recurring contracts providing even greater visibility of earnings.
Ideagen is a UK company quoted on the London Stock Exchange AIM market. It provides quality, safety, audit, performance and risk management software and expertise and has operations in the UK, the European Union, the United States and the Middle East.
With an excellent portfolio of software products, Ideagen helps the world’s leading brands to improve operational efficiency, strengthen compliance and oversight and anticipate and manage every detail of risk. This enables organisations to reduce costs and improve efficiency.
The Group has a customer base of over 3000 organisations using the Ideagen suite of products, including many blue-chip names such as BAE Systems, Emirates, Shell and the European Central Bank as well as 150 hospitals in the UK and US.
Ownership – UK AIM public listed company – Ideagen PLC – IDEA
Accreditations – ISO 9001:2008; 14001 & 27001 certified
Employees – Over 360 employees and a global Partner Network
Customers – 3000 companies using the Ideagen suite of products globally
Support – Based in the UK and US, we provide 24/7 support