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Thursday 22 July 2021

Ideagen deal making bears fruit

IdeagenFull-year results for the year to the end of April out today from AIM listed Ideagen, show the risk management software specialist making good ground in all the important areas. Ideagen proved resilient during the pandemic and headline numbers show total revenue up 16% during the year to £65.6m (FY 2020 £56.6m), with adjusted EBITDA also up 24% to £22.9m (FY 2020 £18.5m).

As we have covered over recent months, acquisitions have been a key plank of the strategy and the firm raised £48.7m during the year to deliver a deal pipeline (see here). This saw some £54m splashed on QualsysHuddle and Qualtrax in the compliance, assurance and collaboration spaces. Ideagen clearly remains hungry for acquisitions and has subsequently completed deals on two further companies in recent days (as covered here) - Mi-Co a low/no-code mobile application developer and OpsBase, a compliance platform.

Acquisitions are designed to underpin organic growth and support the transition to SaaS - Annual Recurring Revenue (ARR) was up 50% at c.£69.3m (FY 2020 £46.2m) of which organic ARR growth contributed £6.2m, (up 13%) and acquisition-led ARR growth contributed £16.9m, an increase of 37%. Ideagen has also built up a sizeable overseas operation with international revenues up 13% to £36.4m (FY 2020: £32.4m) and now account for 56% of total revenues. With risk management likely to remain high on board agendas for the foreseeable future we expect to see more M&A activity from Ideagen in coming months.

Despite some tough trading conditions during the start of the pandemic, Ideagen clocked up its twelfth consecutive year of growth in turnover and EBITDA and where acquisitions have proved a gateway to organic growth. All this has been reflected in its share price – a year ago shares were trading at just over the 170p mark, at the time of writing it’s just shy of 270p.

Posted by: Marc Hardwick at 08:42

Tags: results   software   risk  

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