Ideagen (IDEA)

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A leading supplier of Information Management Software to highly regulated industries.

7-Nov-2017 – 88.5p – £177m – PER 19.8

Trading Update For The 6 Months To End October 2017 – Strong H1 and expects Revenue and adjusted EBITDA to be significantly ahead of the same period last year – Trading in-line with market expectations for the full year to end April 2018. Cash is up to £5.9m (end April 2017, £4.8m).

Generally – Like the look of this but that PER of 19.8 looks a little too rich.

23-Jan-2018 – 102.13p – £204.5m – PER 22.7

Unaudited Results For The 6 Months To End October 2017 –  Revenue up 43% to £17.2m (£12.0m last time), Adjusted PBT up 56% to £4.1m (£2.6m last time) with Net Cash of £5.9m (£4.8m last time). Interim Dividend will be increased 15% (but it’s still less than 0.25% which is quite useless and pointless). Current trading remains robust and in line with management expectations.

Still quite like the look of this. I thought it was a bit rich on a PER of 19.8 but these latest numbers suggest there may still be an investment case here. For now though I will remain Neutral.

8-May-2018 – 112.5p – £228.0m – PER 24.5

Trading Update For The 12 Months To End April 2018 – In-line, Revenue up 33% at approximately £36.1m, (FY2017: £27.1m) with a significant increase in adjusted EPS. “A growing base of recurring revenues and a strong pipeline of new business opportunities which provides the Board with confidence for the current year and beyond”.

Looking quite good here and quite tempted – Will probably remain Neutral though and keep an eye out for the actual results.

17-Jul-2018 – 123.5p – £250.5m – PER 25.7

Preliminary Results For The 12 Months To End April 2018 – Revenue up 33% to £36.1m (FY2017: £27.1m), Adjusted PBT up 40% to £9.7m (FY2017: £6.9m), Adjusted diluted EPS up 33% to 4.19p (FY2017: 3.16p) and the FY Dividend is up 15%. Trading since the year end has been robust.

I am tempted here but the ROCE and Op Mgn as well as the forecast +14% growth in EPS for 2019 are just putting me off enough. Will remain Neutral for now and keep an eye out for broker notes – Tempted (it will go on my Watchlist at least)!

Subsequent note: Further research suggested a fair price here of 120p or so – I am therefore Neutral again for now.

13-Nov-2018 – 142.5p – £312.4m – PER 27.0

Trading Update For The 12 Months To End October 2018 – Revenue and EBITDA expected to be significantly ahead of last year and in-line with management expectations.

I still reckon (perhaps wrongly) that this is fairly priced around this level.

14-May-2019 – 128p – £295m – PER 24.7

Trading Update For The 12 Months To End April 2019 – Strong, expects results to be marginally ahead of market expectations.

Based on a small beat on the current estimates I have, seems about fairly priced here – Will keep an eye out for revisions.

10-Jun-2019 – 144p – £316m – PER 25

Acquisition Of Redland Solutions – £15.8m paid (funded from extended facility), expected to be earnings enhancing immediately.

Still too expensive for me on a PER of 25, will be keen to see how this addition affects forecasts though.

17-Jul-2019 – 146p – £320m – PER 25

Results For The 12 Months To End April 2019 – Revenue up 29% to £46.7m (67% recurring), Adjusted PBT up 26% to £12.2m and EPS up 15% to 4.8p, the Total Dividend is up 15% with Net Debt at £1.3m (Net Cash £0.8m last time).

I still see this as fairly priced around the 150p level.

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