Ideagen Sees Eighth Consecutive Year of Revenue and EBITDA Growth
NOTTINGHAMSHIRE, UK — Ideagen, a supplier of quality, safety, audit, performance and risk management software to highly regulated industries, 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 fiscal year ending April 30.
In that report, Ideagen confirmed it had increased revenues by 24% to £27.1 million, adjusted EBITDA rose 26% to £7.9million while underlying organic growth remained at 10%.
The company witnessed success in its software as a service (SaaS) business, where revenue increased by 133% to £4.8million. Ideagen management said that success was down 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.
David Hornsby, CEO of Ideagen, 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 3,000 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.”
Hornsby added: “Total revenue and adjusted EBITDA growth were both 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.”
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.
“The board believes the long-term prospects for the group are positive" Jonathan Wearing, Ideagen’s non-executive chairman, said. "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 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. The board 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.”
For more information, visit www.ideagen.com.