East Kilbride software firm Ideagen hails decade of growth

Ideagen, the global software firm with a major presence in East Kilbride, has unveiled a tenth consecutive year of growth, boosted by high- performing acquisitions and international expansion.

Chief executive Ben Dorks cites global growth, particularly in the US. Picture: Ideagen.
Chief executive Ben Dorks cites global growth, particularly in the US. Picture: Ideagen.

Revenues rose by 29 per cent to £46.7 million in the year to 30 April, marking a decade of successive growth for the firm, which is quoted on London’s Aim index.

Adjusted pre-tax profits increased by 26 per cent to £12.2m, as the group reaped the rewards of its acquisition strategy.

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Ideagen pointed to a trio of purchases, including software firm InspectionXpert, which added 900 US manufacturers, growing recurring revenues and providing a platform for further expansion in North America.

The group’s largest acquisition to date – its £20.5m takeover of Leeds firm Morgan Kai – brought 400 internal audit customers, doubling Ideagen’s business in the sector.

Ideagen recorded a 63 per cent rise in its software as a service (SaaS) revenues to £13.7m, as it continues its strategic transition to a

SaaS-based business model.

New logo SaaS customer wins included GlaxoSmithKline, Keolis, Green Climate Fund, Boston Biomedical and Fidelity National Finance.

Its annual recurring revenue book was also on the up, climbing 44 per cent to £36.4m.

A final dividend of 0.188 pence per share was proposed, resulting in a total dividend of 0.278 pence per share for the year – a 15 per cent increase from the previous year.

Chief executive Ben Dorks said: “We are pleased to report that we have achieved our objectives this year, significantly increasing the group’s global footprint, particularly in the US, and delivering another year of strong revenue and profit growth, underpinned by excellent cash generation.

“Excellent strategic progress has been made, in particular with the three acquisitions completed during the year. This has strengthened our product range and keeps us well-placed to support our customers and capitalise on the significant market opportunities ahead.”

The results are the first following the appointment of Dorks, who was promoted from chief customer officer in May 2018, and come just months after Ideagen announced global expansion plans with the launch of four Centre of Excellence sites, including at its East Kilbride base.

Dorks pointed to the group’s most recent buy, Redland Business Solutions, which it acquired last month, as setting it up for continued growth, adding: “Trading since the year-end has remained robust and we continue to see strong demand for our products from new potential customers.

“The acquisition of

Redland post the period end has further enhanced the group’s portfolio of products and growing recurring revenues.”

Executive chairman David Hornsby said: “The group met or exceeded all key financial and operational objectives for the year including targets for revenue, profitability, organic growth, cash generation, and customer retention.”

The Nottingham-headquartered group has more than 4,700 clients globally and in excess of 500 staff.