Datum International Ltd

July 27, 2011 02:00 ET

Annual Financial Report

27 July 2011
                                                      Ideagen PLC
                                             ("Ideagen" or the "Company")
                                PRELIMINARY RESULTS FOR THE YEAR ENDED 30TH APRIL 2011

The  Board of Ideagen PLC (PLUS: IGNP) today announces the Company's preliminary Results for the year ended 30th April

Financial Highlights
    -                Revenue up by 133% to £2.25m (2010: £0.97m)
    -     Organic revenue growth of 40% in core KnowledgeWorker® business
    -     Adjusted EBITDA up by 172% to £0.52m (2010: £0.19m)*
    -     Adjusted PBT up by 155% to £0.49m (2010: £0.19m)**
    -                Basic Adjusted EPS up by 60% to 0.93 pence (2010: 0.58 pence)**
    -                Cash at bank and in hand £0.76m (2010: £0.22m)
    -                Net Assets of £3.07m (2010: £0.86m)
    -          Recurring revenues of £1.7m at year end covering 70% of fixed cost base

*Before tax credit, share based payments, acquisition costs, and gain in fair value of contingent consideration
**Before tax credit, share based payments, acquisition costs, amortisation of acquisition intangibles and gain in fair
value of contingent consideration.

Operational Highlights
   -      Fund raising of GBP1.7m in March 2011 to acquire Ideagen Software
   -      Successful integration of Ideagen and Root 3
   -      Appointment of Darren Spillane as Group Sales Director, joining from Kofax
   -      Support and Maintenance contract renewal rate of 95%
   -      Significant contract wins at ACCA and a major water company with a combined value of £900k
   -      Establishment of integrated value proposition focused on Capture, Content and Compliance
   -      Continued investment in the development of our flagship ECM platform KnowledgeWorker® with the release of 2
          new modules covering Project Stage Gating and Contact Management

David  Hornsby,  CEO  of  Ideagen, commented: "We have made strong progress during the  year  both  strategically  and
financially.Despite  considerable  investment in our products and sales team and the  successful  integration  of  two
acquisitions we exceeded market forecasts in terms of PBT** (21% ahead) and year-end cash balance (42% ahead). We  are
securing  ever  larger  contracts and have strong recurring revenues and contract renewal rates.  Current  trading  is
positive and in line with management expectations and the Directors are confident of further progress going forward."

Ideagen plc                                               Tel: 01438 347110
David Hornsby, Chief Executive

finnCap Limited                                     Tel: 020 7600 1658
Marc Young/Ben Thompson (corporate finance)
Stephen Norcross (corporate broking)

Walbrook                                  Tel: 020 7933 8780
Bob Huxford / Helen Westaway (Media Relations)
Paul Cornelius (Investor Relations)
Chief Executive's Statement
I  am  pleased  to  announce our results for the year ended 30 April 2011 reported under IFRS. The  year  saw  further
transformation of the Company through continued organic revenue and profit growth and a second acquisition. During the
year  the Company successfully integrated three complementary businesses whilst delivering 40% organic revenue  growth
from  our  core KnowledgeWorker® product. In July 2011 our shareholders voted to change the Company's name to  Ideagen
plc and market the Company's products under a single brand.
These  are  the  first  financial statements of the Company to be prepared in accordance with International  Financial
Reporting Standards (IFRSs). The results and financial position of the Company were previously reported under UK GAAP.
Revenue for the year ended 30 April 2011 increased by 133% to £2.25m (2010: £0.97m) with a full year contribution from
Root3  (now named Ideagen Capture) and one month's contribution from Ideagen Software. Organic revenue growth  in  the
original  core  business, excluding the Root3 and Ideagen Software acquisitions, amounted to  40%  increase  over  the
previous financial year.
Operating  profit before total amortisation and depreciation expenses, acquisition costs, share based payment  charges
and other exceptional items increased by 172% to £0.52m (2010: £0.19m). Profit before taxation, excluding amortisation
of  acquisition intangibles, acquisition costs, share based payment charges and exceptional items increased by 155% to
£0.48m (2010:£0.19m).
The Company's financial position at 30 April 2011 has improved significantly since April 2010. This was due partly  to
increased  profitability but primarily to the £1.70m placing in March 2011, which provided funding for the acquisition
of Ideagen Software. Net assets at 30 April 2011 were £3.07m (2010: £0.86m).
During the year, the Group carried out a capital reduction which had the impact of transferring £3.19m from the  share
premium account into retained earnings, thereby eliminating the negative balance on retained earnings.
Excluding the deferred revenue provision, which is not viewed as a cash liability, the Group had net current assets at
30 April 2011 of £0.25m (2010:£0.08m) and a cash balance of £762,000 (2010:£022m).
Company Strategy
The  Company's strategic objective is to become the leading supplier of compliance based Enterprise Content Management
(ECM) solutions to the UK Market. ECM is focused on the capture, storage, retrieval and distribution of 'unstructured'
information  such  as  documents,  web pages and content, email, video and scanned  images.  Typically  'unstructured'
information  accounts  for  80%  of all data within an enterprise and its effective  management  is  now  a  corporate
necessity.  Organisations are obliged to demonstrate compliance with industry standard, regulations and    KPIs  which
represents a compelling driver for investment in the Company's products.
The Company intends to deliver its strategy through a combination of organic and acquisitive growth which will enhance
our  product  set  and provide scale within the business. The UK market is extremely fragmented with no  dominant  ECM
supplier and the Company believes that consolidation in this sector will offer attractive opportunities over the  next
few  years.  Furthermore  the emergence of "cloud" based computing has provided the Company with  the  opportunity  to
develop a SaaS business model which we expect to drive significant new business growth and recurring revenues.
In  March  the Company acquired Filebutton Ltd (trading as Ideagen Software Ltd), a supplier of document  control  and
compliance software solutions. This acquisition has greatly enhanced the Company's value proposition, adding over  200
customers and increasing the Company's recurring revenues to approximately GBP1.7m per annum. The Company now has over
250 customers many of which are blue chip organisations operating in highly regulated industries.
Sales and Marketing
The  Company  now has an integrated solution for Capture, Content and Compliance providing a platform to  capture  and
manage  information  within a compliance regime.  Sales and Marketing strategy has been aligned  to  focus  on  highly
regulated industries such as Pharmaceuticals, Aerospace and Defence, Financial Services and Utilities and the  Company
is  capitalising on existing relationships to promote enterprise-wide solutions. Organisations such as  Astra  Zeneca,
the  MOD, Allianz and Severn Trent  rely on the Company's suite of products to manage and distribute vital information
- such references provide a sound basis for future contract wins and growth.
In  order  to  provide  the  necessary focus and expertise to drive organic growth, the Company  has  invested  in  an
experienced sales team led by industry veteran Darren Spillane who joined the Company from Kofax in June 2010 and  was
appointed  to  the Board in December 2010. The adoption of a high quality sales methodology coupled with our  enhanced
proposition has driven a step change in the value of the contracts that the Company is able to win, often against  the
major global ECM companies. For example in September the Company was awarded a £0.33m contract with the Association of
Certified Chartered Accountants (ACCA) and in March was awarded a £0.58m contract with a major UK water company. These
deals compare favourably with the £0.02m average contract size in the previous financial year.

In  addition  to  a  direct sales force the Company has identified that to fully exploit the  opportunity  that  cloud
computing presents and to scale rapidly an indirect sales channel should be implemented as the primary route to market
for our SaaS proposition. The Company has therefore evaluated a number of options and is in final negotiations with  a
global  manufacturer  of multi-functional devices and Europe's largest computer software distributor.  Both  of  these
organisations  intend to sell KnowledgeWorker® through their direct sales teams and extensive reseller channels  which
will, if successful, accelerate sales across the EMEA region and underpin the Company's medium term growth objectives.

Product Direction and Roadmap

Our experience suggests that companies are increasingly looking to deploy SaaS solutions which provide the benefit  of
both  rapid  deployment  and  lower  cost of ownership over traditional on-premise systems.  The  Company's  focus  is
therefore  on  providing  solutions  for  Capture (Scanning & OCR), Content  (Document,  Contact  &  Business  Process
Management  and  Collaboration)  and Compliance (Auditing, CAPA, Change Management, Quality,Standards  and  Compliance
Processes) on-demand from the cloud.

The  integration  of  our capture and OCR products (Ideagen Capture) has seen a first phase of integration,  with  the
ability  to use the AnyDocs Optical Character Recognition (OCR) applications to scan and OCR content direct  into  the
KnowledgeWorker® ECM cloud platform (Ideagen Content). Scanned documents can dynamically initiate business  processes,
enable  collaboration and automatically link content to customers, contacts and projects.Recent installations of  this
new  interface  have  gone  live  at  City & Guilds (processing exam papers),   and  Admin  Business  Solutions  (ABS)
(processing vehicle documents).

Planned  enhancements  for  our ECM platform include increased support for mobile devices  (such  as  ipad  and  smart
phones), integration with social networks such as Twitter and LinkedIn and major performance enhancements to allow the
continuous scaling of our platform to tens of thousands of businesses. In addition a major upgrade of the interface is
being  planned to provide enhanced ease of use. The next major release of KnowledgeWorker®will be version 4.0  planned
for launch in January 2012.

The  integration  of  our newly acquired Quality and Compliance product Workbench with our capture  products  and  ECM
platform is also in development. This will provide a complete cloud based solution on a SaaS model to manage any  type
of  information, content or business process from cradle to grave within a quality certified and compliant environment
accessible from any device, anywhere, any time.

Staffing and Infrastructure

The Company has implemented a fully integrated company structure with functions covering Sales and Marketing, Customer
Services  and Support, Research and Development and Finance and Administration represented on the executive management

At  year end the Company had 36 employees across the following functions - Sales and Marketing - 10, Customer Services
and  Support - 10, Research and Development - 12, Finance and Administration - 3, Chief Executive - 1. It is envisaged
that headcount will increase over the coming year to generate and support future growth.

The Company currently has 3 locations, Stevenage, Matlock and Bristol. Each office represents a 'Centre of Excellence'
for  a specific component of our product set. Our offices are linked via a single company network and mail system. The
Company has outsourced the delivery of our SaaS platform to Rackspace, a global provider of Data Centre services.

Current Trading & Outlook

We  have  made strong progress during the year both strategically and financially. Despite considerable investment  in
our  products and sales team and the successful integration of two acquisitions we exceeded market forecasts in  terms
of  PBT**  (21%  ahead) and year-end cash balance (42% ahead). We are securing ever larger contracts and  have  strong
recurring  revenues  and contract renewal rates. Current trading is positive and in line with management  expectations
and the Directors are confident of further progress going forward.
David Hornsby
27 July 2011
The Directors of the Issuer accept responsibility for this announcement.

Ideagen plc

Consolidated Statement of Comprehensive Income for the year ended 30 April 2011

                                                                                    Year ended 30     Year ended    30
                                                                                    April 2011 £      April 2010   £
Revenue                                                                                   2,253,407             965,783
Cost of sales                                                                             (268,314)            (63,671)
Gross profit                                                                               1,985,093             902,112
Administration expenses                                                                (1,721,521)           (836,183)
Profit from operating activities                                                            263,572              65,929
Profit from operating activities before adjustments for the following:                       523,206             191,960
Depreciation and amortisation                                                             (122,024)            (19,586)
Costs of acquiring a business                                                              (93,610)            (89,445)
Share-based payment charges                                                                (44,000)            (17,000)
Profit from operating activities                                                            263,572              65,929
Movement in fair value of contingent consideration                                           113,000                   -
Finance costs                                                                              (5,595)               6,166
Profit before taxation                                                                       370,977              72,095
Taxation credit                                                                                                      -
Profit for the year attributable to equity holders of the parent                           569,870              72,095

Earnings per share                                                                        pence               pence
Basic                                                                                       1.1                0.22
Diluted                                                                                     1.0                0.21

Ideagen plc

Consolidated Statement of Financial Position at 30 April 2011

                                                    30 April 2011      30 April 2010        1 May 2009
Assets and liabilities                                    £                  £                  £
Non-current assets                                                                         
Intangible assets                                        3,113,388          1,269,036                 -
Property, plant and equipment                               69,742             58,927            23,429
Deferred tax asset                                         213,000                  -                 -
                                                         3,396,130          1,327,963            23,429
Current assets                                                                                         
Trade and other receivables                              1,101,508            424,113            77,135
Cash and cash equivalents                                  762,468            220,054             6,226
                                                         1,863,976            644,167            83,361
Current liabilities                                                                                    
Trade and other payables                                   859,168            523,381           374,692
Borrowings                                                  10,000             39,590            38,325
Other financial liabilities                                187,000                  -                 -
Current tax liabilities                                    137,713                  -                 -
Deferred revenue                                           576,639            250,509            65,977
Other liabilities                                          422,180                  -                 -
                                                         2,192,700            813,480           478,994
Non-current liabilities                                                                                
Borrowings                                                       -                  -           105,600
Other financial liabilities                                      -            300,000                 -
                                                                 -            300,000           105,600
Net assets / (liabilities)                               3,067,406            858,650         (477,804)

Ideagen plc

Consolidated Statement of Financial Position at 30 April 2011 (continued)

                                                      30 April 2011      30 April 2010       1 May 2009
                                                            £                  £                  £
Issued share capital                                        697,316            508,623            301,456
Share premium                                             1,406,193          3,192,851          2,152,659
Share-based payments reserve                                 61,000             17,000                  -
Retained earnings                                           902,897        (2,859,824)        (2,931,919)
Equity attributable to owners of the parent               3,067,406            858,650          (477,804)


This information does not constitute the annual report and accounts of the Company for the year ended 30 April 2011.
This will be available from www.ideagenplc.com in due course.

The Company has adopted IFRS for the first time. Results for the year ended 30 April 2010 have been adjusted to comply
with new accounting policies adopted as a result of the transition to using IFRSs. The adjustments to the previously
reported profit for the year are summarised below.  Accounting policies have been applied consistently to the two
years ended 30 April 2011 as presented in this information.

                                                                                           Year ended 30 April 2010
                                                                                               (the last period
                                                                                           presented under UK GAAP)
Profit for the year previously presented under UK GAAP                                                       165,111
Costs of acquisition previously capitalised have now been expensed                                          (89,445)
Goodwill not amortised under IFRS                                                                              8,570
Amortisation of acquisition intangibles recognised under IFRS                                               (12,141)
Profit for the year ended 30 April 2010 under IFRS                                                            72,095

Earnings per share information

                                                                        Year ended 30       Year ended 30
                                                                          April 2011          April 2010
                                                                              £                   £
Profit for the year                                                            569,870              72,095
Acquisition costs                                                               93,610              89,445
Share-based payment charges                                                     44,000              17,000
Amortisation of acquisition intangibles                                         92,042              12,141
Gain on contingent consideration                                             (113,000)                   -
Tax credit                                                                   (198,893)                   -
Adjusted profit before tax                                                     487,629             190,681
Basic weighted average number of shares                                     52,464,854          32,882,896
Fully diluted weighted average number of shares                             55,468,745          34,411,906
Basic adjusted eps                                                          0.93 pence          0.58 pence

Basic adjusted eps is based on the adjusted profit before tax figures shown above.

Contact Information

  • Datum International Ltd