IDOX Plc (IDOX)
ISR viewIDOX is a well run and ambitious company but, in our view, this has yet to be fully appreciated by the City. After a tough 12 months, IDOX has emerged largely unscathed from the uncertainties around public sector spending cuts and the strategy really seems to be gaining momentum once again.
A transformational year
IDOX Plc | Download | Published on 14/12/2011Supplier of document management solutions to the public sector and energy markets IDOX has reported its full year results this morning which show a solid underlying performance augmented by multiple recent acquisitions. The current year is said to have started well and in line with expectations. We have made no changes to our estimates. As it says in the statement, this has been a transformative year for IDOX with two significant acquisitions (McLaren and CTSpace) taking the company out of the public sector in a meaningful way for the first time.
And investors have certainly warmed to the revised strategy helping the shares to more than double over the last 12 months. However, even following this rise, the shares trade on just 6.3x 2012 EBITDA which, in our view, continues to undervalue IDOX’s achievements and prospects.