Ideagen has secured more than 200 new customer wins as it increased its annual recurring revenue (ARR) figures by 20% to £43.9m.
The Nottingham-headquartered firm published its six-month interim trading update for the period ending October 31st this morning, confirming a strong opening half to its financial year with the company now in line to achieve its FY20 ARR target of 74% twelve months early.
Ideagen also reported it had secured over 240 “new logo” wins in the period, welcoming firms such as Emirates airline and catering, Mylan Pharmaceuticals and Royal London to its 5,000 strong client base.
Its ARR increased from £36.4m to £43.9m thanks to organic growth of £3.7m and the performance of its recent acquisitions – Redland Business Solutions Ltd and Optima Diagnostics Ltd – which added a further £3.8m in revenue.
Ben Dorks, Ideagen’s Chief Executive Officer (CEO), said Ideagen’s strong trading period came as the business continues its strategic objective of transitioning to a Software as a Service (SaaS) business model.
“I am pleased to report another excellent start to Ideagen’s financial year,” said Mr. Dorks. “Our core markets are strong and underpin the demand we have seen this half.
“We continue to execute our strategy, delivering growth and investing in the business whilst tightly managing the cost base. The Company has continued to make acquisitions which have further enhanced our global reach, customer base, and product capability.
“Cash generation has been good which, coupled with further growth in new SaaS recurring revenues and an increase in repeat business from our growing customer base, provides a strong platform for the second half of the year.”
David Hornsby, Ideagen’s Executive Chairman, added: “The Board is pleased to report that trading has remained strong in the first half of the financial year and that revenue and EBITDA are both expected to be significantly ahead of the same period last year and in line with management’s expectations.”
He continued: “The company has a clear strategy to grow revenues organically and maintain high EBITDA margins whilst transitioning from a perpetual license to a SaaS-based subscription model. The successful execution of this strategy will provide an even more robust business model.
“The Group’s performance is based on strong customer demand and sales execution in the period and indicates that the transition to a recurring model is progressing successfully and ahead of schedule.”
Ideagen’s latest trading update comes just months after the company successfully secured a decade of successive growth in July this year.