Idox, Statpro ahead of the game

(By Anthony Miller – Wednesday 20th May 2009 8:00am). In pleasing contrast to recent rather surprising downbeat trading updates (e.g. Xchanging, SQS), two of our smaller software players find business running somewhat ahead of expectations.

AIM-listed public sector software supplier IDOX’s order book was boosted by successful bids at some of the new unitary authorities (see here). The revenues should start flowing in H2. Recent acquisition J4B (see IDOX acquires J4B) made an “encouraging” start and IDOX is on the prowl for further M&A. The board seems confident enough to pay a maiden interim dividend. We still think we’ll eventually find IDOX at the other end of the buy/sell chain but meanwhile, onwards and upwards it seems. Last year (to 31st Oct. ’08) IDOX made 21% operating margin on £34m revenues.

Also listed on AIM, Statpro, which provides data and analytics to the global asset management industry, reported trading ahead of expectations and way up on the prior year (see here). Despite getting most of its revenues from traditional software licence sales, Statpro only managed a 10% operating margin on £27m revenues last year (to 31st Dec. ’08) after taking various restructuring charges and write-downs. Prior year margins were a more respectable 23%.

So, these reports suggest public sector and analytics are still holding up. But as we have seen recently, even apparent ‘safe havens’ can sometimes get bombed.