Thursday, 12 November 2009

Extended decision making hurts IDOX

(By Tola Sargeant, Thursday 12th Nov. ’09, 09:40) IDOX, a supplier of software and services to the UK public sector, has revealed that revenues and profits will be lower than expected for the year to 31 Oct. ‘09. EBITDA is now expected to be about 9% below market forecasts.

Delays to procurements and a shift towards longer term managed services and maintenance contracts have impacted 2009 revenue recognition. But IDOX claims demand in the local government markets remains strong with high levels of tender activity as local authorities remain under pressure to reduce costs and improve services, which bodes well for 2010.

As to the recruitment side of the business, like its peers IDOX has seen permanent placements suffer as a result of the recession but contract recruitment remain broadly stable. There are however, signs that permanent recruitment is beginning to recover according to the company.

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