Idox plc

Information management software and solutions to the public sector and asset intensive sectors

Visit the Idox website
Status Current
Period Jan 10 – Current
Headquarters London, UK

During the course of Kestrel’s Investment:

Market Cap Increased

7.8x to £275m

Revenue Up

2.1x to £67m

Free Cash Flow Up

2.4x to £9.9m

IDOX
Sources: Market cap LSE at 31 Mar 21, financials FY20

Company
Idox is the market leader in the provision of planning and licensing software to UK local government.  The company also provides software and services for Healthcare, Transportation, Elections and Document Management for both public and private sector customers.

Investment rationale

  • Market leading position
  • Non-cyclical core business
  • Embedded and long-standing customer base being provided with a critically important service
  • Strong recurring revenues and high EBITDA margins
  • Low entry valuation

Kestrel involvement, actions and impact
When we first invested in 2010, Idox was an established and trusted provider of software and solutions to UK local and central government. We increased our ownership over subsequent years, acquiring shares in the market and participating in fund-raisings to support the Company’s growth strategy.

Following a period of poor company performance, Oliver Scott joined the Board as a non-executive director in November 2018. A number of Board changes ensued including the appointment of a new chairman with significant industry experience. The new Board implemented several fundamental changes in the business including the adoption of more conservative revenue recognition practices leading to significantly higher recurring revenue and cash conversion. A clear corporate strategy was established and a new dynamic senior leadership team was recruited. Long term bank facilities were negotiated and a generous executive incentive package was also implemented.

Kestrel supported a fundraising by Idox in July 2019 to finance a strategic acquisition which would provide the company with a modern SaaS product to offer its UK local government clients alongside the Company’s existing core solutions.

Oliver stepped down from the Board in April 2020 following the publication of the final results for the year ended October 2019, when the Company was back on a stable growth path.

 

By focusing on finding the heartbeat of our business, and taking the time to listen to us, Kestrel offered us sound advice.

David Meaden, Chief Executive, Idox plc