Ingenta (ING) , a software and services provider to the publishing industry, issued its final audited results for the year ended December 31, 2023 (FY23).
Ingenta saw revenues rise 3% to £10.8m, with an annual recurring revenue (ARR) representing 80% of total. New customer implementations in FY23 are expected to yield approx. £0.5m of ARR in FY24. Net profit rose to £2.3m from £1.8m LY, and adjusted EBITDA remained flat at £2.2m.
Adjusted EPS rose to 12.77p from 11.30p LY, and reported EPS was 15.82p, up from 10.88p LY. The full-year dividend rose significantly by 19% to 4.1p form FY22's 3.45p, with a proposed final dividend of 2.6p.
Operating cash inflows amounted to £1.1m in FY23, with all significant lease obligations now repaid. Cash at year-end was £2.7m, up from £2.4m in FY22.
Ingenta also noted significant operational progress during the period. Ingenta Content saw substantial expansion in terms of number of customers and target markets, notably in the US and the NGO sector. FY23 saw two Ingenta Content customer go-lives, plus 4 further projects due to complete in FY24, expected to add c. £0.5m to ARR as mentioned.
Simultaneously, Ingenta Commercial signed 3 new customers to the Ingenta Commercial IP management platform. The deals are for music and media partners across the globe. ING also saw an uptick in its consultancy arm, with revenues up by £0.6m.
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Ingenta reports another year of sales growth, mostly driven by expansion if its web-based content platform and IP products into new markets. New sales activity was H2-weighted, with 6 multi-year deals adding c. £0.5m of implementation revenues in FY23 and driving recurring revenues into FY24 and beyond. The substantial dividend increase in FY23 underscores management's confidence in future growth.
Momentum carried into FY24 with more customer wins, including 2 new Ingenta Content deals closed in Q1. ING's project pipeline is strong and expected to yield significant revenues in H2. So far, trading in FY24 has been in line with expectations.
Overall, ING's core products now have an established customer base over a broad spectrum of target markets - with significant inroads made into North America - which should allow significant opportunities for further growth, potentially enhanced by future M&A.
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