Market's view on Idox Group
Published on April 2024
- Conditional share awards made with perceived undemanding performance criteria according to financial projections.
- Concern over directors not purchasing shares but instead exercising free share options and selling a significant number partly to cover taxes.
- Observations that share price has been stagnant, suggesting it could be perceived as rewarding failure.
- The company described as increasingly stale without significant innovation or growth.
- Criticism of the company being run for the benefit of employees rather than shareholders with frequent share issues under the Long Term Incentive Plan.
- Recent financial results indicate top line growth and increased recurring revenue, with a record order intake reflecting strong market position.
- Positive feedback on the functionality of Idox’s electoral management system from a user experience viewpoint.
- Company selected as the Electoral Management System supplier for new unitary authorities, highlighting its market competitiveness.
- Speculation about potential takeover bids due to quiet activity and historical interest from suitors.
- Generally positive feedback on management’s performance, highlighting strong recurring revenue and margin expansion.
- Critique of the company’s earnings performance and share option grants suggesting limited organic growth and highlighting concerns about management benefiting more than shareholders.
- Frustration expressed over lack of organic growth, despite “recurring revenues” suggesting a stable customer base.