IDOX plc (AIM:IDOX) is looking for bolt-on M&A. Anoop Kang, Chief Financial Officer said during the H1 presentation on the results, "However, our intention would be to declare a full year dividend in consideration of our financial performance position and future confidence. We continue to focus on cash generation and strong cash management throughout the business. And as a result, we delivered an operating cash conversion rate against adjusted EBITDA of 141% and moved from a net debt balance of GBP 9.9 million last year-end to a net cash balance of GBP 0.2 million at 30th of April.
The group continues to have in place its RCF facility of GBP 75 million and accordion of GBP 45 million through to October 2027, providing the group with significant financial resources to continue further bolt-on M&A. In addition, the group will utilize its RCF to repay its EUR 13 million Maltese bond, which is due in July 2025. So overall, it's really pleasing to be able to report a solid performance for the 6 months ending 30th of April 2025". "In terms of cash generation, we continue to expect the business before M&A to generate good levels of cash over the medium term and therefore, reducing the sort of overall net debt position we will experience in the second half of the year.
The half year point is typically the highest point for cash generation. We'd expect as in the past, experienced some working capital unwind in the second half, along with the circa GBP 8 million investment in Plianz. We have a healthy M&A pipeline with good progress on a number of strategic targets.
We have significant facilities to further fund our M&A ambitions with our GBP 75 million RCF and GBP 45 million accordion".
