Idox Reports Steady FY25 Growth Amid Ongoing Takeover by Long Path Partners

Idox FY25 results: steady growth, fatter recurring revenues, and a live takeover on the table

Idox has delivered exactly what it promised – a solid FY25. Revenue edged up 3% to £89.8 million, adjusted EBITDA rose 4% to £27.0 million, and recurring revenue jumped 10% to £59.7 million, now 66% of the mix. Layer on a record order intake of £108 million and you have decent visibility into FY26, even with the elections-related drag in Communities last year.

The twist is corporate: a recommended all-cash offer from Long Path Partners’ vehicle, Frankel UK Bidco Limited, at 71.5 pence per share. The Board backs it, the timetable is running, and dividends are paused until the outcome is clear.

Headline numbers investors should care about

Segment performance with notable contract wins

Land, Property & Public Protection (LPPP) grew 4% to £57.3 million, helped by geospatial solutions. Assets rose 5% to £15.6 million, with Engineering Information Management (EIM) and Transport up. Communities dipped 3% to £16.9 million, as expected, after the one-off UK General Election boost in FY24. The quality of wins stands out across the board.

• Geospatial: Vodafone chose Idox as strategic data partner for large-scale mapping in a 3-year deal worth over £3 million. Severn Trent renewed for 3.5 years in the largest geospatial revenue transaction to date, valued in excess of £4 million. Heathrow Airport selected licensed data, and Natural England expanded its conservation software footprint.
• Assets/EIM: TerraPower signed a 5-year $2.6 million contract for an engineering document management system, while Berkshire Hathaway Energy agreed a 7-year $2.9 million secure collaboration deal. Transport won £952,000 for Papercast solar displays with WECA & North Somerset.
• LPPP renewals: Sheffield City Council, Glasgow City Council, LB of Bexley, Hart District Council, Aberdeen City Council and Sevenoaks District Council extended for 5 years, totalling over £6 million.
• Communities: Scottish Government eCount contract with partner CGI worth circa £3 million to Idox over 5 years. Chelsea & Westminster Hospital NHS Trust extended its sexual health solution for 5 more years, worth over £1.6 million.

Margins were steady at the Group level, but mix moved. Communities margin improved to 40% (from 34%), offsetting small reductions in LPPP and Assets.

Cash, debt and investment: sensible, if less punchy

Free cashflow fell 19% to £9.5 million, mainly due to working capital timing and higher capital expenditure. Cash generated from operations before tax came in at £21.3 million, down from £25.2 million. Net debt ended at £13.3 million, up from £9.9 million, reflecting the £7.65 million Plianz acquisition in May 2025 and the bond repayment in July.

Leverage remains modest at 0.5x net debt to adjusted EBITDA, and facilities look ample with a £75 million revolving credit facility plus a £45 million accordion available until October 2028. Capitalised development spend rose to £8.8 million, targeted at geospatial and healthcare – a sensible allocation given where growth is coming from.

Takeover offer from Long Path Partners: price, timing and dividend pause

Offer price and valuation

Bidco, ultimately controlled by Long Path Partners, has made a recommended cash offer at 71.5 pence per share. Management notes the bid values Idox at £339.5 million. The Board unanimously recommends the deal.

Timetable and acceptance condition

• The structure has switched from a scheme to a contractual takeover offer to improve certainty.
• Acceptance condition: more than 50% of voting rights.
• Offer document posted on 15 January 2026. Day 60 is 16 March 2026 – the latest date for the offer to go unconditional or lapse, subject to Takeover Panel-approved changes.

Dividend paused

No FY25 dividend is recommended, given the live offer. If the offer lapses, the Board anticipates reinstating the dividend in FY26.

Why this set of results matters

• Quality of revenue improved: recurring revenue up 10% and now two-thirds of the mix, which typically means greater resilience and visibility.
• Order intake at a record £108 million underpins FY26 expectations, with strength across public sector software and geospatial data.
• Operational delivery held up during intensive takeover due diligence, with adjusted EBITDA and statutory EPS both higher.
• Disciplined M&A: Plianz slots into Social Care and is trading in line with expectations, while the small Ayup asset purchase further enhances capability.

Risks, costs and the fine print worth noting

• Material uncertainty flagged on going concern post-transaction: if the takeover completes, Idox expects higher leverage and different covenants. Directors have not seen Long Path’s post-deal modelling, so they cannot certify the post-completion 12-month outlook – hence the accounting language. Under current ownership and facilities, the going concern basis remains appropriate.
• Transaction costs: total fees and expenses tied to the deal are expected to be approximately £12.1 million. Of this, £10.4 million is contingent on completion. £0.3 million has been accrued in FY25, with a further £1.4 million to be recorded in FY26. This is a meaningful headwind if the deal completes.
• Margins static at 30% versus the internal 35% target. Management is focusing on returns from product development and integrating prior acquisitions to grind margins higher.
• Cashflow was softer year-on-year and capitalised R&D stepped up to £8.8 million. Sensible strategically, but it means free cashflow fell 19%.
• Non-recurring revenue fell 9% as expected, especially in Communities due to the FY24 election spike. Mix now favours recurring – a positive – but it can temper top-line growth in quieter project cycles.

My take: balanced, with upside if the engine keeps humming

Operationally, this is a tidy year. Idox is quietly getting stronger where it counts: recurring revenue, renewal rates, and marquee contracts in geospatial and EIM. The order intake record is the headline that should reassure holders that FY26 has a good runway.

The takeover clouds the near-term narrative. Shareholders have a clean cash option at 71.5 pence per share, but if it does not proceed, Idox looks capable of compounding from here, with dividends likely reinstated in FY26 and a clear path to margin improvement. The main drawbacks: transaction costs if the deal completes, and the post-deal leverage/covenant unknowns highlighted in the going concern note.

What to watch next

• Takeover acceptance progress and any timetable changes before 16 March 2026.
• Conversion of the £109.6 million contracted performance obligations, with 71% expected to land in FY26.
• Margin progress toward 35% and the payback from the £8.8 million capitalised development spend.
• Cash discipline, free cashflow recovery and net debt trajectory if M&A continues.
• Geospatial momentum after the Vodafone and Severn Trent wins, and further EIM wins following TerraPower and Berkshire Hathaway Energy.

Bottom line

Idox has posted a solid, low-drama year while handling a high-drama corporate event. If the offer completes, investors get certainty at 71.5 pence per share. If it does not, the business is set up with a bigger recurring base, a record order book, and scope to nudge margins higher. Either way, the core franchise looks in good health.