The Ideagen share price (LSE: IDEA) is currently trading at around 115p per share, after a strong start to the year. The company is a provider of software solutions for regulated industries, and its products are used by over 4,000 organisations worldwide. Ideagen has been growing rapidly in recent years, and its share price has risen steadily as a result.
However, the stock is still relatively unknown among investors, which could provide opportunity for further gains in the future.
Ideagen plc (LON: IDEA) shares fell sharply in early trade on Thursday after the company announced a strategic review.
The AIM-listed software firm said it would conduct a “strategic review of operations” amid challenging trading conditions. Ideagen also announced a placing to raise £8 million at 125p per share.
At the time of writing, Ideagen shares were down 19% at 133p. The stock has fallen by over 60% since peaking at 350p in May this year.
Ideagen blamed the “challenging trading environment” for its decision to undertake a strategic review.
The company said it was experiencing lower than expected demand across all sectors and geographies.
As part of the review, Ideagen will assess its cost base and organisational structure. The company said it would provide an update on the outcome of the review in due course.
In the meantime, Ideagen has raised £8 million through a placing of new ordinary shares with institutional investors. The placing price represents a discount of around 38% to Wednesday’s closing price of 210p per share.
Stock In Focus – Ideagen PLC
Ideagen Takeover
On 3 March Ideagen Plc (LON: IDEA) announced its takeover of Coruson Limited, a global provider of Governance, Risk and Compliance (GRC) software solutions. The acquisition is for an initial cash consideration of £4.2m with deferred payments up to a maximum of £5.8m based on the achievement of agreed revenue targets over the next two years. Ideagen believes that the acquisition will be earnings accretive in the first full year post-completion and expects to generate annual cost savings of c£0.5m within two years as a result of operational synergies.
Coruson’s flagship product is its GRC software platform which is used by organisations around the world to manage their governance, risk and compliance processes more effectively. The company has an installed base of over 250 customers including major names such as Coca-Cola, HSBC, Samsung and Toshiba.
The acquisition strengthens Ideagen’s position in the growing global GRC market and provides it with a best-of-breed software solution to complement its existing portfolio of products and services.
Credit: www.sharecast.com
Is Ideagen a Buy?
Ideagen is a global provider of compliance and quality management software to regulated industries. The company delivers its solutions through the cloud, on-premise and hybrid models. Ideagen has over 4,000 customers in more than 100 countries, including some of the world’s leading brands such as Boeing, Virgin Atlantic Airways, Rolls-Royce and Airbus.
The company floated on the London Stock Exchange in 2016 and has since seen strong growth. In 2019, Ideagen reported revenues of £62.1 million ($79.4 million), up from £48.5 million in 2018. Adjusted EBITDA also increased from £11.2 million to £15.4 million over the same period.
With its strong growth prospects and position in high-growth markets, Ideagen looks like an attractive proposition for investors at current levels.
Is Ideagen Listed?
Yes, Ideagen is listed on the London Stock Exchange. It is a public limited company and its ticker symbol is IDEA.
Conclusion
Ideagen shares are up today after the company announced its Preliminary Results for the year ended 31 December 2018. The results show that Ideagen is on track to achieve its strategic objectives, with strong revenue growth and profitability in line with expectations. The share price rise reflects investor confidence in Ideagen’s prospects for continued success.
