Software company unveils first pre-tax profit

Former Innovation centre tenant Idox, the software and services firm that employs 80 of its 140 staff in Glasgow, yesterday unveiled its first pre-tax profit, and said it remained "extremely optimistic" about the future.

The company, which floated on the Alternative Investment Market in 2000 during the thick of the technology meltdown, provides web-based software packages that allow complex paper-based processes to be automated and stored online.

In a move to drive future growth, it said it was now spreading its wings across the full gamut of public sector departments – rather than solely on local authorities, where it had concentrated previously.

During the year, Idox also acquired knowledge and information management consultant TFPL, its third acquisition, and said its integration into the group was now complete and that revenues and profits had exceeded expectations.

Idox yesterday posted a pre-tax profit of £90,000 for the 12 months to the end of October, compared with a loss of £600,00 the previous year.

Former Army communications officer Andrew Fraser, Idox's Fraserburgh-born chief executive, said: "We have grown by acquisition and also organically with more contracts and more clients. Around 87% of our contracts are in the public sector, although our private sector work is also growing, with some 13% of our contracts.

"I am absolutely delighted to have moved into profitable trading. We're extremely optimistic about the future."

Turnover for the year climbed by 113% to £9.6m from £4.5m last time.

Fraser won plaudits last year for his decision to establish the headquarters of the company – originally based in London – in Glasgow, bringing skilled jobs in IT, finance and marketing to the city. He said he wanted to change the firm's registration to Scotland, but found it was prohibitively expensive because it would required re-listing.

The chief executive also said that a raft of new products were being launched next year, with a new records management system scheduled for launch in the first quarter of next year.

The Herald, December 14 2004