General elections are an expensive undertaking, costing more than £100 million to organise and orchestrate. Technology firm Idox helps to ensure that everything runs smoothly, so electoral registers are up to date, ballot papers are sent out on time and postal votes processed for anyone who has requested them.
The entire rigmarole is complex and time-consuming, but mistakes can be ruinous so accuracy is paramount. Idox is one of the leading players in the field. Working with councils on local and general elections it is expected to play a key role when Prime Minister Rishi Sunak unveils the date for this year’s vote.
Based in Woking, Surrey, Idox specialises in software for complicated processes that traditionally involve reams of paperwork and cryptic filing systems.
Planning applications are a case in point. Working with 70 per cent of local authorities, the company’s technology is designed to ease a process that is routinely criticised for being slow, unwieldy and obstructive. Cash-strapped local authorities need all the help they can get and business is brisk.
The NHS is another important customer. Hospitals are stretched and equipment routinely goes missing, from beds that are dismantled and put in the wrong place to operating theatre tables that somehow go astray.
Decision time: Idox helps to ensure that electoral registers are up to date
Traditionally, staff would simply order new equipment to replace the missing assets as quickly as possible. However, Idox systems help hospitals to track all their kit, saving huge sums of money that can be spent on patient care.
Under chief executive David Meaden, Idox has moved into an area known as geospatial technology, collating data so that private and public sector customers can work out where best to build new properties, lay cables or focus their conservation efforts.
In Scotland, for instance, Idox helped to assess where and when collisions between deer and vehicles were most likely to take place and which drivers were most culpable. The group has also made recommendations about how to reduce accidents in future.
Customers even extend to the Gulf, where Idox helped builders behind Doha’s gleaming new airport to collate all their documents online so progress could be tracked at every stage.
Meaden was appointed in 2018 to help turn Idox around and progress has been impressive. Results for 2023 showed an 11 per cent increase in sales to £73 million, strong growth in profits and a 20 per cent rise in the dividend to 0.6p.
Brokers believe £100 million of revenues are in sight, as Meaden attracts new customers, persuades existing customers to use Idox more and acquires complementary businesses.
Midas verdict: At 66p, Idox shares have almost doubled since Midas recommended them four years ago but Meaden is determined to keep ahead, taking the stock from its current £300 million valuation to at least £500 million in the next few years. Cautious investors may wish to sell some stock now but they should retain a chunk as this business is poised for further growth.
Traded on: AIM Ticker: IDOX Contact: idoxgroup.com or 0333 011 1200
