After a few miserable years, IDE Group sees green shoots of recovery as it plans to offload its Connect business.
Revenues of £7.6 million were up from £6.8 million in the equivalent period last year and group profits of £3.6 million were up on £2.5 million. Adjusted EBITDA profit of £2.1 million was a significant improvement on £0.5 million in the first half of 2020.
IDE chairman Andy Parker said that the group has taken advantage of this period to continue to restructure the operational side of the business and has decided to concentrate on the profitable Manage side of the operations.
The sale of Connect was seen as a moment to get the business finally back on track and discussions are advanced to sell the unit. Between 1 January and 30 June 2021, IDE Group Connect with Nimoveri made a combined operating losses of £1.4 million.
Parker said Connect has continued to struggle due to a lack of scale has continued to hold the business back and the choice for IDE was to invest by way of acquisition to enable scale or sell the business to someone else.
Having made that decision, the business is focusing on its Manage business, which it had decided to back with investment.
“As can be seen from the half-year results, this division is showing good organic growth at a revenue and profit level, and it is our belief that this will continue over the next few years”, said Parker.
“It has taken three long years to turn this company around, but I am truly delighted to say that at last, with the expected sale of Connect, we have a meaningfully profitable company with excellent prospects”, said Parker.
