Idox has seen a delay in the sign off on some contracts, particularly in its Health and Transport businesses, due to customer disruption in the wake of June’s General Election. Due to the timing impact, the group now expects FY’17 EBITDA to be c. £23m, a 15% shortfall against our expectations. Whilst we expect these contracts to close in the early part of 2018, we are keeping our FY’18 forecasts unchanged out of prudence and believe the group is set for a strong H1’18 as a result. The shares are already trading on undemanding 2018 multiples based on our unchanged 2018 forecasts - 9.0x EV/EBITDA and 12.9x P/E, providing support to the shares. Overall, we believe the group’s strategy of helping the public sector become more effective and efficient through digital transformation will give it continued opportunities for growth and value creation.