REG - Intercede Group PLC - Final Results
Tue 07:00
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RNS Number : 0636O Intercede Group PLC 24 June 2025
24 June 2025
INTERCEDE GROUP plc
('Intercede', the 'Company' or the 'Group')
Preliminary Results for the year ended 31 March 2025
Intercede, the leading cybersecurity software company specialising in digital
identities, today announces its preliminary results for the year ended 31
March 2025 ("FY 2025").
FY 2025 Headlines
· Group revenues of £17.7 million
· Group focus on annual recurring revenue, now at £10.6 million
· Net profit of £4.1 million
· Net cash generation from operating activities of £2.9 million, after
share buybacks and repayments of R&D tax credits being a net impact of
c£1.4 million
· Basic EPS of 6.9p
· New product launched, MyID SecureVault, with maiden sales in H2
· Continued investment in product and code, including internal IT
infrastructure
· Clear strategic vision on M&A plans and broadening our geographic
reach
· Strong and unleveraged financial position.
Total Revenue:
For the year ended 31 March 2025, the Group generated revenues of £17.7
million, representing a decrease of approximately 11.5% compared to the prior
year (2024: £20.0 million), and an 9.6% decline on a constant currency basis.
As previously disclosed, 2024 included an exceptional perpetual licence sale
of approximately £6 million that the Group signed in December 2023, which
contributed materially to the FY2024 results (with revenues in FY2024 being
record revenues for the Group). In the three-year period between 2022 and 2025
the Group has demonstrated a CAGR in revenues of c21.4%.
FY 2025 FY 2024
£ million £ million
Revenue 17.7 20.0
Gross profit 17.2 19.4
Profit before Tax 4.6 5.6
Net Profit 4.1 6.0
EPS - basic 6.9p 10.3p
EPS - diluted 6.5p 9.6p
Gross Margin 97.2% 97.0%
Net Margin 23.2% 30.0%
Cash and cash equivalents 18.7 17.2
Net cash from operating activities 2.9 9.6
Deferred revenue 8.8 8.6
Total Assets 28.7 25.7
Total Equity 17.0 13.2
Adjusted EBITDA 4.5 6.2
Less:
Amortisation of intangibles 0.2 0.2
Depreciation of assets 0.2 0.1
Right of use depreciation 0.1 0.2
Acquisition costs -release of deferred consideration -0.2 0.1
Employee Share/Unit incentive & option plan charges 0.2 0.2
Exceptional costs 0.1 0.1
Operating Profit 3.9 5.3
Highlights for the Year Ended 31 March 2025
Key Contract Wins:
During the year, the Group secured several significant new contracts,
including:
o A major licence order for MyID CMS, placed by a systems integrator on
behalf of a new government end client in Asia (new logo), valued at
approximately $0.9 million, with associated multi-year support and maintenance
services worth $0.56 million. This contract establishes a strategic presence
for the Group in the region.
o For the same end client, the Group secured its inaugural subscription
licence order for MyID SecureVault, valued at approximately $0.5 million over
a two-year period.
o A subscription licence order for MyID MFA from a leading airline based in
the Middle East (new logo), secured through a newly established partnership
focused on airport security screening.
o A subscription licence order for MyID MFA from a prominent Kuwaiti bank
(new logo), contracted via the Group's regional distribution channel.
o A MyID CMS subscription licence order from an American, publicly traded,
government-sponsored enterprise (new logo), secured through a managed services
partner.
Contract Renewals:
The Group also successfully renewed a number of key support and maintenance as
well as subscription contracts, including:
o A renewal from a large U.S. federal agency, valued in excess of $1.4
million.
o A renewal from a second major U.S. federal agency, valued in excess of
$1.0 million.
o A renewal from another key U.S. federal agency, valued at approximately
$0.15 million.
o A major renewal from a significant educational institution in the Middle
East for MyID MFA, including an enhanced subscription licence order for an
additional 2,000 users, bringing the total deployment to 19,000 users. The
combined annual value is approximately $0.15 million.
o A support and maintenance renewal from a major U.S. aerospace and defence
manufacturer, totalling approximately $0.54 million.
Deployment Activity:
During the year, the Group added 15 new deployments across its MyID Solutions
product lines.
Operations Overview
Intercede continues to uphold its commitment to excellence in quality, agility
and timeliness, with cost-effective delivery. Our operations are underpinned
by stringent quality assurance protocols, underpinned by ISO 9001 and 27001
and the disciplined application of key performance indicators (KPIs)
throughout the estimation, development, and review processes. These practices
ensure that all deliverables consistently meet our high standards. All
development and testing is performed in the UK.
We employ an agile development methodology to support the evolution of our
products, with an increasing number of components being developed and
integrated using Azure DevOps. The MyID product suite adheres to a structured
release schedule, with MyID CMS undergoing quarterly updates-comprising
versions v12.11 through v12.14 within FY 2025. Additionally, MyID MFA/PSM has
seen the successful release of four versions during the reporting period:
v5.05.0, v5.07.0, v5.08.0, and v5.08.1.
In direct response to customer demand, we demonstrated our capacity for rapid
innovation through the design, development, and launch of a new product, MyID
SecureVault, within a three-month timeframe.
Over the past year, Intercede has successfully delivered more than 32 projects
to a diverse client base across the United Kingdom, Europe, the Middle East,
APAC, and the United States. These projects served both newly onboarded
customers and long-standing partners across critical sectors including
government, federal, defence, telecommunications, and finance.
Key project highlights include:
o The deployment of MyID CMS for a major U.S. federal agency, encompassing
support for over 250 global locations.
o The implementation of MyID MFA for a critical government agency in the
Middle East.
o The deployment of MyID MFA for a supervisory financial authority in the
Middle East.
o The commencement of a MyID SecureVault implementation for a governmental
client in the Asia-Pacific region.
o The Group continued to invest in strengthening its internal IT
infrastructure and migration to cloud capabilities. This strategic transition
enhances scalability, reliability, and performance.
o Intercede maintained its ISO 9001 and ISO 27001 certifications,
successfully achieving this without any non-conformances. This reflects the
organisation's ongoing commitment to quality management and information
security best practices.
o Customer satisfaction remains a cornerstone of Intercede's operational
priorities. In FY 2025, the Group achieved a Net Promoter Score (NPS) of +55
(2024: +50), underlining a continued strengthening of our customer and partner
relationships. This improvement underscores our commitment to delivering
exceptional value through high-quality software products, responsive account
management and customer support, and professional services. We actively engage
with our client base through executive service reviews and our Customer
Advisory Board to gather feedback and continuously enhance service delivery
and customer experience.
Intercede remains steadfast in its mission to deliver secure, reliable, and
innovative digital identity solutions, ensuring the continued trust and
satisfaction of our global clientele.
Outlook
Intercede is primed for growth and is already seeing the benefits of targeted
development and investments in its product offering. The Group is excited
about the future and confident it will continue to build on the solid
foundations in the years ahead.
Despite ongoing global uncertainty, the cybersecurity market continues to
expand, driven by the increasing complexity of threats and the growing
influence of emerging technologies such as AI. Regulatory momentum is also
increasing, with new standards like the Network and Information Security
Directive 2 (NIS2) in Europe and parallel initiatives in the US aligning
closely with Intercede's software capabilities and product development
roadmap.
Whilst the Group is seeing no current impact from tariffs or Department of
Government Efficiency (DOGE) directives, there is potential upside driven by
increased Department of Defence (DoD) spending, as well as the emphasis on
moving from Government Off-the-Shelf (GOTS) to Commercial Off-the-Shelf (COTS)
solutions. However, decision-making cycles within government entities continue
to be longer compared to non-governmental sector. Spending on cybersecurity is
on the rise, with increasing potential for direct vendor engagement and a
growing number of cybersecurity mandates at both US state and local levels.
Despite reduced government funding for the Cybersecurity and Infrastructure
Security Agency (CISA), the resilience of critical infrastructure remains
intact.
Beyond the Americas, Intercede's market presence is strengthening. In
Continental Europe and the UK, regulatory frameworks such as NIS2 and the
Digital Operational Resilience Act (DORA) are gaining traction, alongside
rising interest in the EU Digital Wallet (EUDI) and in the Middle East. The
Group is focussed on accelerating its channel expansion in these regions
through targeted marketing efforts. Meanwhile, in the Asia-Pacific region,
particularly Singapore, there are growing demands for secure identity
solutions, including activity in Australia and New Zealand.
Current trading is in line with Board expectations with our Tier 1 client base
continuing to grow and diversify, reinforcing the Group's strong market
position. With its 'best-in-class' MyID platform, we are uniquely equipped to
capitalise on a dynamic and expanding global cybersecurity landscape.
Royston Hoggarth, Chairman, said:
"We are maintaining our momentum, even amid ongoing global uncertainty and
challenges. Following an outstanding FY2024, the Group has delivered further
strong results, driven by a strategically geo-diversified pipeline and market
leading products. Intercede is committed to executing its strategic objectives
and delivering embedded growth in the years ahead."
ENQUIRIES
Intercede Group plc Tel. + 44 (0)1455 558111
Klaas van der Leest CEO
Nitil Patel CFO
Cavendish Capital Markets Limited Tel. + 44 (0)20 7220 0500
Marc Milmo/Fergus Sullivan Corporate Finance
Tim Redfern/Jamie Anderson ECM
About Intercede
Intercede is a cybersecurity software company specialising in digital
identities, and its innovative solutions enable organisations to protect
themselves against the number one cause of data breach: compromised user
credentials.
The Intercede suite of products allows customers to choose the level of
security that best fits their needs, from Secure Registration and ID
Verification to Password Security Management, One-Time Passwords, FIDO and
PKI. Uniquely, Intercede provides the entire set of authentication options
from Passwords to PKI, supporting customers on their journey to passwordless
and stronger authentication environments. In addition to developing and
supporting Intercede software, the Group offers professional services and
custom development capabilities as well as managing the world's largest
password breach database.
For over 20 years, global customers in government, aerospace and defence,
financial services, healthcare, telecommunications, cloud services and
information technology have trusted Intercede solutions and expertise in
protecting their mission critical data and systems at the highest level of
assurance.
For more information visit: www.intercede.com (http://www.intercede.com)
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as
it forms part of UK domestic law by virtue of the European Union (Withdrawal)
Act 2018 ("MAR"), and is disclosed in accordance with the company's
obligations under Article 17 of MAR.
Strategic Report: How We Approach Growth
The Investment Case
Intercede provides business critical authentication software in a growing
cyber security market and does this by protecting organisations against data
breaches.
Intercede's growth strategy is now based on a multi-sided authentication
pyramid, built on strengthening recurring revenues, enhancing product
offerings, expanding market presence, and making targeted value creating
acquisitions. Our disciplined focus on operational excellence ensures we can
scale effectively and sustainably, execute on our stated KPIs and deliver
embedded growth over the coming years.
Market Trends and Opportunities
The Group is widely recognised as a global market leader in Credential
Management Systems (CMS) through its flagship solution, MyID CMS. This
leadership position is underpinned by a clear strategic focus on sustained
innovation, targeted investment in intellectual capital, the recruitment of
highly skilled professionals, and the introduction of flexible pricing models
tailored to evolving customer requirements.
The critical nature of the Group's offerings-addressing core security and
digital identity needs-means that expenditure in this area is typically
non-discretionary. This, combined with strong customer relationships and
long-term solution adoption, has resulted in low customer attrition and a
growing base of high-quality recurring revenues.
The Group has expanded its product capabilities further down the
authentication pyramid. This has led to the integration of MyID MFA and MyID
PSM into the broader offering, significantly increasing the Group's total
addressable market. The subsequent successful launch of MyID SecureVault
represents another key milestone, in addressing client requirements through
innovation and a commercial lens, in an agile manner.
As a result, the Group is well-positioned to capitalise on continued growth in
demand for secure, scalable, and compliant digital identity solutions,
reinforcing its role as a trusted partner in the global cybersecurity
ecosystem.
Financial Strength
Following an exceptional 2024, the Group continues to deliver growth and
profitability and enters the new financial year from a position of strength.
With no debt, strong cash reserves of £18.7 million at year-end, and
continued discipline in capital and working capital management, the Group has
the financial flexibility to actively pursue and execute its organic growth
strategy and continued investment in product innovation complemented with
strategic M&A opportunities.
In alignment with its long-term growth strategy, the Group has set a clear
objective to double its FY2022/23 revenue of £12 million by the end of
FY2028. This target will be driven through the Group's organic and M&A
strategy underpinned by the Group's robust operational and financial
foundations.
Recurring Revenue Focus
The Group continues to prioritise the development of long-term, stable, and
predictable revenue streams as a core element of its business model. We do
this by:
· Flexible Pricing Models - Offering both subscription-based and
perpetual licencing options enables the Group to meet the diverse and evolving
needs of its customer base.
· Subscription Growth - The ongoing transition to subscription models,
particularly for the MyID CMS and subscription only MyID SecureVault, MFA and
PSM, is accelerating the growth of Annual Recurring Revenue (ARR).
· Strong Customer Retention - High retention rates reflect the
mission-critical and non-discretionary nature of the Group's solutions,
especially MyID CMS, reinforcing revenue stability and long-term client
relationships.
This strategic emphasis supports the Group's ambition for long term growth and
increased revenue visibility. This strategy has enabled the Group to deliver a
GAGR in revenues of c21.4% since FY 2022.
Organic Growth
Product Enhancement and Market Expansion
The Group remains committed to continuous innovation through ongoing
investment in research and development, ensuring it maintains a strong
competitive edge in a dynamic and evolving market. Key strategic initiatives
include:
· Integrated Platform Offering - The ongoing integration of MyID MFA
and PSM, and our flagship product MyID CMS into a cohesive unified platform.
· Increased R&D Investment - Continuous enhancement of the product
suite through focused R&D ensures alignment with emerging customer
requirements and regulatory standards, positioning the Group for ongoing
market relevance and growth.
Operational Excellence
The Group's commitment to operational excellence is reflected across all core
functions, ensuring the delivery of high-quality products and services.
Key operational pillars include:
Research & Development (R&D)
The Group continues to invest in agile product development and testing
methodologies to accelerate road innovations and quarterly releases for its
product suite. Product enhancements are built on core principles of security,
scalability, and interoperability, enabling the delivery of robust solutions
that meet evolving customer and industry demands.
Customer Support
Intercede's high-touch support model spans onboarding, training, and ongoing
lifecycle services. A Net Promoter Score (NPS) of 55 underscores the quality
and responsiveness of support and reflects strong customer satisfaction and
loyalty.
Professional Services
Leveraging deep domain expertise, the Group's professional services team
enables customers to realise full value from their investment. This includes
rapid deployment, tailored configuration , and comprehensive integration
support, ensuring seamless implementation in typically complex environments.
Sales and Marketing - a channel first approach
The Group employs a channel-first Go-To-Market Model (GTMM), with 96% of new
business secured through trusted partners (2024: 94% ). This scalable partner
ecosystem is carefully aligned with Intercede's values and technical
standards. In parallel, brand positioning and market reach have been
significantly enhanced through collaborative marketing efforts and demand
generation campaigns with key partners. A key part of the Group's growth
strategy is to continue to deepen its relationships with its existing trusted
channel partners whilst also seeking to expand its channel partner network to
enhance the Group's geographic reach.
Inorganic Growth Strategy
The Group continues to pursue a disciplined and targeted mergers and
acquisitions (M&A) strategy to accelerate growth and enhance strategic
capabilities. Inorganic initiatives are designed to complement organic
performance and deliver long-term value by:
· expanding the product portfolio - Acquiring complementary
technologies to broaden and enhance the existing product suite.
· growing recurring revenues - Prioritising businesses with established
Annual Recurring Revenue (ARR) models to strengthen revenue predictability and
scalability.
· accessing specialised talent and IP - Bringing in expert teams and
commercially proven technologies that enhance the Group's innovation pipeline
and execution capacity.
· entering new markets - Leveraging acquisitions to establish a
presence in new geographic regions and/or vertical sectors.
· increasing capabilities - Addressing technological or functional gaps
more rapidly fulfilled than through organic development alone.
· diversifying the client and partner base - Expanding reach across key
sectors such as healthcare, financial services, and government.
The Group is not focused on a "buy and build" strategy. Instead, all M&A
activity is guided by stringent evaluation criteria to ensure strategic
alignment, financial accretion, and cultural compatibility, reinforcing the
Group's long-term growth objectives. The Company is regularly evaluating
acquisition opportunities but to date none have satisfied Intercede's
disciplined M&A criteria and growth ambitions.
Our People: Enabling Performance and Growth
At Intercede, putting our colleagues first is a core principle that underpins
the Group's culture and long-term success. We are committed to creating an
environment where our people can thrive, collaborate, and contribute
meaningfully to the Group's objectives.
By empowering our colleagues, we enable the creation of innovative products
and solutions that fuel commercial success, supporting the sales team in
driving growth and enabling professional services to deliver successful
implementations for our customers and partners.
Over the past two years, the Group has actively advanced its succession
planning efforts, successfully recruiting and integrating the next generation
of talent. This strategic focus supports our ability to scale as we continue
to invest across development, testing, presales, professional services, and
customer support, broadening the Group's operational bandwidth and delivery
capacity.
We also recognise that diversity and inclusion are critical drivers of
innovation and sustainable growth. By building a more diverse and
representative workforce, we not only enhance creativity but also foster a
more resilient and forward-looking organisation. Our commitment to equitable
growth, development, and advancement ensures that we continue to attract,
retain, and engage top-tier talent. Role promotions are typically made from
within the Group ensuring that colleagues have ongoing career development.
During the year, the CTO office was expanded following the internal promotion
of a new CTO.
Product and Roadmap
Intercede MyID Solutions
Products
Stronger Authentication
Intercede protect our customers against data breach by enabling them to
replace weak user credentials with stronger authentication simply, securely
and at scale.
Despite the many advances in technology over the last few years, the number
one cause of a data breach remains compromised user credentials. Put another
way, 'hackers don't break in, they log in.' Intercede's solutions enable our
customers to choose the level of authentication security that is appropriate
for them, from high-assurance military and government through to smaller
organisations, helping them wherever they are on their journey to better
security.
The authentication pyramid (below) shows the relative strength of various
authentication mechanisms, with the strength of authentication increasing as
the pyramid is climbed.
Passwords and Security Phrases (longer passwords based on a number of
disconnected words) are the weakest as they only comprise a single factor (if
I know your password I can authenticate as you), are subject to phishing
attacks, and are often reused online where they can be stolen and used by bad
actors.
Multi-Factor Authentication, also known as strong authentication, comprises
two or more factors from 'something I have' (e.g. a phone or smart card),
'something I know' (e.g. a PIN or password) and 'something I am' (e.g. a
fingerprint or face match) and typically generates a one-time password (OTP)
which is valid for a short time only. Using two factors significantly
increases the level of security as it protects against password reuse and
several automated attacks.
The highest level of security is based on cryptographic keys and includes both
Public Key Infrastructure (PKI) and Faster Identity Online (FIDO)
credentials/FIDO passkeys. These provide phishing-resistance, making it
extremely difficult for a bad actor to steal and reuse a credential. They are
recognised by the National Institute of Standards and Technology (NIST) as
offering the highest level of authentication assurance.
The MyID Product Family
Intercede excel in high security solutions at the 'top of the' pyramid,
delivering credential management systems that enable issuance of
high-assurance PKI and FIDO credentials to security-demanding customers in
government, aerospace & defence, healthcare and financial services. With a
business-critical offering and non-discretionary nature of the expenditure,
the Group has low attrition and growing recurring revenues.
Following the acquisition of Authlogics in October 2022, we successfully
integrated the Multi-Factor Authentication (MFA) and Password Security
Management (PSM) solutions into a rebranded MyID product family. Intercede is
now a multi-product company that uniquely offers our customers a solution
wherever they are on their security journey from passwords to PKI, enabling us
to address a wider range of customers including small to medium businesses.
MyID PSM - Secure your passwords, with user-friendly policies to help users
set good passwords, and continuous assessment against the world's largest
database of compromised credentials with over 10 billion entries.
MyID MFA - Authenticate to anything from anywhere, with modern authentication
that is easy to use, deploy and manage.
MyID CMS - Issue and manage high-assurance credentials simply, securely and at
scale, compliant with security guidelines such as FIPS-201 and NIS2.
MyID SecureVault - Securely generate and protect private keys independent of
the PKI provider. Integrated with the MyID CMS for key recovery and available
to third-party solutions via API.
New Product Launch
Market Drivers
Intercede offers solutions to a number of demands in the cybersecurity market
which are driving organisations towards improved security:
· The number of, and sophistication of cyberattacks, is on the
increase, be that they are state sponsored due to the current geopolitical
climate, or criminally motivated (e.g. ransomware). Of particular note is the
increased use of Artificial Intelligence (AI) to generate phishing attacks
which are virtually indistinguishable from genuine communications,
highlighting the need for credentials that cannot fall prey to a phishing
attack.
· The range of cybersecurity legislation continues to increase and is
driving organisations towards improved cybersecurity solutions. Despite the
recent changes in US administration, it should be noted that in the US,
presidential executive orders from both the Trump and Biden administration
have published guidelines on the use of phishing resistant authentication
which have resulted in updated NIST standards. Of particular note in Europe
is NIS2*. The NIS2 Directive is EU-wide legislation on cybersecurity providing
legal measures to boost the overall level of cybersecurity in the EU.
· Now law in multiple member states, NIS2 is just one of a range of
legislative changes that increases market demand for cybersecurity. Another
key driver in Europe is DORA** - a regulation introduced by the European Union
to strengthen the digital resilience of financial entities. It entered into
application on 17 Jan 2025 and ensures that banks, insurance companies,
investment firms and other financial entities can withstand, respond to, and
recover from ICT (Information and Communication Technology) disruptions, such
as cyberattacks or system failures. DORA impacts the financial services sector
and their supply chain.
· Due to the increased level of cyberattacks combined with the
increasing level of cybersecurity legislation, spending in cybersecurity is
continuing to increase and is seen as non-discretionary by an increased number
of organisations.
· In US Federal government, there is a continued drive to move away
from bespoke or 'GOTS' (government off-the-shelf) software towards COTS
(commercial off-the-shelf) solutions. This will enable customers to benefit
from vendor investments in roadmap and to keep up with the rapidly changing
cybersecurity landscape including adopting modern technologies faster and
cheaper.
*NIS2 : The NIS2 Directive: A high common level of cybersecurity in the EU |
Think Tank | European Parliament (europa.eu)
(https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI%282021%29689333)
-
https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI%282021%29689333
** DORA Digital Operational Resilience Act (DORA) - EIOPA
(https://www.eiopa.europa.eu/digital-operational-resilience-act-dora_en) -
https://www.eiopa.europa.eu/digital-operational-resilience-act-dora_en
Roadmap
Intercede continues to invest in its research and product development
capabilities to maintain our market leading position in digital identity and
credential management. Inputs into the product development roadmap can be
split into three categories:
· Strategic - a combination of research and development activities,
resulting in new features or modules in the product family to maintain or
increase Intercede's competitive position.
· Customer Funded - on occasion a customer wishes to accelerate a
particular feature on the product roadmap. This work is funded by the customer
with Intercede always retaining the intellectual property.
· Support and Maintenance - customers gain access to upgrades and
product support. As a security product, this is vital to our customers and
Intercede invests in keeping the product family up to date with the latest
security standards and support for third party systems and devices. This
protects our S&M revenue which is either an annual contract or included
within subscription pricing.
Examples over the current period include:
· Passkey management for Entra ID***. Intercede continues to work with
Microsoft as a strategic technology partner. The latest integration enables
the MyID CMS to manage and issue FIDO passkeys that can be used to
authenticate to Microsoft Entra ID protected resources, enabling customers to
benefit from high-assurance authentication and credential management that
complies with legislation such as FIPS-201.
· Enhanced federation support for the MyID CMS product, enabling it to
share identity information with 3(rd) party systems such as Microsoft Entra,
Okta and Ping Identity, delivering seamless integration into the complex
identity and access management solutions our larger customers operate.
· Enhancements to the MyID MFA product enabling it to be used by
managed service providers to support multiple end customers from a single
instance of the MFA solution. This capability enables Intercede to address
the smaller customer market, via partners, that has to date been inaccessible
to us.
*** Intercede Collaborates with Microsoft and Yubico to Enhance Enterprise
Security with Stronger Authentication - Intercede
(https://www.intercede.com/intercede-collaborates-with-microsoft-and-yubico-to-enhance-enterprise-security-with-stronger-authentication/)
-
https://www.intercede.com/intercede-collaborates-with-microsoft-and-yubico-to-enhance-enterprise-security-with-stronger-authentication/
The product development roadmap process is tightly managed, taking input from
multiple internal and external stakeholders, including the Client Advisory
Boards, and results in quarterly product releases.
A key initiative of Intercede is to continue to increase the percentage of
resources allocated to strategic roadmap development to ensure Intercede
maintains and increases our competitive advantage.
In addition to regular product updates, Intercede conducts extensive research
and development activities, which often result in product enhancements or new
products in their own right. One such example is the recent launch of the
new MyID SecureVault product.
At the heart of a PKI based security solution is a private key, where the key
is used to decrypt information (e.g. an email), the key needs to be securely
generated, stored and made available for recovery, e.g. to provision the key
to a replacement phone so that encrypted emails can continue to be read on the
new device.
These keys have historically been backed up (or 'archived') as part of the PKI
infrastructure, with a key archive store being provided by the PKI vendor.
As our customers tend to move between PKI vendors overtime, and with higher
frequency, this means having the keys managed within the PKI vendor
infrastructure in effect 'locks' the customer into the PKI provider, making it
very difficult to transfer keys securely from one vendor to another.
Working closely with a government customer in the Asia Pacific region,
Intercede developed a new product - MyID SecureVault that enables customers to
securely generate, store and recover private keys independent from the PKI
vendor. This new solution gives customers control over their own keys and
removes PKI vendor lock in, making moving between different PKIs significantly
less cumbersome, faster, simpler and cheaper.
Strategic Product Direction
Intercede continues to invest in product development and focused strategic
enhancements driven by a mix of customer and market demand.
· MyID CMS remains the market leading solution for high-assurance
identity and credential management for PKI, with specific strengths around
FIPS 201 (PIV) compliance. Intercede will invest to ensure the CMS maintains
this leadership position for PKI based opportunities and enhances its
leadership position as the types of credentials our customers use expands to
include additional options such as Mobile ID and FIDO passkeys.
· Multi-Factor Authentication is a highly competitive market space;
therefore it is important Intercede continue to differentiate its mid-market
offering; MyID MFA, which is being done in two strategic areas:
o Making high assurance phishing-resistant credentials such as FIDO passkeys
easy to deploy and manage.
o Acting as a multi-tenant platform for managed service providers, enabling
them to add stronger authentication to their service offering.
· At the heart of Intercede's Password Security Management solution is
the world's largest actively managed database of known compromised passwords,
with over 10 billion records. The strategic roadmap for Password Security is
to develop a combined MFA, Enterprise Password Manager and Passkey Manager,
enabling organisations to manage the transition between password and stronger
credentials in a fully integrated solution.
· As a recent innovation, Intercede already has plans for the MyID
SecureVault product to protect additional organisations secrets such as
biometrics.
Market Opportunities
Breaking the total market size down into market opportunities available to
Intercede, follows a three-step process:
· Addressable Market
Intercede's addressable market is any organisation globally that needs to
secure and manage their user identities. Our key segments are US federal
government (and related aerospace and defence suppliers) and
enterprise/workforce identity, into which we provide password management,
multi-factor authentication and credential management solutions.
· Served Market
Within the addressable market, Intercede has a strong footprint in the US and
EMEA, and a growing footprint in the APAC region, particularly in the
high-assurance government and defence market.
· Actual Market
Within the served markets Intercede remain focused on several growth areas:
· PKI and FIDO credential management in high assurance
environments, particularly those that need to comply with specific legislation
such as FIPS 201 or NIS2.
· Multi-Factor Authentication in the mid-size enterprise,
particularly those affected by NIS2 regulations in Europe.
· Multi-Factor Authentication in small businesses, served by
embedding Intercede technology into established managed service provider
(MSP)/managed security service provider (MSSP) offerings.
· Password Security Management as a simple first step on a journey
towards better authentication.
Accounting for the actual market opportunity and Intercede's focused growth
areas, the Group is confident that the stated aim of doubling its FY 2023
revenue of £12m by the end of FY 2028 is achievable.
Summary
Intercede has expanded the product portfolio to uniquely cover the complete
set of authentication options from passwords to PKI. We give our customers
choice and help them wherever they are on their journey to stronger
authentication and better security.
Intercede continues to invest in the CMS, MFA and PSM products in addition to
new innovative solutions such as MyID SecureVault.
With the increased demand for high-assurance cybersecurity products, Intercede
is well positioned to continue to capitalise on the growing need for digital
identity in high assurance environments, and also to benefit from this
credibility when positioning into the-mid market.
Financial Review
Income Statement
Revenue and operating results
The Group's revenue from continuing operations decreased by 11.5% to £17.7
million (2024: £20.0 million) and gross profit decreased by 11.3% to £17.2
million (2024: £19.4 million). As previously announced, the comparative
period in FY2024 benefited from an exceptional perpetual licence sale of
approximately £6 million that the Group signed in December 2023. Gross
margin was flat at 97.2%, a similar level to last year and reflects
third-party product sold as part of licence sale in both years, £0.5 million
(2024: £0.6 million).
The Group's operating profit was £3.9 million (2024: £5.3 million), after
non-cash depreciation charge for property, plant and equipment in the year of
£0.2 million (2024: £0.1 million), a right-of-use depreciation charge of
£0.1 million (2024: £0.2 million) and amortisation costs of £0.2 million
(2024: £0.2 million). Development expenditure of £0.3 million incurred
specifically in relation to the subscription only and separable MyID
SecureVault initiative was capitalised during the year (2024: £nil).
The Group released the remaining deferred consideration relating to Authlogics
Ltd of £0.2 million credit (2024: £0.0 million credit) with an exceptional
expense of £0.1 million relating to costs for moving IT infrastructure to the
cloud (2024: £0.1 million). Operating expenses decreased by 6.4% to £13.2
million (2024: £14.1 million).
Tight cost control continues to be a focus for the Group in conjunction with
considered project expenditure to support revenue growth. Meanwhile the Group
continues to recognise the achievements of its staff with pay rises and
performance-related rewards. Staff costs represent the highest area of expense
representing 84.3% of total operating costs (2024: 79.6%). Intercede had 113
employees and contractors as at 31 March 2025 (2024: 108). The average number
of employees and contractors during the period was 109 (2024: 102).
The statutory profit before tax for the year was £4.6 million (2024: £5.6
million) and profit for year was £4.1 million (2024: £6.0 million).
Taxation
The Group made a tax payment of £0.5 million during the year, which included
a £0.4 million repayment to HMRC relating to a prior R&D claim (FY 2023),
and a £0.1 million charge reflecting the estimated £0.5 million R&D tax
credit and U.S. corporation tax payable for 2025 (2024: tax credit of £0.4
million). The Group has carried forward unused tax losses of £2.9 million
(2024: £3.9 million).
Intercede makes an annual R&D tax relief claim and under new HMRC rules
effective from 1 April 2024, the Group has accounted for an estimated
receivable in respect of the R&D credit of gross £0.5 million (2024:
£nil) within operating expenses. This reflects the anticipated benefit of
qualifying R&D activities undertaken during the financial year. The Group
continues to review its R&D capitalisation policy in accordance with
accounting standards as the Group develops out its product portfolio.
Finance Income
Net finance income was £0.7 million (2024: £0.3 million) reflecting
increased interest income due to a combination of higher cash balances and
treasury management.
Earnings per share
Earnings per share from continuing operations in the year was 6.9 pence for
basic and 6.5 pence for diluted (2024: 10.3p pence for basic and 9.6p diluted)
and was based on the profit for the year of £4.1 million (2024: £6 million)
with a basic weighted average number of shares in issue during the period of
58,493,958 (2024: 58,231,712 shares). For diluted the weighted average number
of shares in issue during the year was 62,429,062 (2024: 62,429,062).
Dividend
The Board is not proposing a dividend (2024: £nil).
Financial Position
Assets
Non-current assets of £4.2 million comprise goodwill of £2.4 million (2024:
£2.4 million), intangibles assets of £0.7 million (2024: £0.6 million),
property, plant and equipment of £0.5 million (2024: £0.4 million) and IFRS
16 right of use assets of £0.6 million (2024: £0.7 million). The net
movement in intangible assets reflects the recognition of an internally
generated intangible in respect of the new MyID SecureVault software offering
of £0.3 million (2024: £nil). Trade and other receivables increased by £1.5
million to £5.8 million (2024: £4.3 million) reflecting higher customer
orders in the last quarter.
Liabilities
Current liabilities decreased by £0.6 million to £10.4 million (2024: £11.0
million) reflecting decreased trade payables at £2.2 million (2024: £2.7
million), with deferred revenue of £8.0 million (2024: £7.9 million).
Non-Current liabilities decreased by £0.2 million to £1.3 million (2024:
£1.5 million), which also reflects increased deferred revenue at the year-end
of £0.8 million (2024: £0.7 million), the impact of increase lease
liabilities of £0.5 million (2024: £0.6 million) and £nil deferred
consideration following the release in the year (2024: £0.1 million).
Capital and Reserves
Total equity increased to £17.0 million (2024: £13.2 million), reflecting
the profit for the year with a retained earnings position of £9.4 million for
the year (2024: £5.7 million accumulated deficit). The Group regularly
assesses its capital position and maintains a disciplined approach to the
allocation of excess capital.
Liquidity and capital resources
The Group remains in a good financial position, with gross cash balances of
£18.7 million as at 31 March 2025 compared to £17.2 million held at 31 March
2024. During the year there has been a cash outflow for investing activities
of £0.9 million (2024: £0.4 million). The net cash inflow from operating
activities was £2.9 million (2024: £9.6 million) reflecting good management
of working capital movements thanks to tight management of debtors.
During the year, the Company purchased £0.5 million of its own shares and
repaid a previous R&D tax credit of approximately £0.4 million. As the
Group elected to utilise qualifying R&D expenditure for use against
future taxable profits for FY24, in effect no inflow of an R&D tax credit,
then on a like-for-like basis, the net impact on cash was an outflow of
approximately £1.4 million.
As part of its ongoing financial risk management, the Group has refined its
Treasury Policy to further enhance the security and diversification of its
cash holdings. Cash balances are now distributed across a number of UK banking
institutions, each with reputable credit ratings, in order to reduce
counterparty risk and improve liquidity management.
The Group had no debt at the year-end (2024: £nil).
Outlook
FY 2025 was another strong and successful year for the Group. Intercede
continued to execute against its strategic priorities, making targeted
investments in our people, IT infrastructure, product development, and sales
and marketing. These investments are integral to maintaining our current
momentum and are designed to position the business for accelerated medium- and
long-term growth.
As we enter FY 2026, we do so with a high level of confidence and visibility.
The Group has a strong, geo-diversified pipeline, fully resourced internal
initiatives, a clearly defined product roadmap, and a focused acquisition
strategy. These elements provide a solid foundation for the year ahead.
Our priorities for FY 2026 are clear: to accelerate growth and deliver value
through the disciplined execution of our strategic plans.
By order of the Board
Klaas van der
Leest
Nitil Patel
Chief Executive
Officer
Chief Financial Officer
23 June
2025
INTERCEDE GROUP plc
Consolidated Statement of Comprehensive Income for the year ended 31 March
2025
2025 2024
£'000 £'000
Continuing operations
Revenue 17,714 19,963
Cost of sales (526) (560)
Gross profit 17,188 19,403
Operating expenses (13,246) (14,138)
Operating profit 3,942 5,265
Finance income 739 393
Finance costs (88) (63)
Profit before tax 4,593 5,595
Taxation (538) 428
Profit for the year 4,055 6,023
Total comprehensive income attributable to owners of the parent company 4,055 6,023
Earnings per share (pence)
- basic 6.9p 10.3p
- diluted 6.5p 9.6p
INTERCEDE GROUP plc
Consolidated Balance Sheet as at 31 March 2025
2025 2024
£'000 £'000
Non-current assets
Goodwill arising on acquisition 2,442 2,442
Other intangible assets 685 611
Property, plant and equipment 541 399
Right-of-use assets 574 709
4,242 4,161
Current assets
Trade and other receivables 5,779 4,307
Cash and cash equivalents 18,672 17,226
24,451 21,533
Total assets 28,693 25,694
Equity
Share capital 588 584
Share premium 5,552 5,430
Merger reserve 1,508 1,508
Retained earnings 9,385 5,656
Total equity 17,033 13,178
Non-current liabilities
Lease liabilities 495 631
Contingent consideration - 160
Deferred revenue 760 667
1,255 1,458
Current liabilities
Lease liabilities 124 173
Contingent consideration - 282
Trade and other payables 2,211 2,686
Deferred revenue 8,070 7,917
10,405 11,058
Total liabilities 11,660 12,516
Total equity and liabilities 28,693 25,694
INTERCEDE GROUP plc
Consolidated Statement of Changes in Equity for the year ended 31 March 2025
Share Share Merger Retained Total
capital premium reserve earnings equity
£'000 £'000 £'000 £'000 £'000
As at 1 April 2023 584 5,430 1,508 (492) 7,030
Purchase of own shares for SIP (for employees) - - - (54) (54)
Employee share option plan charge - - - 134 134
Employee share incentive plan charge - - - 45 45
Profit for the year and total comprehensive income - - - 6,023 6,023
As at 31 March 2024 584 5,430 1,508 5,656 13,178
Issue of new shares 4 122 - - 126
Purchase of own shares for SIP (for employees) - - - (70) (70)
Purchase of treasury shares - - - (422) (422)
Employee share option plan charge - - - 110 110
Employee share incentive plan charge - - - 56 56
Profit for the year and total comprehensive income - - - 4,055 4,055
As at 31 March 2025 588 5,552 1,508 9,385 17,033
All amounts included in the table above are attributable to owners of the
parent company.
INTERCEDE GROUP plc
Consolidated Cash Flow Statement for the year ended 31 March 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Profit for the year 4,055 6,023
Taxation 538 (428)
Finance income (739) (393)
Finance costs 88 63
Depreciation & loss on disposal of property, plant & equipment 175 84
Depreciation of right-of-use assets 135 196
Amortisation 183 174
Exchange gains on foreign currency lease liabilities (21) (24)
Employee share option plan charge 110 134
Employee share incentive plan charge 56 45
Employee unit incentive plan charge 9 13
Employee unit incentive plan payment (11) (14)
(Increase) / decrease in trade and other receivables (1,539) 1,218
(Decrease) / increase in trade and other payables (643) 721
Increase in deferred revenue 246 1,046
Cash generated from operations 2,642 8,858
Finance income 749 403
Finance costs on leases (79) (60)
Tax (paid) / received (435) 428
Net cash generated from operating activities 2,877 9,629
Investing activities
Purchases of property, plant and equipment (317) (358)
Purchase of business (payment of contingent consideration) (282) -
Cost of creating Internally generated intangible (257) -
Cash used in investing activities (856) (358)
Financing activities
Purchase of own shares (492) (54)
Proceeds from issue of ordinary share capital 126 -
Principal element of lease payments (163) (279)
Cash used in financing activities (529) (333)
Net increase in cash and cash equivalents 1,492 8,938
Cash and cash equivalents at the beginning of the year 17,226 8,334
Exchange losses on cash and cash equivalents (46) (46)
Cash and cash equivalents at the end of the year 18,672 17,226
INTERCEDE GROUP plc
Preliminary Results for the Year Ended 31 March 2025
NOTES
1. While the financial information included in this
annual financial results announcement has been prepared in accordance with UK
adopted international accounting standards (IFRS) and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS, this
announcement does not contain sufficient information to comply therewith. The
financial information set out in this announcement does not constitute the
Group's Statutory Accounts for the years ended 31 March 2025 or 2024.
Statutory Accounts for 2024 have been delivered to the Registrar of Companies
and those for 2025, which have been approved by the Board of Directors, will
be delivered following the Group's Annual General Meeting. The Company's
auditors have reported on those accounts; their reports were unqualified and
did not contain statements under Section 498 of the Companies Act 2006.
The Annual General Meeting will be held on Thursday 25 September 2025. Copies
of the full Statutory Accounts and the Notice of Annual General Meeting will
be despatched to shareholders in due course. Copies will also be available on
the website (www.intercede.com
(file:///C%3A/Users/Andrew.Walker/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/KLE57QMN/www.intercede.com)
) and from the registered office of the Company: Lutterworth Hall, St. Mary's
Road, Lutterworth, Leicestershire, LE17 4PS.
Going concern assessment
Reported profit in each of the last five years has been underpinned by
increasing recurring revenues and a continued high level of cash balances. The
Directors have reviewed forecasts for the years ended 31 March 2026 and 31
March 2027 and concluded that the Group is expected to have sufficient cash to
enable it to meet its liabilities, as and when they fall due, for a period of
at least 12 months from the date of signing these financial statements.
Accordingly, they believe it is appropriate to prepare the financial
statements on a going concern basis under the historical cost convention.
2. REVENUE
All of the Group's revenue, operating profits and net assets originate from
operations in the UK. The Directors consider that the activities of the Group
constitute a single business segment.
The split of revenue by geographical location of the end customer can be
analysed as follows:
2025 2024
£'000 £'000
UK 416 388
Rest of Europe 1,054 1,172
Americas 13,521 17,492
Rest of World 2,723 911
17,714 19,963
Analysis of revenue is as follows:
2025 2024
£'000 £'000
Software Licences 2,505 7,672
Professional services 5,012 3,568
Support and maintenance 10,197 8,723
17,714 19,963
3. OPERATING PROFIT
Operating profit is stated after charging / (crediting):
2025 2024
£'000 £'000
Staff costs 11,160 11,259
Foreign exchange (gain) / loss (90) 167
Depreciation & loss on disposal of property, plant and equipment 175 84
Depreciation of right-of-use buildings 135 196
Amortisation 183 174
R&D credit in respect of eligible costs (540) -
Included in the staff costs above is research and development expenditure
totalling £3,565,000 (2024: £3,311,000).
4. TAXATION
The tax credit comprises: 2025 2024
£'000 £'000
Current year - UK corporation tax (103) -
Current year - US corporation tax (7) (39)
Research and development tax credits relating to prior years (428) 467
Taxation (538) 428
The Group has unused tax losses of £2,879,000 (2024: £3,916,000) and
unrecognised deferred tax assets of £720,000 (2024: £979,000) calculated at
the corporation tax rate of 25% (2024: 25%), being the enacted rate at which
the deferred tax assets would unwind, were they to be recognised. Intercede
makes an R&D Claim as part of its annual tax return and the receivable due
from the UK government is recognised in arrears, ie the period during which a
claim is submitted and approved and the cash repayment can be reliably
measured.
5. EARNINGS PER SHARE
The calculations of earnings per ordinary share are based on the profit for
the financial year and the weighted average number of ordinary shares in issue
during each year.
2025 2024
£'000 £'000
Profit for the year 4,055 6,023
Number Number
Weighted average number of shares - basic 58,493,958 58,231,712
62,429,062 62,429,062
- diluted
Pence Pence
Earnings per share - basic 6.9p 10.3p
- diluted 6.5p 9.6p
The weighted average number of shares used in the calculation of basic and
diluted earnings per share for each year were calculated as
follows:
2025 2024
Number Number
Issued ordinary shares at start of year 58,363,357 58,363,357
Effect of treasury shares (216,509) (131,645)
Effect of issue of ordinary share capital 347,110 -
Weighted average number of shares - basic 58,493,958 58,231,712
Add back effect of treasury shares 216,509 131,645
Effect of share options in issue 3,718,595 4,065,705
Weighted average number of shares - diluted 62,429,062 62,429,062
Please see note 7 for details of issues of ordinary share capital.
6. DIVIDEND
The Directors do not recommend the payment of a dividend.
7. SHARE CAPITAL
2025 2024
£'000 £'000
Authorised
481,861,616 ordinary shares of 1p each (2024: 481,861,616) 4,819 4,819
Issued and fully paid
58,830,857 ordinary shares of 1p each (2024: 58,363,357) 588 584
The increase in issued and fully paid ordinary shares of 1p each represents
the issue of 467,500 shares for a total consideration of £126,000 to
facilitate the exercise of options by a Director in June 2024 and senior
management in July 2024 (2024: no issue of ordinary shares during the year).
As at 31 March 2025, the Company had 373,906 ordinary shares held in treasury
(2024: 131,645).
8. INTANGIBLE ASSETS
Internally generated intangible assets Acquired intangible assets Goodwill Total
£'000 £'000 £'000 £'000
Cost
At 1 April 2023 - 868 2,442 3,310
At 1 April 2024 868 2,442 3,310
Additions - Internal development 257 - - 257
At 31 March 2025 257 868 2,442 3,567
Amortisation
At 1 April 2023 83 - 83
Charge for the year - 174 - 174
At 1 April 2024 257 - 257
Charge for the year 9 174 - 183
At 31 March 2025 9 431 - 440
Carrying amount
At 31 March 2025 248 437 2,442 3,127
At 31 March 2024 - 611 2,442 3,053
Acquired intangible assets are made up of the separately identified
intangibles acquired with the purchase of Authlogics Ltd in October 2022.
END
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