REG - Intercede Group PLC - Year End Trading Update

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RNS Number : 8442W  Intercede Group PLC  17 March 2026

 

 

17 March 2026

INTERCEDE GROUP plc

('Intercede', the 'Company' or the 'Group')

Year End Trading Update

Intercede, the leading cybersecurity software company specialising in digital
identities, today announces the following year end trading update for the
financial year ending 31 March 2026 (FY26).

Performance Overview

Intercede expects to deliver continued Annual Recurring Revenue (ARR) growth
in FY26, driven by increased support and maintenance revenues and further
adoption of subscription-based licence income. This longer term strategic
shift from perpetual licence sales to recurring revenue models will
fundamentally enhance revenue quality, predictability, and long-term
shareholder value.

 

Whilst the Group's ARR momentum is encouraging, full-year revenue is
anticipated to be approximately 8-9% below current market expectations*. This
reflects procurement delays, particularly in the United States, and customer
purchasing deferrals attributable to heightened geopolitical uncertainty,
including the ongoing Middle East conflict.

 

Critically, these opportunities are delayed, not lost. Active customer
engagements continue across the pipeline, and order intake momentum improved
in H2 FY26, validating underlying demand for the Group's solutions and
products.

Financial Outlook FY26

Revenue and Adjusted EBITDA

The revenue shortfall flows through to adjusted EBITDA, which is expected to
be approximately 15-18% below current market expectations*. This reflects the
impact of reduced revenues on a cost base that includes the continued
strategic investment in growth initiatives designed to deliver long-term
shareholder value.

 

Cash Generation and Balance Sheet Strength

 

Cash generation remains strong. Disciplined working capital management will
result in positive operating cash flow, with cash balances at year-end
expected approximately 3-5% ahead of current market expectations*. The Group
maintains a debt-free balance sheet, providing financial flexibility,
resilience, and the capacity to invest strategically.

 

Outlook - FY27 and Beyond

 

Intercede reaffirms its FY27 revenue target of £21 million, reflecting
management's confidence that the FY26 revenue delays represent timing shifts
rather than fundamental demand weakness.

 

This is based on:

·      Pipeline strength: Active engagements continue with key customers
and prospects;

·      Improving order momentum: H2 FY26 upturn validates underlying
demand for the Company's products and solutions; and

·      Continued focus on a transition to a subscription model:
Recurring revenue enhances customer retention and lifetime value.

The subscription transition is predicted to continue throughout FY27, with the
board expecting delayed opportunities to convert into orders as geopolitical
tensions stabilise, hopefully, and procurement cycles normalise. As conditions
improve, the Group expects continued ARR growth to translate into improved
revenue performance and visibility, supporting the medium-term growth
trajectory.

Trading Update

The Group aims  to report a more complete trading update with more detail on
the FY26 unaudited revenue, constant currency analysis and actual cash and
cash equivalents for the twelve months ended 31 March 2026 on 9 Apil 2026.

 

Klaas van der Leest, Chief Executive Officer at Intercede, commented:

 

"Whilst the FY26 revenue is disappointing, it has been impacted by procurement
delays and customer caution arising from geopolitical uncertainty, and I want
to emphasise three critical points for investors.

 

First, these are delays, not losses, as mentioned above. Our pipeline remains
robust, customer engagements continue actively, and we are confident these
opportunities will convert, especially should geopolitical conditions
stabilise.

 

Second, our strategic transition to subscription-based solutions is
accelerating. We are delivering continued ARR growth, fundamentally enhancing
revenue quality, and building a more predictable, scalable business model that
positions Intercede for sustained long-term success.

 

Finally , we reaffirm our FY27 revenue forecast of £21 million. This reflects
our conviction that current headwinds represent timing effects, not structural
challenges. Order intake momentum improved in H2, validating underlying
demand.

 

We maintain a debt-free balance sheet, strong cash generation ahead of market
expectations, and disciplined capital allocation. Intercede is well-positioned
to deliver sustained ARR growth and long-term shareholder value."

 

*The Board understands that current consensus market expectations for FY26 are
consolidated revenues of £18.7m, adjusted EBITDA of £4.6m and cash and cash
equivalents as at 31 March 2026 of £19.0m.

 

 

 

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
 Matt Lewis                         ECM

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

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)

 

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