REG - IQGeo Group PLC - Trading Update

IQGeoAnnouncement

14/07/2022 07:00

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RNS Number : 4110S  IQGeo Group PLC  13 July 2022

14 July 2022

IQGeo Group plc

(the "Company" or the "Group")

Trading update

IQGeo Group plc (AIM: IQG), a leading developer of geospatial productivity and
collaboration software for telecoms and utility network operators is pleased
to announce an update on current trading following the close of the Company's
first half ended 30 June 2022.

Key Highlights:

·      Revenue for the half to exceed £8.9 million (H1 2021: £6.4
million) representing growth of 39% half on half

·      Exit ARR* increasing by c.50% to approximately £10.3 million (H1
2021: £6.8 million)

·      Total order intake has grown by over 100% to approximately £14.6
million (H1 2021: £7.1 million)

·      Significant new customer wins, including a multi-year contract
with one of the world's largest telecom companies worth an initial $3.6
million plus a service value of $2.1million.

Financial Performance:

The Group expects to report strong performance for the six months ending 30
June 2022 in line with expectations.

Revenue for the six months ended 30 June 2022 is expected to have grown by
over 39% half-on-half on an all-organic basis and exceed £8.9 million (H1
2021: £6.4 million). Total order intake has grown by over 100% to
approximately £14.6 million (H1 2021: £7.1 million) with a number of new and
significant customers signing up for multi-year subscriptions, along with an
increase in consultancy services orders obtained both from new and legacy
customers.

The Group has achieved continued success in increasing its recurring revenue
base with Exit ARR* as at 30 June 2022 increasing by c.50% to approximately
£10.3 million (H1 2021: £6.8 million).  ARR intake during the period
includes a subscription contract for an initial deployment to a Global top 5
telecom operator who selected IQGeo for fibre network planning and design.

Gross margins are expected to be approximately 60% (H1 2021: 63%) with
adjusted EBITDA** expected to be approximately £0.2 million (H1 2021: loss of
£0.4 million). The Group expects to report net cash as at 30 June 2022 of
£10.9 million (H1 2021: £12.1 million).

Richard Petti CEO said "We are very pleased with our first half performance
which has been in line with our strategic milestones and clearly demonstrates
our ability to deliver against our targets. Our ability to secure significant
new contracts with blue-chip telecom operators highlights the quality of our
offering and provides us with an increasingly solid foundation.  Our first
reporting period showing an adjusted EBITDA positive is very encouraging and
is both testament to the fantastic team we have and shows the potential for
the future of the business as we continue to build a world class geospatial
business with strong recurring revenues".

* Exit ARR is defined as the current go forward run rate of annually renewable
subscription and M&S agreements

**Adjusted EBITDA excludes amortisation, depreciation, share option expense,
foreign exchange gains/losses on intercompany trading balances and
non-recurring items and is reported as it reflects the performance of the
Group

 For further information contact:

 

IQGeo Group
plc
+44 1223 606655

Richard Petti

Haywood Chapman

 

finnCap
Ltd
+44 20 7220 0500

Henrik Persson, Seamus Fricker (Corporate Finance)

Tim Redfern, Richard Chambers (ECM)

 

 

Notes to Editors

 

About IQGeo

 

IQGeo™ (AIM: IQG) a leading developer of geospatial software that improves
productivity and collaboration across enterprise planning, design,
construction, maintenance and sales processes for telecoms and utility network
operators. Our mobile-first enterprise solutions create and maintain, an
accurate view of complex network assets that is easily accessible by anyone,
wherever and whenever needed. Specialized applications combined with our open
IQGeo Platform help network operators create a single source of network truth
to meet their digital transformation ambitions and operational KPIs. Our
award-winning, cloud-enabled solutions save time and money, and improve safety
and productivity, while enhancing customer satisfaction. Headquartered in
Cambridge, with offices in Denver, Frankfurt and Tokyo, we work with some of
the largest network infrastructure operators in the world. For more
information visit: https://www.iqgeo.com/ (https://www.iqgeo.com/) .

 

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