Trading Update
17/07/2023 07:00
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230717:nRSQ1384Ga&default-theme=true RNS Number : 1384G IQGeo Group PLC 17 July 2023 This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as retained as part of UK law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this Announcement, this inside information is now considered to be in the public domain. 17 July 2023 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 2023. Key Highlights: · Revenue for the half is expected to exceed £20.0 million (H1 2022: £9.2 million) representing half-on-half growth over 117% through organic and acquisitive growth · New annual recurring revenue intake achieved in H1 2023 of approximately £3.3 million (H1 2022: £1.9 million) representing growth of over 73% · Exit ARR* increasing by c.64% to approximately £16.9 million (H1 2022: £10.3 million) · Increasing recurring revenue net retention for the period of c.114% (H1 2022: 103%) · Total order intake has grown over 50% to £22.0 million (H1 2022: £14.6 million) Financial Performance: The Group expects to report a very strong revenue and order intake performance for the six months ending 30 June 2023, as a result of increasing demand in our chosen markets, and ahead of prior expectations. This has been achieved through organic growth of 83% through the IQGeo business and the successful integration of the Comsof business acquired in August 2022. Given the strong demand profile, we continue to re-invest in growing the Group's global operational capabilities, whilst demonstrating substantial operating gearing with adjusted EBITDA** in H1 2023 of not less than £2.5 million (H1 2022: £0.2 million, FY2022: £1.9 million). Adjusted EBITDA** is in line with expectations for the full year. Total revenue for the six months ended 30 June is expected to grow by over 117% half-on-half and exceed £20.0 million (H1 2022: £9.2 million). Total Order intake has grown by over 50% in excess of £22.0 million (H1 2022: £14.6 million). The Group has achieved continued success in increasing its recurring revenue base with Exit ARR* as at 30 June 2023 of approximately £16.9 million (H1 2022: £10.3 million). ARR intake during the period includes a follow-on contract with a top 5 Japanese Utility company and leading German broadband operator, as recently announced. Gross margins will be in line with the comparable period at approximately 59% (H1 2022: 60%). The Group expects to report net cash as at 30 June 2023 of £6.9 million (£8.1 million as at 31 December 2022), after having settled the first earn-out related to the Comsof acquisition (€1.5 million) in April 2023. The Company expects to release its full interim results in September 2023. Richard Petti CEO said "Our achievements over the last six months validate our strategy and this, together with good visibility over future activity, give us great confidence of delivering against our financial and operational targets for the remainder of the financial year and over the longer term. We are now seen as an innovation and technology leader in the telecom and utility space. Following the acquisition in August 2022, Comsof continues to perform well and the wins and results show that the upsell and cross-sell strategy is working. The asset investment dynamics of the underlying markets we serve - telecoms and utilities - have remained resilient and we see continued long term investment in fibre optic networks and in electric grid modernisation in all our key markets." * Exit ARR is defined as the current go forward run rate of annually renewable subscription and M&S agreements at current FX rates. **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 12 2360 6655 Richard Petti Haywood Chapman finnCap Ltd +44 20 7220 0500 Henrik Persson, Seamus Fricker (Corporate Finance) Tim Redfern, Charlotte Sutcliffe (ECM) Notes to Editors About IQGeo Telecommunications and utility operators are "Building better networks" with IQGeo's award-winning software solutions. The ability to powerfully model any network requirement, integrate every system and data source, and support field and office teams with continual innovation is helping operators create the networks of the future. Our solutions ensure greater cross-team collaboration and process efficiency throughout the network lifecycle, from planning and design to construction, operations, and sales. Whether it's highly competitive fiber and 5G broadband rollouts or complex utility grid modernization projects, customers trust IQGeo's enterprise solutions, OSPInsight fiber management, and Comsof automated design software. We partner with large multinationals and smaller regional operators to deliver the digital innovation they need to increase network resilience, operational safety, and business ROI. For more information visit: www.iqgeo.com/ (http://www.iqgeo.com/) This information is provided by RNS, the news service of the London Stock Exchange. 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