REG - Microlise Group PLC - Full Year 2025 Trading Update & Notice of Results

MicroliseAnnouncement

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RNS Number : 8091Q  Microlise Group PLC  29 January 2026

29 January 2026

 

Microlise Group plc

("Microlise", "the Group" or "the Company")

 

Trading Update and Notice of Results

 "16% year-on-year underlying recurring revenue growth from direct customers
and £5m of annualised cost savings executed"

 

Microlise Group plc (AIM: SAAS), a leading provider of transport management
software to fleet operators, provides the following unaudited update on
trading for the year ending 31 December 2025 ("FY2025").

 

Financial Highlights

·    Total Group revenue for FY2025 is expected to be in-line with revised
market expectations(3) at £84.0m (FY2024: £81.0m), representing growth of
3.7%. Annual recurring revenue (ARR) increased 4.6% to £59.1m (FY 2024: 9.4%
organic growth to £56.6m).

o  Recurring revenue(5) increased by 7.5% to £58.8m driven by 16% underlying
year-on-year growth from direct customers.

o Non-recurring revenues decreased 4.3% to £25.2m (FY24: £26.3m) reflecting
a decline year-on year in Global OEM-related hardware volumes together with
lower implementation revenues linked to a small number of direct customer
contracts that are anticipated to be delivered in FY2026.

o Global OEM customers represented 27% of FY2025 total revenue, down from 33%
in FY2024 and we cautiously expect FY2026 revenues from OEM customers to be
below FY2025

·    FY2025 Adjusted EBITDA(2) is expected be in-line with revised market
expectations(3) at £8.3m, representing an adjusted EBITDA margin of c.10% (FY
2024: 14%).

·    The Group's net cash as of 31 December 2025 was ahead of revised
expectations at £16.7m, up from £11.4m at 31 December 2024. This resulted
from strong cash collection during the year, a large contract renewal in Q4
paid annually in advance and the timing of severance payments totalling £1.9m
in connection to the cost saving and efficiency measures announced during H2
FY2025, falling post year end.

 

 Operational Highlights

 

·    The cost and efficiency measures announced in November 2025 were
completed prior to the end of FY2025 and will generate £5 million of
annualised cost savings as the Group enters FY2026. The Group continues to
carefully monitor its cost base and remains focused on expanding profit
margins.

·    417 new customers were added in FY 2025 (FY 2024: 375) across key
markets and geographies and churn remained low at 1.4% (FY 2024: 0.7%)

·    Customers are increasingly adding Microlise products as part of new
subscriptions and expansions. Commercial momentum in the direct business
includes strong uptake of the Microlise Transport Management Solutions ("TMS")
module from new and existing customers across all key markets, further
embedding Microlise into customers operating platforms.

·    Integration of data from customer fleets' third-party suppliers via
APIs provide a single data dashboard via the Microlise One platform.

o  During FY25, API connections integrated with vehicle refrigeration OEMs,
enabling customers to bring their temperature monitoring data sources into the
Microlise platform, removing the need for multiple systems in their
operations.

·    In November 2025, Dean Garvey-North was appointed as Chief Technology
Officer to succeed Duncan McCreadie, who is retiring after a decade of service
to the Group. Dean will drive technology strategy, product innovation and
infrastructure excellence.

 

Microlise Transport Conference

 

This year's Microlise Transport Conference will take place on 12 May 2026 at
the Co-op Live Arena in Manchester, the first time the event has changed
location in 9 years.

 

Recognised as the UK's leading one-day transport and logistics event, the
conference will bring together industry leaders, fleet operators, technology
innovators and policy makers.

The programme will include keynote sessions, interactive workshops and
Microlise technology showcases, all designed to explore the future of road
transport and tackle the sector's most pressing challenges across compliance,
sustainability, safety and operational performance.

 

Notice of Results

Microlise expects to announce Final Results for the year ended 31 December
2025 in mid-April 2026.

 

Nadeem Raza, CEO, Microlise said: "Commercial momentum in our direct business
is pleasing and we are carefully investing to capture the expanding
opportunity ahead across key markets and geographies. Notwithstanding the
softness in year-on-year revenue from Global OEM customers, and the impact of
certain one off investments in our go-to-market teams and ongoing data centre
migration will have on H1 FY26, Microlise remains profitable, cash generative
and well positioned to drive exit ARR and improve profit margins in 2026.  We
enter FY 2026 with a streamlined cost base, a scalable platform with growing
recurring revenue base and an expanding opportunity in UK and International
Markets. I am proud of what our team has achieved and am excited by the scale
of opportunity ahead."

1.         All numbers for the year ending 31 December 2025 disclosed
within this announcement are management estimates based on current information
and are unaudited.

2.         Adjusted EBITDA excludes, exceptional costs in relation to
acquisitions and restructuring costs, depreciation, amortisation, share of
loss of associate, interest, tax and share based payments.

3.         For the purpose of this announcement, the Group believes
market consensus for FY25 to be revenues of £84 million and adjusted EBITDA
of £8.3 million.

4.         Annual Recurring Revenue (ARR) is calculated by multiplying
the December 2025 monthly recurring revenue by 12.

5.         Underlying recurring revenue excludes revenue reversals
relating to the cyber security incident in FY24.

 

For further information, please contact:

 Microlise Group plc
 Nadeem Raza, CEO                                                      C/O SEC Newgate

 Nick Wightman, CFO
 Canaccord Genuity Limited (Nominated Adviser & Broker)
 Simon Bridges / Harry Gooden / Andrew Potts / Elizabeth Halley-Stott  Tel: +44 (0) 20 7523 8000
 SEC Newgate (Financial Communications)
 Bob Huxford / Harry Handyside / Rhea Xigaki                           Microlise@secnewgate.co.uk

 

About Microlise

Microlise Group Plc is a leading provider of transport and fleet technology to
transport and logistic operators helping them to improve efficiency, safety,
and reduce emissions. These improvements are delivered through reduced fuel
use, reduced mileage travelled, improved driver performance, fewer accidents,
elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 2,500
clients, and a global workforce of 730 across the Group's headquarters in
Nottingham in the UK, and offices in France, Australia, and India.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS)
and qualifies for the London Stock Exchange's Green Economy Mark.

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