REG - Microlise Group PLC - FY2022 Trading Update

MicroliseAnnouncement

31/01/2023 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:20230131:nRSe3287Oa&default-theme=true

RNS Number : 3287O  Microlise Group PLC  31 January 2023

31 January 2023

 

Microlise Group plc

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

 

FY2022 Trading Update

10% growth in ARR and strong cash generation

 

Microlise Group plc (AIM: SAAS), a leading provider of transport management
software to fleet operators, is pleased to provide a full year update on
trading for the year ending 31 December 2022 ("the Period"). The Group expects
to publish its full year results for the Period in late March 2023.

 

Highlights

·    Group revenue growth of 5% to £63.2m(1) (2021: £60.3m)

·    Adjusted EBITDA(2,3) slightly ahead of market expectations

·    Annual Recurring Revenue (ARR) run rate as at 31 December 2022 up 10%
to £42.6m (2021: £38.9m)

·    Cash at Period end of £16.7m(4), 18% ahead of expectation and up 27%
since 31 December 2021

·    More than 250 new customers added in the Period

·    Existing customer churn remains low at 0.4%

·    Great Place to Work (GPTW) accreditation achieved across the
Microlise group in December 2022

 

Financial

The Board expects to report year-on-year revenue growth of 5% to £63.2m,
despite industry headwinds caused by microchip supply chain issues and delays
in project deployment with non-OEM customers. This resulted in non-recurring
revenues slightly below our forecasts. However, the Company delivered record
levels of OEM sales which impacted sales mix and had positive working capital
effect. As a result of the change in sales mix, our Annual Recurring Revenues
grew at a faster rate than revenue, by 10% to £42.6m, with recurring revenues
now representing 64% of the total.

 

Customer churn was maintained at an extremely low level of 0.4% and the Group
continued to win new orders and customers. This resulted in an order book that
is at a record level. Although we expect supply chain issues to persist in the
coming months, we anticipate the situation easing in the second half of 2023.

 

Furthermore, Microlise has carefully managed the supply chain disruption,
improving its cost controls and the efficiency of the business, such that
margins have improved with EBITDA slightly ahead of market expectations.

 

The balance sheet has greatly strengthened during the year, with net cash at
the Period end up 27% to £16.7m, (FY21: £13.2m). In addition, the Group has
an undrawn £20m Revolving Credit Facility. This provides substantial headroom
for Microlise to continue to deliver against its strategic goals.

 

Looking forward we also currently have a very strong pipeline and are
therefore directing investment into our global sales force to enable us to
capitalise on the many opportunities that are being presented to us.

 

 

Customers

The Group added over 250 new customers during the year and expanded or
extended its relationships with numerous existing customers. The Company
continues to have high rates of customer retention, experiencing very low
churn of 0.4% during the Period. This reflects our strong customer
relationships and the importance of our products to our customer base.

 

 

Microlise Transport Conference

The Microlise Transport Conference returned in May 2022 following a two-year
hiatus and, as one of Europe's largest road transport events, was a resounding
success. Microlise is already planning its 2023 event, set to be held on 17
May. The invitation to the conference is open to investors and the Company
will be hosting sessions dedicated to investors at the event. For further
details on how to register please contact Bob Huxford at
microlise@secnewgate.co.uk.

 

 

Nadeem Raza, CEO, Microlise said: "I am delighted to report that we shipped
more units than ever during 2022, despite the well-documented supply chain
issues that clouded our markets throughout the year. This pays testament to
the strength of our products and the quality of our staff who have been agile
and resourceful in the face of any issues, adapting where appropriate while
improving efficiencies and the positioning of our Company.

"Also, our new Great Place to Work (GPTW) accreditation reflects the passion
and positive attitude of our people, all of whom are committed to building a
supportive atmosphere. It recognises our commitment to staff and further
establishes Microlise's high-performing workplace culture.

"Although we can expect supply chain issues to continue to impact our markets
in 2023, we do anticipate improvements during the second half of the year.
This, combined with a record order book and healthy pipeline of opportunities
across all the markets in which we operate, gives us confidence for the year
ahead."

Notes:

All financials are based on unaudited figures

(1) Analysts' consensus revenue expectations range from £61m to £65m

(2)  Earnings Before interest, tax, depreciation, amortisation and share
based payments

(3 ) Consensus Adjusted EBITDA expectations for 2022 of £8.0m

(4 ) Consensus net cash expectations at 31 December 2022 of £14.2m

 

 For further information, please contact:
 Microlise Group plc
 Nadeem Raza, CEO
 Bill Wynn, CFO                                                               C/O SEC Newgate

 Singer Capital Markets (Nominated Adviser & Broker
 Steve Pearce / James Moat / Harry Gooden                                     Tel: 020 7496 3000

 SEC Newgate (Financial PR)
 Bob Huxford / Molly Gretton / Harry Handyside                                Tel: 020 3757 6880

                                                                              Email: microlise@secnewgate.co.uk

 

 

About Microlise

Microlise Group Plc is a leading provider of transport management software to
fleet 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 400
enterprise clients. With 463 employees based at the Group's headquarters in
Nottingham in the UK, the Company also has offices in France, Australia, and
India, with a total global staff base of over 670.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBMMBTMTIJTFJ