REG - Microlise Group PLC - Trading Update & Directorate Addition

MicroliseAnnouncement

24/01/2022 07:05

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RNS Number : 3008Z  Microlise Group PLC  24 January 2022

24 January 2022

 

Microlise Group plc

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

 

Trading Update & Directorate Addition

 

'Resilient performance despite global supply chain challenges'

 

Microlise Group plc (AIM: SAAS), a leading provider of transport management
software to fleet operators, is pleased to provide an update on trading for
the eighteen months ended 31 December 2021 ("the Period"). The Group expects
to publish its results for the Period in early April.

 

Furthermore, the Board is pleased to announce the appointment of Lucy
Sharman-Munday as an independent Non-Executive Director with effect from 1
February 2022.

 

Highlights

 

·    Strong growth in Revenue and EBITDA, in line with market expectations

·    Annual Recurring Revenue (ARR) run rate as at 31 December 2021 was
£39.0m, an increase of 9% on December 2020 (£35.7m)

·    Net cash at Period end of £13.4m

·    Over 65 new customers added in the Period supported by new long-term
contracts with existing customers, including a new 5-year agreement with JCB,
leading to a 10% increase in the number of like-for-like subscriptions to
551,000 from 502,000

·    Broadened product offering with launch of new software solutions to
grow recurring revenue per customer

·    Successful admission to AIM, raising £61.2m of gross proceeds
including £18.6m for the Company, to accelerate organic growth and support
the Group's M&A strategy

 

The Board is pleased with the continued progress made by the Group in the
Period, demonstrating the resilience of its business model by delivering
another year of profitable growth and expanding its customer base despite the
significant challenges presented by the global microchip shortage and other
supply chain challenges.

 

The Group secured over 65 new customers in the Period. New long-term contracts
were also secured with a number of major existing customers including JCB,
which signed a new 5-year agreement in August 2021.

 

Overall customer churn remained low during the Period at less than 1%. This
strong performance reflects the Company's success in building long-term
relationships with its customers through its award-winning technology platform
and SaaS contracts.

 

During the Period, the Group increased investment in sales and product
development to capture the growing market opportunity it sees in international
markets, including France and Australia.

 

New product releases during the Period have already started to generate new
customer enquiries and contracted business. Notably we launched our new
Planning & Optimisation module which delivers faster, more flexible, and
more accurate route planning to operators, reducing driver hours and mileage.
TruTac also launched TruFleet, the Earned Recognition DVSA approved fleet
management software that helps transport managers to plan, organise and
control day-to-day fleet and Operator Licence management.

 

Outlook

The Board remains confident in the Group's future growth which is underpinned
by long-term structural drivers. The Group has a healthy pipeline of new
opportunities, in the UK and internationally, and continues to invest in
product development, notwithstanding the continued operating challenges caused
by the pandemic and global microchip shortage.  The Board expects these
supply chain issues to last longer into 2022 than previous industry estimates,
and the Group's management will continue to implement and execute its plans to
mitigate the impact.

 

Directorate Addition

The Group is pleased to announce that Lucy Sharman-Munday will be joining the
Board on 1 February 2022 as an independent Non-Executive Director. Lucy will
chair the Audit Committee.

 

With over 16 years of experience in the technology sector, including working
for 5one Group, Adapt Group Ltd and iSOFT plc, Lucy is the Chief Financial
Officer of AIM-listed Eagle Eye Solutions Group PLC, a leading SaaS technology
company, having joined in 2014.  She is also a non-executive director of
Fonix Mobile PLC.  Her career began with KPMG, and she is a member of the
Institute of Chartered Accountants in England and Wales.

 

Nadeem Raza, CEO, Microlise said: "In what continues to be a challenging
period for the transport and logistics sector, we are pleased to deliver
results in line with market expectations. Strong customer retention levels and
demand for the sustainable and scalable fleet efficiency technology Microlise
provides has underpinned our performance. We have extended key customer
contracts and acquired multiple new large fleet customers, which will deliver
future growth. Looking ahead, we have a healthy pipeline of new business, new
products in development, and an excellent market opportunity.

 

The Group is well-funded to deliver on our value accretive acquisition
strategy and continues to actively engage with selected targets from a healthy
pipeline of opportunities, to deliver long-term value to shareholders.

 

I would like to take this opportunity to welcome Lucy to Microlise. Her vast
experience will contribute to further strengthening the Board."

 

 

Notes to Editors:

 

The following disclosures are required regarding Lucy Sharman-Munday's
appointment pursuant to Schedule Two paragraph (g) of the AIM Rules for
Companies ("AIM Rules"):

Full name: Lucinda Emma Joanna Sharman-Munday

Age: 44

Current directorships:

·    Eagle Eye Solutions Group PLC

·    Eagle Eye Solutions Limited

·    Fonix Mobile PLC

·    Eagle Eye Solutions (North) Limited

·    Eagle Eye Solutions Inc

·    Eagle Eye Solutions Canada Limited

·    Eagle Eye Solutions Australasia Pty Limited

·    Eagle Eye Solutions New Zealand Limited

Previous directorships in the last five years:

·    Eagle Eye Solutions (Asia Pacific Pty) Limited

 

Mrs Sharman-Munday does not hold any ordinary shares in the Company.

Save as set out above, there is no further information to be disclosed in
respect of Mrs Sharman-Munday under Schedule 2(g) of the AIM Rules.

 

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 / Robin Tozer /Isabelle
Smurfit                        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 350 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 600.

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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