REG - Microlise Group PLC - Trading Update

MicroliseAnnouncement

28/07/2022 07:16

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RNS Number : 0017U  Microlise Group PLC  28 July 2022

28(th) July 2022

 

Microlise Group plc

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

 

Trading Update

 

'Continued Growth Throughout Global Microchip Shortage'

 

Microlise Group plc (AIM: SAAS), a leading provider of transport management
software to fleet operators, is pleased to provide a half year update on
trading for the six months to June 30, 2022 ("the Period"). The Group expects
to publish its interim results in late September.

 

Highlights

 

·    Annual Recurring Revenue (ARR) run rate as of 30 June 2022 up 10.5%
to £40.2m (30 June 2021: £36.4m)

·    Net cash at Period end of £15.8m, up 19% since 31 December 2021

·    Introduced TruVan - a new compliance software package for vans

·    More than 60 new customers added in the Period

·    Existing customer churn remains low at 0.1%

·    Successful return of the Microlise Transport Conference 2022 in May

·    Full-year revenue and profit to be in line with market expectations
 

 

Financial

The Board is pleased to announce the positive progress made by the Group
despite the challenges created by the global microchip shortage. The Group has
seen strong recurring revenue growth with ARR increasing by 10.5% to £40.2m.
Microlise has added 60 new customers and expanded its partnerships with
existing customers, including MAN Trucks in Malaysia. The Company continues to
have high rates of customer retention and very low churn. During the Period,
churn was 0.1%. showing the critical nature of the Company's platform to
customers.

 

Microlise has strengthened its balance sheet meaning the Group is
well-positioned to execute its growth strategy.  Excellent cash conversion of
127% has enhanced the Group's net cash position.  Net cash at Period end was
£15.8m, up 19% since 31 December 2021. The Group also has an undrawn £20m
Revolving Credit Facility.

 

Products

Microlise's technology gives operators greater visibility and control of their
fleets. Through its use, they can manage fleet, vehicle and driver performance
to reduce fuel use, extend the life of vehicles and better manage their
assets.

 

Fleet operators are facing the highest fuel prices in decades, a shortage of
drivers, and supply problems making it difficult to get new vehicles to
replace aging fleets.  This means Microlise's products have never been more
relevant.

 

There has been strong customer interest in the recently launched Planning
& Optimisation module.  The module gives customers faster, more flexible,
and more accurate route planning. This reduces driver hours and mileage. This
powerful tool can help mitigate the impact of rising fuel prices. The Board
believes that the module will help the Company win new customers and deepen
relationships with existing customers.

 

Further to this, the Company launched TruVan during the period. TruVan is a
new compliance software package for van and LCV Operators. TruVan includes an
App and web-based 'back-office' management system. It enables van operators to
comply with DVSA Best Practice and operating guidelines, while efficiently
managing their fleets.

Microlise Transport Conference

After a two-year hiatus, the Microlise Transport Conference returned in May
2022. The conference is one of Europe's largest road transport events. Over 50
exhibitors, 40 speakers, including HRH Princess Royal, and more than 1,000
delegates attended the event this year. They joined leaders from across the
transport industry to learn about the challenges and opportunities facing the
sector, as well as creating a space for them to network and collaborate with
one another.

 

Board Update

The Group announces the planned retirement of Bill Wynn, Chief Financial
Officer, in Spring 2023. A search for a replacement is underway and Bill will
support the transition process.

 

Outlook

Microlise is focused on product development, both through investment and
potential acquisitions. The resilience of the Company in navigating the
challenges caused by the pandemic and global microchip shortage, has been
greatly encouraging. Combined with a healthy pipeline of new opportunities in
the UK and internationally, the Board is confident in the Group's growth
prospects.

 

Nadeem Raza, CEO, Microlise said: "2022 has shown the vital role Microlise
plays in supporting the transport industry through a challenging period. A
perfect storm of problems has hit the sector, including the pandemic, Brexit,
driver shortages, and a fuel crisis. Fuel accounts for a third of all
transport costs and Microlise's technology gives customers greater visibility
and control over their fleets' fuel consumption. Our healthy commercial
performance with new customers signing up and existing customers extending
their relationships shows how critical Microlise is to our client's fleet
operations. The successful return of the Microlise Transport Conference
further highlighted our position as a key industry component.

 

"Looking ahead, the Group has a healthy pipeline of opportunities. We are
focused on delivering our acquisition strategy and developing and expanding
our product portfolio. In the long term, operators face growing pressure to
ensure that fleets are efficient and sustainable. As a result, we are
confident the business will meet expectations for the full year and deliver
long-term value to our shareholders."

 

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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