UK's Microlise H1 revenue falls 10% as OEM sales weaken
UK's Microlise H1 revenue falls 10% as OEM sales weaken
Overview
UK transport software firm's H1 revenue fell 10% yr/yr, mainly on lower OEM and hardware sales
Direct Customer ARR rose 12%, driven by renewals, expansion and new customer wins
Adjusted EBITDA margin recovered to 13.2% from 5.2% in H2 2025 after restructuring
Outlook
Microlise expects FY26 adjusted EBITDA in line with market expectations of £10m-£11.1m
Company says component shortages may impact timing of some OEM hardware deliveries in Q4
Microlise expects to return to stronger growth in FY27, supported by Direct Customer ARR growth
Result Drivers
OEM AND HARDWARE WEAKNESS - Co said lower OEM revenues and reduced non-recurring hardware sales, partly due to component shortages and project timing, drove revenue decline
DIRECT CUSTOMER GROWTH - Direct Customer ARR rose 12%, supported by renewals, expansion and new customer wins
MARGIN RECOVERY - Adjusted EBITDA margin improved due to restructuring and cost efficiency actions implemented during FY25
Company press release: ID:nRSC8750Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 39.50 mln |
|
H1 Adjusted EBITDA |
| GBP 5.20 mln |
|
H1 Adjusted EBITDA Margin |
| 13.20% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Microlise Group PLC is GBp147.50, about 273.4% above its July 31 closing price of GBp39.50
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)