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RNS Number : 2848T Microlise Group PLC 31 July 2025
31 July 2025
Microlise Group plc
("Microlise", "the Group" or "the Company")
HY2025 Trading Update
Strong revenue and profit growth
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 ended 30 June 2025 (H1 FY25). The Group expects
to publish its interim results in late September 2025.
Financial Highlights (unaudited)
· Group revenue of £44.1m, growth of 12.6%
· ARR(1) growth of 8.7% to £58.7m
· Recurring revenue growth of 11.1% to £29.5m
· 216 new customers added (H1 2024: 202) and strong customer retention
continuing during the period with churn of 0.5% (H1 2024: 0.5%)
· Adjusted EBITDA(2) growth of 19% to £6.2m (H1 FY24: £5.2m), with
Adjusted EBITDA margin increasing to 14.1% (H1 2024: 13.4%)
· Net cash of £11.2m (H1 2024: £8.9m)
Trading Update
The Group delivered revenue growth of 12.6% to £44.1m (H1 2024: £39.1m),
driven primarily by strong growth in both recurring revenue and non-recurring
revenue with UK and International direct customers. Recurring revenues
increased by 11.1% to £29.5m (H1 2024: £26.6m) supported by improved new
vehicle availability during the period. Conversion of new direct customers
remains strong supporting ARR growth of 8.7% to £58.7m (H1 2024: £54.0m).
Non-recurring revenue increased by 15.7% to £14.5m (H1 2024: £12.6m) due
to higher direct customer sales and the easing of the local vehicle
constraints in Australia that had a negative impact in the first half of
FY24.
Adjusted EBITDA increased by 19% to £6.2m (H1 2024: £5.2m), with margins
increasing to 14.1% (H1 2024: 13.4%), led by sustained revenue growth and the
initial impact of margin initiatives that commenced in FY24.
The Group's net cash position at 30 June 2025 was £11.2m, ahead of
management expectations. The cash conversion rate remained robust at 64% (H1
2024: 72%), reflecting a planned increase in inventory levels ahead of several
project rollouts scheduled for H2 2025. This is expected to normalise once
these deployments are completed. The Group has an agreed facility with HSBC
that provides a £10.0m committed revolving cash flow facility and a £20m
accordion. The Group has not utilised any of this facility to date and
therefore remains comfortably within its banking covenants. The Group's cash
balance and the undrawn £10.0m facility gives the Group £21.2m of cash
availability, which the Directors believe provides ample headroom for
Microlise to deliver against its strategic goals. Subsequent to the period
end, the Group received £2.2 million in cash proceeds from the sale of its
investment in Trakm8 Holdings Plc, which included 20% of the issued share
capital and a £1m convertible loan note.
Customers
During the first half of 2025, Microlise delivered strong direct customer
growth, adding 216 new customers compared to 202 in the same period last year.
This performance reflects the Group's continued momentum in providing
technology solutions across both domestic and international markets, as well
as the growing effectiveness of the new Go-To-Market strategies introduced by
the recently appointed Chief Revenue Officer in the second half of FY24.
During the Period, Microlise secured new contracts with several prominent
UK-based businesses such as Müller UK and Ireland, 3D International, Greene
King, Wrights Flour, and Igloo. The Group expanded its international customer
base by adding the Geraldton Fishermen's Co-Operative (Brolos) in Australia
and winning further new business in France post-period end. These wins
contribute to Microlise's growing presence in continental Europe and support
its ongoing international growth strategy.
In addition to attracting new business, Microlise further strengthened its
position within the existing customer base, increasing its share of wallet and
deepening long-term relationships with customers such as Coles, expanding its
use of Microlise solutions. The Microlise TruControl product, which supports
fleet compliance also gained further traction, broadening its reach across the
customer landscape with notable adoption by organisations such as ROMAC. This
wider uptake underscores the solutions operational value and regulatory
relevance.
The Group also secured renewals from a number of long-standing customers
during the period including City Plumbing, Maritime, Pladis, Asahi, Schenck,
and Morrisons. These renewals demonstrate sustained customer satisfaction and
the strategic importance of Microlise's products in underpinning critical
logistics operations.
Customer retention remained exceptionally high, with churn reported at just
0.5% for the six-month period. This low attrition rate highlights the enduring
value delivered by Microlise's solutions and the strength of the Group's
customer relationships.
Products
The Group continued to invest in product enhancements aligned to customers'
operational, sustainability and compliance objectives. Key developments during
the period included further integration of electric vehicle (EV) data into the
Fuel & Emissions module, updates to the SmartPOD application to enhance
the driver experience, and the launch of an expenses and allowances module
within the Tachograph Analysis solution. These additions are designed to
improve efficiency and support regulatory adherence across customer
operations.
Progress also continued on MicroliseOne, the Group's strategic platform
initiative to consolidate and optimise all products within the Microlise
portfolio. This includes both organically developed solutions and those
brought in through acquisition, with the single platform to accelerate
cross-sell and upsell opportunities of the end-to-end product suite.
These initiatives reflect the Group's commitment to scalable innovation and
underpin the technology roadmap that supports long-term customer value and
operational resilience.
Outlook
Microlise is currently enjoying buoyant end markets, a robust pipeline and a
growing order intake. As the Group embarks on the early stages of a broader
growth journey, margin enhancement initiatives are starting to have a positive
effect and the ongoing investments into product development are expected to
further drive demand for the Company's offerings and strengthen its market
leading position. As such, the outlook for the Group remains positive and the
Group is confident in meeting full year market expectations for 2025.
Nadeem Raza, CEO, Microlise said: "I am delighted with our first half
performance, in which growth was experienced across all of the geographies in
which we operate. The ongoing progress of our MicroliseOne platform, which
integrates all our offerings onto a single platform, is expected to facilitate
greater uptake of our comprehensive product portfolio. In addition, our
continued investment into product development is expected to further stimulate
demand.
"Combined with a healthy market environment with no obvious potential
headwinds, order intake ahead of last year and a strong and growing pipeline,
we are confident of meeting expectations for the full year."
Notes:
All financials are based on unaudited figures.
1. Annual Recurring Revenue is calculated by multiplying the June
2025 monthly recurring revenue by 12
2. Adjusted Earnings Before interest, tax, depreciation, amortisation, share
based payments and exceptional costs
3. Cash conversion is the % of cash generated from operating activities as a %
of adjusted EBITDA.
4. Analysts' revenue expectations for FY 2025 range from £91.3m to
£91.7m.
5. Analysts' Adjusted EBITDA expectations for FY 2025 range
from £12.6m to £12.7m.
6. Analysts' net cash expectations for 31 December 2025 range
from £12.3m to £13.2m.
For further information, please contact:
Microlise Group plc
Nadeem Raza, CEO C/O SEC Newgate
Nick Wightman, CFO
Singer Capital Markets (Nominated Adviser & Broker)
James Moat / Sam Butcher Tel: 020 7496 3000
SEC Newgate (Financial Communications)
Bob Huxford / Molly Gretton / Harry Handyside Microlise@secnewgate.co.uk (mailto: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 800 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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