25 November 2019
Intercede Group plc
(“Intercede” or the “Company”)
Interim Results for the Six Months Ended 30 September 2019
Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2019.
The financial information in the following pages reflects the impact of IFRS 16 Leases. IFRS 16 has been applied retrospectively and the impact on each line of the Consolidated Financial Statements is explained in Notes 1 and 6.
- Revenues increased by 5% to £4.4m (2018: £4.2m) reflecting a strong end to the half with orders received from both new and existing customers.
- Operating expenses reduced by 9% to £4.3m (2018: £4.8m), which reflects staff cost savings and continued tight control of overheads.
- A return to operating profit of £25,000 (2018: £609,000 operating loss), the first time this has been achieved since the corresponding period six years ago.
- A profit for the period of £0.2m (2018: profit of £0.1m) resulted in a basic profit per share of 0.4p and a fully diluted profit per share of 0.3p (2018: basic and fully diluted profit per share of 0.2p).
- Cash balances of £5.2m at 30 September 2019 have increased by £1.5m over the last 12 months, primarily driven by positive cash generation from operations.
- The sales team has been strengthened, including the hiring of a new partner manager who is tasked with enhancing our partner program. The establishment and further development of partner relationships is critical for the Group’s future growth prospects.
- Launch of the Innovation Hub, an internal team tasked with guiding the future architecture and functionality of Intercede products and improving how we develop and deliver software and services.
- Release of MyID Professional; a simplified version of MyID targeting the large addressable market of mid-market enterprises to enable them to step up to the strongest form of user authentication with least cost and risk.
Chuck Pol, Chairman, said:
The results we are announcing today do not represent the full story of the progress that has been made to refocus the Group’s strategy towards sustainable revenue growth and profitability.
The return to a first half operating profit, the first time this has been achieved for six years, is an important milestone. The laser focus on our new strategy is evident, particularly in the growth of our cash balances and our dedication to writing the best code in the industry.
The release of MyID Professional represents a more scalable version of MyID that gives our customers and partners the strongest form of user authentication in a simplified lower cost format. There remains further work to be done, but the direction of travel and momentum in the business reflects the considerable achievements of the Intercede Team to date – we remain on track.
To download the full results, click here.
Intercede Group plc Tel. +44 (0)1455 558 111
Klaas van der Leest, Chief Executive
Andrew Walker, Finance Director
finnCap Tel. +44 (0)20 7220 0500
Stuart Andrews, Corporate Finance
Simon Hicks, Corporate Finance
Intercede is a UK-headquartered, AIM listed (LSE:IGP) cybersecurity company with a US office in Reston, VA.
Founded more than 20 years ago, Intercede has continued to innovate its software platform. Today, MyID® credential management software helps governments and enterprises around the world issue and lifecycle manage millions of citizen and workforce digital identities. Interoperable identity management software facilitates strong multi-factor authentication across mobile devices, smart cards, USB tokens and virtual smart cards.
It is our vision to safeguard the integrity of connected workforces, supply-chains, citizens and industrial technologies for the world’s businesses and governments that will not compromise on cybersecurity.
For more information visit: intercede.com
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.