RNS – Preliminary Results for the Year Ended 31 March 2018

7 June 2018

INTERCEDE GROUP plc

(“Intercede”, the “Group” or the “Company”) 

Preliminary Results for the Year Ended 31 March 2018

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its preliminary results for the year ended 31 March 2018. 

Financial Highlights

• Revenues of £9.2m (2017: £8.3m), an 11% increase compared to last year. This reflects a strong end to the year and growth in Intercede’s core markets of government, defence contractors and large, highly secure corporate enterprises.
• Loss for the year of £3.8m (2017: loss of £3.9m).
• A cost-cutting exercise removed significant costs from the business without impacting operational capability. Intercede started the new financial year with an operating cost run rate that is more than 20% lower (approximately £3m per annum) than at this point last year.
• Gross cash balances of £2.3m at 31 March 2018 (2017: £6.9m). The impact of significant orders received in the last two months of the year resulted in increased gross cash balances of £4.7m as at 30 April 2018.

Operating Highlights

• Significant first half contract wins include an award from a major US Aerospace & Defence contractor and a sale to a large UK defence organization. In additional there were initial MyID license sales to the largest US military shipbuilding company and to one of the world’s largest diversified natural resource companies.
• The second half of the year saw the sale of a mobile national identity solution to a Middle Eastern country and a license order from another major US healthcare provider.
• The mobile national identity solution sale incorporates Intercede’s MyID mobile authentication technology to allow citizens to generate a digital identity on their smart phone via a government app. Intercede’s accredited technology, and continued work with a range of Mobile Device Managers (MDMs), means it is well placed to meet the markets’ demand for mobile authentication solutions.
• Following second half cost reductions, the number of employees and contractors as at 31 March 2018 has been reduced to 98 (2017: 121).
• New Chief Executive and reorganized management team appointed to return Intercede to profitability.

 

Chuck Pol, Chairman, said:

“The new leadership team are fully focused on building on recent successes and are committed to improving standards, enhanced operating performance and the conversion of recent product development into meaningful revenue generation and growth.

The investment in the MyID platform puts Intercede in a strong position to provide the market with reliable Digital Trust. This is demonstrated by the large orders that were received in the last two months of the year. Following the second half restructuring, the cost base has been brought back in line with future revenue forecasts and the Board are confident that Intercede will grow and return to profit within the next two years.”

 

Contact 

Intercede Group plc	Tel. +44 (0)1455 558111
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

 

About Intercede

Intercede is a cybersecurity company specialising in digital identities, derived credentials and access control, enabling digital trust in a mobile world.

Headquartered in the UK, with offices in the US, we believe in a connected world in which people and technology are free to exchange information securely, and complex insecure passwords become a thing of the past.

Our vision is to make the highest levels of cybersecurity available to organizations and consumers alike, solving complexity and scalability issues by managing high volumes of digital credentials.

We have been delivering trusted solutions to high profile customers for over 20 years. Our team of experts has deployed millions of identities to governments, most of the largest aerospace and defence corporations, and major financial services and healthcare organizations, as well as leading telecommunications, cloud services and information technology firms, providing industry-leading employee and customer credential management systems.

For more information visit: www.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.

To download the full results, please click here.