RNS – Preliminary Results for the Year Ended 31 March 2021

8 June 2021

INTERCEDE GROUP plc

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

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its preliminary results for the year ended 31 March 2021.

Financial Highlights

• Following the successful completion of the first phase of the Group’s turnaround, Intercede has delivered its third year of sustainable growth in revenues, profits and cash.
• Revenue for the year ended 31 March 2021 (FY21) increased by 6% to £11.0m (FY20: £10.4m). While the COVID-19 pandemic has adversely impacted key markets in Europe and the Middle East, US revenues have increased by 14%, including a major new contract to provide an innovative Identity Management System (IDMS) solution compliant with US Federal Government Standard FIPS 201 for the US Department of State (DoS) and its customers.
• Operating expenses (OpEx) for the year were £9.1m (FY20: £9.2m). Staff numbers have remained consistent during the COVID-19 pandemic; business as usual has been maintained without anyone being furloughed or made redundant and without any pay cuts or reductions in working hours.
• The Group generated a substantially increased profit for the year of £1.5m (FY20: £1.0m), an increase year on year of 52%, which resulted in a basic profit per share of 3.0p and a fully diluted profit per share of 2.8p (FY20: basic profit per share of 2.0p and fully diluted profit per share of 1.9p).
• The Group’s gross cash position at 31 March 2021 was £8.0m (FY20: £4.8m), primarily due to a net cash inflow from operating activities of £4.2m (FY20: £1.3m inflow). The Group is now debt free following the successful early retirement of convertible loan notes (CLNs) totalling £5.0m, announced in February 2021, which will save the Group £0.4m in annual interest costs.

Operating Highlights

• This has been a year of major uncertainty and challenges. Following the outbreak of COVID-19, Intercede was able to switch quickly and effectively to remote working without any disruption to customer service and project delivery.
• The Group continues to execute its 5C strategy (Colleagues, Customers, Channels, Code and Cash) to drive the positive trend and momentum of the business.
• To combat decreasing physical customer interaction during the pandemic, Intercede has continued to push ahead with three important customer focused initiatives: Customer Advisory Board (CAB), Customer Satisfaction Survey and the Customer Portal. CABs were held virtually during October and November 2020 to update Customers in the RoW and US on MyID enhancements and provide visibility into the product roadmap.
• Intercede’s partner-centric growth strategy remains unchanged and, following on from the recent launch of the Connect Partner Programme, the Group’s network has continued to expand with new agreements established with partners covering the UK, Europe, North America, the Middle East, Latin America, Asia and Africa.
• During the year, new versions of MyID were released which gave our customer base the benefits of a new operator client (using REST APIs for improved user experience and enhanced performance) and additional functionality including Windows Hello for Business integration (WHFB) as well as the new MyID authentication service. Intercede is excited to announce the release of MyID v12 which further modernises and introduces additional functionality to expand the addressable market with the introduction of FIDO (Faster IDentity Online) to the MyID credential management platform.

Chuck Pol, Chairman, said:

“During the COVID-19 pandemic, Intercede has maintained solid revenue growth at 6% and delivered a substantial increase in profitability with the levels of cash generated being well ahead of market forecasts. I would like to commend Klaas and his management team on the completion of the first phase of the Group’s turnaround plan. This achievement is all the more commendable having been delivered during the biggest global pandemic of our lifetimes.

None of this would have been possible without the commitment and dedication of Intercede’s employees who have used their experience and expertise to continue to deliver world class digital identity solutions to our customers and partners. We are excited to announce the release of MyID v12 which will expand Intercede’s addressable market with the introduction of FIDO to the MyID credential management platform.

I remain confident of the Group’s future prospects as we emerge from the pandemic and Governments and commercial enterprises are able to take the necessary steps to further improve their security environments when taking increased remote working into consideration.”

Contact

Intercede Group plc	Tel. + 44 (0)1455 558111
Klaas van der Leest	Chief Executive
Andrew Walker	Finance Director
finnCap Ltd.	Tel. + 44 (0)20 7220 0500
Stuart Andrews/Simon Hicks	Corporate Finance
Tim Redfern/Charlotte Sutcliffe	ECM

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) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the company’s obligations under Article 17 of MAR .

To download the full results, please click here.