RNS – Preliminary Results for the Year Ended 31 March 2022

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 2022.

Financial Highlights

• Revenue of £9.9m (FY21: £11.0m) in line with revised expectations. This represents a 9% fall (4% at constant currency rates) driven by delays in closing large new opportunities. A return to normalised trading has taken longer than previously expected against a backdrop of continued Covid-19 restrictions.
• Recurring Support and Maintenance revenue increased by 10% to £6.7m (FY21: £6.1m) with renewal rates of 98% for FY22 (98% in FY21). Recurring revenues from Support & Maintenance, plus repeatable Professional Services revenues, now largely cover annual fixed costs.
• Operating expenses (OpEx) for the year were £9.3m (FY21: £9.1m). Staff costs continue to represent the major expense representing 84% of total operating expenses (FY21: 88%).
• The Group generated a profit for the year of £0.7m (FY21: £1.5m), which resulted in a basic profit per share of 1.3p and a fully diluted profit per share of 1.2p (FY21: basic profit per share of 3.0p and fully diluted profit per share of 2.8p).
• The Group’s cash position at 31 March 2022 was £7.8m (FY21: £8.0m). The Group has no borrowings (FY21: nil).

Operating Highlights

• Following the completion of the first phase of the Intercede’s turnaround plan in FY21, the Group embarks on Phase Two with a focus on scalability and consistent revenue growth. This will be achieved through a combination of corporate development, with a strategy of acquiring quality companies that meet this aim, and through enhancements to the MyID Credential Management Software (CMS) platform to broaden the addressable market.
• Sixteen new deployments were signed up during the year, double the number for FY21. This substantial increase in new deployment wins is clear evidence of underlying momentum in the context of growing market demand for cybersecurity.
• Intercede’s Connect Partner Programme has signed new partnerships in Europe, the US, ASEAN, Latin America and Africa.
• Two initial orders were received from prestigious independent US Federal Agencies in the last quarter of the year. Both utilise Intercede’s MyID CMS to deploy digital identities to mobile devices in the form of derived PIV credentials, compliant with US government security standards FIPS 201 and SP 800-157. Successful implementation opens the potential for both deployments to rollout to substantially more devices over time.

Chuck Pol, Chairman, said:

“I would like to take this opportunity to thank all our colleagues, customers, partners and stakeholders for their efforts and understanding during what has continued to be a challenging and uncertain period for everyone. Furthermore, I extend my thanks to Klaas and his management team for their leadership and invaluable assistance.

I would also like to express my sincere thanks to Andrew Walker for his contribution to the Group over his 21 and a half years of service. As announced in November 2021, Andrew informed the Board of his intention to retire and step down from the Board and we wish him the very best for his retirement. He is succeeded by Nitil Patel who was appointed as our new Chief Financial Officer in April 2022.

It has been a promising year of financial and operational progress and Intercede is now very well positioned for further growth. We enter FY23 with positive momentum and lots of opportunities. When I look at the various elements of this business; particularly the experienced management team, the high growth cybersecurity market, the blue-chip customer base, the pipeline and the resilient response to market conditions in the last two years, I remain confident of the Group’s future prospects. Significant progress was made in FY22 and I am excited for the year ahead.”

Contact

Intercede Group plc	Tel. + 44 (0)1455 558111
Klaas van der Leest	CEO
Nitil Patel	CFO
finnCap Ltd.	Tel. + 44 (0)20 7220 0500
Simon Hicks/Fergus Sullivan	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.