Intercede (AIM: IGP.L) is a leading producer of Identity and Credential Management software, called MyID, which manages the secure registration, issuance and life cycle of digital identities for a wide range of uses.
At the time of reporting its Interim Results for the six months ended 30th September 2014 on 6 November 2014, Intercede remained optimistic that full year growth expectations would be achieved. However, the Company did state that this would be subject to the timing of certain orders, both from smart card related projects and from a number of mobile related opportunities.
As set out below, there have been a number of market related delays beyond the Company’s control and, whilst revenues are expected to be greater in the second half of the current financial year than the first half, full year revenues are now anticipated to be at a similar level or slightly lower than the prior financial year.
In the US, two key standards FIPS 201-2 and SP800-157 were released and ratified more than three months later than anticipated thereby delaying the time to revenue of our MyID v10.1/v10.2 derived credential platform. The availability of TEE capability on OEM handsets has also been slower than anticipated thereby delaying the monetisation of the newly launched MyTAM service. In addition, a number of our existing customers are making slower progress than forecast on large scale modernisation projects incorporating our technology, resulting in delays in the receipt of follow on license orders.
The reduction in revenue expectations is expected to result in a loss for the period of approximately £1 million and year end cash balances, after planned investment and share buy-backs, in the region of £5 million.
Whilst the inevitable effect of the delays referred to above is a reduction in short term revenues, they do not structurally reduce the future demand for Intercede products nor do they impact the Company’s strong growth prospects. We continue to experience high levels of interest in the Group’s new mobile digital identity technology, which validates the potential scale of the opportunity for Intercede’s products as people better understand the security implications of areas such as the Internet of Things, the Cloud, and the inherent limitations of usernames and passwords. Consequently, the Board remains confident in and committed to its chosen strategic course.
Intercede Group plc
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director
Tel.+44 (0)1455 558111
Stuart Andrews, Corporate Finance
Joanna Weaving, Corporate Broking
Tel.+44 (0)207 220 0500
Tel.+44 (0)7802 442486