‘Resilient performance despite global supply chain challenges’
Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, is pleased to provide an update on trading for the eighteen months ended 31 December 2021 (“the Period”). The Group expects to publish its results for the Period in early April.
Furthermore, the Board is pleased to announce the appointment of Lucy Sharman-Munday as an independent Non-Executive Director with effect from 1 February 2022.
Highlights
• Strong growth in Revenue and EBITDA, in line with market expectations
• Annual Recurring Revenue (ARR) run rate as at 31 December 2021 was £39.0m, an increase of 9% on December 2020 (£35.7m)
• Net cash at Period end of £13.4m
• Over 65 new customers added in the Period supported by new long-term contracts with existing customers, including a new 5-year agreement with JCB, leading to a 10% increase in the number of like-for-like subscriptions to 551,000 from 502,000
• Broadened product offering with launch of new software solutions to grow recurring revenue per customer
• Successful admission to AIM, raising £61.2m of gross proceeds including £18.6m for the Company, to accelerate organic growth and support the Group’s M&A strategy.
The Board is pleased with the continued progress made by the Group in the Period, demonstrating the resilience of its business model by delivering another year of profitable growth and expanding its customer base despite the significant challenges presented by the global microchip shortage and other supply chain challenges.
The Group secured over 65 new customers in the Period. New long-term contracts were also secured with a number of major existing customers including JCB, which signed a new 5-year agreement in August 2021.
Overall customer churn remained low during the Period at less than 1%. This strong performance reflects the Company’s success in building long-term relationships with its customers through its award-winning technology platform and SaaS contracts.
During the Period, the Group increased investment in sales and product development to capture the growing market opportunity it sees in international markets, including France and Australia.
New product releases during the Period have already started to generate new customer enquiries and contracted business. Notably we launched our new Planning & Optimisation module which delivers faster, more flexible, and more accurate route planning to operators, reducing driver hours and mileage. TruTac also launched TruFleet, the Earned Recognition DVSA approved fleet management software that helps transport managers to plan, organise and control day-to-day fleet and Operator Licence management.
Outlook
The Board remains confident in the Group’s future growth which is underpinned by long-term structural drivers. The Group has a healthy pipeline of new opportunities, in the UK and internationally, and continues to invest in product development, notwithstanding the continued operating challenges caused by the pandemic and global microchip shortage. The Board expects these supply chain issues to last longer into 2022 than previous industry estimates, and the Group’s management will continue to implement and execute its plans to mitigate the impact.
Directorate Addition
The Group is pleased to announce that Lucy Sharman-Munday will be joining the Board on 1 February 2022 as an independent Non-Executive Director. Lucy will chair the Audit Committee.
With over 16 years of experience in the technology sector, including working for 5one Group, Adapt Group Ltd and iSOFT plc, Lucy is the Chief Financial Officer of AIM-listed Eagle Eye Solutions Group PLC, a leading SaaS technology company, having joined in 2014. She is also a non-executive director of Fonix Mobile PLC. Her career began with KPMG, and she is a member of the Institute of Chartered Accountants in England and Wales.
Nadeem Raza, CEO, Microlise said: “In what continues to be a challenging period for the transport and logistics sector, we are pleased to deliver results in line with market expectations. Strong customer retention levels and demand for the sustainable and scalable fleet efficiency technology Microlise provides has underpinned our performance. We have extended key customer contracts and acquired multiple new large fleet customers, which will deliver future growth. Looking ahead, we have a healthy pipeline of new business, new products in development, and an excellent market opportunity.
The Group is well-funded to deliver on our value accretive acquisition strategy and continues to actively engage with selected targets from a healthy pipeline of opportunities, to deliver long-term value to shareholders.
I would like to take this opportunity to welcome Lucy to Microlise. Her vast experience will contribute to further strengthening the Board.”
Notes to editors:
The following disclosures are required regarding Lucy Sharman-Munday’s appointment pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies (“AIM Rules”):
Full name: Lucinda Emma Joanna Sharman-Munday
Age: 44.
Current Directorships:
• Eagle Eye Solutions Group PLC
• Eagle Eye Solutions Limited
• Fonix Mobile PLC
• Eagle Eye Solutions (North) Limited
• Eagle Eye Solutions Inc
• Eagle Eye Solutions Canada Limited
• Eagle Eye Solutions Australasia Pty Limited
• Eagle Eye Solutions New Zealand Limited.
Previous directorships in the last five years: Eagle Eye Solutions (Asia Pacific Pty) Limited.
Mrs Sharman-Munday does not hold any ordinary shares in the Company.
Save as set out above, there is no further information to be disclosed in respect of Mrs Sharman-Munday under Schedule 2(g) of the AIM Rules.
