Trading Update

RNS Number : 0017U

Microlise Group PLC

28 July 2022

 

28^th July 2022

Microlise Group plc

("Microlise", "the Group" or "the Company")

Trading Update

'Continued Growth Throughout Global Microchip Shortage'

Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, is pleased to provide a half year update on trading for the six months to June 30, 2022 ("the Period"). The Group expects to publish its interim results in late September.

Highlights

· Annual Recurring Revenue (ARR) run rate as of 30 June 2022 up 10.5% to £40.2m (30 June 2021: £36.4m)

· Net cash at Period end of £15.8m, up 19% since 31 December 2021

· Introduced TruVan - a new compliance software package for vans

· More than 60 new customers added in the Period

· Existing customer churn remains low at 0.1%

· Successful return of the Microlise Transport Conference 2022 in May

· Full-year revenue and profit to be in line with market expectations  

Financial

The Board is pleased to announce the positive progress made by the Group despite the challenges created by the global microchip shortage. The Group has seen strong recurring revenue growth with ARR increasing by 10.5% to £40.2m. Microlise has added 60 new customers and expanded its partnerships with existing customers, including MAN Trucks in Malaysia. The Company continues to have high rates of customer retention and very low churn. During the Period, churn was 0.1%. showing the critical nature of the Company's platform to customers.

Microlise has strengthened its balance sheet meaning the Group is well-positioned to execute its growth strategy.  Excellent cash conversion of 127% has enhanced the Group's net cash position.  Net cash at Period end was £15.8m, up 19% since 31 December 2021. The Group also has an undrawn £20m Revolving Credit Facility.

Products

Microlise's technology gives operators greater visibility and control of their fleets. Through its use, they can manage fleet, vehicle and driver performance to reduce fuel use, extend the life of vehicles and better manage their assets.

Fleet operators are facing the highest fuel prices in decades, a shortage of drivers, and supply problems making it difficult to get new vehicles to replace aging fleets.  This means Microlise's products have never been more relevant.

There has been strong customer interest in the recently launched Planning & Optimisation module.  The module gives customers faster, more flexible, and more accurate route planning. This reduces driver hours and mileage. This powerful tool can help mitigate the impact of rising fuel prices. The Board believes that the module will help the Company win new customers and deepen relationships with existing customers.

Further to this, the Company launched TruVan during the period. TruVan is a new compliance software package for van and LCV Operators. TruVan includes an App and web-based 'back-office' management system. It enables van operators to comply with DVSA Best Practice and operating guidelines, while efficiently managing their fleets.

Microlise Transport Conference

After a two-year hiatus, the Microlise Transport Conference returned in May 2022. The conference is one of Europe's largest road transport events. Over 50 exhibitors, 40 speakers, including HRH Princess Royal, and more than 1,000 delegates attended the event this year. They joined leaders from across the transport industry to learn about the challenges and opportunities facing the sector, as well as creating a space for them to network and collaborate with one another.

Board Update

The Group announces the planned retirement of Bill Wynn, Chief Financial Officer, in Spring 2023. A search for a replacement is underway and Bill will support the transition process.  

Outlook

Microlise is focused on product development, both through investment and potential acquisitions. The resilience of the Company in navigating the challenges caused by the pandemic and global microchip shortage, has been greatly encouraging. Combined with a healthy pipeline of new opportunities in the UK and internationally, the Board is confident in the Group's growth prospects.

Nadeem Raza, CEO, Microlise said : "2022 has shown the vital role Microlise plays in supporting the transport industry through a challenging period. A perfect storm of problems has hit the sector, including the pandemic, Brexit, driver shortages, and a fuel crisis. Fuel accounts for a third of all transport costs and Microlise's technology gives customers greater visibility and control over their fleets' fuel consumption. Our healthy commercial performance with new customers signing up and existing customers extending their relationships shows how critical Microlise is to our client's fleet operations. The successful return of the Microlise Transport Conference further highlighted our position as a key industry component.

"Looking ahead, the Group has a healthy pipeline of opportunities. We are focused on delivering our acquisition strategy and developing and expanding our product portfolio. In the long term, operators face growing pressure to ensure that fleets are efficient and sustainable. As a result, we are confident the business will meet expectations for the full year and deliver long-term value to our shareholders."

For further information, please contact:

Microlise Group plc

Nadeem Raza, CEO

Bill Wynn, CFO  C/O SEC Newgate

Singer Capital Markets (Nominated Adviser & Broker)

Steve Pearce / James Moat / Harry Gooden    Tel: [phone]

SEC Newgate (Financial PR)

Bob Huxford / Robin Tozer /Isabelle Smurfit  Tel: [phone]

Email: [e-mail]

About Microlise

Microlise Group Plc is a leading provider of transport management software to fleet operators helping them to improve efficiency, safety, and reduce emissions. These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 400 enterprise clients. With 350 employees based at the Group's headquarters in Nottingham in the UK, the Company also has offices in France, Australia, and India, with a total global staff base of over 600. 

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS) and qualifies for the London Stock Exchange's Green Economy Mark.

 

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