Business
HY2024 Trading Update
HY2024 Trading Update.
About this update from Microlise Group Plc
[{"type":"text","content":"\n\n30 July 2024\n \nMicrolise Group plc\n(\"Microlise\", \"the Group\" or \"the Company\")\n \nHY2024 Trading Update\nStrong revenue and profit growth\n \nMicrolise 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 ended 30 June 2024 (\"the Period\"). The Group expects to publish its interim results in late September 2024.\n \nFinancial Highlights (Un-Audited)\n \n· ARR1 of £54.0m, growth of 20.6%, of which 11% is organic\n· Group revenue of £39.1m, growth of 15.4%\n· Recurring revenue growth of 21.5% of which 11% is organic\n· Adjusted EBITDA2 of £5.2m, representing margins of 13.4%\n· Cash conversion3 of 72% and net cash of £8.9m\n \n \nTrading Update\nMicrolise has delivered a strong trading performance over the past six months and secured a number of new direct customers, including GSF in the UK and STAF in France.\nThe results for first half of the year, include a full six-month contribution from the Vita acquisition, completed in March 2023, compared to three months in the previous half year and a five-and-a-half-month contribution from the acquisition of ESS, completed on 19 January 2024.\nRevenue grew by 15.4% to £39.1m (H1 2023: £33.9m), driven by strong growth in recurring revenues, which have grown 21.5% (11% organic) to £26.6m (H1 2023: £21.9m) following increased delivery into direct customers towards the end of the prior year as new vehicle availability improved. ARR increased 20.6% (11% organic) to £54.0m (H1 2023: £44.8m).\nNon-recurring revenues increased by 4.4% (1.9% organic) to £12.6m (H1 2023: £12.0m) with OEM hardware sales expected to have a greater H2 weighting in the year, with orderbooks for H2 showing growth expected over the full financial year. In addition, localised vehicle availability constraints in Australia temporarily slowed hardware and installation revenues on certain project deliveries. These are expected to be resolved in H2.\nAdjusted EBITDA grew by 17% to £5.2m (H1 2023: £4.5m), with margins increasing to 13.4% (H1 2023: 13.2%), driven by strong recurring revenue growth. In the period the Group has commenced several LEAN initiatives that w...