Subscriber growth and customer wins power Microlise’s rebounding revenues
Microlise’s shares have soared 15.7 per cent on the FTSE AIM All-Share today, enjoying a 17 per cent boost in revenues, raking in £60.3m over the calendar year of 2021.
Its stellar levels of growth were supported by strong recurring revenue – which was up nine per cent to £36.7m over the same time period.
This was powered by the renewal of several major customer contracts and new customer wins.
The software specialist’s customer base is chiefly transport companies and haulage firms, and its biggest deal this year was a new five year contract with its largest customer – JCB.
Overall, subscriptions have grown 10 per cent to 551,000, despite the continued effects of the pandemic and component shortage headwinds.
Gross profits boomed 14 per cent to £34.5m, at a margin of 57 per cent – while adjusted profit before tax has skyrocketed 104 per cent to £2.6m.
It is now in a healthy financial state – with net cash of £13.2m and a renewed £20m undrawn revolving credit facility.
The company’s board is confident of delivering a performance for the full year in line with current market expectations, with a strong start to trading in the first quarter matching the 2021 calendar results.
Nadeem Raza, chief executive of Microlise, said: “The eighteen-month period to 31 December 2021 was one of considerable achievement for the Group. We strengthened our business through the growth of our global customer base; the renewal of several major customer contracts, including a new 5-year contract with our largest customer JCB; the launch of new products; ongoing recruitment and team expansion; and the completion of a successful IPO in July 2021 to fund the acceleration of our growth strategy.”
As for headwinds, Raza points to 18 months of chip shortages – however, he expects the situation will improve over 2022 and return to pre-pandemic levels by late next year.
Microlise is listed on the London Stock Exchange, and trades on the FTSE AIM All-Share.