Microlise Group (SAAS) investor relations material

Executive summary

• Revenue grew 12.6% year-over-year to £44.1 million, with recurring revenue up 11.1% to £29.5 million and ARR up 8.7% to £58.7 million.

• Adjusted EBITDA increased 19% to £6.2 million, with margin up from 13.4% to 14.1%.

• Customer base expanded by 216 new customers, with churn rate at 0.5% and no customer losses.

• Net cash rose 24.7% to £11.2 million, with a post-period £2.2 million cash inflow from the TrackMate/Trakm8 sale.

• Cybersecurity incident impact contained, with insurance covering claims and ongoing investment in security.

Financial highlights

• Gross profit increased 12.8% to £28.9 million, with gross margin stable at 65-66%.

• Adjusted operating profit rose 25.7% to £3.5 million; adjusted profit before tax up 26.5% to £3.6 million.

• Basic EPS improved to 1.10p, and adjusted basic EPS rose 20.2% to 2.62p.

• Cash conversion rate was 64%, reflecting inventory build ahead of H2 project rollouts.

• Operating expenses increased 9.5% to £22.9 million, mainly due to employment and back office costs.

Outlook and guidance

• Management expects continued growth, supported by a strong order book, significant market opportunity, and ongoing margin enhancement.

• Largest customer forecasts flat volumes for 2025; growth expected from existing and new customers, plus M&A.

• Interim dividend to be paid in November, increased to 0.60p per share.

• Capital expenditure expected to remain stable.

• Some project delays at clients due to external cyber incidents and slower automotive sector recovery.