Intercede Group (IGP) H2 2024 earnings summary

Executive summary

• FY24 delivered record revenue of GBP 20m, net profit of GBP 6m and GBP 9.6m operating cash generation; year-end cash was GBP 17.2m with no debt.

• MyID expanded from one product line to three: credential management (CMS), multi-factor authentication (MFA) and password security management (PSM).

• More than 95% of new business is transacted through distribution and channel partners; the stated ambition is double FY23 revenue, with progress described as on track.

Financial highlights

• FY24 revenue reached a record GBP 20m, with GBP 6m net profit; operating expenses increased, partly reflecting recruitment and revenue-linked sales commissions and bonuses.

• A large U.S. federal contract included GBP 6.6m of perpetual licenses recognized immediately and GBP 1.4m of recurring support and maintenance.

• Operating cash generated was GBP 9.6m; cash stood at GBP 17.2m at year-end and GBP 18.5m at 31 May 2024.

• GBP 3.5m of R&D was expensed through the income statement; investment is planned in product development, testing, IT infrastructure, marketing and staff.

Outlook and guidance

• Strong traction is expected to continue in the current fiscal year; management said it was on track to deliver revenue growth and profitability.

• The stated medium- and long-term aim is to double revenue from FY23; management said pipeline visibility and value were sufficient to deliver budget.

• Opportunities from Europe and the Middle East are expected to feed into FY25 and FY26; a federal-agency proof of concept has a 12–18-month window.

• Continued investment in product development, colleagues, internal IT and marketing is planned, while pursuing double-digit organic growth as the primary growth ambition.