Intercede Group (IGP) H2 2026 earnings summary

Executive summary

• FY26 revenue was slightly down after unforecast U.S. federal procurement delays; delayed orders arrived after year-end, with management describing the issue as timing rather than pipeline weakness.

• Debt-free balance sheet, strong cash position, recurring revenue growth and continued investment support the FY27 plan.

• Strategy centers on high-security authentication, indirect channel growth, product innovation and selective M&A, including expansion into machine and agentic AI credential management.

Financial highlights

• FY26 revenue was slightly below forecast; management cited a 0.5 constant-currency result and an adverse foreign-exchange translation movement.

• Recurring revenue grew 11.4%; licensing moved in the right direction, while professional services declined against a prior-year large deployment and delayed federal work.

• FY26 R&D spend was £4.1m; FY27 planned investment is £4.4m–£4.5m.

• Finalized R&D tax computations generated a £200,000 credit in the income statement.

• Most of approximately £6m in deferred revenue had converted to cash; two delayed renewals were expected shortly from long-standing clients.

Outlook and guidance

• FY27 revenue guidance remains £21m; delayed FY26 orders have since landed, and management reported strong order intake and a healthy, growing pipeline.

• U.S. federal agencies are funded for multiple years; management reported active order flow and no current delays.

• FY27 professional-services activity is expected to improve as delayed work progresses and new deployments develop.

• Longer-term product plans include post-quantum readiness, enterprise-managed passkeys, sovereign-cloud deployment and unified management of personal, machine and agentic AI credentials.