24th Jan 2022 11:18
(Alliance News) - Microlise Group PLC said on Monday it will deliver 18-month results in line with expectations, but warns supply chain issues will persist in 2022 for longer than expected.
The company's share price dropped by 19% to 165.10 pence each in London during Monday morning trading.
As previously announced, Microlise has changed its financial year-end to December from June, so the update covers the 18 months to December 31. The Nottingham, England-based transport management software firm said the period saw strong growth in revenue and earnings before interest, tax, depreciation and amortisation, in line with expectations.
The annual recurring revenue run rate as of December 31 was GBP39.0 million, up 9% from GBP35.7 million the previous year. Like-for-like subscriptions in the period were up 10% to 551,000 from 502,000. Microlise added 65 new customers in the period, including a 5-year contract with JCB Ltd. Net cash at the end of the period was GBP13.4 million.
Microlise noted "continued operating challenges caused by the pandemic and global microchip shortage", and predicted these will last longer into 2022 than previous estimates.
Chief Executive Officer Nadeem Raza said: "In what continues to be a challenging period for the transport and logistics sector, we are pleased to deliver results in line with market expectations. Strong customer retention levels and demand for the sustainable and scalable fleet efficiency technology Microlise provides has underpinned our performance.
"We have extended key customer contracts and acquired multiple new large fleet customers, which will deliver future growth. Looking ahead, we have a healthy pipeline of new business, new products in development, and an excellent market opportunity."
Full results for the period will be released in early April.
By Elizabeth Winter; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Microlise Grp