24th Nov 2025 11:20
(Alliance News) - Microlise Group PLC on Monday said it expects profit to be below current market expectations amid lower order volumes and delays in customer projects.
Shares in the Nottingham, England-based provider of transport technology solutions to fleet operators plummeted 32% to 95.00 pence on Monday morning in London.
For the financial year ending December 31, Microlise said adjusted earnings before interest, taxes, depreciation, and amortisation are expected to fall below the current market consensus of GBP12.7 million.
The company said it expects adjusted Ebitda to be no less than GBP8.3 million. In financial 2024, Microlise reported an adjusted Ebitda of GBP11.3 million.
The profit warning comes as Microlise expects to deliver full-year revenue below the current market expectation of GBP91.3 million. It expects to achieve no less than GBP84 million in revenue. Last year, the company reported GBP79.5 million in revenue.
Microlise attributed the reduction in expected revenue to lower order volumes from its global OEM customers, which is "predominantly due to trading disruption caused by the impact of tariffs together with general weakness in the wider macro environment."
The company added that UK direct customer sales were hurt by delays in some customer projects, including a project relating to a British multinational retailer hit by a cyber-attack earlier this year.
Microlise said it will implement cost saving and efficiency measures, which are expected to generate annualised cost savings of at least GBP4.0 million. This includes a reduction in headcount of approximately 10%.
"Notwithstanding this short-term impact, our view on the company is unchanged and the business fundamentals remain strong. Microlise is robustly profitable, cash generative and has a strong balance sheet," Chief Executive Nadeem Raza said.
"We have a strong base of annual recurring revenues, and the actions we are announcing today are expected to enhance our profitability. Together with a refreshed go-to-market strategy, healthy order book and expanding product suite, we are well positioned to deliver sustainable, profitable growth," Raza added.
Microlise also announced on Monday it had appointed Dean Garvey-North as the company's new chief technology officer. He will succeed Duncan McCreadie, who will step down after a decade in the role.
By Roya Shahidi, Alliance News reporter
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