FY25 Trading Update

 24 November 2025

Microlise Group plc

("Microlise", "the Group" or "the Company")

FY25 Trading Update

Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, announces a trading update in relation to the year ending 31 December 2025 ("FY25").

In the Interim Results for the period ended 30 June 2025, we noted broader market challenges including a slower recovery in the automotive sector. Trading in the period since the release of the Interim Results has been mixed. As a result, based on trading results for the year to date and our pipeline for the remainder of FY25, we now expect to deliver FY25 revenues below current market expectations 3 of not less than £84m, up c.4% versus FY24 adjusted revenues1 of £81.0m.

The reduction in expected revenue for FY25 is a result of the following:

- We are seeing lower order volumes from our global OEM customers in the automotive and construction sectors, and we therefore expect OEM revenues to be below FY24. This is predominantly due to trading disruption caused by the impact of tariffs together with general weakness in the wider macro environment. As a result, we now expect revenue from global OEM customers to represent approximately 27% of FY25 total revenue, down from 33% in FY24. At the current time, we are cautiously expecting FY26 revenues from our OEM customers to be below FY25 levels.

- Direct customer sales in the UK have been softer, impacted by delays in a small number of customer projects, in particular one large project relating to a British multinational retailer which was hit by a cyber-attack earlier this year. We anticipate this will result in revenue relating to the deployment of Microlise's software and hardware products for these customer projects being recognised in FY26.

Direct customer sales in Asia-Pacific ("APAC") have performed strongly with notable highlights including the full deployment of the £10.6m, 5-year, contract with WooliesX in Australia. The APAC pipeline is currently skewed to a small number of larger contracts, and we are encouraged by the growth opportunity in the region.

FY25 annual recurring revenue ("ARR") run rate is anticipated to be up 4.5% to £59.1m. This is up £2.5m versus FY24.

Margin Initiatives

The board has decided to implement cost saving and efficiency measures across parts of the Group, which are expected to generate annualised cost savings of at least £4.0m. This action is expected to be materially complete before the year end with an exceptional charge of c.£1.5m, largely relating to severance costs, with an expected reduction in headcount of approximately 10%. 

As a result of the underperformance in sales , we expect adjusted FY25 EBITDA to be below current market expectations3, and not less than £8.3m.

Cash

Cash is anticipated to be approximately £11m as at 31 December 2025 (FY24: £11.4m). In addition, we have an unutilised £10m revolving credit facility and a £20m accordion. The Group will continue to be cash generative in FY25, despite the one-off costs associated with the margin initiatives and excluding the £2.2m cash proceeds received in H2 FY25 from the sale of the investment in Trakm8 Holdings Plc.

We will provide a further update on trading for the 12 months to 31 December 2025 in late January 2026.

Appointment of Chief Technology Officer

We have hired Dean Garvey-North as our new Chief Technology Officer, succeeding Duncan McCreadie, who will retire after a decade of outstanding service to the Group. Dean will drive technology strategy, product innovation and infrastructure excellence, ensuring alignment with business objectives and fostering a high-performance engineering culture.

Nadeem Raza, CEO of Microlise, commented:

"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.

For FY26 we have a healthy direct sales pipeline and we anticipate overall revenues to increase over FY25. We expect improving recurring revenue growth, supported by the eventual unwind of disruption with OEM customers, and materially increased EBITDA and cash generation following the conclusion of the margin initiatives, but FY26 adjusted EBITDA is expected to be below current market expectations4.

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." 

1. Adjusted Revenue excludes revenue reversals relating to the cyber security incident, which are expected to be fully covered by insurance

2. Adjusted EBITDA excludes, exceptional costs in relation to acquisitions and restructuring costs, depreciation, amortisation, share of loss of associate, interest, tax and share based payments.

3. For the purpose of this announcement, the Group believes market consensus for FY25 to be revenues of £91.3 million and adjusted EBITDA of £12.7 million.

4. For the purpose of this announcement, the Group believes market consensus for FY26 to be adjusted EBITDA of £14.9 million.

Inside Information: This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

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About Microlise

Microlise Group Plc is a leading provider of transport and fleet technology to transport and logistic operators helping them to improve efficiency, safety, and reduce emissions. These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 2,500 clients, and a global workforce of 800 across the Group's headquarters in Nottingham in the UK, and offices in France, Australia, and India.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS) and qualifies for the London Stock Exchange's Green Economy Mark.