Year End Trading Update

17 March 2026

INTERCEDE GROUP plc

('Intercede', the 'Company' or the 'Group')

Year End Trading Update

Intercede, the leading cybersecurity software company specialising in digital identities, today announces the following year end trading update for the financial year ending 31 March 2026 (FY26).

Performance Overview

Intercede expects to deliver continued Annual Recurring Revenue (ARR) growth in FY26, driven by increased support and maintenance revenues and further adoption of subscription-based licence income. This longer term strategic shift from perpetual licence sales to recurring revenue models will fundamentally enhance revenue quality, predictability, and long-term shareholder value.

Whilst the Group's ARR momentum is encouraging, full-year revenue is anticipated to be approximately 8-9% below current market expectations*. This reflects procurement delays, particularly in the United States, and customer purchasing deferrals attributable to heightened geopolitical uncertainty, including the ongoing Middle East conflict.

Critically, these opportunities are delayed, not lost. Active customer engagements continue across the pipeline, and order intake momentum improved in H2 FY26, validating underlying demand for the Group's solutions and products.

Financial Outlook FY26Revenue and Adjusted EBITDA

The revenue shortfall flows through to adjusted EBITDA, which is expected to be approximately 15-18% below current market expectations*. This reflects the impact of reduced revenues on a cost base that includes the continued strategic investment in growth initiatives designed to deliver long-term shareholder value.

Cash Generation and Balance Sheet Strength

Cash generation remains strong. Disciplined working capital management will result in positive operating cash flow, with cash balances at year-end expected approximately 3-5% ahead of current market expectations*. The Group maintains a debt-free balance sheet, providing financial flexibility, resilience, and the capacity to invest strategically.

Outlook - FY27 and Beyond

Intercede reaffirms its FY27 revenue target of £21 million, reflecting management's confidence that the FY26 revenue delays represent timing shifts rather than fundamental demand weakness.

This is based on:

· Pipeline strength: Active engagements continue with key customers and prospects;

· Improving order momentum: H2 FY26 upturn validates underlying demand for the Company's products and solutions; and

· Continued focus on a transition to a subscription model: Recurring revenue enhances customer retention and lifetime value.

The subscription transition is predicted to continue throughout FY27, with the board expecting delayed opportunities to convert into orders as geopolitical tensions stabilise, hopefully, and procurement cycles normalise. As conditions improve, the Group expects continued ARR growth to translate into improved revenue performance and visibility, supporting the medium-term growth trajectory.

Trading Update

The Group aims to report a more complete trading update with more detail on the FY26 unaudited revenue, constant currency analysis and actual cash and cash equivalents for the twelve months ended 31 March 2026 on 9 Apil 2026.

Klaas van der Leest, Chief Executive Officer at Intercede, commented:

"Whilst the FY26 revenue is disappointing, it has been impacted by procurement delays and customer caution arising from geopolitical uncertainty, and I want to emphasise three critical points for investors.

First, these are delays, not losses, as mentioned above. Our pipeline remains robust, customer engagements continue actively, and we are confident these opportunities will convert, especially should geopolitical conditions stabilise.

Second, our strategic transition to subscription-based solutions is accelerating. We are delivering continued ARR growth, fundamentally enhancing revenue quality, and building a more predictable, scalable business model that positions Intercede for sustained long-term success.

Finally , we reaffirm our FY27 revenue forecast of £21 million. This reflects our conviction that current headwinds represent timing effects, not structural challenges. Order intake momentum improved in H2, validating underlying demand.

We maintain a debt-free balance sheet, strong cash generation ahead of market expectations, and disciplined capital allocation. Intercede is well-positioned to deliver sustained ARR growth and long-term shareholder value."

\* The Board understands that current consensus market expectations for FY26 are consolidated revenues of £18.7m, adjusted EBITDA of £4.6m and cash and cash equivalents as at 31 March 2026 of £19.0m.

ENQUIRIES

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Intercede

Intercede is a cybersecurity software company specialising in digital identities, and its innovative solutions enable organisations to protect themselves against the number one cause of data breach: compromised user credentials.

The Intercede suite of products allows customers to choose the level of security that best fits their needs, from Secure Registration and ID Verification to Password Security Management, One-Time Passwords, FIDO and PKI. Uniquely, Intercede provides the entire set of authentication options from Passwords to PKI, supporting customers on their journey to passwordless and stronger authentication environments. In addition to developing and supporting Intercede software, the Group offers professional services and custom development capabilities as well as managing the world's largest password breach database.

For over 20 years, global customers in government, aerospace and defence, financial services, healthcare, telecommunications, cloud services and information technology have trusted Intercede solutions and expertise in protecting their mission critical data and systems at the highest level of assurance.

For more information visit: www.intercede.com