Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its preliminary results for the year ended 31 March 2019.
- Revenues of £10.1m (2018: £9.2m), a 10% increase compared to last year. This reflects growth from contract wins with new customers as well as successfully upselling to existing customers. While North America continues to be the Group’s largest market, the second half of the year saw the first sale of MyID to an end customer in the region of SE Asia.
- Last year, a cost-cutting review was introduced to remove significant costs from the business without impacting operational capability. The combined effect of increased revenues and a 26% reduction in operating expenses to £10.1m, generated an operating profit of £0.02m (2018: £4.5m loss) and a net profit of £0.5m (2018: £3.8m loss), meaning that Intercede has returned to profitability a year earlier than outlined by the Board at the time of the FY18 results.
- As at 31 March 2019, gross cash balances totalled £3.2m (2018: £2.3m), following a year in which cash generated from operating activities totalled £1.0m (2018: £5.0m used in operating activities).
- Significant contract wins include awards from a US Federal agency tasked with intelligence and security services and an intergovernmental alliance organisation. In both cases there is an expectation of further professional services orders over the next financial year and the potential to make further license sales to connected departments.
- Intercede made MyID license sales to two existing US Federal agency customers to enable their users to issue derived PIV credentials to their mobile devices. This utilises the investment Intercede has made in integrating with Mobile Device Management (MDM) systems such as AirWatch and demonstrates the market relevance of Intercede’s ability to use iOS and Android smartphones as an identity device.
- During the year, the Group delivered, to plan, a MyID solution to issue mobile government identities to the citizens of a Middle Eastern country. Intercede is targeting further future revenue from MyID’s capability to issue digital identities to citizens of other countries on smart cards and mobile devices.
- Launch of a new derived credential solution in collaboration with Intel. This solution enables the issuance of PKI-based digital identities to a user’s Intel Authenticate-enabled tablet or notebook PC, following NIST security guidelines.
- Under the leadership of a new Chief Executive, the Group has removed unnecessary costs and restructured and refocused the management team. The number of employees and contractors as at 31 March 2019 has been reduced to 79 (2018:98).
Chuck Pol, Chairman, said:
“Intercede has undergone a challenging period resulting in the Board making transformational changes to ensure a return to revenue growth and profitability. I am pleased to announce that the Group is reporting performance that is ahead of market expectations by returning to profit a year earlier than expected. This represents a significant turnaround from the losses incurred in recent years and I would like to thank all Intercede staff across the Group for their hard work and dedication throughout the year.
MyID is trusted within government circles and amongst some of the world’s largest security sensitive organizations and will continue to generate opportunities for growth and improving financial performance. The new leadership team will make employees, customers and shareholders their priority and I am confident of the Group’s future prospects”