Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2019.
The financial information in the following pages reflects the impact of IFRS 16 Leases. IFRS 16 has been applied retrospectively and the impact on each line of the Consolidated Financial Statements is explained in Notes 1 and 6.
· Revenues increased by 5% to £4.4m (2018: £4.2m) reflecting a strong end to the half with orders received from both new and existing customers.
· Operating expenses reduced by 9% to £4.3m (2018: £4.8m), which reflects staff cost savings and continued tight control of overheads.
· A return to operating profit of £25,000 (2018: £609,000 operating loss), the first time this has been achieved since the corresponding period six years ago.
· A profit for the period of £0.2m (2018: profit of £0.1m) resulted in a basic profit per share of 0.4p and a fully diluted profit per share of 0.3p (2018: basic and fully diluted profit per share of 0.2p).
· Cash balances of £5.2m at 30 September 2019 have increased by £1.5m over the last 12 months, primarily driven by positive cash generation from operations.
· The sales team has been strengthened, including the hiring of a new partner manager who is tasked with enhancing our partner program. The establishment and further development of partner relationships is critical for the Group’s future growth prospects.
· Launch of the Innovation Hub, an internal team tasked with guiding the future architecture and functionality of Intercede products and improving how we develop and deliver software and services.
· Release of MyID Professional; a simplified version of MyID targeting the large addressable market of mid-market enterprises to enable them to step up to the strongest form of user authentication with least cost and risk.
Chuck Pol, Chairman, said:
“The results we are announcing today do not represent the full story of the progress that has been made to refocus the Group’s strategy towards sustainable revenue growth and profitability.
The return to a first half operating profit, the first time this has been achieved for six years, is an important milestone. The laser focus on our new strategy is evident, particularly in the growth of our cash balances and our dedication to writing the best code in the industry. The release of MyID Professional represents a more scalable version of MyID that gives our customers and partners the strongest form of user authentication in a simplified lower cost format.
There remains further work to be done, but the direction of travel and momentum in the business reflects the considerable achievements of the Intercede Team to date – we remain on track.“