Intercede Group PLC – Half-year Report

Intercede Group PLC – Half-year Report

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2018. 

Financial Highlights

  • Revenues increased by 14% to £4.2m (2017: £3.7m). New wins in the first six months of the year include license orders from new and existing customers and involve new technology (mobile ID and derived credentials) as well as traditional (smartcard).
  • Operating expenses reduced by 29% to £4.7m (2017: £6.7m) following the cost-cutting review that was initiated in the second half of the prior financial year.
  • Operating loss substantially reduced to £0.6m (2017: £3.1m).
  • A profit for the period of £0.2m (2017: loss of £2.1m) resulted in a basic and a fully diluted profit per share of 0.3p (2017: basic and fully diluted loss per share of 4.3p).
  • Cash balances of £3.6m at 30 September 2018 represent an increase on the £2.3m of cash balances at 31 March 2018, primarily driven by positive cash generation from operating activities and the receipt of the 2018 R&D tax claim. 

Operating Highlights

  • New Chief Operating Officer and Chief Sales Officer appointed and on track in improving standards and operating performance.
  • On time delivery of a MyID solution to a Middle Eastern country to issue mobile government identities to its citizens. 
  • A follow-on MyID license sale to an existing US Federal agency customer to enable their users to issue a derived PIV credential to a mobile device using their original PIV card. There are promising signs that US Federal agencies are starting to buy and implement FIPS 201 compliant mobile solutions.
  • Development commenced on a more standard variant of the MyID product with out-of-the-box connectivity that can be sold through Intercede’s global network of authorised partners.

Chuck Pol, Chairman, said:

 “The new management team has made a promising start in the first half of the current year and it is pleasing to note the growth in revenues against the backdrop of the cost-cutting review. The improved cost efficiency, and focus on the core MyID product, gives the Board confidence that Intercede will return to profit during the next financial year.

This is a challenging but important period for Intercede as we build a firm foundation to preserve our culture of innovation. This innovation continues to be evident through the development of a more standard version of our software that can be sold through Intercede’s global network of authorised partners and should broaden the market appeal of MyID.”

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