Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its preliminary results for the year ended 31 March 2020.
· Results for the year ended 31 March 2020 show a continuing trend of improved operational and financial performance.
· Revenues of £10.4m (2019: £10.1m) primarily reflect the impact of follow-on orders from existing customers and partners in the US, EMEA and SE Asia. The establishment and further development of partner relationships is critical for the Group’s future growth prospects.
· Following a cost-cutting review introduced two years ago, costs continue to be tightly controlled while strategic investment and investment in staff have been maintained, both of which are crucial to exploit new revenue opportunities.
· The Group generated a substantially increased profit for the year of £1.0m (2019: £0.4m).
· Gross cash balances increased to £4.8m as at 31 March 2020 (2019: £3.2m), primarily driven by cash generated from operations of £1.4m (2019: £0.7m).
· Intercede reacted swiftly to the Covid-19 pandemic to maintain business as usual with all staff working remotely from home both in the UK and US.
· The Group continues to execute its 5C strategy (Colleagues, Customers, Channels, Code and Cash) and continues to be successful in deriving a high level of recurring and follow on revenue. Meanwhile, the value of the sales pipeline is over 40% higher than this time last year.
· Three new initiatives have been launched during the year to increase customer interaction: US Customer Advisory Board (CAB), Customer Portal and the Customer Satisfaction Survey. The US CAB in particular was a great success and was attended by many US federal agencies and large enterprises from across North America. When the Covid-19 lockdowns are lifted, there are plans for a CAB in Europe, for Intercede’s European, Middle East and Asia Pacific customers.
· The launch of Intercede’s new Connect Partner Programme. This is a tiered channel scheme that rewards partner engagement to extensively integrate MyID software with world-leading strong authentication hardware and software. In particular Connect Partners will sell the newly released MyID Professional, a simplified and therefore more scalable version of MyID Enterprise.
· Strategic investment continues for the year ending 31 March 2021 with the goal of a significant release of MyID, currently designated MyID v11.6, which is the first release of a new operator client with an improved user experience and REST APIs for enhanced performance. Beyond MyID v11.6 is a planned expansion into new authentication technologies such as mobile ID and FIDO (Faster IDentity Online), which will enable Intercede to access a larger addressable segment of the authentication market.
Chuck Pol, Chairman, said:
“Just over two years ago a major Board reconstruction was undertaken with the clear recognition that the Group had to get back to sustainable revenue growth and profitability. All members of the team have remained focused throughout the last two years and it is to their great credit that the most difficult part of the operational turnaround has been delivered despite the worsening backdrop posed by the Covid-19 pandemic at the end of the period. The Board are most grateful for the endeavours of all staff and our immediate thoughts are focused on the safety and welfare of our staff, partners, customers and prospects.
The Group has identified various options to simplify, scale and expand the traditional markets of the MyID software platform, starting with the release of MyID Professional. We have maintained investment in Research & Development and in our operational capabilities and have materially improved profitability – the principal focus of our energies. The turnaround and return to profitability has also allowed us to continue to look at exciting technologies that will enrich the MyID software platform and accelerate the momentum of our innovation.
We look forward to a further year of progress, particularly in terms of revenue growth, although much currently depends on events outside of the Company’s control and the speed at which customers return to more normal operations.”