IQGeo Group plc (AIM: IQG) today provides an update on the unaudited results of the Group for the year ended 31 December 2018.
The financial year was shaped by the disposal of the RTLS SmartSpace business on 31 December 2018, at a pleasing valuation in cash, and the subsequent focussing of the business on its geospatial offering, with the Group rebranded as IQGeo. The Group looks forward to setting out the strategy of IQGeo, its capital requirements going forward, and the timing around excess capital distribution to shareholders, together with its audited financial results, in mid April 2019.
For the year ended 31 December 2018, combining both the retained IQGeo myWorld business and the disposed RTLS SmartSpace business, the Group expects to report a 20% increase in higher-margin own product revenue of £20 million (2017 £16.6 million). Overall revenues, including the planned reduction of geospatial services on third party products, are expected to exceed £25 million (2017: £27.3 million). Some orders for both divisions were delayed to the end of the final quarter, or slipped into FY19, and this revenue will not be recognised until FY19. A direct impact of delays to RTLS contracts was that, by a narrow margin, the first earnout milestone of £1.5m was not triggered.
The planned reduction in lower-margin third party Geospatial revenues to £5 million (2017: £10.7 million) are expected to result in Geospatial divisional revenues of more than £9 million (2017: £16.5 million). The IQGeo myWorld sales pipeline remains strong with both new customer prospects and expanded deployments in negotiation with existing customers.
After repayment of debt, but before payment of professional fees of around £2.4 million associated with the sale and reorganisation, and before payment of taxes of £0.8 million, the Company expects to report a net cash position for the Group as at 31 December 2018 of £30.9 million.
The Company also announces that it has changed its registered office to CB1 Business Centre, Twenty Station Road, Cambridge, CB1 2JD with immediate effect.
Richard Petti, CEO, said: “2018 was a transformational year for IQGeo with the conclusion of the RTLS SmartSpace sale, enabling the creation of a focused geospatial software group with a strong balance sheet. IQGeo will continue to invest in the product development, sales support and partnerships that will allow us to build an industry leading offering. We are well positioned to exploit high profile digital transformation initiatives within communications and utilities companies thereby delivering significant productivity improvements and cost saving for our customers.”