Trading Update

RNS Number : 1333Y

IQGeo Group PLC

12 January 2022

 

12 January 2022

IQGeo Group plc

(the "Company" or the "Group")

Trading update

IQGeo Group plc (AIM: IQG), a leading developer of geospatial productivity and collaboration software for telecoms and utility network operators, is pleased to provide an update on the Group's trading for the year ended 31 December 2021 ahead of the release of its final results in March 2022.

The Group expects to report results marginally ahead of expectations, with growth across all key metrics.

Revenue for the year is expected to show an increase of approximately 48% to not less than £13.7m (2019: £9.2m) with growth across both the IQGeo core business and the OSPInsight (OSPI) business acquired in December 2020. The Group has expanded its base of customers from 262 to 324 with recurring revenue net retention at approximately 113% (2020: 140%).

The Group has a strategic focus on becoming a high recurring revenue business and expects to report that approximately 43% of the Group's total revenues are now recurring (up from 35% for the year to 31 December 2020), with the Exit ARR* of these contracts as at 31 December 2021 increasing by 55% to approximately £8.2m (2020: £5.3m). In year orders have grown by over 60% to £19.5m (2020: £11.9m) resulting in a record closing order book of approximately £14.5m (2020: £9.2m) to be taken as revenue in future years.

Gross margins have, as previously reported, improved as the proportion of subscription revenues have increased and are expected to exceed 60% (2020: 52%).

Consequently, the Group expects to report a significantly improved adjusted EBITDA** loss of not more than £1.0m (2020: loss of £2.5m) without compromising a disciplined approach to investment for the future. The Group had net cash of £11.5m at the year-end (2020: £10.5m).

Richard Petti CEO said :

"The results for the year are very positive indeed and show considerable progress yet again as we continue the journey of building a high recurring revenue software business.  We retain a strong balance sheet and a significantly increased annualised recurring revenue exit run rate. 

We are excited by the position we hold within a rapidly growing market. The telecom and utility operators that IQGeo supports are going through a once-in-a-generation digital transformation as they deploy new fibre, 5G, and decarbonised distributed energy networks. IQGeo sees high levels of investment for next generation networks; operators are making strategic decisions now that will be deployed for decades to come; and there is a demand for the flexible, scalable geospatial software solution offered by IQGeo.

Given the progress that we have made this year, our capabilities and resources, and the opportunities that we see ahead of us in this market, we approach 2022 with excitement and great optimism of the Group achieving its ambitions."

* Exit ARR is defined as the current go forward run rate of annually renewable subscription and M&S agreements

**Adjusted EBITDA excludes amortisation, depreciation, share option expense, foreign exchange gains/losses on intercompany trading balances and non-recurring items and is reported as it reflects the performance of the Group

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information contact:

IQGeo Group plc     [phone]

Richard Petti

Haywood Chapman

finnCap Ltd     [phone]

Henrik Persson, Seamus Fricker (Corporate Finance)

Tim Redfern, Richard Chambers (ECM)

Notes to Editors

About IQGeo

IQGeo™ (AIM: IQG) a leading developer of geospatial software that improves productivity and collaboration across enterprise planning, design, construction, maintenance and sales processes for telecoms and utility network operators. Our mobile-first enterprise solutions create and maintain, an accurate view of complex network assets that is easily accessible by anyone, wherever and whenever needed. Specialized applications combined with our open IQGeo Platform help network operators create a single source of network truth to meet their digital transformation ambitions and operational KPIs. Our award-winning, cloud-enabled solutions save time and money, and improve safety and productivity, while enhancing customer satisfaction. Headquartered in Cambridge, with offices in Denver, Frankfurt and Tokyo, we work with some of the largest network infrastructure operators in the world. For more information visit:  https://www.iqgeo.com/

 

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