Trading Update

RNS Number : 4110S

IQGeo Group PLC

13 July 2022

 

14 July 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 announce an update on current trading following the close of the Company's first half ended 30 June 2022.

Key Highlights:

· Revenue for the half to exceed £8.9 million (H1 2021: £6.4 million) representing growth of 39% half on half

· Exit ARR* increasing by c.50% to approximately £10.3 million (H1 2021: £6.8 million)

· Total order intake has grown by over 100% to approximately £14.6 million (H1 2021: £7.1 million)

· Significant new customer wins, including a multi-year contract with one of the world's largest telecom companies worth an initial $3.6 million plus a service value of $2.1million.

Financial Performance:

The Group expects to report strong performance for the six months ending 30 June 2022 in line with expectations.

Revenue for the six months ended 30 June 2022 is expected to have grown by over 39% half-on-half on an all-organic basis and exceed £8.9 million (H1 2021: £6.4 million). Total order intake has grown by over 100% to approximately £14.6 million (H1 2021: £7.1 million) with a number of new and significant customers signing up for multi-year subscriptions, along with an increase in consultancy services orders obtained both from new and legacy customers.

The Group has achieved continued success in increasing its recurring revenue base with Exit ARR* as at 30 June 2022 increasing by c.50% to approximately £10.3 million (H1 2021: £6.8 million).  ARR intake during the period includes a subscription contract for an initial deployment to a Global top 5 telecom operator who selected IQGeo for fibre network planning and design.

Gross margins are expected to be approximately 60% (H1 2021: 63%) with adjusted EBITDA** expected to be approximately £0.2 million (H1 2021: loss of £0.4 million). The Group expects to report net cash as at 30 June 2022 of £10.9 million (H1 2021: £12.1 million).

Richard Petti CEO said " We are very pleased with our first half performance which has been in line with our strategic milestones and clearly demonstrates our ability to deliver against our targets. Our ability to secure significant new contracts with blue-chip telecom operators highlights the quality of our offering and provides us with an increasingly solid foundation.  Our first reporting period showing an adjusted EBITDA positive is very encouraging and is both testament to the fantastic team we have and shows the potential for the future of the business as we continue to build a world class geospatial business with strong recurring revenues ".

* 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

  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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