Trading Statement

RNS Number : 7371S

Intercede Group PLC

05 October 2017

 

5 October 2017

INTERCEDE GROUP plc

("Intercede", or the "Group")

Trading Update

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces a trading update for the first six months of its current financial year ending 31 March 2018.

First half revenues increased by approximately 30% compared to the previous period to more than £3.6m (H1 2016: £2.8m) primarily due to new customer wins; the most notable including MyID license sales to the largest US military shipbuilding company, a major US Aerospace & Defence contractor and one of the world's largest diversified natural resource companies. 

As at 30 September 2017, cash balances totalled £4.8m compared to £1.4m as at 30 September 2016. Intercede raised £4.6m (net) from the issue of Convertible Loan Notes ("CLN") and new equity in January 2017 with a further £0.5m from the same CLN instruments in August 2017.

During the period under review, Intercede has continued to develop the applications for its market leading identity software. This includes the launch of the MyID service for employees. This is a cloud-based service that allows enterprises of all sizes to eliminate the use of user passwords through the issuance of strong identity credentials to staff members. This service uses Government-grade cyber security and avoids customers having to incur the costs and complexity of on-site software installation and maintenance.

Several significant appointments have also been made to strengthen the Group's Sales & Marketing. Chuck Pol (former Chairperson Vodafone Americas) and Helen Adams (former VP Sales Europe & Asia/Pacific for ARM Holdings plc) were both appointed in June 2017 with further recruitment subsequently taking place to expand and refresh the Sales team. As a commitment to achieving consequential high sales growth, Helen Adams has this week agreed to a share option plan incorporating performance targets based upon the achievement of 50% growth on FY2017 revenues in FY2018, a doubling of FY2017 revenues in FY2019 and a tripling of FY17 revenues in FY2020.

Commenting on the trading update, Richard Parris, Chairman & CEO of Intercede said;

"The last six months have been a positive period for Intercede. Progress has been made in our existing core market within government agencies and large enterprises. Enabled by our enlarged sales team, we have strengthened our European sales pipeline to diversify away from our heavy dependency on the US government centric market. We have also made significant future-facing business development advances with multiple major IT and cloud service providers. These partnerships are expected to be pivotal to Intercede's channel based go-to-market strategy and are evidence of our ongoing leadership in powering digital trust solutions.

Safe in the knowledge that we have created a significant engine for growth, we are shortly to relaunch our MyID product proposition as a seamless suite of software and Cloud based services to address newly emerging regulated markets in financial services, open banking and general data protection. In doing so, we can refocus and simplify messaging around real-life use cases and the problems we solve for each of our target verticals. This gives the Board confidence that we will experience a strong second half to the financial year, notwithstanding likely budget difficulties in our traditionally large US government customer base."

ENQUIRIES

Intercede Group plc	Tel: [phone]
Richard Parris	Chairman & Chief Executive
Andrew Walker	Finance Director
finnCap	Tel: [phone]
Stuart Andrews	Corporate Finance
Simon Hicks	Corporate Finance
Capital Access Group	Tel: [phone]
Scott Fulton	Media
Ed Welsby	Investors

About Intercede

Intercede is a software and service company specializing in identity, credential management and secure mobility. Its solutions create a foundation of trust between connected people, devices and apps and combine expertise with innovation to provide world-class cybersecurity. Intercede has been delivering solutions to high profile customers, from the US and UK governments to some of the world's largest corporations, telecommunications providers and information technology firms, for over 20 years. Intercede's product portfolio includes MyID, an identity and credential management system that assigns trusted digital identities to employees citizens and machines. In 2015, Intercede launched MyTAM, enabling trusted applications to be loaded into a mobile device's Trusted Execution Environment (TEE), providing hardware-level security for Android apps. In 2016, Intercede launched RapID, a secure, easy to implement authentication service for mobile apps and cloud services to completely eliminate the need for passwords.

For more information visit: www.intercede.com

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 

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