Intercede Group PLC Trading Update (6759V)
07 November 2017 - 12:58AM
UK Regulatory
TIDMIGP
RNS Number : 6759V
Intercede Group PLC
06 November 2017
6 November 2017
INTERCEDE GROUP plc
("Intercede", or the "Group")
Trading Update
Further to the trading update of 5 October 2017, Intercede has
experienced a slower market than expected and a number of large
enterprise awards anticipated for this quarter have so far failed
to materialise in spite of customer commitments to the contrary.
This suggests a tightening of fiscal controls inside the customer
base over which Intercede has no control. While these orders are
expected to be awarded eventually, customer delays are making
accurate forecasting for the financial year extremely
challenging.
Specifically, Intercede was informed in writing on 3 November
2017 that a significant order of over $2m from an existing customer
that was forecast to be received in the current financial year
ending 31 March 2018, will not now be raised until the first
quarter of the next financial year. This deferral of sales revenue
will have a material impact on the Group's ability to meet market
expectations.
Intercede is now forecasting revenue growth for the current
financial year in the range of 10%-20%. This is based on the timing
of receipt of a small number of large orders and Intercede's
subsequent ability to deliver and recognise revenues in accordance
with the Group's accounting policy.
Existing customers are continuing to invest in MyID solutions
and the renewal of support and maintenance contracts. Intercede is
therefore receiving the full cash benefit of these renewals even
though we can only recognise pro-rata revenues in the current year.
In addition to an R&D tax credit of GBP1.1m, that was received
in July 2017, this has resulted in cash balances of GBP4.2m as at
31 October 2017.
Richard Parris, Chairman and CEO, said, "the market has never
been in more need of the solutions we provide, we have recently
invested in a world-class sales team and we have migrated our
platform to also operate in the Cloud on a subscription based
model. We are poised for take-off in new mid-market enterprise and
consumer oriented markets. Unfortunately, short term sales in our
traditional markets have been disappointing and are challenging our
plans for organic growth."
Contact
Intercede Group plc Tel: +44 (0) 1455 558 111
Richard Parris Chairman & Chief Executive
Andrew Walker Finance Director
finnCap Tel: +44 (0) 20 7220 0500
Stuart Andrews Corporate Finance
Simon Hicks Corporate Finance
Capital Access Group Tel: +44 (0) 20 3763 3400
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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