Intercede profitability improves despite fall in revenue
By Josh White
Date: Tuesday 08 Apr 2025
(Sharecast News) - Intercede Group said in an update on Tuesday that it expects improved profitability for the year ended 31 March, despite a decline in reported revenue, as the cybersecurity software firm benefited from strong underlying trading and high operational gearing.
The AIM-traded identity and credential management firm said full-year revenue was expected to be about £17.7m, down 11.4% from the prior year, reflecting the absence of a large exceptional order recorded in the 2024 financial year.
On a constant currency basis, revenues were 9.6% lower.
The prior year included a one-off perpetual licence and associated support deal worth around £6.3m, the board said.
Excluding that, its underlying performance showed continued momentum, with recurring revenue from support, maintenance and subscriptions rising to £10.2m, or 58% of total revenue.
Despite the drop in total income, Intercede said profitability was expected to improve, pending completion of the year-end audit.
The group cited operational leverage and strong trading activity as the key drivers behind the better margin performance.
Gross cash at the end of the period stood at £18.7m, up from £17.2m a year earlier, even after exceptional cash outflows of around £0.9m.
That included share buybacks and a change in research and development tax treatment, which resulted in a repayment of £0.44m from a prior claim and the forgoing of a 2024 financial year claim estimated at between £0.5m and £0.6m.
The company said the shift in tax policy was intended to align with its focus on applying expense deductions against future taxable profits.
Intercede said it ended the financial year with no debt.
Its preliminary results were scheduled for release in June.
At 0840 BST, shares in Intercede Group were up 7.06% at 136.5p.
Reporting by Josh White for Sharecast.com.
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