IQGeo Group PLC Trading Update (9363L)
18 Gennaio 2021 - 08:00AM
UK Regulatory
TIDMIQG
RNS Number : 9363L
IQGeo Group PLC
18 January 2021
18 January 2021
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 2020 ahead of the release of
its final results in March 2021.
The Group expects to show good growth in all key metrics.
Revenue for the year is expected to be not less than GBP9.0m (2019:
GBP7.8m) with IQGeo own product revenue expected to grow by
approximately 30% to more than GBP7.0m (2019: GBP5.5m). Own product
orders have grown by 42% to GBP10.7m (2019: GBP7.5m). The strategy
of converting the business to a recurring revenue model continues
to show positive momentum and approximately 35% of total revenues
are now recurring, up from 21% in 2019. ARR run rate as at December
is expected to be around GBP5.3m, up from GBP2.0m in 2019. The
increase in ARR has been driven by organic growth of c.65% for the
IQGeo business and a GBP2.0m uplift from OSPI, which was acquired
in December.
Gross margins have improved considerably, driven by the mix of
revenue and are expected to exceed 50% (2019: 42%). As a result of
these improvements and a disciplined approach to costs whilst
maintaining investment for future growth, the Group expects to
report a significantly reduced adjusted EBITDA loss of c. GBP2.5m
(2019: loss of GBP4.8m).
The Group had net cash of GBP10.5m at the year end, with gross
cash of GBP11.1m including the US Government PPP loan, the
repayment of which is expected to be waived. The cash balances are
before the receipt of GBP2.5m from the sale of the residual
interest in the Group's former RTLS business, as already
announced.
Following the acquisition of OSPI last month, integration
activities covering the business, products and operations of OSPI
have commenced. All staff have already been transferred and it is
expected that the OSPI legal entity, OSPI Inc, will be merged into
IQGeo America Inc effective February 2021.
Outlook
IQGeo sees continued strong market demand reflecting the fact
that both telecoms and utilities markets have been less affected
than other sectors during the Covid-19 epidemic. The ROI outcomes
around productivity and safety that IQGeo's modern software
solutions can generate for its customers remain highly attractive
for its target markets.
We continue to remain vigilant and to manage our investment
levels appropriately to enable us to manage the ongoing global
concerns driven by Covid-19.
Richard Petti CEO said :
"The results for the year are very positive and show
considerable progress as we continue the journey of building a high
recurring revenue software business. The strong balance sheet at
the year end, significantly increased annualised recurring revenue
exit run rate, closing order book of approximately GBP8.2m (2019:
GBP5.1m) and positive trading momentum during 2020 will be added to
by the recent acquisition of OSPI and funds from the disposal of
the remainder of the RTLS business and will enable us to enter 2021
with confidence."
For further information contact:
IQGeo Group plc +44 1223 606655
Richard Petti
Haywood Chapman
finnCap Ltd +44 20 7220 0500
Henrik Persson, Matthew Radley (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Notes to Editors
About IQGeo
IQGeo(TM) (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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