31 July 2025

Microlise Group plc

("Microlise", "the Group" or "the Company")

HY2025 Trading Update

Strong revenue and profit growth

Microlise Group plc (AIM: SAAS), a leading provider of transport management software to fleet operators, is pleased to provide a half year update on trading for the six months ended 30 June 2025 (H1 FY25). The Group expects to publish its interim results in late September 2025.

Financial Highlights (unaudited)

·    Group revenue of £44.1m, growth of 12.6%

·    ARR¹ growth of 8.7% to £58.7m

·    Recurring revenue growth of 11.1% to £29.5m

·    216 new customers added (H1 2024: 202) and strong customer retention continuing during the period with churn of 0.5% (H1 2024: 0.5%)

·    Adjusted EBITDA² growth of 19% to £6.2m (H1 FY24: £5.2m), with Adjusted EBITDA margin increasing to 14.1% (H1 2024: 13.4%)

·    Net cash of £11.2m (H1 2024: £8.9m)

Trading Update

The Group delivered revenue growth of 12.6% to £44.1m (H1 2024: £39.1m), driven primarily by strong growth in both recurring revenue and non-recurring revenue with UK and International direct customers. Recurring revenues increased by 11.1% to £29.5m (H1 2024: £26.6m) supported by improved new vehicle availability during the period. Conversion of new direct customers remains strong supporting ARR growth of 8.7% to £58.7m (H1 2024: £54.0m).

Non-recurring revenue increased by 15.7% to £14.5m (H1 2024: £12.6m) due to higher direct customer sales and the easing of the local vehicle constraints in Australia that had a negative impact in  the first half of FY24.

Adjusted EBITDA increased by 19% to £6.2m (H1 2024: £5.2m), with margins increasing to 14.1% (H1 2024: 13.4%), led by sustained revenue growth and the initial impact of margin initiatives that commenced in FY24.

Customers

During the first half of 2025, Microlise delivered strong direct customer growth, adding 216 new customers compared to 202 in the same period last year. This performance reflects the Group's continued momentum in providing technology solutions across both domestic and international markets, as well as the growing effectiveness of the new Go-To-Market strategies introduced by the recently appointed Chief Revenue Officer in the second half of FY24.

During the Period, Microlise secured new contracts with several prominent UK-based businesses such as Müller UK and Ireland, 3D International, Greene King, Wrights Flour, and Igloo. The Group expanded its international customer base by adding the Geraldton Fishermen's Co-Operative (Brolos) in Australia and winning further new business in France post-period end. These wins contribute to Microlise's growing presence in continental Europe and support its ongoing international growth strategy.

In addition to attracting new business, Microlise further strengthened its position within the existing customer base, increasing its share of wallet and deepening long-term relationships with customers such as Coles, expanding its use of Microlise solutions. The Microlise TruControl product, which supports fleet compliance also gained further traction, broadening its reach across the customer landscape with notable adoption by organisations such as ROMAC. This wider uptake underscores the solutions operational value and regulatory relevance.

The Group also secured renewals from a number of long-standing customers during the period including City Plumbing, Maritime, Pladis, Asahi, Schenck, and Morrisons. These renewals demonstrate sustained customer satisfaction and the strategic importance of Microlise's products in underpinning critical logistics operations.

Customer retention remained exceptionally high, with churn reported at just 0.5% for the six-month period. This low attrition rate highlights the enduring value delivered by Microlise's solutions and the strength of the Group's customer relationships.

Products

The Group continued to invest in product enhancements aligned to customers' operational, sustainability and compliance objectives. Key developments during the period included further integration of electric vehicle (EV) data into the Fuel & Emissions module, updates to the SmartPOD application to enhance the driver experience, and the launch of an expenses and allowances module within the Tachograph Analysis solution. These additions are designed to improve efficiency and support regulatory adherence across customer operations.

Progress also continued on MicroliseOne, the Group's strategic platform initiative to consolidate and optimise all products within the Microlise portfolio. This includes both organically developed solutions and those brought in through acquisition, with the single platform to accelerate cross-sell and upsell opportunities of the end-to-end product suite.

These initiatives reflect the Group's commitment to scalable innovation and underpin the technology roadmap that supports long-term customer value and operational resilience.

Outlook

Microlise is currently enjoying buoyant end markets, a robust pipeline and a growing order intake. As the Group embarks on the early stages of a broader growth journey, margin enhancement initiatives are starting to have a positive effect and the ongoing investments into product development are expected to further drive demand for the Company's offerings and strengthen its market leading position. As such, the outlook for the Group remains positive and the Group is confident in meeting full year market expectations for 2025.

Nadeem Raza, CEO, Microlise said: "I am delighted with our first half performance, in which growth was experienced across all of the geographies in which we operate.  The ongoing progress of our MicroliseOne platform, which integrates all our offerings onto a single platform, is expected to facilitate greater uptake of our comprehensive product portfolio. In addition, our continued investment into product development is expected to further stimulate demand.

"Combined with a healthy market environment with no obvious potential headwinds, order intake ahead of last year and a strong and growing pipeline, we are confident of meeting expectations for the full year."

Notes:

All financials are based on unaudited figures.

1. Annual Recurring Revenue is calculated by multiplying the June 2025 monthly recurring revenue by 12

2. Adjusted Earnings Before interest, tax, depreciation, amortisation, share based payments and exceptional costs

3. Cash conversion is the % of cash generated from operating activities as a % of adjusted EBITDA.

4. Analysts' revenue expectations for FY 2025 range from £91.3m to £91.7m. 

5. Analysts' Adjusted EBITDA expectations for FY 2025 range from £12.6m to £12.7m.

6. Analysts' net cash expectations for 31 December 2025 range from £12.3m to £13.2m.

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About Microlise

Microlise Group Plc is a leading provider of transport and fleet technology to transport and logistic  operators helping them to improve efficiency, safety, and reduce emissions. These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.

Established in 1982, Microlise is an award-winning business with over 2,500 clients, and a global workforce of 800 across the Group's headquarters in Nottingham in the UK, and offices in France, Australia, and India.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS) and qualifies for the London Stock Exchange's Green Economy Mark.