31 July 2019
IQGeo Group plc
(the "Company" or the "Group")
IQGeo Group plc (AIM: IQG), a leading developer of geospatial productivity and collaboration software for the telecommunications and utility industries, is pleased to announce an update on current trading following the close of the Company's first half ended 30 June 2019.
Overall financial performance in the first half is expected to show a greater than 100% increase in year-on-year myWorld orders received totalling £2.4 million (2018H1: £1.2 million). The commercial strategy is to continue to develop a subscription-based business with shorter sales cycles delivering a more predictable and profitable business by 2021. To date in 2019, six new subscription customers across all geographies with Annual Recurring Revenue (ARR) of £0.4m have been signed.
The most significant order (£0.7m) was received from a US based utility following a full competitive selection process. This included a trial installation with a mobile field force, providing them with an easy-to-use interface on mobile phones and tablets to capture, visualise and manage the physical assets in their gas network. The IQGeo software will improve operational productivity, reducing risks and enhancing their ability to manage regulatory compliance.
Total revenue from continuing operations is expected to exceed £3 million reflecting the anticipated decline in non-core Geospatial business and including myWorld revenue in excess of £2 million (2018H1: £2.5 million). In view of the level of order intake in the first half, the Group expects to report stronger second half revenues.
As at the period end, the Board expects to report net cash of £26 million. An announcement will be made imminently with further details of the proposed capital return following the approval of the capital reduction at the Company's annual general meeting held in June 2019.
IQGeo's strategy is to continue extending the reach of its software product portfolio to include new operational areas and advanced reality-capture technology for telecommunications and utility customers in North America, Europe and Japan. Customers are achieving measurable ROI in operational productivity and collaboration using our flexible, mobile-first software products.
Trading in the second half has started well with additional subscription customers already signed, as well as a good pipeline of opportunities being actively pursued in all geographies.
Building on our commercial progress, we continue to make substantial investments in sales and development activities, as well as our transitioning to a more subscription-led revenue model.
IQGeo sees a very significant opportunity in its chosen vertical markets addressing the challenge for customers to deliver productivity improvements as well as reduced costs, in an increasingly data intensive and mobile world. Today these customers are using complex industry standard GIS databases that were never designed for mobile requirements and struggle to optimise their operational processes for a mobile workforce with information shared across departments, staff and contractors.
The Company expects to announce its results for the 6 months ended 30 June 2019 towards the end of September 2019.
Richard Petti CEO said "I am pleased with the acceleration achieved to date in creating a subscription-based business that enhances productivity and collaboration for our network infrastructure customers. The productivity challenges which myWorld can address are very real and strategic. Based on some of our recent customer wins, I believe there is a very significant opportunity ahead of us to build a substantial business."
For further information contact:
IQGeo Group plc +44 1223 606655
finnCap Ltd +44 20 7220 0500
Henrik Persson, Anthony Adams (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Tulchan Communications LLP +44 20 7353 4200
James Macey White, Matt Low, Deborah Roney
Notes to Editors
IQGeo™ (AIM: IQG), a leading developer of geospatial software for the telecommunications and utility industries, accelerating productivity and collaboration across enterprise planning, design, construction and maintenance processes. Our reality-centric solutions create and maintain a real-time, accurate view of complex network assets, dramatically improving data quality and currency. IQGeo's open, mobile-first architecture streamlines operational processes using any device, in the office or in the field, enabling greater business collaboration. We help network operators meet their digital transformation ambitions, saving time and money, while improving safety and enhancing customer satisfaction. Headquartered in Cambridge, UK 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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