Microlise Group (SAAS) H1 2025 earnings summary

Executive summary

• Revenue grew 12.6% year-over-year to £44.1m, with recurring revenue up 11.1% to £29.5m and ARR up 8.7% to £58.7m.

• Adjusted EBITDA increased 18.8% to £6.2m, with margin improvement to 14.1%.

• Net cash rose 24.7% to £11.2m, and an interim dividend of 0.60p per share was declared.

• Customer churn remained low at 0.5%, with 216 new customers added and major contract wins and renewals.

• Strategic focus on product integration, international expansion, and margin enhancement is yielding results.

Financial highlights

• Non-recurring revenue grew 15.7% to £14.5m; hardware revenue up 20% to £10.1m; installation revenue up 21.9% to £2.6m.

• Gross profit increased 12.8% to £28.9m, with gross margin stable at 65.6%.

• Adjusted operating profit rose 25.7% to £3.5m; adjusted profit before tax up 26.5% to £3.6m.

• Basic EPS was 1.10p (up from 0.00p); adjusted basic EPS rose 20.2% to 2.62p.

• Cash conversion rate was 64%, reflecting inventory build ahead of H2 project rollouts.

Outlook and guidance

• Management expects continued positive momentum, supported by a healthy order book and expanding product suite.

• Some project delays at clients due to external cyber incidents and slower automotive sector recovery.

• Margin improvement initiatives and international growth are expected to support full-year targets.