Microlise Group (SAAS) H2 2024 earnings summary

Executive summary

• Revenue increased 13% year-over-year to £81 million, with adjusted recurring revenue up 21% to £54.7 million and annual recurring revenue reaching £56.6 million, up 19%.

• Adjusted EBITDA grew 20% to £11.3 million, with EBITDA margin improving to 14% from 13.2%.

• 375 new customers were gained, mainly in the mid-market fleet segment, with major contract renewals including JCB through 2029.

• International expansion continued with notable wins in France and New Zealand, and the ESS acquisition was completed.

Financial highlights

• Adjusted gross margin improved from 61% to 66% year-over-year, driven by higher-margin subscription business and cost reduction programs.

• Adjusted EPS increased 21.4% to 4.19p, while reported EPS fell due to exceptional items.

• Operating expenses increased 22% to £43 million, mainly due to acquisitions, investment in sales & marketing, and increased security spending.

• Adjusted cash conversion rate remained strong at 91%, with adjusted cash flow from operations up 12%.

• Net cash position at £11.4 million, down 32% from prior year, reflecting M&A activity and dividend payments.

Outlook and guidance

• Confident in delivering full-year 2025 numbers, with a record order book, strong Q1 start, and healthy pipeline.

• Expecting incremental revenue in 2025 from TMS contracts won in 2024 that are yet to be implemented.

• Well-funded for further M&A, with a renewed £10 million RCF and £20 million accordion facility.

• Continued focus on M&A, integration of acquisitions, and international growth, especially in Australia.