Microchip shortage puts transport software firm’s share price in reverse

Issues surrounding a global shortage of microchips as well as other supply chain problems saw more than a fifth wiped off the value of Nottingham-based transport management software provider Microlise on Monday (January 24).

An update on Monday outlined “continued operating challenges caused by the pandemic and global microchip shortage” that the company forecasted would last longer in 2022 than previous industry estimates. This brought about a sharp drop of almost 22% in Microlise’s share price, which opened at 195p, but had fallen to just over 160p by the end of Monday afternoon.

Last September, Microlise reported soaring profits soar for its full year – up from £700,000 to £2.2m. Turnover was also up by 14% to £57m. In July, the company listed on the AIM market of the London Stock Exchange.

The Group has raised £61.2m from investors through the issue of shares at a Placing Price of 135p per share, meaning Microlise was valued at £156.5m.