Acquisitions and major contract wins drive tech firm’s revenue growth
Microlise has reported a robust half-year performance with strong revenue and profit growth driven by strategic acquisitions and major contract wins.
The Nottingham-based group, which provides SaaS based transport technology solutions to fleet operators, posted a 15.4% revenue increase to £39.1m and a 20.6% jump in annual recurring revenue to £54m, from £44.8m, for the six months to the end of June.
The company’s strategic acquisitions have expanded its product offerings, leading to significant contract wins, including a 10-year contract with an existing customer and a major deal with Woolworths.
The results for first half of the year include a full six-month contribution from the Vita acquisition, completed in March 2023, compared to three months in the previous half year and a five-and-a-half-month contribution from the acquisition of ESS, completed in January 2024.
Adjusted EBITDA grew by 17% to £5.2m from £4.5m), with margins increasing to 13.4%.
During the period, the group added 202 new customers, securing new business across all its target geographies and with significant wins with LGV fleet operators.
Microlise’s international business continues to grow with a number of material contracts won in ANZ and the securing of its largest customer in France. In ANZ, the group won a £10.6m contract with Woolworths, as announced in March 2024 and a five-year contract with FSSI, the largest grocery retailer in the South Island of New Zealand.
Microlise now serves three of the four largest supermarket chains in Australia and the two largest supermarkets chains in New Zealand and continues to have a strong sales pipeline in the region.
In France, the group won its largest contract to date in the region with STAF, a leading company in the transport of mass distribution and agri-foods.
During the period, Microlise announced the acquisition of K-Safe, a developer of road safety products such as the mobile app, Flare. Since the acquisition, Microlise has brought in new contracts to the Flare app network including Just Eat and Deliveroo.
Nadeem Raza, CEO, Microlise said: “I am delighted to report strong performance in the first half of the year, with significant recurring revenue growth following a strong period of delivery in the second half of last year and with new products from our successful acquisitions leading to an increase in cross selling and upselling. In addition, we secured a significant number of new clients, including strategically important contract wins in our international markets.
“We continue to seek acquisitions that can further enhance our offering and accelerate our growth within all regions. With superior market positioning, favourable market conditions, and a strong pipeline, we are confident of meeting expectations for the full year.”
Established in 1982, Microlise has 463 employees based at the group’s headquarters in Nottingham and a total global staff base of more than 750.
