Supply chain issues begin to ease resulting in double digit growth for Microlise


Microlise Group plc (AIM: SAAS), a leading provider of transport technology solutions to fleet operators, is pleased to provide a half year update on trading for the six months to June 30, 2023 (“the Period”). The Group expects to publish its interim results in late September.

Microlise experienced solid trading during the first half of FY23, in-line with management expectations. The Group saw continued growth in revenue, recurring revenue, ARR and profitability.

As a result, revenue for the first half of the year is expected to show growth of 10% to £33.9m (H1 FY22: £30.7m) with anticipated adjusted EBITDA1 growth of 4% to £4.5m (H1 FY22: £4.3M). Microlise’s main growth driver in the period was increased demand from OEM customers, contributing to ARR growth of 11%, of which 10.2% represented organic growth, to £44.8m (H1 FY22: 10.5% and £40.2M). New vehicle delays continued to slow down deliveries to direct customers resulting in an order backlog increase of 95%, which is expected to be delivered during H2 as new vehicle lead times continue to improve. The delays to delivery for direct customers, together with the investments made last year in product development, operations, and sales & marketing, impacted EBITDA margin in H1,however this will normalise in H2 as the Company delivers against its order book for direct

The Group’s net cash at 30 June 2023 was £14.1m (31 December 2022: £16.7m), after net cash spend of £2.86m on acquisitions during the period, including initial consideration of £1.86m for Vita Software and the final deferred consideration instalment of £1.0m in relation to the 2020 acquisition of Trutac. Several large receipts were received post period end, totalling £2.8m, this resulted in a cash conversion rate2 of 80% of adjusted EBITDA, which was lower than H122 (127%), reflecting this working capital phasing. FY cash conversion rate expectations remain unchanged.


New customer acquisition continued to be strong in the first half, with the Group adding an additional 250 new customers, including Leeds headquartered LF&E Refrigerated Transport, and Northern Ireland based McCulla, both signing 6-year contracts. Microlise continues to have high rates of customer retention and very low churn. Churn in the six months under review was 0.5%, emphasising the importance of Microlise’s solutions to its customers, which the Group continue to deepen through a combination of its market leading solutions coupled with the introduction of new integrated products.

Acquisition and Products

Microlise acquired Vita Software in March 2023 for a total net consideration of £2.06m, expanding the Group’s suite of technology solutions to include resource and transport costing, subcontractor management and invoicing solutions. The acquisition has proven tobe immediately earnings enhancing, and the Company has made good progress with 2 contract wins for Vita’s solutions to existing clients. The integration of the acquisition has progressed well and Microlise is confident of further customer successes going forward.

Microlise Transport Conference

The Microlise Transport Conference, Europe’s largest road transport conference, returned for another year in May 2023. Over 50 speakers, 48 exhibitors, and more than 1,100 delegates attended the event this year. They joined leaders from across the transport industry to learn about the challenges and opportunities facing the sector, as well ascreating a space for them to network and collaborate.

There were two interactive panel discussions that took place this year, ‘Alternative Fuel Future’ and ‘Road to Rail’. Both sessions sparked debate surrounding two key topics that support the industry’s route to zero emissions and the government’s wider ‘net zero’ target. During the same time as the conference, Microlise also hosted a separate event for investors. This provided a hands-on demonstration of Microlise’s technology,including its new Transport Management System; 2 customer showcases; and a joint presentation in which Microlise and OEM customers discussed strategy in relation to the changing nature of vehicle fuel.

Link to video:


Microlise has seen the global supply chain and microchip shortages ease during the Period and the Board remains confident that this trend will continue in the second half of 2023. These supply chain issues have also reduced the availability of new vehicles for our customers, leading to delays in the delivery of projects to new customers. Despite this, the Group enters the second half of the year in a strong position with a record order book to
deliver as it is beginning to see new vehicle lead times begin to improve and expects this to improve further by Q4 2023. As a result, the Company is confident of meeting market expectations for revenue, profit and cash for the full year. The Group’s cash balance, continued strong cash generation and the £20m available under its undrawn committed revolving credit facility, leave the Group well placed to pursue its organic and acquisition
growth strategy.

Nadeem Raza, CEO, Microlise said: “We are very pleased with the performance of the Group during H1, given the many challenges we have had to overcome. These have included supply chain issues and a shortage of new vehicles coming to market, both of which hampered our ability to deliver solutions, though not to secure sales, such that our order book is at a record level.

“We enter the second half in a strong position. With supply chains improving coupled with the expectation that vehicle deliveries will also improve in H2, the Board are confident in the Group’s continued successful growth.”


All financials are based on unaudited figures.

1 Earnings Before interest, tax, depreciation, amortisation and share based payments.
2 Cash conversion is the % of cash generated from operating activities as a % of adjusted EBITDA.
3 Analysts’ revenue expectations for FY 2023 range from £66.5m to £67.0m.
4 Analysts’ Adjusted EBITDA expectations for FY 2023 range from £9.1m to £9.2m.
5 Analysts’ net cash expectations for 31 December 2023 range from £18.3m to £18.9m.