IQGeo Group PLC IQGeo Trading Update (8773S)
July 14 2020 - 1:00AM
UK Regulatory
TIDMIQG
RNS Number : 8773S
IQGeo Group PLC
14 July 2020
IQGeo Group plc
(the "Company" or the "Group")
Trading update
IQGeo Group plc (AIM: IQG), a leading developer of geospatial
productivity and collaboration software for telecoms and utility
network operators is pleased to announce an update on current
trading following the close of the Company's first half ended 30
June 2020.
Financial Performance:
The Company expects to show first half year-on-year growth in
IQGeo product orders of more than 100% and totalling GBP5.4 million
(2019H1: GBP2.5 million). IQGeo's strategy of converting the
business to a recurring revenue model continues to show positive
momentum with 90% of new software orders taken as
subscriptions.
IQGeo's international market expansion produced the Company's
most significant order, worth GBP1.8m in total, which was received
from TEPCO, Japan's largest electricity utility where IQGeo's
software will form the core of its emergency response systems.
Additionally, IQGeo received a substantial expansion order from one
of Canada's largest telecoms operators for GBP0.7m where IQGeo
software is being deployed to the bid and construction management
teams. Both orders came from customers acquired in 2019 and further
demonstrates IQGeo's ability to rapidly expand the number of users
at individual accounts thanks to its compelling return on
investment business cases ("ROIs") and high user satisfaction
levels.
Revenue for the first half is expected to exceed GBP4 million
(2019H1: GBP3.6 million) reflecting an improved mix of IQGeo
product revenue in excess of GBP3 million (2019H1: GBP2.4 million)
and a relative stabilisation of non-core Geospatial revenue. The
improved revenue mix in favour of software, together with certain
cost management steps, has had a beneficial effect on gross margins
which we expect to exceed 45% (2019: 34%).
As at the period end, the Board expects to report net cash of
GBP11.2 million which has been managed through a series of cautious
cost controls in the light of the economic uncertainty created by
the Covid-19 epidemic.
Strategy
IQGeo's strategy is to continue developing its product for
telecoms and utility customers in North America, Europe and Japan
with the goal of making its software functionally rich,
mobile-first and fully cloud enabled. As part of its continued
global expansion, IQGeo will continue developing its channel
capabilities by appointing selected regional partners with strong
geospatial capabilities and high levels of market access.
Additionally, IQGeo will continue investing in its digital
marketing capabilities which have underpinned the positive results
in H1 despite the Covid-19 lockdown in its core markets.
Outlook
IQGeo sees continued market demand reflecting the fact that both
telecoms and utilities markets have been less affected than other
sectors during the Covid-19 epidemic. The ROI outcomes around
productivity and safety that IQGeo software solutions can generate
for its customers remain highly relevant for its target markets
which will result in continued investments in mobile and cloud
enabled geospatial solutions.
While the market fundamentals remain positive, we continue to
remain vigilant and to manage our investment levels appropriately
to enable us to manage the ongoing global concerns driven by
Covid-19.
The Company expects to announce its results for the 6 months
ended 30 June 2020 towards the end of September 2020.
Richard Petti CEO said "I am pleased our order book has
continued to grow despite the epidemic related economic
uncertainty. The subscriptions focus together with our cautious
approach to costs is improving our margins and operating cash
results which show that we can convert customer success into an
attractive business model."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information contact:
IQGeo Group plc +44 1223 606655
Richard Petti
Tim Gingell
finnCap Ltd +44 20 7220 0500
Henrik Persson, Matthew Radley (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Tulchan Communications LLP +44 20 7353 4200
James Macey White, Matt Low, Deborah Roney
Notes to Editors
About IQGeo
IQGeo(TM) (AIM: IQG) a leading developer of geospatial software
that improves productivity and collaboration across enterprise
planning, design, construction, maintenance and sales processes for
telecoms and utility network operators. Our mobile-first enterprise
solutions create and maintain, an accurate view of complex network
assets that is easily accessible by anyone, wherever and whenever
needed. Specialized applications combined with our open IQGeo
Platform help network operators create a single source of network
truth to meet their digital transformation ambitions and
operational KPIs. Our award-winning, cloud-enabled solutions save
time and money, and improve safety and productivity, while
enhancing customer satisfaction. Headquartered in Cambridge, with
offices in Denver, Frankfurt and Tokyo, we work with some of the
largest network infrastructure operators in the world. For more
information visit: https://www.iqgeo.com/
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END
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