Shares in Microlise Group PLC (AIM:SAAS), the transport software company, jumped 22% on Tuesday after its full-year results came in ahead of market expectations.
Revenues for the 2023 financial year are now expected to grow 13% to close to £72 million while underlying earnings are forecast to rise 14%, a trading update revealed.
Strong demand from original equipment manufacturers (OEMs) and an uptick in revenues from direct customers allowed the group to deliver a record order book.
It also helped annual recurring revenue lift by 11% to reach more than £47 million, while management noted the importance of growing total recurring revenues and having good cashflows.
During 2023, the group acquired two companies for a total of £10.6 million, while completing a third acquisition in January 2024.
Nadeem Raza, Microlise’s CEO, said: "The three acquisitions made during the period have resulted in an improved and expanded offering which is already having a positive effect on trading momentum and pipeline.
“This, together with the resolution of the microchip supply crisis, gives us confidence in the group's continued success."
Looking forward, the group expects to deliver another year of strong revenue and organic growth, largely due to its healthy order book and pipeline.
“Operating margins are expected to trend upwards in FY24 and beyond, as we focus on careful management of the cost base and efficiently scaling the group,” the company added.