Shares in IIntercede Group (AIM:IGP) fell 10% on Thursday after the cybersecurity firm warned that first-half revenue slipped nearly 4% due to delays in contract awards from the US federal market and adverse exchange-rate movements.
The digital identity specialist said sales for the six months to 30 September were around £8.21 million, down from £8.54 million a year earlier.
Despite the decline, licence revenue rose sharply, up 65% to £1.44 million, as the company continued to shift towards a subscription-based model.
Chief executive Klaas van der Leest said the business was “building momentum through a geo-diversified pipeline” and remained confident in meeting full-year expectations.
Intercede reported contract and renewal orders worth about $3.2 million in the quarter, including new deals with US energy and defence clients, as well as government customers in Asia and the Middle East.
The company ended the period with £17.8 million in cash and no debt, down slightly from £18.7 million at the end of March after a £1.8 million share award payment.
Intercede said trading in the second half had started positively and that revenue visibility for 2026 was improving, supported by growing demand for its MyID digital security products.