IQGeo Group PLC (AIM:IQG) said it expects to report “strong” results for the first half of 2022, in line with expectations.
In a trading update, the provider of geospatial software to the telecoms and utility industries forecast revenue in excess of £8.9mln for the six months to 30 June 2022, a rise of 39% on the same period last year.
It expects to report its first profit at EBITDA level, with adjusted EBITDA forecast at £0.2mln, compared with a loss of £0.4mln last year.
Order intake more than doubled in the period to £14.6mln after a number of new and significant customers signed up for multi-year subscriptions.
The company’s recurring revenue base improved, with exit annual recurring revenue (ARR) as at end-June increasing by around 50% to £10.3mln.
IQGEO said it expects the first-half gross margins to be around 60%, compared with 63% last time.
"We are very pleased with our first-half performance which has been in line with our strategic milestones and clearly demonstrates our ability to deliver against our targets. Our ability to secure significant new contracts with blue-chip telecom operators highlights the quality of our offering and provides us with an increasingly solid foundation,” commented CEO Richard Petti CEO.
“Our first reporting period showing an adjusted EBITDA positive is very encouraging and is both testament to the fantastic team we have and shows the potential for the future of the business as we continue to build a world class geospatial business with strong recurring revenues."
Net cash as at 30 June totalled £10.9mln, compared with £12.1mln a year earlier.