IQGeo Group PLC (AIM:IQG) broke even in the first half of the year as the top line grew more than anticipated, including an increasing proportion of recurring revenues.
The provider of geospatial software to the telecoms and utility industries reported an underlying profit (EBITDA) of £0.2mln for the first six months of the year.
Total revenue came in at £9.2mln, up 44% on the previous year and above the level indicated at the half-year trading update in July, while recurring revenue grew 75% to £4.5mln.
On a statutory basis, the loss before tax was cut to £0.3mln from £1mln a year ago.
The net cash balance stood at £11.1mln at the end of June, while August saw a £3.5mln fundraising to part-fund the €13mln acquisition of Belgium fibre optic design and planning specialist Comsof.
It also hailed the addition of a global-top-five telecom operator during the period as IQGeo solutions play “a key role on one of the largest fibre and 5G build outs in the US market”.
Chief executive Richard Petti said the performance “reflects sustained investment in network modernisation from both telecommunication and utility operators worldwide, and the success of our investments in our products and organisation”.
With a global customer base of around 100 active customers, Petti said the acquisition of Comsof “gives us a strong list of new customers and industry-leading network planning technology, both of which will increase our market momentum”.
On the outlook, the group forecast continued organic growth through achieving positive net retention of its existing customer base and the continued addition of new customers.
On top of the organic growth, the acquisition of Comsof is expected to accelerate sales in fibre optic design planning and design tools in high-value markets where nationwide fibre optic networks are being rolled out, such as North America, UK and Germany among others.