Microlise Share Discussion Threads

[masurenguy] 25/7/2023 08:17

Trading update

Microlise experienced solid trading during the first half of FY23, in-line with management expectations. The Group saw continued growth in revenue, recurring revenue, ARR and profitability.

As a result, revenue for the first half of the year is expected to show growth of 10% to £33.9m (H1 FY22: £30.7m) with anticipated adjusted EBITDA(1) growth of 4% to £4.5m (H1 FY22: £4.3M). Microlise's main growth driver in the period was increased demand from OEM customers, contributing to ARR growth of 11%, of which 10.2% represented organic growth, to £44.8m (H1 FY22: 10.5% and £40.2M). New vehicle delays continued to slow down deliveries to direct customers resulting in an order backlog increase of 95%, which is expected to be delivered during H2 as new vehicle lead times continue to improve. The delays to delivery for direct customers, together with the investments made last year in product development, operations, and sales & marketing, impacted EBITDA margin in H1, however this will normalise in H2 as the Company delivers against its order book for direct sales.

The Group's net cash at 30 June 2023 was £14.1m (31 December 2022: £16.7m), after net cash spend of £2.86m on acquisitions during the period, including initial consideration of £1.86m for Vita Software and the final deferred consideration instalment of £1.0m in relation to the 2020 acquisition of Trutac. Several large receipts were received post period end, totalling £2.8m, this resulted in a cash conversion rate(2) of 80% of adjusted EBITDA, which was lower than H122 (127%), reflecting this working capital phasing. FY cash conversion rate expectations remain unchanged.

Outlook

Microlise has seen the global supply chain and microchip shortages ease during the Period and the Board remains confident that this trend will continue in the second half of 2023. These supply chain issues have also reduced the availability of new vehicles for our customers, leading to delays in the delivery of projects to new customers. Despite this, the Group enters the second half of the year in a strong position with a record order book to deliver as it is beginning to see new vehicle lead times begin to improve and expects this to improve further by Q4 2023. As a result, the Company is confident of meeting market expectations for revenue, profit and cash for the full year. The Group's cash balance, continued strong cash generation and the £20m available under its undrawn committed revolving credit facility, leave the Group well placed to pursue its growth strategy.

Nadeem Raza, CEO, Microlise said : "We are very pleased with the performance of the Group during H1, given the many challenges we have had to overcome. These have included supply chain issues and a shortage of new vehicles coming to market, both of which hampered our ability to deliver solutions, though not to secure sales, such that our order book is at a record level. We enter the second half in a strong position. With supply chains improving coupled with the expectation that vehicle deliveries will also improve in H2, the Board are confident in the Group's continued successful growth."

[chrisdgb] 25/7/2023 08:05

Looks a bit mixed..??

[masurenguy] 14/7/2023 14:59

Despite breaking into profit in the year ending December 22, with recurring revenues circa 65% and net cash of just under £17m, the shareprice is down 20% since reporting those results 15 weeks ago. It is also currently 7.5% below the IPO. Current market cap is circa £145m, around 2.3 x annual sales. AIM valuations have generally suffered over the past 18 months so we would need to see some further momentum here in order to start a meaningful recovery in the shareprice.

[theoriginalwonderstuff] 08/6/2023 14:42

Nice rise here against a largely red market... Any ideas?!?

[macc1] 12/5/2023 15:19

Here's a video of microlise presenting at a recent IHT webinar series:

[masurenguy] 12/3/2023 16:05

Share tip: Microlise could be a growth juggernaut

Floated on London’s junior market in July 2021 at £1.35 a share, and today the stock is £1.45 — recovered somewhat from the £1.21 doldrums last year when it bore the impact of the microchip shortage, but still a way off where it should be given how strongly retail and tech trends are running in Microlise's favour. It added 250 customers in 2022 and endured churn, quitting customers, of just 0.4%

When 2022’s results are published this month, Microlise is expected to post revenues up 5% to £63m, with profits up over 8% to £5m. The numbers are small for now, but this is a “slow and steady” firm. Nadeem Raza joined as a software engineer in the 1980s, becoming chief executive in 2008. His stake in the firm is now a shade over 50% of the shares, which gives him an incentive to succeed. He has grown revenues from £12m in 2021, 94% of that being organic.

Alongside solid cashflow generation, there is now £17m net cash plus an undrawn £20m credit facility. Deals to widen its portfolio into products for smaller fleets, and to expand faster overseas into France, Australia and New Zealand, look likely. The PE ratio, at 31 for 2023, looks high but the growth prospects override this. “Globalisation and the cross-border movement of goods means providing customers with what they need — when and where they need it. With a scalable business model, we believe that Microlise could be multiples of its size.” said William Lindsay, a broker Berenberg analyst. Buy.

[knowbodyyouno] 27/2/2023 16:36

Absolutely and therein is the dilemma.

[pugugly] 27/2/2023 13:31

But when they fail to meet expectations you can lose 50%++ before lunch and possibly another 50% before the market closes. (i.e. 75%+ in the day)

[knowbodyyouno] 27/2/2023 13:21

142.5 now.
Just below the 100 and 200mda
A close above 145p and we may be off to the races this week.
This is what I love about these ill-liquid Microcaps ..when they fly they fly and you can make a decent return for not much capital outlay.

[knowbodyyouno] 27/2/2023 11:49

It is a difficult one. I'm back in profit here, after a small punt following the recent TU. I think the rise should build a little more as the week progresses. Just my view of course. DYOR.

[pugugly] 27/2/2023 08:13

Up 20% DM impact - Take a quick profit before possible fall back. Query Query. Decision time.

[pugugly] 26/2/2023 15:00

That should give a bounce on Monday/Tuesday Then if MOS tips follow usual trajectory a fall back which could be a buying opportunity - Possibly a wait and see stock.

[masurenguy] 26/2/2023 14:18

New Microlise thread, incorporating charts, news and financial information here.

[masurenguy] 26/2/2023 14:13

New thread incorporating charts, company news and financials. This company was also tipped in the Mail On Sunday today.

Fast-growing Microlise helps JCB and its customers to maintain vehicles more effectively

As a firm specialising in transport-related technology, the group works with almost every large retailer in the UK, helping them to optimise delivery routes, keep drivers safe on the road and ensure that fleets comply with regulations. Microlise joined the junior AIM market in July 2021 at £1.35 a share. Today the stock is £1.13, yet businesses are clamouring for Microlise products.

Customers include all the major supermarkets, top retail chains such as Marks & Spencer, Next and DFS, and delivery firms from Royal Mail to DPD. Some firms use Microlise to work out routes from warehouse to store. Others rely on the Nottingham-based group to calculate how best to deliver goods to consumers' homes. The company's software is used by more than 200,000 drivers in the UK and customers' savings are extensive. Microlise is winning business overseas as well. Top Australian supermarket Coles is a customer, French firms are signing up and further expansion is expected across Europe and the Asia Pacific region.

The firm was hit by a shortage of microchips in 2022 but brokers still expect a 5% increase in annual turnover to £63m with profits up nearly 9% to £5m. Further steady growth is expected this year, with the pace increasing in 2024 as economic activity picks up, supply chain issues ease and the firm gains ground outside the UK. CEO Nadeem Raza has worked at Microlise for nearly 40 years, joining as a software engineer and taking on the top job in 2008. Knowing the business inside and out, he has helped the firm to develop a name for reliability, service and innovation.

Midas verdict: Microlise is a well-run company offering a service that helps businesses to save money and operate more efficiently. Raza is also highly motivated to succeed, with just over 50% of the shares, and he is keen to start paying a dividend as the business grows. At £1.13 the stock is a buy.

[masurenguy] 26/2/2023 13:59

Established in 1982, Microlise is a leading provider of transport management software to fleet operators helping them to improve efficiency, safety, and reduce emissions. This enables lower vehicle fuel usage, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience.


!YOUTUBEVIDEO:1Kf4wFZT9Kg:
Listed on AIM in July 2021 @135p per share raising £18.6m for the Company and approximately £42.6m for existing shareholders selling stock in the IPO. Market cap on listing was £156.5m.

Results for the 18 months ended 31 December 2021:

In a Trading update for the year ending 31 December 2022 the company stated that it expected to report year-on-year revenue growth of 5% to £63.2m, despite industry headwinds caused by microchip supply chain issues and delays in project deployment with non-OEM customers, which resulted in non-recurring revenues slightly below forecasts. Annual Recurring Revenues grew at a faster rate than revenue, by 10% to £42.6m, with recurring revenues now representing 64% of the total. The balance sheet was also greatly strengthened during the year, with net cash at the end of December 22 up 27% to £16.7m, (FY21: £13.2m). In addition, the Group has an undrawn £20m Revolving Credit Facility. The Group expects to publish its full year results for the Period in late March 2023.

Main institutional shareholders at 12 March 2024

Liontrust Investment Partners: 13.65m. 11.77%
BGF Investment Management: 7.73m. 6.66%
Columbia Threadneedle Inv: 5.39m. 4.65%
Hargreave Hale: 5.13m. 4.42%
Canaccord Genuity Wealth:4.80m. 4.14%
Threadneedle Asset Management: 5.4m. 4.66%
Ninety One UK Ltd: 3.62m. 3.12%
Sub Total: 45.06m: 40.16%

Other Investors

Nadeem Raza: 58.03m. 50.05%
Robert Harbey: 6.77m. 5.85
Roy Allum: 4.29m. 3.70%
Sub Total: 69.09m. 59.6%


Company Website:



Flag counter added on 04/03/24

[theoriginalwonderstuff] 16/2/2023 15:41

Slow steady decline here... At some point it's got to be worth dipping a toe in again...Question is... When?!

[knowbodyyouno] 11/2/2023 10:16

New all time low here.
Big sells going through.
The core business seems to be performing well in the climate, but no meaningful news on acquisitions / substantial growth.

[knowbodyyouno] 06/2/2023 06:52

Neither can I.
Some large reported trades which, if sells, may shed some light on the drop. It is an ill-liquid share so just some innocent re-balancing of a portfolio can lead to wild swings.

[theoriginalwonderstuff] 03/2/2023 16:38

No idea NBYK...I'd like to know how the update added to the "news" section relates to Microlise but can't read it...

[knowbodyyouno] 03/2/2023 09:36

Any ideas regarding the fall?

Just quoted £1 to sell, which seems odd given the published price.

I didn't see anything alarming in the update, given current macro conditions.

Quite the opposite in fact...

[theoriginalwonderstuff] 17/1/2023 19:59

A good time to buy...??? Near historic lows again (granted, it hasn't been trading that long on the AIM)... Or is there further to fall...???

[its the oxman] 08/4/2022 15:51

Is this about to bounce or drop through 100p on the next profit warning. Looks poised for the later.