Intercede - Trading Update for the Full Year to 31 March 2010
08/04/2010
We are pleased to report that Intercede is continuing to experience growth in sales revenues, pre-exceptional operating profit and cash.
Revenues for the year ended 31 March 2010 are expected to be approximately 10% ahead of the previous year's reported revenues of £5.7m. This is a strong performance in a difficult economic market. However, with sales slightly below expectations and having maintained our planned investment for the growth of the business, the pre-exceptional operating profit for the year (2009: £1.9m) will be ahead of last year but lower than market expectations.
Cash balances at 31 March 2010 total £4.7m which compares to £3.7m at 31 March 2009.
As previously announced, the US and UK patent litigations involving ActivIdentity were settled on 23 March 2010. The exceptional charge to the current financial year for all of the legal fees and associated costs relating to this case is expected to be in the region of £1.5m. No further legal costs are expected to arise and, as previously advised, it is not anticipated that the patent license agreement included within the settlement will have a material impact on Intercede's current or future earnings.
Intercede Chairman and Chief Executive Richard Parris said:
"I am pleased to report an improved trading performance against a backdrop of the increasing adoption of our technology by national governments, managed service providers and large enterprise customers. Our increasing market penetration has not only provided financial returns in the current period but is also creating annuity revenue streams for the future."
Intercede expects to announce its full year results for the year ended 31 March 2010 by mid June 2010.
About Intercede
Intercede is the producer of the MyID Identity and Credential Management System
(IDCMS). Intercede's MyID is the only IDCMS software product that enables
organizations to easily and securely manage the identities of people and their
associated identity credentials within a single, integrated, workflow driven
platform. This includes enabling and managing: secure registration, biometric
capture, application vetting and approval through to smart card personalisation,
issuance and management.
Intercede's MyID is being used around the world by large corporations,
governments and banks to manage millions of identities for employees, citizens
and customers. Notable deployments in the US include 10 Federal Agencies, a
program with Lockheed Martin and two major US financial institutions. In Europe
and the Middle East, Intercede's MyID is being deployed in support of government
identity, health and corporate employee ID security projects.
For more information visit http://www.intercede.com
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ENQUIRIES
Intercede Group plc
Richard Parris , Chairman & Chief Executive
Andrew Walker, Finance Director
Tel. +44 (0)1455 558111
FinnCap
Clive Carver- Corporate Finance
Joanna Weaving - Corporate Broking
Tel. +44 (0)20 7600 1658
Pelham Bell Pottinger
Archie Berens / Francesca Tuckett
Tel. +44 (0)20 7337 1509
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