Major acquisitions and contract wins drive the technology firm’s revenue growth

Microlise reported a robust half-year performance with strong revenue and profit growth driven by strategic acquisitions and major contract wins.

The Nottingham-based group, which provides SaaS-based transport technology solutions to fleet operators, saw a 15.4% rise in revenue to £39.1m and a 20.6% rise in annual recurring revenue to £54m, from £44.8m, for the six months to the end of June.

The company’s strategic acquisitions have expanded its product offering, leading to significant contract wins, including a 10-year contract with an existing customer and a major deal with Woolworths.

Results for the first half of the year include a full six-month contribution from the Vita acquisition, completed in March 2023, compared to three months from the previous half year, and a five-and-a-half month contribution from the ESS acquisition, completed in January 2024.

Adjusted EBITDA rose 17% to £5.2m from £4.5m), with margins increasing to 13.4%.

During the period, the group added 202 new customers, securing new business in all target geographies and with significant gains with LGV fleet operators.

Microlise’s international business continues to grow with a number of material contract wins in ANZ and securing its largest customer in France. In ANZ, the group won a £10.6m contract with Woolworths as announced in March 2024 and a five-year contract with FSSI, New Zealand’s largest South Island grocery retailer.

Microlise now serves three of the four largest supermarket chains in Australia and the two largest supermarket chains in New Zealand and continues to have a strong sales pipeline in the region.

In France, the group won the largest contract to date in the region with STAF, a leading company in mass distribution and agri-food transport.

Around this time, Microlise announced the acquisition of K-Safe, a developer of road safety products such as the mobile app, Flare. Since the acquisition, Microlise has brought new contracts to the Flare app network, including Just Eat and Deliveroo.

Nadeem Raza, CEO, Microlise, said: “I am pleased to report a strong performance in the first half of the year, with significant growth in recurring revenue following a strong delivery period in the second half of last year and with new products from acquisitions our success. leading to increased cross-selling and up-selling. In addition, we secured a significant number of new customers, including strategically important contract wins in our international markets.

“We continue to look for acquisitions that can further enhance our offering and accelerate our growth in all regions. With superior market positioning, favorable market conditions and a strong pipeline, we are confident that we will meet expectations for the full year.”

Established in 1982, Microlise employs 463 people at the group’s headquarters in Nottingham and a total global staff base of over 750.