It seems that heavy investment by Intercede, the identity management software provider, is really paying off. Having moved from profit to loss, at the operating and pre-tax levels, in its last financial year (see Intercede drops to a loss on heavy investment), Chairman and Chief Executive Richard Parris is set to announce an expected return to profit in the first half of FY14, as well as an increase in cash balances. This is off the back of a projected increase in revenues from £3.5 million to £4.5 million.
Recent contract wins, including the previously announced deal to “support a large scale government security program” and two wins in the telecoms sector, have played a big part. Today Intercede is announcing two further contract wins, one with a major European aerospace defence contractor and one with “one of Europe’s largest urban police forces”. Both these deals have already contributed to revenues.
Continuing investment in recruiting employees with technical specialist skills has increased headcount by 10% year on year. And investment in new solutions – such as mobile identity – is already proving its worth with some of the new clients already buying into them. Shareholders will now feel a lot more confident that Intercede’s investment decisions are having the desired effect.