Intercede, the identity management software provider, reported positive results for its H113, ending 30 September 2013, in line with its trading update in September (see: Intercede: investments paying off). Sales were up 32% to £4.6m which is the highest ever in a six month sales period for the company. Profit before tax was £256,000, compared with a loss of £185,000 in H112. This is very different story from last FY (see: Intercede drops to a loss on heavy investment).
The biggest growth came in the rest of Europe, up 227% to £1.3m, followed by North America, which was up 10% to £2.8m. UK revenues were up 7% to £353k, which is 8% of total H113 revenues. The company signed a UK law enforcement company in September 2013 to install Intercede’s MyID system for 30,000 users. This is one of six new contracts signed in H113; three in North America and three in Europe. Also in the UK, HP has purchased the first licenses under the reseller agreement to support a large UK government agency.
A healthy cash balance of £7.4m, with no debt has also enabled Intercede to make investments. For example, MyID now has the capability to manage digital credentials on mobile devices. Intercede will continue to invest in people and facilities. It will also expand the indirect channel relationships, such as HP.
Intercede’s current FY14, ending March 31st 2014, is on track to meet expectations. Its success in H113 is due to a combination of increased market demand, in other words, being in the right place at the right time and its commitment to internal investments. Given the success in H113, the company is well positioned to continue growth into 2014, with its tag line of 'ID Anywhere' which aligns with ‘The Internet of Things’ concept.