Microlise Group has reported significant growth in its revenue for 2023, attributed to improving supply chains and robust OEM demand.
- The company’s revenue increased by 13% to £71.7 million, exceeding market expectations.
- There was an 11% rise in recurring revenue, bolstered by renewed and new contracts.
- Gross profit increased by 16%, although operating margins stayed flat due to ongoing investments.
- Microlise acquired several companies, enhancing its product offering and setting the stage for future growth.
Microlise Group reported a notable 13% increase in its total revenue for the fiscal year ending December 2023, reaching £71.7 million. This performance exceeded market predictions and was largely driven by a strong demand from OEMs and a surge in customer demand, coinciding with an improvement in truck supply in the latter half of the year. The company’s audited results highlight an 11% increase in recurring revenue to £45 million, facilitated by the renewal of major customer contracts and the onboarding of new clients, demonstrating a robust business model.
Gross profit for Microlise rose by 16% to £43.6 million, and adjusted EBITDA grew by 15% to £9.4 million, both outperforming market expectations. However, the operating margins remained unchanged as a result of the company’s strategic investment programmes aimed at enhancing its go-to-market strategies and product offerings. The investment is geared towards supporting continued growth, although it temporarily influences profitability margins.
The group’s subscription base expanded by 6.8%, driven by existing customer growth and the acquisition of 450 new customers in the period. This expansion underscores Microlise’s consistent ability to capture market share while maintaining a low customer churn rate of 0.7%, reflecting strong customer retention rates.
Looking forward, Microlise is poised for further growth as it enters 2024 with considerable momentum. The board anticipates an uptick in organic growth supported by a robust order book and numerous opportunities within both OEM and direct customer sectors. Microlise is keenly focused on managing costs and scaling efficiently to potentially increase operating margins in the future.
Microlise has also been strategically acquiring businesses to bolster its market position. Recent acquisitions include Transportation Management System providers and a vulnerable road user app supplier, which align with Microlise’s growth and product enhancement strategies. CEO Nadeem Raza expressed satisfaction with the year’s outcomes, highlighting double-digit revenue growth and increased profitability as key achievements. “Our focus remains on scaling our business and increasing margins through consistently improving the efficiency of our business,” he stated.
Microlise’s strategic execution and robust OEM demand have positioned it well for sustained growth in the coming years.
