Highlights

  • Microlise now expects FY25 revenue of at least GBP 84m, up c.4% versus FY24.
  • Annual recurring revenue (ARR) run rate increases 4.5% to GBP 59.1m.
  • Cost-saving initiatives to generate GBP 4m annualised savings, reducing headcount by ~10%.

Microlise Group plc (LSE:SAAS) has provided an update on its trading for the year ending 31 December 2025. Based on year-to-date trading and the pipeline for the remainder of FY25, the Group now expects total revenues to be below current market expectations, at not less than GBP 84m, up around 4% compared with FY24 adjusted revenues of GBP 81.0m.

The expected reduction in revenue is primarily due to lower order volumes from global OEM customers in the automotive and construction sectors. OEM revenues are projected to account for approximately 27% of FY25 total revenue, down from 33% in FY24, influenced by tariff-related disruptions and wider macroeconomic conditions. Revenues from OEM customers in FY26 are also expected to be below FY25 levels.

Direct customer sales in the UK were softer than anticipated, affected by delays in several customer projects. One large project for a British multinational retailer was postponed due to a cyber-attack earlier this year, with revenue recognition now expected in FY26.

In contrast, direct sales in the Asia-Pacific (APAC) region performed positively, including the completion of the GBP 10.6m, five-year contract with WooliesX in Australia. The APAC pipeline is concentrated on a few larger contracts, presenting opportunities for growth in the region.

Annual Recurring Revenue

The FY25 annual recurring revenue (ARR) run rate is anticipated to increase by 4.5% to GBP 59.1m, representing a GBP 2.5m rise compared with FY24.

Margin Initiatives and Cost Measures

The Group has implemented cost-saving and efficiency measures across certain areas, expected to generate annualised savings of at least GBP 4.0m. These initiatives are largely expected to be complete before year-end, with an exceptional charge of approximately GBP 1.5m, mainly relating to severance costs, resulting in an anticipated reduction in headcount of roughly 10%. As a consequence of lower sales, FY25 adjusted EBITDA is expected to be below current market expectations and not less than GBP 8.3m.

Cash Position

Cash at 31 December 2025 is expected to be around GBP 11m (FY24: GBP 11.4m). In addition, the Group has an unutilised GBP 10m revolving credit facility and a GBP 20m accordion. Microlise continues to generate cash in FY25, excluding GBP 2.2m received from the sale of its investment in Trakm8 Holdings Plc during H2 FY25.

Leadership Update

Dean Garvey-North has been appointed as Chief Technology Officer, succeeding Duncan McCreadie, who is retiring after a decade with the Group.

Share Price Snapshot

SAAS was trading 30.11% lower at GBX 97.50 per share as of 24 November 2025.