Microlise backs 2026 outlook but half-year earnings weaken

Microlise Group PLC on Monday said it is on track to meet 2026 profit expectations despite lower revenue in the first half of the year.

In a trading update, the Nottingham, England-based transport management software provider to fleet operators said revenue in the six months to June 30 declined 10% to £39.5 million from £44.1 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation fell 16% to £5.2 million from £6.2 million.

"Revenue performance reflected the previously flagged reduction in original equipment manufacturer revenues, lower non-recurring revenues following the completion of a major customer roll-out in the prior year, and the impact of component availability on the timing of certain hardware deployments and customer projects," Microlise explained.

Microlise still expects to meet 2026 adjusted Ebitda market expectations, which it puts at a £10 million from £11.1 million range. It puts revenue consensus between £84.2 million from £84.3 million. Revenue in 2025 amounted to £84.0 million and its adjusted Ebitda totalled £8.3 million.

Microlise added: "While the well-documented global component shortages continued during H1, placing pressure on both pricing and availability of key hardware components, the group has maintained good visibility of [dynamic random-access memory] supply through to the end of Q3. The group continues to work closely with suppliers, with some uncertainty remaining around the availability of key components for OEM hardware deliveries in Q4, which is expected to impact the timing of some new OEM customer go-lives. However, demand from direct customers remains strong and the group continues to have good visibility over this higher quality contracted recurring revenue. Accordingly, the board continues to expect 2026 Ebitda to be in line with current market expectations."

Microlise expect to publish its interim results in late September.

Microlise shares rose 0.3% to 39.63 pence each in London on Monday afternoon.

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