Fleet transport management software specialist Microlise Group delivered double-digit revenue growth in 2023, driven by “strong demand” from OEMs, and increased demand from existing customers, as the supply of new trucks improved in the second half of the year.

In its audited results for the 12 months to 31 December 2023, the company reported total revenue up by 13% to £71.7m (2022: £63.2m).

Recurring revenue rose 11% to £45m (2022: £40.5m) in the period, ahead of market expectations, aided by the renewal of several major customer contracts and new customer wins (FY22: £40.5m).

Gross profit rose by 16% to £43.6m (2022: £37.6m), whilst adjusted EBITDA rose 15% to £9.4m (2022: £8.2m), ahead of market expectations.

Adjusted EBITDA percentage also increased marginally to 13.1% (2022: 13.0%). However operating margins remained flat following the previously announced commencement of the group’s investment programme to improve its go-to-market and product offering and support further growth.

Subscriptions increased by 6.8%, driven by continued growth in the group’s existing customers together with new customer wins (2022: 599,000).

The group also added over 450 new customers in the period, with long-term contract customer churn rate by value remaining very low at 0.7% (2022: 0.4%).

Turning to the future, the report to the results said: ”Microlise enters FY24 with good momentum driven by consistent strategic execution.

”Looking ahead, the board expects organic growth to improve from current levels as we move through the year, supported by a healthy order book and pipeline of opportunities across OEM and direct customer divisions.

”Operating margins are expected to trend upwards in FY24 and beyond, as we focus on careful management of the cost base and efficiently scaling the group.”

It added: ”We started the new financial year in line with our expectations and remain very confident with the opportunities we have in front of us, and in our ability to deliver against market expectations.”

The group said its recent acquisitions of Transportation Management System (TMS) providers, Enterprise Software Systems and Vita Software, as well as vulnerable road user app supplier K-Safe are trading in line with its expectations.

Nadeem Raza, Microlise chief executive, said: “Microlise performed well in FY23, delivering double-digit revenue growth, increased profitability and strong cash flows.

”During the period, we secured the renewal of several major customer contracts and significant new logo wins. We are continuing to build a resilient business to deliver sustained, efficient growth having made three key acquisitions that have enabled us to improve and expand our product offering.

He added: ”Our focus remains on scaling our business and increasing margins through consistently improving the efficiency of our business. With the supply chain issues in the first half of the year now fully behind us, and with a strong order book and healthy pipeline, we look forward to 2024 with confidence.”