Transport management software provider Microlise Group grew revenue by 5% last year despite industry headwinds caused by microchip supply chain issues and delays in project deployment with non-OEM customers.
According to its latest trading update the group - which is to publish its full year results in March - saw revenue rise by 5% to £63.2m in the year to 31 December 2022, with annual recurring revenue boosted by 10% to £42.6m (2021: £38.9m).
The update stated: “As a result of the change in sales mix, our annual recurring revenues grew at a faster rate than revenue - with recurring revenues now representing 64% of the total.
“Customer churn was maintained at an extremely low level of 0.4% and the group continued to win new orders and customers. This resulted in an order book that is at a record level.
“Although we expect supply chain issues to persist in the coming months, we anticipate the situation easing in the second half of 2023.”
The trading update said cash stood at £16.7m at period end, 18% ahead of expectations and up 27% since 31 December 2021.
It also revealed the addition of 250 new customers in the year which the company said reflects its strong customer relationships and the importance of its products to its customer base.
Looking forward, the update revealed a “very strong pipeline” of orders which has prompted it to boost investment into its global sales force so it can capitalise on the opportunities on offer.
Nadeem Raza (pictured), Microlise chief executive, said: "I am delighted to report that we shipped more units than ever during 2022, despite the well-documented supply chain issues that clouded our markets throughout the year.
“This pays testament to the strength of our products and the quality of our staff who have been agile and resourceful in the face of any issues, adapting where appropriate while improving efficiencies and the positioning of our company.
He added: “Although we can expect supply chain issues to continue to impact our markets in 2023, we do anticipate improvements during the second half of the year. This, combined with a record order book and healthy pipeline of opportunities across all the markets in which we operate, gives us confidence for the year ahead.”