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Intercede – from “well positioned for future growth” to trading “below expectations” in just over 3 months…

By Steve Moore | Friday 16 September 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Intercede (IGP), a software and service company specialising in jargon to describe what it does (sorry, specialising in “identity, credential management and secure mobility”) has announced it “has had a slow start to the current financial year and is continuing to experience delays in the receipt of anticipated MyID license orders from both new and existing customers”. Uh-oh.

‘MyID’ is described as “an identity and credential management system that assigns trusted digital identities to employees citizens and machines” and as recently as June Intercede was announcing that investment “has enabled the delivery of an increased number of digital identities managed by the MyID platform and leaves the company well positioned for future growth”.

Hmmm. This compares with a now revenues “likely to be lower than last year's”, though the company still attempts to reassure with that it “has a strong pipeline of MyID license opportunities and is continuing to make good progress in pursuit of its short to medium term strategic objectives”.

’Good progress in pursuit of short to medium term strategic objectives’?!? Did these objectives include delays in the receipt of licence orders and a profit warning then?

Results for the company’s year ended 31st March 2016 showed a loss of £0.99 million on revenue of £11 million, with cash (net) maintained above £5 million. However, even with the shares currently more than 33% lower today, at 61p, the market cap here is still approaching £30 million. This suggests the stock remains a sell.

I also note a 1st August announcement from the company that “a Free Share Award has been made to all UK employees to the value of £3,600, the equivalent of 3,673 ordinary shares of 1p each per employee… 379,542 ordinary shares”. Hmmm, convenient timing!


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