Transcript

Oct 12, 2026

Summary

FY25 revenue was £17.7m after an exceptional prior-year U.S. order; normalized growth, recurring revenue and cash generation underpin a positive outlook. Product expansion and international demand support the double-digit organic growth target.

Good afternoon, ladies and gentlemen. Welcome to the Intercede Group investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will consider responses where it is appropriate to do so on the Investor Meet Company platform. Before we begin, we will just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to the executive management team from Intercede Group. Klaas, good afternoon, sir. Good afternoon, Jake, and indeed, good afternoon, everyone. My name is Klaas van der Leest. I am the CEO for Intercede. I would like to welcome both existing investors, potential new private investors, as well as analysts to this session, which will cover our full year results for the year ending March 2025. During the session, I am joined by Nitil Patel, who is our CFO, and Allen Storey, who is our Chief Product Officer. We look forward to providing you with an update in the coming 45 minutes. Whilst this presentation is us presenting to you, we do look forward to your questions, but also feedback after the session. Without further ado, let us make a start. Right. Content-wise, I will give a quick company introduction. Nitil will then talk about progress report, financial review. Allen will talk about product and strategy, and then we will provide a summary and outlook. There are a few appendices for those who want some further information. Company introduction. I am not going to go through the entire investment case here, but a couple of points to highlight here. What we do is we provide business-critical authentication software in the cybersecurity market. We stress business critical because this software is not used for discretionary purposes. It is used to protect, in effect, the crown jewels of our client base. Even in economic downturns, this software activity does not get turned off or is subject to license reductions. Particularly in the current climate where clearly there is a lot of flux both here, North America and other countries, we see no license reductions at all. If anything, we see good license usage going forward. From a business perspective, clearly we are a software play. We have proven out over the last three to five years. It's scalable. We own our IP. We've owned our IP for well over 20 years. It's very well established. We've got a proven operating model with a very recognizable client base, always referred to small company and lots of work, but a client base to die for. Many of the clients we can't publish on our website, but those who can give a very good impression of the kind of client base we're dealing with. Our management team is very established. We all been working together for quite a while, and from a growth pillar perspective, we've got two key growth pillars. Pillar number one is double-digit organic growth, and we've been successful in achieving that over a period of time. We report against that a bit later on. Our second growth pillar is that of M&A, so inorganic. We will only do that when we think it's interesting IP that will actually be accretive to the business. From a market perspective, particularly at the high end of our authentication pyramid, we definitely are recognized as the global market leader in our space. We don't just say that ourselves, but it's also the market analysts report on it, and it's further supported by the very large wins that we've achieved over the last couple of years. We do have a very strong competitive advantage, and we love to get in a competitive bake-off because we know we've got a very good product set. Pipeline-wise, over the last 3-5 years, we definitely diversified our pipeline. Sometimes we've been accused of being completely dependent on North America. Actually, you will see in the results as Nitil Patel will present that in the last report, we've actually got some very good uptake in what we call our rest of world business. Alan Storey will talk about the authentication pyramid and how we've gone from a single product company to multi-product company. Our target account market is going very, very nicely in terms of the product itself, geography, but also our go-to-market model. For those who are new to Intercede, our go-to-market model is predominantly indirect. Over 95% of our business is contracted through channel and distribution. Again, last point on this central box is regulation. We like regulation. Indeed, we love regulation. Particularly in the North American market, there is regulation that is very kind for our type of software, but we also see regulation now appearing in other countries and regions. Again, in the product update, Alan Storey will talk about that. I will not go into any detail now on the financial side. Nitil Patel will talk about the KPIs that we report on. For context, I'll provide a little bit of an update on the market conditions, and we're providing two slides here. One slide is on the situation in North America. The second slide is around the situation, what we call rest of world. So after Trump's announcements recently about tariffs, there was a lot of noise on the chat boards. Indeed, we got inquiries from institutions about what is the impact of tariffs on Intercede. Well, I'm pleased to report that from our perspective, we haven't noticed anything. If anything, digital goods like software are excluded from tariffs, so we haven't really been impacted by the tariffs. The second point in this slide refers to DOGE. Again, lots of noise in the press about the cuts they're making and the savings or the less things they're making. I think in time, we'll find out what that actually amounts to. From our perspective, we haven't really seen any direct impact of those activities in our client base. So we don't expect there's going to be much disturbance. The cuts that have been rumored on the Cybersecurity and Infrastructure Security Agency are very much on the outside of the agency. This agency goes back to Mr. Trump's first tenure where he set up the agency to focus on critical national infrastructure. Then under the Biden administration, this agency ballooned to take on many more different responsibilities. It's now been cut back to its core. Now, when we take a look at what's happening in Iran at the moment, clearly protection against critical national infrastructure is key. So the cuts that have allegedly taken place in this area, we do not believe will impact businesses like Intercede. Final box on the top right-hand side, GOTS to COTS. GOTS is an acronym for Government Off-The-Shelf Software. I think most of you will be familiar with COTS, Commercially Off-The-Shelf Software. Commercially Off-The-Shelf Software is software like the ones we provide with MyID. What's been very common in North America, particularly in the government sector, is that those agencies want to own their IP. So for decades, they instructed, they funded system integrators to write bespoke software. A, that's expensive. B, it typically takes a long time and is also very expensive to maintain. What we're seeing at the moment and what we're hearing and what's being documented is that they really want to make a move away from GOTS into COTS. From a COTS perspective, we believe we're very well positioned. Then if we move to the bottom row, lots of noise around spending decreases. But the flip side of that is we also see areas where there are spending increases. So Department of Defense is definitely one of the areas where there are significant increases in spendings being allocated. The second point we're stressing here is border security. We all know that Mr. Trump wants to close the border with Mexico. That means they need resources, and we're very much aware of big recruitment activities, particularly within Department of Homeland Security. All this, by the way, is public domain information. If you go onto the DHS website and go and look under Careers, you'll probably find references to recruitment events. Now, what does this mean? Does this mean that we're going to get orders from our selected clients this afternoon? Probably not. But what it does mean is over time, they'll probably need additional licenses. If and when they need additional licenses above the ones they've already committed to from a commercial perspective, then there may well be upside. Purchasing review is an interesting one. We're balanced on that one, hence you'll see the question mark in that box. What's been announced recently is that U.S. government is looking to establish more direct relationships with vendors. Now, for those who've been following Intercede for a couple of years know that our model is very much indirect. Why is U.S. government looking to build more direct relationships? Because it is pretty typical that there are multiple supply chain components involved in the supply, for instance, of our software, and clearly they all take a margin in the process. What does it take for a direct relationship? First of all, you need to be listed on the GSA Advantage price list, which we are. Secondly, you need to be available on the contract vehicles that the U.S. government buys through. That is a tick in the box for us. The final point is we are setting up our own Intercede NSS, National Security Services instance in the U.S. We have been sponsored, and we have been asked, and we have been subsequently sponsored by one of the larger U.S. agencies to set up a cleared facility. Currently, we cannot hold our security clearances for our staff. Going forward, we can. We are well down the track in that process, and because we are foreign owned, we need to go through something called FOCI mitigation. But we fully expect within the next 6 to 12 months we will get full clearances. Final point and focus is on state and local. There has been an executive order signed by Mr. Trump in March where he used one of his famous sharpies to basically warn and pre-warn state and local that there is a risk of increased cybersecurity threats in that space, and we fully expect there will be legislation to follow. Again, legislation is good for us. While there has been lots of rumors and lots of noise in the press about the impact of the changes in the U.S., I will be very open and honest with you. We have contracted very normally. Our Q4, if anything, was much stronger than we had anticipated as a management team, hence you have seen a number of upgrades coming through. Also if we look at Q1, we are now towards the end of our first quarter with very much trading in line with board expectations. So no real negative impact from the changes in the U.S. If anything, we can see some positivity in some of the changes that are currently being made. However, U.S. is not the only part of the story. We also actively pursue business outside of North America. We call it the rest of world. If we start on the right, we have been growing our activities in particularly Asia Pac. Singapore plays quite a central role in that region. The interesting bit about Singapore is that they have very high security requirements. They are very similar to those we see in North America, hence our software is a very good fit for those government agencies, and we have made a number of announcements and indeed wins in that area. We also see increased activity in Australia and New Zealand, and while we cannot confirm this is the case, we fully expect that may well be related to the Five Eyes collaborating more. So that is Asia-Pac. If we look at Middle East, through acquisition, we have got a much stronger presence in the Middle East. We have got around 40 to 50 customers now in the Middle East. We will continue to grow that channel. We will continue to work and recruit new channels, and we are expanding in the region. We are signing new logos. So Middle East, again, is contracting very normally for us. Finally, on the left-hand side, U.K., again, we see still ongoing activity with U.K. government. We know for sure that is Five Eyes related. Then if we look at continental Europe, there is more and more regulation coming up, like NIS2, like DORA in the banking world. And we fully expect in the next 12 to 36 months that that legislation will actually help to position ourselves, i.e., our software, into the opportunities that may well come to market. We are already working with our partners on the continent to position particularly for the NIS2 regulation. On that note, I think I can only conclude that from a market perspective, we see no real change. Our business has been motoring very nicely in the second half and particularly in Q4, and we see that same kind of momentum moving into Q1. So on this point, I will hand over to Nitil, who will talk about the progress report and financial results. Nitil, over to you. Thanks, Klaas. I will be obviously quick with, obviously aware of timing. Hopefully, everyone on the call is aware they are eventually released to the stock exchange. I will be on the left-hand side of the progress report, and the right-hand side, we have got a few key highlights that were achieved during the year. As you all know, revenue was slightly down compared to last year. We did flag and have flagged previously that we had an exceptional nice order from a large U.S. federal agency, perpetual license order, circa GBP 8 million, including S&M, in December 2023, which skewed the numbers slightly. I will show you a slide later for a like for like basis comparison. The good news is that we had good revenue growth compared to what Cavendish had in the market for our set 16.1. We are profitable at GBP 4.6 million, and we have continued to invest in our product. On the right-hand side, we have brought four versions of our product out in the year, and we brought the MyID MFA/PSM into that same cadence and now bringing out their versions every quarter as well within a month in the real releases. The other thing that we did was in the year, we launched our new product, MyID SecureVault. Again, Alan will describe to you why we did this, how it came about, and the impact it is having on us and our revenue and our expectations for revenue going forward. The good news is we have already got many of the sales against that. We continued to invest in our R&D. We expensed GBP 3.6 million into the income statement, GBP 2.3 million from last year, and we had to capitalize for the MyID SecureVault. Now, this is not a change in policy, it is the application of the policy. MyID CMS, the flagship, all R&D expense from that will continue to be expensed in the income statement. But identifiable separable assets with their own pricing strategies, standard own capability, means that the standard requires us to match revenues with costs, and that is what we are doing with MyID SecureVault. The good news is that we are only capitalizing GBP 0.3 million in the year, and we are aggressively amortizing that over five years. We have also had exceptional professional services income this year, and we flagged this in two ways. One was obviously the exceptional order we had in 2023. The client had an aggressive timeline and set that timeline and did not move it. The client, including the prime and us, and with our other suppliers within the consortium, all moved to deliver at that aggressive timeline. The good news is that we have achieved it. It is deployed. A consequence of that is they have used a lot of our professional services. Hence, you have seen the increase in income from PS to GBP 5 million, whereas our normal run rate is circa GBP 3 million to GBP 4 million. Obviously, we have got the other PoC which we had last year, where they are continuing to employ two of our full-time employees, and they continue to do so. The PoC is now moving to a semi deployment stage. It is still a long way, but we are going in the right direction and they are consuming PS from us. On the right-hand side, as Klaas has mentioned, a good sale for us in December in the APAC region. It is a good beachhead for us in that region. It is a flagship deployment and well recognized in the countries around that area. The good news for this was that it was a MyID CMS sale as well as a MyID SecureVault sale, and MyID SecureVault is only sold on a subscription basis, and they bought two years in advance, which is good news. We continue to sell in the Middle East, as Klaas has mentioned. We are not just selling to governments, but also to airlines and banks as well. At the bottom is just to highlight that although U.S. Federal tends to buy perpetual licenses, we are seeing movement now in the first sale that we have had in subscription in a semi-autonomous federal agency in America. Moving on. I will be quick on this. Financial highlights, revenue breakdown. Just to show you on the top left, the key metrics we focus on are support and maintenance, the 10.2, that recurring element. Why is it important to us? Because it is sticky, right? Clients do not want to be not supported by us, and they tend to renew every 12 months in advance and pay us in advance. Included in here, there is a question obviously, and we will answer that, is what is that made of? I will answer that later in the Q&A. As I mentioned, the PS, the GBP 5 million, was a really good result for us. Probably the natural runway will be between GBP 3 million to GBP 4 million. If you add that, our repeatable revenue to the support and maintenance revenue of 10.2, we are covering more than 90% of our operating expenses, which is really good news because any extra sales on our license income, be it subscription, the way we recognize the income or perpetual extra PS, then it is all highly accretive to us. As Klaas mentioned, we have had good growth in the rest of the world. We have obviously had some really good sales in the APAC region. Our geo-diversified pipeline continues to work in that manner. Although federal is big and the defense contractors in America are big and will continue to be big, we are glad to see the growth in these areas. The adjusted EBITDA and PBT just show you the close correlation between them, which may obviously indicate that we do not have many adjustments. This year, actually, our PBT is higher than our adjusted EBITDA, and the reason for that is obviously interest income. Our cash and equity isn't going in the right direction. I'll give more color to the cash elements as well. Sorry. Just to give you a guide on our growth analysis, I want to show you for a kind of like-for-like normal comparison of what our trajectory of growth is on our revenue. You can see that the GBP 13.3 million was the original Cavendish's forecast for us in the market for that period. Obviously, we came in at GBP 20 million. An equivalent forecast at that point in time was GBP 15.8 million for FY 2025, and we've come in at GBP 17.7 million on a normalized like-for-like basis. Now, of course, no one's going to say no to an $8 million perpetual license. The good news is that we are growing at double digits. We have a slightly different forecast for FY 2026. That's just to reflect the current uncertainty in market. That's not to say that we don't see revenue growth coming through, not just in the U.S., but also in the rest of the world. Income statement. Again, a very clean income statement. I won't go into details about this. The main thing to notice, obviously, the new IFRS 18 is coming. It won't have much of an impact on us because we have a clean statutory report. The main thing to note is obviously operating expenses have gone down. There's two reasons for that. One, obviously last year we had a larger bonus and commission sales because the revenue was higher. Also we've got a slight different way of accounting for R&D tax credits going forward, and I'll explain that later. Again, you'll see that impact of the adjustment we made in FY 2023 tax computation of the tax payment we made during H1 and probably into H2 of this year for repaying that FY 2023 R&D tax credit. Financial position. Again, a very clean balance sheet. Although we did capitalize MyID SecureVault, the impact is not that huge, GBP 0.3 million. If you look at it in other intangible assets, and we're amortizing the contracts that we capitalize on the acquisition at 10 years and MyID SecureVault is 5 years. We've increased equipment. Again, we are upgrading the internal infrastructure of the group and again, moving that into Azure, making sure they're more resilient and capable of expanding quickly into the future. The key KPIs on the balance sheet that we focus on are trade and other receivables, cash, and deferred revenue, all in the right direction. Of that GBP 5.8 million, most of that's been converted into cash. As at 31st May, the group had GBP 21.3 million in cash. Obviously, deferred revenue is really important to us. So why is that important? Because it gives us visibility into the year of what revenues we can look, already book in, and also the long-term contract that we're winning gives us even more visibility into years 2 and 3, as you can see for the deferred revenue in our non-current liabilities. We'll continue to focus on that. There was another question about how the pound is affecting us with the strength in the dollar. It is. A weaker pound is better for us because 80% plus of our revenues come in dollars and most of our expenses are in sterling. What do we do about it? We're not a sophisticated finance department in the sense that we don't have that many people. We don't hedge. What we do is as soon as we know that the money is coming in, we will look at what the rates are and convert quite quickly. What we do is we keep three to four months of our operating expenses in dollars to meet the obligations either in creditors or suppliers, and also to keep our payroll in our resident office in Washington. I just wanted to give some additional color to some of the things that happened on the income statement and to kind of give you an idea of what's going to happen going forward. As you know, we did capitalize MyID SecureVault. That obviously did not have an expense into the income statement when it spoke to the balance sheet. Last year, our advisors have opened a tax computation for FY 2023. Because we moved into a profitable zone, it was better for us to take the arbitrage on the R&D tax credit at 14% in FY 2023 and the corporation tax liabilities that will pay in the future at 25%. So we repaid that tax credit we got, and hence why you saw the payment flow out in the income statement. This year, the government's changed the rules again. They've brought the concept of a large corporation R&D claim. You make a claim, an assessment, you assess that estimate, you put that estimate in as either other income on your income statement or as a credit into your operating expenses. We've chosen to do the latter. We're matching our expense into the income statement. It's an estimate. We'll make our claims in the year, and then we'll adjust accordingly. You'll see that now consistently being applied across the years coming forward. Lastly, just wanted to highlight that we did a share buyback in October to December 2024. We spent, including costs, about circa GBP 0.5 million. Again, adjusting for all the things above that we've mentioned, like for like, we'd have had an extra GBP 1.4 million in cash as of 31st March 2025. Then finally from my side is just to show you consolidated cash movements and apologies, I probably should have shown it slightly better regarding the wordings. We'll adjust that for next year. We're cash generative. We have no debt. You're obviously going to ask us questions on what we're going to do with our cash. Clarence will mention a bit more about what we're doing with our M&A strategy later. You can see the cash movements there. Mostly fixed assets and upgrades on infrastructure, final payments on the acquisition that we did two and a half years ago, and then the movements that I've just discussed. We've ended up with a good cash generative position, good launch pad for us to continue our M&A strategy, but also continuing to have the ability to invest in our products going forward. On that note, I'm going to cross you over to Alan Storey, who's going to move on to products and strategy. Thank you, Nitil. A quick reminder about what we do. We protect our customers against data breach. We do that by taking weaker credentials, typically passwords, and replacing them with stronger credentials. Hackers, bad actors, break into systems by stealing credentials, either by phishing campaigns or they are being leaked on the dark web, and breaking into systems with them. Looking at what we can see online at the moment, that is the most likely cause of the recent Marks & Spencer and Co-op attacks. We help our customers deploy stronger credentials. We do that securely. For example, in compliance with U.S. government regulations, which drive a lot of our customer base and are very much seen as the gold standard of identity around the world and at scale, 10,000, 100,000, millions of users our platform scales to. This is our authentication pyramid. We use this to describe the level of security of your authentication. Passwords down the bottom being the weakest, PKI, public key infrastructure, authentication based on cryptographic keys at the top of the pyramid, also known as phishing-resistant authentication, so something that cannot be stolen or compromised. Historically, we have only played at the top of the pyramid. Our MyID credential management system, our flagship product, still generates the majority of the revenue, very much plays in that space for high assurance customers. Just over a couple of years ago, we made our first acquisition of an organization that brought in multi-factor authentication and password security management. That allowed us to move down the pyramid and cover the whole pyramid, basically be able to say to customers, "How secure do you want to be?" And we can help them on that security journey up the pyramid. Those products that we brought in by acquisition are now completely embedded into the organization, so we have joint development, joint sales, joint marketing, et cetera, and we take those to market now as MyID products. MyID has become a product family. There is one new product Nitil mentioned at the top end of the pyramid, MyID SecureVault, and I will explain what that is in the next slide or two. Our customers typically are customers who have something to protect, so government, defense, intelligence agencies. We have lots of logos I would love to be able to put on our website, but we are not allowed. But these are protecting U.S. citizen information, military helicopter plans, nuclear defense codes, et cetera. So really at the top end of the security, which gives us a very high level of credibility for any customer we approach. The credential management system is that high assurance product. That will register people, capture fingerprints, facial biometrics, check passports, driving licenses have not been faked, prove they are who they claim to be, walk them through background checks, so we make sure that person has a social footprint in society. They are not a terrorist, no fly list. And then it will issue them digital identities to a range of form factors, smart cards, phones, USB tokens, that they authenticate into applications with so that a network, so that the organization can be sure that person is who they claim to be. New product, SecureVault. This came out of a customer we were working with in the Asia Pacific region who was using PKI. PKI is based on keys. When you use those keys to decrypt email, if I'm decrypting this on my laptop, I will take a smart card, put it in my laptop, enter my PIN. I will then be able to decrypt and read that email. If I want to do the same thing on my phone, I need to get the same private key onto my phone. So we need a secure place to store these keys that systems like our credential management system can recover them and put them onto the phone. The challenge the customer was facing was that it's the PKI vendor, the people who provide the certificates, who were looking after those keys. What tends to happen is customers want to move between PKI systems every few years because it's becoming a commodity and they can get better prices. The fact that that PKI vendor was holding onto the customer's keys made it very difficult to migrate. So the customer approached us and said, "Intercede, you understand security, you understand key management. You have some of these features in your product already. Could you enhance those and put them into a separate product so we keep control of our own keys?" We've now done that. We've built that product. That was deployed for the first time earlier this year. We've made two sales of that. We're now taking that product and positioning it into the U.S. market because that is a challenge we see our U.S. customers having as well. So that's a brand-new product in the portfolio. Multi-factor authentication is very much positioned at customers who don't want to use their authentication in the cloud, particularly in the Middle East as a region where they're not comfortable having their authentication in the cloud or in a U.S. cloud. So this gives them an alternative to keep control of their own authentication. Password security management is very much if you have a compromised credential, we will know that. We have the world's largest database of compromised credentials online, managed by a team of ethical hackers, and we help protect our customers. So if you try and log on with a compromised credential, it will force you to change it. I'm just going to move on a little bit and talk about a little bit about innovation and then the strategy about where we're taking the product set. The first one is in that password security management product. Passwords generally are not stored in the clear, not in clear text that a human being could read. They're scrambled or hashed. If you look at the top, you'll see that long string of numbers. That is a hash. That's how they're actually stored. What happens is bad actors try and crack those hashes. So they try and work out what is the clear text password from that hash. Once that's cracked and that's available online, people will break into systems with it. Most of the security systems in this area will say, "Is this password already known to be cracked? Is it compromised?" For example, 1loveRunning25, it's known to be compromised. It's not safe. What human beings do when they are asked to change a password is typically put a different number or a date or an exclamation mark on one end or the other. For example, 1loveRunning25 would become 1loveRunning26, next year, 1loveRunning27. Human beings are involved here, and they make decisions, and the bad actors know that. They are using algorithms, they are using AI to predict what people will change their password to. Not only is this a, "Has this password known to be compromised?" It is a, "Could it easily be compromised?" What we are doing is building that intelligence into our product so it will actually warn you, "Well, this password, 1loveRunning25, is not already compromised, but it is highly likely to be compromised. It is a bad password. It is easily guessed." We are adding more intelligence around the product, to differentiate it from the competition. Another innovation here is around mobile ID. We have a good footprint in mobile ID. We do the mobile identity as well as smart card identity for the national ID of Kuwait. We have millions of smart card issued and millions of mobile identities issued. But there are other opportunities for technology. This particular one is one we are working with an innovation and a partner with in the U.S. to position into the U.S. market. As an example here, on the left, we have a plastic ID card. If you are a military worker, you get a smart card, a chip-based identity to authenticate yourself to systems. If you are a dependent of that military employee, you get a plastic-based card. That plastic card allows you to walk onto the military base to access some cheap provisions in the store, for example. But that is not particularly secure. That card can easily be faked by anybody online. What we are doing is using the mobile driving license technology deployed in the U.S. at the moment. If you get stopped by a traffic cop in the U.S. and you get asked to show your driving license, unlike the U.K., you will not show a plastic card. You will show your phone with an app on it. What the traffic cop can do is scan that with their phone. That will do a digital handshake. It will perform some cryptography, and it knows that that license is genuine. It has not been tampered with. It was issued by a trusted authority, and it is still current. We believe there is an opportunity there to take that type of technology and bring that to the mobile device so we can have a smart card level of security on a mobile consumer platform, which increases the security, but importantly reduces the cost. The other one I wanted to talk about briefly is use of AI. We use AI, artificial intelligence, within Intercede. We find that at the moment it does not code for us, but it gives us greater efficiency in coding. We are not using it to look at replacing people. We look at it to getting more out of the people we already have. Same in the coding environment, same in testing, same in marketing. There is a couple of areas I wanted to highlight in the product where we are looking at bringing it into the product. Again, it is a similar pattern. It is how does it help people use our product? One of the features of our product is Report Designer. You can write your own reports, you can get information out of our system. It is very flexible. Our customers like it, but you really need to go on a training course before you can use that product. You need to understand the database schemas, how to write queries, et cetera. What AI is very good at is understanding complex data structures and putting a human interface onto the front of them. For example, once we have the designer assistant in the system, I could ask that Report Designer assistant, "Build me a report that looks at the last six months, who's been issued smart cards, who's already got a mobile, and how many of those are in this particular region?" It will write that report for you. So it starts to make the product more usable. Second one on here is translation. Our product is sold around the world. It's designed to be translatable into multiple languages, but we don't actually provide the translations out the box. We provide the tools to do the translation, and we rely on our partners to provide that language-specific translation. It would be easier for our partners if we could provide that language-specific translation out the box along with the product release, which we release every three months. Historically, when we've done this, when we've used tools to do the language translation, it doesn't really understand context, so it doesn't produce a language file that's accurate. AI is very good at understanding context. So if we can ask AI to create, translate this application into Japanese, Arabic, Spanish, whatever that language may be, in the context of digital identity management, we find it gives very, very accurate translations. Again, that just does allow us to get more productivity out of the existing tool. Moving on to the strategy of the product overall. Overall, so within each of the four products in the family, what are we doing with them? The credential management system is at the top of its game. It's the market-leading product in large PKI programs and PIV, that's the Personal Identity Verification, that U.S. standard that U.S. government and suppliers into U.S. government have to follow. And we're starting to be seen as the gold standard for identity in a number of regions, specifically Asia-Pacific. So we want to maintain that, so we'll keep investing in that. One thing we're seeing in that area is FIDO passkeys, which is a consumer standard coming into the enterprise space. And we see this as an area we want to maintain market leadership on. You may have seen some of the announcements. We've been working with Microsoft, some of the press releases. We were invited by Microsoft to be an early adopter of their APIs to allow us to manage FIDO passkeys that then work with Microsoft Entra ID. There's a webinar coming up just next month where I'm presenting a webinar with Microsoft on usage of this. So that Microsoft relationship is key to us if we want to maintain leadership in that space. There's also interesting opportunities around mobile in the U.S., which I talked about there, and with the upcoming EU digital identity wallet as well. SecureVault, I spoke about the product set there. There are opportunities to manage a wider range of secrets in the organization, such as biometrics, but really the key there for us is to position that into our existing U.S. market, because we believe they face the same challenges. Couple of points on multi-factor authentication password security management. We've been working with a partner in Germany to make our product capable of working in a managed service provider environment. That partner is a managed service platform provider whose product is used by multiple end managed service providers. We've now completed that technical work to make that product multi-tenant capable, to make it automated and API driven, and we're now starting to roll that out. We've got the first users on platform, so we're looking at how fast can we roll that out. Are there other partners we can take that to managed service offering? The final one is really a combination of multi-factor authentication password security management. We're seeing an opportunity in the space to manage the credentials that you can't single sign on to with a Microsoft application today. The ones that support a password or a passkey that don't support federation into a Microsoft environment, and those are dealt with by enterprise password managers. What we see is those products coming from a consumer background, for example, so they will learn passwords, and they will replay them at the application. What they tend to do is say, "Hey, Alan, your password's compromised. You should change it," or, "This application now supports passkeys. You should swap from a password to a passkey." We believe with the skills and knowledge and the building blocks we've got in our existing product, we can create a product in that space that will say, "Hey, Alan, your password is compromised. We have changed it for you. This application now supports passkeys. We will migrate you automatically from a password to a passkey." Really to give enterprises policy and control over that space. Hopefully that gave you a feeling of where we are with the product set and the opportunities we have for growth in each stack. Okay. If we then move on towards summary. If we start on the right-hand side, we've been very clear for the last couple of years that the objective for Intercede is to deliver sustainable and double-digit growth. We want to do that initially through organic growth, i.e., drive it through our existing platform. As a secondary objective, as and when we can find the right kind of acquisition, we will layer on additional IP. But the starting point is double digits organic growth. How are we going to achieve that? By focusing on a key number of items here. The opening of this presentation was very much focused on what's happening in the market, what's happening in the U.S., what's happening in rest of world. Within those geographies, regions, we focus on the market drivers. It should come as no surprise that we like countries and regions with regulation because it means they need to use software to be compliant with that regulation. We've already seen that for many years, if not decades, in North America. We're now really pleased to see that some of these regulations are starting to appear in other regions like the European Union. Yes, it will take a bit of time, but we do believe that might have a similar kind of impact as what we've seen in North America. Second point is we need to have the product or the product portfolio. It's not that long ago, three years ago, we were a single product company. We would only have MyID CMS as one product, and it's the only product we would take to market. We've acquired IP, we've acquired MyID MFA, we've acquired MyID PSM, and we've added this year through our own development, MyID SecureVault. We'll continue to expand the product portfolio so we can upsell, cross-sell, and indeed find net new logos to drive incremental revenue. That's obviously linked to the pipeline. Again, in the past, we've been accused of being a single trick pony, you're only selling the U.S. Well, over the last three to four years, we've very much been working on diversifying our pipeline, geo diversifying it, and as we've seen in the results this year, our rest of world revenues were significantly higher than the year before. Also, if you look at the pipeline, we do see significant opportunity out of North America. That doesn't mean we do not see opportunity in North America. Our pipeline in North America is very strong, and we'll continue to focus on North America. But it's good to see that we can also be successful in other regions when we focus on market entry, and then from market entry, go to expansion within that country and hopefully within that region. With Nitil Patel on board and obviously with Andy Walker, our previous CFO, there's always been incredibly strong focus on margin profitability and indeed revenue, and that continues to be the case. Our liquidity has been very good in recent years. There's plenty of working capital. We use it sensibly. We have strong policy, and some of these funds will be made available for M&A. Final point is balance sheet. Balance sheet is pretty tidy. There aren't many companies like ourselves who can show a balance sheet that's as clean as what we're presenting. We believe we're in a very good position. What is the outlook say then? First of all, we do believe we've got a very strong market position, and we want to capitalize on that. Whether we like it or not, geopolitical instability in different regions actually gives more demand for cybersecurity solutions, and particularly in the areas we're playing in. We think we're well-placed. We talked about regulation, we talked about financial strength. We're talking about expanding global footprint. Again, those who have followed us for a while know that we predominantly sell indirect, so we use distribution channel resellers in order to go to market. Yes, it takes time because we need to find them, recruit them, onboard them, train them, do the first deal, do the second deal. But after the second and third deal, these guys become pretty self-sufficient, and therefore the upfront investment actually pays off in years to come, and we see this actually happening. Obviously, final point is we still see robust growth, not just in the year under consideration, but also in the period ahead. So we are actually looking at a pretty positive outlook going forward. Then finally, a few thoughts on what might happen if we take a view and an assertion that in the next 3-5 years, we each on this call and indeed globally might and actually end up with a personal AI agent. Then if that is the world we are going to live in, it is incredibly important that these agents, these AI agents, are secure. So let us talk through a scenario there. Klaas has got a personal AI agent. Klaas has got GBP 100 to invest and instructs his AI agent to go to the internet, go and search through some search engines, and find me the best savings rate for my GBP 100. My agent will then communicate with other agents, and it will probably come back with some answers and say, "Hey, Klaas, there are a few accounts available that offer 3, 4, 5% depending on how long you want to fix." I then give my agent, an AI agent, an instruction to actually move money from my current savings account into a net new savings account. But in doing so, we need to make sure that it is incredibly safely managed. So in effect, we are still managing digital identities. Now, if that is the world we are going to live in, we believe that Intercede is incredibly well-placed because we have got the credibility and proven scale to basically fulfill that opportunity going forward. So hopefully we have given you a decent view on the last 12 months. We have given you a view as to where we are heading and perhaps a little glimpse of what the future might look like. So on that note, I am handing back to Jake. Perfect. Klaas, Nitil, Alan, that is great. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that is situated on the right-hand corner of your screen. But just while the team take a few moments to review those questions that have been submitted already, I would just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboard. Guys, you can see that we have received a number of questions throughout your presentation this afternoon. Thank you to all of those on the call for taking the time to submit their questions. But guys, at this point, if I may just hand back to you just to read out those questions and give your responses where it is appropriate to do so. And if I pick up from you at the end, that would be great. Thank you. Thank you, Jake. Right. I always have the pleasure of reading out the questions, and then I will dish them out as I see fit. So here we go. The first one is actually a pre-submitted question, so I do not know who submitted it, but it is a very good question. So it starts with, "Thank you for the great results. Are subscription revenues included in the support and maintenance of software licenses? Does that mean that the ARR of GBP 10.6 million is the S&M revenue of GBP 10.2 million plus GBP 0.4 million of subscription revenues, or does it include a recurring element of professional services?" Nitil Patel, this one is for you. Thank you, Klaas, and very good question. So MyID CMS and MyID SecureVault, if it is a subscription, we apply IFRS 15, and that deems that there is a license component of that transaction and that is recognized 50% as a license sale, and that we recognize at the point of sale. And then the rest of the 50% is amortized over the length of the contract on a straight line basis. So you are right to ask the question, what does that mean? So the GBP 10.2 million will include the support and maintenance plus the subscription S&M element of the recognized income from that period, amortized according to the length of the contract. It does not include any professional services. That is deemed as a repeatable revenue, and that is not a metric that we have disclosed in the annual recurring revenue. Thank you. We move on to Alistair, who is asking the following question. "Could you give us an update on your weighted pipeline, please? At the interim, you said it was ahead of last year." Alistair, I am afraid we do not provide any insight into the pipeline other than a statement I am willing to make that the pipeline is developing very nicely in line with our expectation. And if we look back, our pipeline has matured very nicely on the back of the upgrades we have posted. We then have a question from Gary B. "What measures are in place to manage implementation risk for large-scale deployments like the one covering 250 plus global sites?" Again, very good question. First point to note here is we do not manage those programs. These programs are managed by large system integrators who typically take on the risk. Second point is the majority of the work we do is regarded as T&M, time and materials. We actually take little or no risk for these large-scale deployments, and the overarching risk is held by the prime or the system integrator who is leading the overall charge. We have a question from Peter M. "Given strong cash reserves, what is the near-term outlook for M&A execution, and what geographies or capabilities are top priorities?" Again, very good question. Yes, we have a good, strong cash balance. Having said that, Nicole is ring-fencing quite a large part of that for day-to-day operations. I can inform that we have our own in-house head of corporate development. We have a long list, probably nowadays north of 350 companies. At any point in time, we have a short list of 15 to 25, and we're in active dialogue of probably five to 10 at any point in time. Very frequently, I just need to recall the question. Very frequently, we move along quite nicely. The question has disappeared. Can you just put the question back, Jake? Oh, sorry. No, the question is still there. Sorry, my screen has moved. On the M&A side, at any point in time, we have five to 10 in active dialogue. Very frequently, we actually have ongoing dialogue for longer periods of time. What are we looking for? We have a very strict policy when it comes to M&A. There's got to be proven IP. There's got to be recognizable revenue. Ideally, it's profitable or close to breakeven. Ideally, it provides new geography or new client-based access, and cultural fit is absolutely important. Right now, there's nothing to announce on M&A other than we're very active in pursuing M&A opportunities. Simon has got a question. "Has the Carahsoft partnership led to anything?" We have lots of marketing engagement with Carahsoft. Carahsoft is a very large aggregator in the U.S. federal market. We're also looking at not just U.S. federal, but also state and local. As and when we've got announcements to make specific on Carahsoft, we will come back into the market. Somebody is obviously thinking about you, Alan, because the next question is from Ian. "Is IoT a market you are looking to expand into?" Alan? It's one we're considering. As Klaas mentioned on the M&A side, we always go through when there's a new product capability, do we buy it? Do we partner? Do we build it? We focus on person identity. The next logical step from that could be seen to be non-person entity, machines, printers, routers, firewalls, and as Klaas has alluded to on the slide that's still on screen, agentic AI agents, AI agents having identities as well. So it's one of the areas we're looking at, yes. There are a number of facets to that. It's credentialing them, it's managing them, it's managing connectivity. So it's one of the areas we are considering, yes. Perfect, guys. If I may just jump back in there. Thank you very much indeed for addressing all of those questions that came in for investors this afternoon. If there are any further questions that do come through, we will make these available to you immediately after the presentation has ended. Klaas, perhaps before really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could just ask you for a few closing comments just to wrap up with, that would be great. Thank you, Jake. I think we have delivered a strong set of results on the back of a prior record year. During the period under consideration, we have had six upgrades and finished the year on GBP 17.7 million revenue. As discussed, we have market drivers as well as dynamics which will put Intercede offering right at the heart of strong identity and our aim is to deliver sustainable revenue growth and profitability. Clearly, this is not possible without a committed team of colleagues who deliver the best code, I believe, in our part of the industry. We look forward to keeping you updated on progress, and I hope you found this session informative. Thank you again for attending. Please, please take two minutes to provide us with your feedback at the end of the session. This will help us to improve for further updates, and for completeness, our half one update will be in November. We really appreciate your time. Thank you. Perfect, Klaas. That is great. Thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you will now be automatically redirected for the opportunity to provide your feedback in order that the management team can only better understand your views and expectations. This will only take a few moments to complete, and I am sure will be greatly valued by the company. On behalf of management team of Intercede Group PLC, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.