Transcript

Oct 12, 2026

Good afternoon, ladies and gentlemen. Welcome to the Intercede Group PLC 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 will review all questions submitted today and publish responses where it is appropriate to do so, and these will be available via your Investor Meet Company dashboard. Before we begin, I would like to submit the following poll, which will just appear on your screens now. I would now like to hand you over to the executive management team from Intercede Group PLC. Klaas, Nitil, Allen, good afternoon. Good afternoon. Good afternoon. Good afternoon. Jake, am I ready to go? Absolutely, sir. Thank you. Well, 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 as well as potentially new investors, as well as analysts to this session, which will cover our results for the first half. During the session, I am joined by Nitil Patel, who is our CFO, and Allen Storey on my right-hand side, who is our Chief Product Officer. We look forward to providing you an update in the coming 45 minutes. Whilst this is us presenting to you, we very look forward to your questions towards the end, but also to your feedback after the session. Without further ado, let us start with the presentation. So what are we going to talk about? We are going to quickly take very high-level view on company introduction. We then pass on to Nitil on progress report, financial review. Alan will then talk about product strategy. I then wrap up with summary outlook, and we will move into Q&A. If we start from the top, I joined Intercede just over 5 years ago as part of a turnaround play when the company was not necessarily in a good space. It was losing a lot of money, it was hammering cash. Good news is we are 5 years on, company is in a real good position as hopefully you have seen from the results. We believe we are on a good run now. Nitil has been with us just under 2 years. He has made a real impact on the business from a financial perspective. I am taking Alan's thunder away here. He has been with the company 20 years, and he is going to keep Nitil and myself safe here when it comes to anything technology-related. At 30,000 feet, what does Intercede do for those who are new to the business? Ultimately, we provide business-critical authentication software for a global client base. Authentication software, we will provide a bit more color on that in Alan's update on product, and we will also give a glimpse on our client base. If we then look specifically at first half, our revenues were very good. We had record revenues at GBP 7 million, which was quite nicely up compared to last year, and the same for operating profit. Roughly, we have 150 clients, and growing, which is nice to see. Definitely in my tenure here, we have got the highest number of colleagues, over the last 5 years. We have offices in the U.K. where all development is taking place, and we have a sales and delivery office in the U.S., just outside of Washington. Split between employees is roughly 90 in the U.K., give or take 10 in the U.S. If we then take three highlights on the business, our recurring and repeatable revenue is 84%. What do we mean when recurring and repeatable revenue? Recurring is our annual recurring as well as our support and maintenance. If we then look at our professional services revenue, which is very predictable over the last 3-5 years, when we add those together, we basically cover pretty much our fixed operating cost, and we are really pleased with that. Five years ago, we started on the journey with the company. We have very much been pushing the channel. Our go-to-market model is indirect, so we absolutely do not want to sell direct. 87% of our new business is nowadays going through channel. If you look at stickiness of clients tend to stay on platform for a long time. Our revenue attrition is very low, reflected in the percentage here as under 2.5%. What does Intercede do? Again, very high level. We protect our customers against data breach. How do we do that? We replace weak credentials, such as passwords, with much stronger authentication, and we do that simply, securely, and at scale. With simply, what we mean is it is standard off-the-shelf software. We do it securely because our software is typically used by highly security-conscious organizations who have tested this software inside out. Think about governments here in the U.K., think about the federal agencies, think about three-letter agencies. They've tested this software extensively, and we can do it at scale. At the very low end, we probably have 500, 600 of licenses. Top end, we probably issue 6, 7 million digital identities in our largest clients. The final point here is regulation is really good for us. Countries with strong regulations where companies need to comply, they tend to find good use of our software. Alan, again, will provide more detail on that. When we talk about our product, nowadays we talk about a product family, but five years ago, we only had one single product, and that single product was the top end of this pyramid. PKI. Our credential management solution, our credential management system, was five years ago, the only product we had. What we've done over the last four or five years is extend that functionality into the FIDO space, Fast Identity Online. Again, Alan will talk about FIDO more specifically. Then in the last 12 months, we've acquired a company here in the U.K. in Bracknell called Authlogics, and they have added multi-factor authentication as well as password security management. This pyramid is a very good reflection of the kind of things we do. We refer to it as the authentication pyramid. Weak authentication on the bottom, passwords, and as you move up this pyramid, you get stronger and stronger authentication. Clearly, our referenceability, our knowledge, and experience very much comes from the high-end market at PKI space, which is also reflected in our client base. Because we have that referenceability, because we have the client base and the experience in that client base, we very much fit into the middle and the bottom end of this spectrum. We'll provide more detail as we go along. We frequently get the questions about market drivers and tailwinds. I'm actually going to pass on to Alan here because Alan was in the U.S. last week with our client advisory board, and a lot of what's on this slide is actually very relevant to the feedback and the input he's had last week. Alan, over to you. Okay, Klaas. Some customers buy our product because they just want better security. The majority of our customers, the majority of our revenue comes from customers who are driven to use technology like ours because of specific regulations. Big regulation for us that drives our business is in the U.S., so it's a regulation called FIPS 201, PIV, Personal Identity Verification. That states that all government employees must be fully background checked and must be issued with a strong smart card-based PKI credential. That's been there for a while, that's been driving our business. That started out in federal government, and then it moved into suppliers into government, so aerospace and defense contractors, et cetera. It's now pretty much seen as the gold standard of security as far afield as some of our customers in Germany and Singapore would reference back to that technology. What is changing in that market? What we are seeing that is driving adoption of our products. The first three on the left here are all coming out of the U.S., so that is the best-funded administration in the world to set cybersecurity standards. The executive office of the president is pushing people to use multi-factor authentication, so stronger authentication to the maximum extent possible. That means everybody within the organization and also down the supply chain. OMB, Office of Management and Budget, so they are an agency within the executive office of the president. They make that more specific, and they start talking about phishing-resistant multi-factor authentication. So phishing is where bad actors will steal a credential from someone and then log into that system with that credential. So if a credential is phishable, i.e., can be stolen, then it is weaker. Passwords, one-time passwords can be placed in that category. Once we start looking towards FIDO and PKI, the further up that pyramid, then it starts to become phishing-resistant. The actual standards within FIPS 201 that have done a lot to drive our business over the last few years have also changed. There is a recent version 3 of those published. That has actually introduced more of a concept of risk-based assurance. Partly because of the desire to extend security down the supply chain, and partly because of the real world of it is difficult to move everybody up to the highest levels of security in one go, and accepting that people are on a journey to try and move up that pyramid. They have taken more of a risk-based approach. They are now saying if you are protecting very sensitive information, so air traffic control signals, U.S. citizen data, military helicopter plans, as some of our customers do, then you absolutely need to be at the highest level of security. If the data you are protecting is of a medium level of security, then you are okay with the medium level of authentication technology. But interestingly for us, that is starting to bring a wider range of technology under the remit of the regulation. Drivers from the U.S. to use more authentication, more secure in more places. In Europe, there has not been a specific cybersecurity regulation that has driven people towards our sort of technology. Some of our customers, such as BASF, have chosen, they have got a lot of intellectual property, they want to really protect their data and systems. But they are not driven by regulation. Regulations such as GDPR, some of the healthcare regulation says you need to protect information, but it does not tell you how you need to do it. That is changing. There is a new legislation at an EU level now that has been passed saying that all countries must enact cybersecurity legislation by 2024. We are starting to look at some of the draft legislation coming out of Germany, Netherlands, Belgium, and that is becoming much more specific. It is starting to talk about phishing resistance. It is starting to talk about use of cryptography. We believe that is a standard that is coming in Europe that will start driving a much broader market to our form of technology. This too, impacts about 50% of the companies in Europe, so it is quite broad. Looking in our own home turf, looking in the U.K., our organizations that issue the standards, NCSC, our equivalent of NIST, push out cybersecurity guidance, and they publish something called Cybersecurity Essentials. That is the baseline of security that they expect organizations to achieve. Again, what we are starting to see is insurance companies not offering people cybersecurity insurance unless they have at least achieved that basic level of cybersecurity, and that promotes MFA. In the U.S., in Europe, we are starting to see increased drivers for stronger authentication, partly because of the increase in criminal hacking, partly because of the geopolitical climate, but driving more people towards our technology in more regions. Government regulation is absolutely good for us as ID Associated Standard, which is very much reflected in our client base. We give you here a sample. There are many, many clients that we have in our client base that we simply cannot put on there. There is a list. If we start on the left, we are very strong in government, particularly U.S. federal, where we have customers like Department of State, Department of Homeland Security, the FAA, Federal Aviation Administration, the Senate, but we also have government departments in Singapore, GovTech. We run the national ID scheme for Kuwait, which is quite large. We work with the Dutch government. We also work with other government departments across the Middle East. We then go to the second column, the aerospace and defense sector. You can see we have some very high-profile names there. Again, a lot of these users actually have very broad-based installations. We are not talking about tens and twenties of licenses. We are talking about tens of thousands, if not north of hundred thousands of licenses. They are large and large-scale implementations. Interesting to note that some of these defense and aerospace players, they are not just users, but they also start to resell MyID as a solution into their client base. Their client base are typically the government bodies on the left-hand side. We then move to the right, you will see more generic corporate enterprise, whether that is banks, whether that is healthcare with PII or health records, information and data to be protected. The last one on the right-hand side is very much industry-driven, anything from chemical companies like BASF to mobile operators and anything in between. We have a very I always say for a very small company based in Lutterworth, and we have a very recognizable and impressive client list. What we know from our clients is they tend to stay on platform for a long time. We have had a question over the last couple of years. It is, okay, why do you win? What is your proposition? I think there is a number of angles to this, and we try to highlight that in this slide. From a product perspective, we believe we have market leading functionality, not because we think it is, but that is what our clients are saying, it is what our channels are saying, but also what the independent market analysts are saying. That feeds quite nicely into the market recognition point. The second point regarding references and visibility, when you see the client list, you know that it's very, very high-level clients. By the time you dig into the detail, you'll see that they are typically large clients, and they spend good money with us. We also have the analysts like KuppingerCole, as well as the likes of Gartner referring to our proposition, which has taken a long time to get to, but we're in a good position now. Deployment-wise, we describe ourselves as adaptable. Yes, we deliver on-premise software because that's what our client want. In as far as when they want to protect their data assets and their credentials, they want to control that in their own environment. But we're very flexible in how they deploy that. If they want to do that in their own data centers or in a combination of public and private clouds, we're absolutely fine with that. Any hybrid solution's fine. We worked hard on our go-to-market model, and the last couple of years, we've very much been pushing for an increased reach. Interesting was also with the Authlogics acquisition. They exclusively are taking their product through distribution, so they're very strong in the Middle East. We've got some real good, strong distribution there with strong channel, with strong resellers, and therefore get good market coverage. Colleagues-wise, it's been a central theme of the last couple of years. We've got a phenomenal pool of technical, adapt, and knowledgeable people who have this customer-first mindset. If there's an issue with a customer, my approach tends to be fix the issue, and then afterwards, we can argue about the money, but sort the customer problem. That's very much reflected in the NPS scores we're seeing. Our last customer satisfaction survey, we've seen a significant NPS increase. The NPS is nowadays 50. Two years ago, it was 25. Generally speaking, an NPS of 50 is very much regarded as very solid in the software industry. Pricing-wise, those who've been following this for a while know that traditionally we've been very much a perpetual pricing model, and we've maintained that through acquisition. That product line is all subscription. Going forward, we're offering a hybrid kind of approach and a flexible approach when it comes to pricing. We need to be very, very cognizant of the fact here that there is typically a crossover between perpetual and subscription pricing, particularly for larger kind of clients. Typically, the larger clients will calculate a TCO over a five or 10-year period, and they will choose the model which they believe is most beneficial to them. So that's the proposition. If we then quickly revert back to five years ago. Five years ago, we started with this turnaround, so that was very much phase one. Phase one, we've completed quite nicely. The product is now in a good shape. We've invested a lot. As you well know, our R&D investment is typically GBP 3 million-GBP 3.5 million a year. We've put a lot of investment in the go-to-market model. We recruited some new staff. The business is now profitable. It's generating cash. And we started on phase two. Phase two is all about driving sustainable growth. We've increased the addressable market through both developing our own functionality but also through acquisition. Distribution, the go-to-market model. Again, we talk about nearly 90% of our businesses is going through distribution. We've made our first acquisition that's bedding in very, very nicely, not just from a technical perspective, but also from a process perspective. Nowadays, we have joint development teams, which is really good to see. From a pipeline perspective, this business is developing very, very nicely. With all the work we've put in over the last four to five years, we believe our ambition has got to be double revenues over the next three to four years. How are we going to do that? It's not just a question of buy and build. There are many companies who've gone buy and build in the past and have failed. Our starting point is double digits, organic growth, and then we layer on acquisition as and when we feel there's value to be generated into the product from a revenue perspective, but also shareholder value. At this point, I'll hand over to Nitil, who's going to talk you through the financial detail. Thanks, Klaas. Just going to walk you through this slide. If you start on the left-hand side, previous report. Revenue growth, as Klaas said, is at a record high for us. Why is that important? As the revenue grows, our margins increase, and our profitability increases, which is really good. As you noticed, that we, management put a note out on Tuesday, yesterday, with an increase in our FY 2024 forecast numbers for the year. On the basis of that foundation, over the last five years, we've been able to increase our capability and bandwidth by investing in our product. We're bringing a quarterly cadence into the system, and that means that we are having our clients upgrade also as they move on from the old product to the new product. That's really good news, not just for them as a client with new functionality, but also for our professional services income, and I'll come to that in a minute. We're also integrating the product. Allen will mention further what we're doing with our MFA product, and we're planning to launch a new version 5 in Q4 2024. All this feeds into a client base that is resilient, that is happy, as Klaas has mentioned, NPS at +50 and a low churn. That gives us the ability to continue to invest in our people. As Klaas has mentioned, we're over 100 people now, and colleagues across the U.K., United States. That's good for us because we're able to then recruit the right people for succession planning. We're recruiting the right people for our professional services and therefore giving us the capability of increasing our revenues. We're also planning, as we indicated last time there, we're planning a 2-year investment in our infrastructure, and we're moving the bulk of our back office into Xero and into the cloud. We're doing this for resilience as well. As we grow, we need to make sure that the foundations are strong for us to achieve and execute on that growth strategy. What does that all mean? If we look on the right-hand side, as we've mentioned, revenue is increasing. That's a good sign that we're deploying our product across the piece, not just in the U.S., but obviously still our largest market, but also in the Middle East with our MFA product. Our professional services design, income is increasing. All that is converting nicely into cash. Our cash balance is relatively equivalent to last year's comparative, and last year's comparative was prior to us buying Authlogics, and outflow GBP 2.5 million, circa GBP 2.5 million in cash for the acquisition. If I move on to the income, sorry, from the financial highlights. We just want to show you the 4 highlights on why we want to show you these, is show through gain, the stability and the growth that we've shown for the group for the last 5 years. If you look at the top left, the revenue streams for H1, S&M, PS, and then license income all going in the right direction. Why is support and maintenance, PS, important to us as a key metric? Because if you add the 2 together, they represent a big chunk of our operating expenses. What does that mean for the group? It means that any additional sales in license income or additional income on the PS will flow down very accretively to the bottom line. That's a good metric to have for us because we see this as recurring and repeatable revenue that we can then build the basis of more license sales and more profitability into the group. Revenue, as we mentioned by region, the Americas is still the largest market, but we're seeing more traction in the rest of the world, especially in the U.K., Continental Europe, Middle East, and APAC. That's good news again, because that means our product is starting to spread across not just the federal and government agencies, but also into the corporate world. We also want to show you the difference between obviously some of our other competitors and adjusted EBITDA profits and reported profit for the period. As you can see, our reported profit is higher than our adjusted EBITDA, and the reason is threefold. One, we don't capitalize our R&D. It goes through our income statement as an expense. We also have a cash balance with no debt, so we have finance income rather than finance expense. Because all our developers are in the U.K., we're able to use the favorable U.K. tax scheme on R&D, and you'll see a tax credit in the income statement. As we wanted to show you, another key metric that we focus on is obviously cash. I'll come to that later. But the equity is also increasing, and for the first time is the group has a positive P&L account, which is important for us as well. Thanks, Klaas. Income statement, simple income statement. We don't want to complicate you with adjusted EBITDA numbers across the piece. The reason we're showing you adjusted EBITDA as a stand-alone for the front end of an RNS rather than into our income statement is just to highlight the fact that due to the acquisition, we started to see amortization costs coming in, and we have had some expenses regarding an acquisition. Klaas will mention to you what happened with the M&A strategy on that. The key focus for us is always the gross profit margin. It's important because that means that the higher the margin, the bigger the number, the more accretive it is, and you can see the conversion into operating profit and profit for the period. The other two metrics obviously that we focus on is operating expenses, making sure that we have tight control over that. We have a controlled expansion investment, as we've mentioned. That's all again gearing itself up to either being attached to a revenue stream that we see in professional services from demand from our clients, or we're obviously increasing our capability and our functionality to keep the product ahead of our competitors and increase our market share. As we mentioned, the finance income is a positive number on the income statement, and that's obviously benefiting from the current high interest rates. We have our bank in the U.K. with Barclays and Investec, and Citizens in the United States. Next page. Financial position, again, clean balance sheet for the group. The addition movements obviously are the IFRS 3 acquisition accounting for the Authlogics transaction in October, November 2022. You'll see obviously goodwill arising on that, and obviously the identifiable intangibles. The other three metrics we focus on here are trade and other receivables, cash, and deferred income. Why are they important? Again, working capital management for the group. It's really important that we continue to look after the working current capital for the next 12 months. We have a forecast out there. We adapt that every month, rolling 12 months. Why is that important? Again, back to investing in our capability and our product and helping us to do an M&A, execute on an M&A strategy. Then cash generation. We expense our R&D, so you don't see that on our cash flow statements prior to that. The two movements this year are mainly to do with capital infrastructure, CapEx, and with upgrading our laptops and our back office servers as and which were required. Obviously the investing activity is all to do with the right of use assets on our leases. Again, as we've mentioned, no debt in the group. It gives us a good unleveraged balance sheet to pursue an M&A strategy as well. On that basis, I'm going to pass you over to Allen Storey on the product strategy. Starting to look at what we are doing with our product set, where we are investing to try and capitalize on the growing demand for our sort of technology. The first one is rebranding. Just over a year ago, we were a single product company. We had a credential management system. We then acquired password security management and multifactor authentication on the Authlogics acquisition. We believe we can take that to market better and stronger if we rebrand those under the Intercede and MyID product family. We have moved from being a single product company to a multi-product company. That rebranding allows us to capitalize on our reputation in the market for some of our very high assurance customers and take that down into more of the mid-market. A brief reminder what the products are. Password security management is all about if you are still using passwords, and a number of our customers are on a journey towards stronger authentication, how do we protect them? That is the world's largest database of compromised credentials. When a data breach happens, be it Marriott or TalkTalk, for example, usernames and passwords are leaked online. Bad actors will take that and try and break into systems with it. We do the same, but we do not try and break into systems with it. We tell our customers their passwords are compromised, and we allow them to change them immediately. Our software will force that to happen. Multifactor authentication is the product that sits in the mid-range. That is anything between passwords and the very high assurance authentication. Using phones with one-time codes, push notifications, for example. The credential management is the core product we have been working on for a long time, still generates most of the revenue in that very high assurance government space. First step is rebrand and then looking into the individual products. Password security management, and when we acquired it, we believed and still believe it is a very capable product. It is technically excellent. It has lots of information and lots of intelligence about, I recognize this particular username and password being used for an online account. It is also the same one in the business account, therefore you need to change it immediately. That is really investing in marketing around that. That is part of the reason for the rebrand. We can use our credibility, but it is supporting the existing reseller channel and extending our reseller channel for that particular product. MFA, multifactor authentication in the middle of that security pyramid. That is a very busy market. It is a very competitive market. There are lots of vendors with products in that particular space, so it is important for us to differentiate. What we are doing is taking some of the knowledge and skills we have from the higher assurance product and bringing it into that mid-market product. Not all the way to the top of the pyramid in terms of PKI, we believe that is too complex. FIDO, bringing that into the MFA product, so Fast Identity Online, that uses cryptography, it uses highly secure mechanisms for authenticating people. We can bring that into that product, and it really starts to differentiate. There are probably 30 or 40 MFA vendors out there. With this in here, there is probably only two or three who could support FIDO in that enterprise space. The main reason we're doing that is because we believe with NIS2 starting to push people towards stronger authentication, a lot of those mid-sized customers won't move all the way up to PKI. But with FIDO, we can really differentiate and bring that skills and knowledge into that product set. Again, that's then launching that through the reseller channel. From a credential management system perspective, we believe we already have the market leading product. That's been stated by independent results from reports from the likes of KuppingerCole look into this particular market. But we need to make sure we keep ahead of the competition. A number of our very large U.S. government wins tend to deploy the product for 5-10 years. They need to be confident that our product doesn't just meet their needs now, but as technology changes over time, we're ahead of the game and we will meet their needs. A couple of examples there. One of them is MFA integration. Some of our customers today will buy high assurance authentication from us, multi-factor authentication from another vendor, password management from another vendor. By integrating the products, we can give them a single pane of glass that allows them to manage all of those credentials from a single interface. So it gives them an operational advantage. But we also believe we can capitalize on the fact that we are the only vendor who covers passwords, MFA, and high assurance FIDO PKI. So we can start to give flexibility from a commercial perspective. If you don't have to, as an organization therefore, create three contracts with three sets of licenses from three sets of vendors, you can come to us, you can buy 10,000 CMS licenses, you can buy 20,000 MFA licenses, and as you want to move up the pyramid, we'll simply let you migrate those licenses. So you don't actually have to enter into multiple contracts there. Second one of the two I'll talk about here is mobile. Mobile is quite a strength for Intercede. We've deployed large-scale mobile deployments in the U.S. government, and we also have with the national ID of Kuwait that was mentioned earlier. We've deployed 4 million smart cards with our technology, but also 2 million digital identities, citizen identities, onto citizens' own phones. If you look at some of the players in this space, in the enterprise environment, mobile device management vendors, people such as Microsoft or VMware AirWatch, who both coincidentally embed our SDKs in their products, then a 10 or 20 or 30,000 user deployment is quite large for them. We've got over 2 million live mobiles out there for a project, so we have a lot of credibility on the mobile space. One particular area of interest for us at the moment is in the U.S., there's a technology based on mobile driving license. If you get stopped by a traffic cop in the U.S., you don't show a plastic card, you show an app on your phone, but that's cryptographically signed so that the traffic cop will scan it with their phone, it will do a cryptographic handshake, and it will check that's a genuine driving license. It's not been faked, it's not been tampered with, and it's still current. We're working with a partner in the U.K., NEC, who provide a lot of the back-end police infrastructure. If you phone 911 in the U.K., the people answering that call and routing an ambulance or a fire engine, for example, to your location, they're using NEC software to do that. NEC, we're working with their innovations lab, spotted a gap in the market whereby it's not easy to identify a genuine police officer from their warrant card in the U.K. The warrant card is police identification card, and it's just a plastic card. Recently, the organization that issued those, not us, somebody else, got hacked. There's lots of police information leaked there online. There are known fake police warrant cards out there. It's also very difficult to check that person is still a police officer. If they've been sacked from the police for misconduct, they can still carry their warrant card. It's difficult to know they're not genuine. If the police officers are policing sort of violent demonstrations, for example, probably nobody's going to stop them and ask for an identity. But the more sensitive cases such as child abuse, domestic abuse, it's really important that the person reporting those crimes knows the person they're talking to is a genuine police officer. The NEC solution, they have the back-end infrastructure that connects to the police systems. They've written an app, they embed our technology within that app, so we can publish a digital police warrant card down to that police phone. It's using the MDL, the mobile driving license technology, but it's not a mobile driving license. It's a police warrant card in that NEC app. What happens then is the citizen can go to a single point of presence on the police website. They can choose to verify an officer. They don't need to download any software on their phone. They can scan the police warrant card that's presented on the police officer's phone. That will do that cryptographic handshake. Very secure key-based technology. It will verify that's genuine. It present information about that officer and that citizen can then know that that police officer is genuine. That's just an example of the way we're taking what we believe is already a very strong credential management product, and we're keeping it ahead of the competition by investing in the technology. Just a couple of examples there of what that looks like, but I think I probably explained those. If we then move on to summary and outlook. Clearly we've put a lot of time and effort in the last couple of years to reposition the business, which realistically has resulted now in what we believe is the company that's got the leading CMS product. Not just because we think it is, but very much endorsed by clients, endorsed by our channels, but also through recognition in the analyst, market analyst world. We've moved from a single product company to a multi-product company through acquisition, and the aim is to do more in that space. Pricing-wise, we're very much implementing the dual kind of pricing strategy, both perpetual as well as subscription. Revenue margin, profitability focus was definitely extremely strong in year one when I started, but actually it has stayed on the same trajectory and with Nitil on board now for the last 20 odd months, this has definitely not been lacking either. We are very, very hot on the margin. We know our KPIs inside out. Good news is cash conversion has been strong. Cash at the end of the period was again, very, very strong. Over the last couple of years, we have cleaned up the balance sheet quite nicely. We had or used to have a convertible loan note out there, which we retired a year early of its maturity, and we believe we have got strong momentum into the market. If we then look at outlook, we have record revenues for the group, and we expect to be ahead of previous market expectations, which I think is a good testament to the hard work that has gone into the last six months. But also in that last six months, taking advantage of the hard work we put in there in prior periods. Product portfolio very much expanded through acquisition, but also we continue to build net new functionality across the product portfolio where required. We talked about the pricing strategies. We talked about the balance sheet. We have got very strong, high recurring revenue. We have got very little attrition. We can use that cash we generate for both internal investment, but also for potential M&A, which is the next point. The M&A is there not for Intercede to perform a buy and build exercise. No, the starting point, objective number one is solid double-digit growth, and where we can, we will layer on additional revenue and product through acquisition in the same way as we have done with Authlogics. Because of the efforts we have done over the last couple of years, we believe we are now in a very strong position with a lot of the KPIs moving in the right direction, that our ambition should be to double revenues over the next three to four years. Which pretty much concludes our presentation. We have got a little bit of time for Q&A. Jake, are you coming back in at this stage? Perfect. Yes, sir. If I may, Klaas, Nitil, Alan, 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 were submitted already, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. Guys, as you can see there in the Q&A tab, 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 Klaas, Alan, Nitil, if I may just hand back to you just to read out those questions and give your responses where appropriate to do so, and then I will pick up from you at the end. Thank you. Thank you, Jake. I will read the questions, and if I am lucky, I can hand the questions to my colleagues to answer. We will have a good go at this. How is Authlogics trading? You forecast revenues of 700K in FY 2024 when you purchased this. Is it on course? Why did you extend the contingent consideration? It is a question from Alistair. Nitil, this is definitely one for you. Thank you, Klaas. How is it performing? It has been slightly behind the curve, and I will give you a reason why. When we are doing our DD, we identified some pain points they had. I think Alan mentioned that their sales and marketing function was not very good. We knew that when we were buying this. We let them set their own revenue targets, which we thought were quite aggressive. We let that happen in the SDA, and since we bought them, we gave them three to four months to continue with their existing sales and marketing strategy. When that was not working, we took over. Since we have taken over, the pipeline has increased, the marketing is more effective, and we see traction now increasing. However, it is a subscription model. It is a rule of 78. You have to sell in the first quarter to benefit from the full revenue streams for them to benefit from the deferred consideration. So they are slightly behind target. On that basis, why did we extend? They saw this, and they see this, obviously, the writing on the wall. They were slightly disgruntled. How did we approach this? We like them. We think they are smart humans. We think they are delivering a good product. We are integrating well with them. Therefore, we thought that it was beneficial for us to then meet in an equitable manner of, A, making sure that the acquisition integration is working well, and how can we make sure that they have got the capability of achieving the deferred consideration going forward. By extending it by another year, gave them that capability, that ability, because they are seeing the movement in the pipeline and the conversion of that new sales functionality. It is a win-win for us in the sense that this is a self-financing acquisition. If they deliver against those target revenues in years 2 and 3, it pays for itself on the deferred consideration. We get the revenue, we get the profits, and they get the deferred consideration. So we decided as a board that it was the best course of action, A, to keep the vendors happy, to keep them focused, and also to give them the runway to achieve that earn-out. Thank you, Nitil. Got another question from Alistair. Congratulations on an excellent set of results. You stated ambition over the next 3 to 4 years is to double revenues with resilient cash generation. Why are you treating organic and acquired revenue growth in the same way? Organic revenue growth with tight cost control is clearly beneficial, but overpaying for an acquisition that delivers revenue and cash flow destroys shareholder value. Should you be applying an incremental return on capital test to acquisitions? I think we need to dissect this a little bit. As I stated before, the starting point here is not a buy and build. The starting point here is good, solid, double-digit revenue growth organically. As and where we can, we will layer on. That is point number one. Point number two is, I absolutely agree with you, Alistair, that overpaying for an acquisition is absolutely the worst thing to do and will destroy shareholder value. We have a professional organization around our M&A. We got a very experienced head of corporate development who has been around the blocks on numerous occasions backwards and forwards. He understands this space. We on this table understand this space. The interesting bit is, we all know interest rates have gone up. Debt is more expensive. Overpaying for an acquisition, we are actually quite shrewd nowadays that we do not want to go down that route, and ultimately would cause us. In full transparency, I think this is described in company's note as well. We were pursuing an acquisition, but through due diligence, we found that the things did not align, as an outcome of due diligence, compared to what we were told before we started. We took the easy decision to walk away. It is better to walk away. Yes, we have some costs associated with it, but to acquire a company that we know will have execution issues within the first year or two is absolutely not what we want to do. So hopefully that answers your question. Next question is from Samuel. How do you identify your M&A targets? How much of an importance does the ability to secure recurring revenue play on choosing your targets? What other KPIs do you measure the success of this activity? Again, recurring revenue is definitely one of the core KPIs. I'm going to be cautious in the other KPIs because I don't know who's listening to this. I don't want to give our competitors a strong insight as to what we do. But realistically, we treat M&A in exactly the same way as we do our sales. We have a long list, we have a short list, we have an engagement program with potential targets, and based on that, we decide very quickly whether something fits or whether something doesn't fit. Again, we got key members of the management team involved in most of these conversations. So we treat this very much as a sales funnel. Yeah, to answer your question, recurring revenue, definitely very high on that list. Next question is from Peter D, which I think we've explained in. Oh, hang on one second. I need to scroll down. I'm using somebody else's laptop. Yeah. Deferred consideration, we talked about that. The secondary question from Peter is this related to the release schedule for FIDO products? Alan? Yeah. So no, it's not. The release schedule for the FIDO products is driven by a couple of things. One, I was in the U.S. with our customers last week, customer advisory board. One of the key sessions in there is a workshop where we look at which of these features are important to you, and we get their feedback, so we make sure our product fits the market need. FIDO was very high on their agenda, so they wanted to validate that. The others, we've been talking to analysts, we've been attending FIDO conferences, looking at what's needed in the market, looking at the NIS2 regulation. So we wanted to make sure that we were building the product that customers would buy before we actually took it to market. So it's more related to making sure the market's correct than anything to do with the deferred. Thank you, Alan. Martin C has got a question. What opportunities are there to increase prices to customers over time as they become hooked on your products? We love customers who are hooked on our products, and the good news is, many of our clients stay on platform for 10, 15 years. I think our longest serving client is 21. So probably means they're addicted by now. Yes, we are reviewing our pricing policies quite frequently. Before I joined, that wasn't done. We now pretty much have an annual review, and we decide whether we need to increase prices. I think over the last three years, we've had several price increases. Clearly, we need to be careful because we're not alone in this market, but we definitely price what the market can bear. We have another question from Alistair. In the future, will you please split out organic and inorganic revenue growth in your reporting? Alistair, I'm afraid the answer is no to that. Andy E has got a question. How much of Intercede's attractive growth prospects are linked to PKI remaining as the go-to route for secure communications? Alan? We're driven by what our customers want. Historically, that would have been a problem for us if customers started moving to other technologies away from PKI. It would have been a problem. We're not actually seeing that. We're seeing growth in the PKI market as well, certainly in the U.S., where it's dictated by the standards. In Europe, it will be very interesting to look at the actual final legislation that comes out in the countries around NIS2, and whether that pushes people to PKI or whether it pushes people to FIDO. But I think at the moment, we're very well protected because we can offer passwords all the way up through one-time passwords, through FIDO, through PKI. We're very protected against that changing. But it's not something we're seeing at the moment. We're actually seeing a growth in all forms of demand for secure authentication. Great. Thank you. We got a question from Bob. The U.K. is underrepresented in your revenues versus the U.S. What do you need to see happen in the U.K. market or in your U.K. operations for product adoption to catch up with the U.S.? Are there any limits to U.K. adoption reaching U.S. levels? I think there are two answers to this. Alan has tried to explain that our market drivers are very much driven by regulation. So in the U.S. market, there are very clear regulations in FIPS 201 as to what the U.S. federal agencies and the defense and aerospace companies need to comply with. Unfortunately, that does not exist in the U.K. So it's unlikely we'll see a similar kind of adoption. However, there's a second part to the answer, and that's related to the situation in Ukraine. Since Ukraine invasion, we've seen a significant interest or increase in interest, particularly from U.K. government. We believe that's driven by the Five Eyes collaborating. U.S. clearly is quite dominant within the Five Eyes, and they are driving the security posture. The good news from our perspective is that the U.S., particularly U.S. Federal, is very familiar with our kind of technology. And what we actually see happening is that U.K. government is now starting to implement MyID CMS within several different discrete instances. So we've already closed a number of deals last year, and we've got more deals in the pipeline. But I don't think it's going to see the same kind of uptake as we've seen in the U.S., because simply there isn't the regulation, there aren't the standards in the U.K. market. However, we take a slightly broader. NIS2 is interesting. Again, it's very high on our radar screen. We do think that NIS2 has got potentially good ability for us to take advantage of much stronger regulation in the EU, and we are absolutely positioning into that market. I think that's the final question on the list. We've answered all the questions. Jake, I'm going to hand over back to you. Perfect. Klaas, Alan, Little, thank you very much indeed for being so generous with your time then addressing all of those questions that came in from investors this afternoon. Of course, as usual, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just for you to review to then add any additional responses, of course, where it's appropriate to do so, and we'll publish all of those responses on the platform. Klaas, perhaps before really just looking to redirect those on the call to provide you their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with, that'd be great. Thank you, Jake. A couple of final words in closing. We've delivered clearly record revenues for the group, with revenues up 15%, which was underpinned by strong organic growth. As discussed, we have the market drivers as well as the dynamics which will put Intercede offerings right at the heart of strong identity and our aim is to deliver strong, sustainable revenue growth and profitability. Clearly, this is not possible without a committed team of colleagues who deliver what I believe is the best code 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, and please do provide us with your feedback at the end of this session. We do read all the feedback. We do take it very, very serious. Hopefully, you'll be generous with your feedback. As long as it's constructive, we'll take it very, very happily. Thank you very much for your time. Klaas, that's 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 really better understand your views and expectations. This will only take a few moments to complete, but 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. Thank you. Thank you.