Intercede unveils $4m of new business as first-half profits sink

(Sharecast News) - Digital identity and authentication group Intercede reported a sharp fall in first-half profits due to a weaker top line and increased investments, but delivered a confident outlook, bolstered by a series of new contract and renewal orders worth $4.2m. The company announced that it had signed $2.3m of licence orders for its MyID CMS product by governmental clients in the US and Asia, along with $1.9m-worth of support and maintenance renewals and professional services extensions.

"These orders were generated through strategic collaborations, demonstrating the success of our partnership-driven approach and the strength of the group's broader network," Intercede said.

The news came as the company released its first-half results, which showed a 4% year-on-year fall in revenues to £8.2m in the six months to 30 September, against a backdrop of heightened macro volatility, which caused uncertainty and delayed decision-making across many end-markets.

At the same time, operating expenses were steady at £6.9m - equal to 84% of revenues, up from 81% previously - due to ongoing investments in product development, IT infrastructure and higher salaries.

Along with slightly weaker margins, Intercede book a pre-tax profit of £1.3m for the period, down 26% from the year before.

"As we enter the second half of FY26, we do so with a robust, geographically diversified pipeline, positioning us, we believe, to meet full-year financial expectations in line with current market consensus," said chair Royston Hoggarth.

Analysts currently expect the company to deliver revenues of £18.7m and adjusted pre-tax profits of £4.6m for the fiscal year to 31 March 2026, compared with £17.7m and £4.6m the year before, respectively.

Shares were up 0.8% at 128p by 1009 GMT.