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18 Jan 2021 | 10:00

IQGeo narrows FY losses as both revenues and margins improve

(Sharecast News) - Software developer IQGeo said on Monday that it had narrowed full-year losses and expects to show good growth across all key metrics in its 2020 trading results. IQGeo anticipates that revenue for the year will be no less than £9.0m, up from £7.8m in the prior year, with its own product revenues expected to grow approximately 30% to more than £7.0m as own product orders increased 42% to £10.7m.

The AIM-listed group also highlighted that its strategy of converting the business to a recurring revenue model continued to show "positive momentum" and approximately 35% of total revenues were now recurring, up from 21% in 2019, with annualised recurring revenue run rate as of December expected to be around £5.3m, up from £2.0m in 2019.

Gross margins were also said to have "improved considerably" and were expected to exceed 50%, leading the group to now expect to report a "significantly reduced" adjusted underlying loss of around £2.5m.

Looking forward, IGGeo said it saw "continued strong market demand" and added that it would "remain vigilant" and manage investment levels "appropriately".

Chief executive Richard Petti said: "The results for the year are very positive and show considerable progress as we continue the journey of building a high recurring revenue software business."

As of 0955 GMT, IQGeo shares were up 9.36% at 102.80p.
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