22 July 2021

MICROLISE GROUP PLC

("Microlise" or "the Group")

Admission to Trading on AIM

&

First Day of Dealings

Microlise, a leading provider of transport management software to fleet operators, is pleased to announce the admission of its Ordinary Shares to trading on the AIM market of the London Stock Exchange. Dealings will commence at 8.00 a.m. today, Thursday 22 July 2021, under the ticker SAAS and ISIN GB00BLR8L223.

About Microlise

·      Microlise is a leading provider of transport management software to fleet operators helping them to improve efficiency, safety, and reduce emissions 

·      These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience

·      Established in 1982, Microlise is an award-winning business with around 350 employees based at the Group's headquarters in Nottingham, as part of a total staff of 500 globally with international offices in France, India and Australia 

·      Microlise's proprietary modular platform was specifically developed to provide an end-to-end technology solution for fleet operators. 58% of UK large HGV fleet operators (defined as comprising more than 500 vehicles) use the Microlise platform 

·      The Group has a diverse customer base, with over 400 enterprise customers including organisations representing 88% of the UK grocery retail market by market share. Other customers include Culina Group, DFS, Hovis, MAN Truck & Bus UK, and Yodel

·      Award winning platform, and SaaS contracts, underpin long term customer relationships with exceptionally low churn of less than 1% in FY20

·      Microlise has a track record of consistent recurring revenue growth, profitability and cash generation, growing recurring revenue by 19.0% in FY20 to £32.0 million (total Group revenue £50.0m)

·      Microlise qualifies for the London Stock Exchange's Green Economy Mark

Admission Highlights

·      Microlise raised gross proceeds of £61.2 million at the Placing Price of 135 pence per share

·      The oversubscribed fundraising raised gross proceeds of £18.6 million for the Company and approximately £42.6 million for certain selling shareholders

·      Upon Admission, Microlise will have a market capitalisation of approximately £156.5 million (at the Placing Price) with a free float of 39.1%

·      The Directors believe admission to AIM will support Microlise's next stage of development, including:

o  To help realise the significant revenue potential within the existing customer base and to up-sell and cross-sell Microlise's products

o  The broadening of the Group's product offering

o  The penetration of new geographies and market segments, including the market for smaller fleet sizes and different vehicle types, such as light commercial vehicles

o  The opportunity to accelerate the Group's growth strategy through targeted M&A to expand its international business, and to add to Microlise's product portfolio

o  Enhancement of the Group's profile with customers and to assist with the recruitment, retention and incentivisation of senior management and employees at all levels of the Group  

·      Singer Capital Markets acted as Nominated Adviser and Sole Broker

Green Economy Mark

·      The London Stock Exchange's Green Economy Mark recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy

·      The underlying methodology incorporates the Green Revenues data model developed by FTSE Russell, which helps investors understand the global industrial transition to a green and low carbon economy with consistent, transparent data and indexes

Nadeem Raza, CEO, Microlise, said: "This is a fantastic day for Microlise. With an established track record of growth, proven management, and a market-leading position in providing technology solutions to fleet operators, Microlise is well set to capitalise on what we believe to be a major growth opportunity. Our customers are under pressure to meet increased environmental regulations and want more integration across supply chains. In addition, the challenges of the pandemic and Brexit have raised even greater awareness of the need to optimise the movement of goods efficiently and sustainably. Our IPO will support the next stage of our development, including expanding our international business, and entering new market segments. We look forward to updating shareholders on our progress." 

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