Intercede beats forecast and eyes "explosive growth"

Identity cards group Intercede has broken back into the black, with revenues rising even higher than a recent trading update had suggested. The company upped investment in infrastructure, technology development and sales capacity, and said it intended to continue to pursue a "considered" programme of investment in corporate infrastructure to provide it with the scale to take advantage of trends it perceived as stoking its markets.Sales revenues rose 45% to £9.8m, higher than the 40% expected and, with operating expenses up to £9.4m from £7.5, meant the AIM-listed company produced a £0.8m profit compared to a comparative loss of £0.6m the year before.Significant contract wins included a large-scale US government transport security programme, two of the top six global aerospace and defence companies, and flagship mobile identity contracts with North American and German telecoms companies.Chairman and Chief Executive Richard Parris said these major contracts will provide a "stable base" of revenue, with additional scope to grow as Intercede wins further such contracts. He added that the newer "cyber security" market that was increasingly providing larger opportunities for growth. "The trends we are seeing here suggest the market is on the edge of potentially explosive growth: the traditional password becoming obsolete, the proliferation of mobile devices to conduct more and more daily lifestyle functions and the increasing number of business services being conducted online. "All require highly sophisticated forms of trusted identity, the cornerstone of cyber security, and this is an area in which Intercede is a leading provider" As such, and with net cash standing at £7.2m at period end, he said management intend to continue to invest in the business.Broker FinnCap said: "Intercede is, in our opinion, the evident go-to provider for credential and identity management software, with opportunities expanding with accelerated investment: we review forecasts to increase revenue and investment expectations. We lift our target to 220p."Shares in Intercede were up 4.6% to 75.2p just before close on Thursday. OH