Intercede returns to profit as US government order bolsters revenues

Digital and identity specialist Intercede has secured a $4.3m order from the US Federal Government, pushing the group's full-year revenues ahead of market expectations.

Intercede revealed on Tuesday that $2.05m worth of the order's revenues, which covers software licenses and annual support and maintenance, will be recognised in the financial year ended 31 March, swinging the group back into the green after posting a £4.5m operating loss a year ago.

Subject to the completion of its year-end audit, Intercede anticipates revenues for the year will be "in excess of £10m", which is ahead of market expectations and approximately 10% higher than the previous financial year.

The AIM-listed firm said its performance reflected the impact of follow-on orders from existing customers plus new contract wins via partners in the US, Europe and SE Asia.

"The establishment and further development of these and other partner relationships is critical for the group's future growth prospects," said Intercede.

As of 0845 BST, Intercede shares had soared 32.12% to 21.80p.