10. Microlise Group Plc
Tracking for Profit – Tech Solutions for Fleets
Microlise Group Plc is a Nottingham-based company that makes money by selling technology solutions to help businesses manage their vehicle fleets more efficiently. It operates in the transport technology – or telematics – industry, providing software and services that track vehicles, improve safety, and cut costs for companies with lots of trucks or vans on the road.
The company’s main product is its transport management software, which it sells to fleet operators like DHL, Eddie Stobart, and Tesco’s One Stop. This software tracks vehicles in real-time, monitors driver performance, and optimises routes to save fuel and time. Microlise charges a subscription fee for this service, often on multi-year contracts, which brings in steady, recurring revenue. It also offers add-ons like proof-of-delivery systems – used to confirm packages have arrived – and safety tools that alert managers to risky driving. In 2023, Microlise reported revenues of £71.7 million, up 13% from the previous year, with recurring revenue making up a big chunk thanks to 450 new customers and a low churn rate of 0.7%.
Microlise also provides hardware, like in-vehicle tracking devices, and consultancy services to help clients set up their systems. Its solutions are used by over 400 enterprise clients globally, from grocery retailers to manufacturers like JCB, helping them reduce fuel costs and emissions – the company claims its tech saves £172 million in fuel annually. However, a 2024 cyberattack by the SafePay ransomware group disrupted operations, affecting clients like DHL and Serco, and stole 1.2 terabytes of corporate data, though customer data was reportedly safe. This incident, which hit prison van tracking and courier services, highlights the risks in Microlise’s tech-heavy business.
Founded in 1982, Microlise employs over 800 people worldwide, with offices in the UK, France, India, and Australia. It’s listed on the AIM market of the London Stock Exchange and has won awards for innovation. With a focus on sustainability and efficiency, Microlise is well-placed to grow – but it must navigate cybersecurity threats and competition in a fast-moving industry.
Microlise, a company established before I was born (and not a recent entrant), has been publicly listed for only a few years. Despite challenges faced in 2024, it demonstrates solid growth. As a provider of subscription-based technology, Microlise possesses the potential for rapid expansion without heavily relying on balance sheet resources. This allows for high levels of growth if it can be found.
Its strengths lie in its existing profitability, sparing shareholders the burden of financing losses, and its SaaS model, which ensures a steady revenue stream. One can reasonably infer that once its products are integrated into a customer’s operations, they become indispensable. As of now, Microlise presents enough promise to merit further investigation by Wonder Stocks.