Intercede (IGP) AI Stock Analysis

• Market Cap: £67.46M
• Dividend Yield: N/A
• Average Volume (3M): 120.69K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.79
• Revenue Growth: -19.19%
• EPS Growth: -41.12%
• Country: UK
• Employees: 108
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 59,962,547
• 10 Day Avg. Volume: 233,929
• 30 Day Avg. Volume: 120,689
• PEG Ratio: -0.67
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 4.74
• P/FCF Ratio: 36.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 120.00p ▼(-4.76% Downside)

Intercede's overall stock score is driven by its strong corporate events and stable financial performance, despite technical weaknesses. The company's ability to secure significant contracts and insider confidence are positive indicators, but technical analysis suggests caution due to bearish trends.

Positive Factors

High gross margins

Sustained gross margins above 96% indicate a highly scalable, low-variable-cost software model and strong pricing power. Over months this margin cushion supports investment in product development and sales, preserves profitability through revenue pressure, and underpins durable operating leverage.

Low leverage / strong capital structure

Very low debt and a healthy equity ratio provide financial flexibility for multi-month horizons: supports funding of contract delivery, targeted M&A or R&D, and resilience to revenue volatility without stressing liquidity or requiring dilutive financing under moderate cyclicality.

Contract wins and insider confidence

Securing $4.2m in contracts plus insider buying is a structural positive: contract backlog improves short-to-medium term revenue visibility while executive stake increases align management incentives with shareholders, supporting disciplined execution and longer-term customer relationships.

Negative Factors

Declining revenue

A near-20% revenue decline signals weakening demand or contract attrition, which can erode scale benefits and make fixed-cost absorption harder. Persisting top-line contraction over months risks margin pressure, reduced R&D capacity and weaker competitive positioning in identity security markets.

Weak free cash flow conversion

A 67% drop in free cash flow growth and FCF conversion under 0.6 indicate difficulty turning profits into cash. Over several months this limits reinvestment, heightens reliance on external funding for growth or working capital, and reduces capacity for shareholder returns or opportunistic investments.

Eroding return on equity

A falling ROE to 23.8% suggests management is generating lower returns from shareholder capital. If this trend continues for months, it may reflect weaker profitability or capital allocation inefficiencies, undermining long-term shareholder value creation and limiting strategic options.

Intercede Business Overview & Revenue Model

Company Description

Intercede Group plc, a cybersecurity company, engages in identity, credential management, and secure mobility business to enable digital trust in the United Kingdom, rest of Europe, the United States, and internationally. The company offers MyID, a credential management system for cyber secure digital identity that allows organizations to deploy digital identities to a range of secure devices; MyID Professional, an identity management software solution that enables enterprises to replace insecure passwords across their workforce with the strong user authentication – smart cards, or USB tokens with public key infrastructure certificates; and MyID Enterprise, a software solution for large organizations and governments to deploy and manage digital identities to a range of secure devices. In addition, it provides MyID PIV, a software solution for federal agencies that issue and manage secure digital identities to federal employees. The company serves government and federal; aerospace and defense; finance and banking; healthcare and critical infrastructure; energy and utilities; manufacturing and industry; and military and police institutes. The company was formerly known as Optionsilver plc and changed its name to Intercede Group plc in December 2000. The company was founded in 1992 and is headquartered in Lutterworth, the United Kingdom.

How the Company Makes Money

Intercede generates revenue primarily through software licensing, where customers pay for the MyID platform based on the number of users or devices. Additionally, the company earns income from maintenance and support services, which provide ongoing assistance and updates for its software. Strategic partnerships with other technology providers and government agencies also contribute to its earnings by enhancing its market reach and enabling collaborative projects that expand the use of its identity management solutions.

Intercede Financial Statement Overview

Summary

Intercede demonstrates strong profitability and operational efficiency, as evidenced by high margins. However, the recent revenue decline and significant drop in free cash flow growth are areas of concern. The balance sheet remains strong with low leverage, but the decrease in return on equity suggests potential challenges in maintaining high returns. Overall, the company is financially stable but faces growth challenges.

Income Statement

Intercede's income statement shows a strong gross profit margin, consistently above 96%, indicating efficient cost management. However, the company experienced a significant revenue decline of 17.66% in the latest year, which is a concern. Despite this, the net profit margin remains healthy at 22.89%, suggesting profitability. The EBIT and EBITDA margins are also robust, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with a low debt-to-equity ratio of 0.036, indicating low leverage. The equity ratio of 59.37% suggests a strong capital structure. However, the return on equity has decreased to 23.80%, which may indicate reduced efficiency in generating returns from equity.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth by 67.18%, which is concerning. The operating cash flow to net income ratio is 0.71, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.57, suggesting some challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.38M	17.71M	19.96M	12.11M	9.93M	10.96M
Gross Profit	16.25M	17.19M	19.40M	11.71M	9.73M	10.73M
EBITDA	4.78M	5.17M	6.11M	1.06M	713.00K	1.91M
Net Income	3.63M	4.05M	6.02M	1.31M	723.00K	1.53M
Balance Sheet
Total Assets	25.59M	28.69M	25.69M	17.44M	12.93M	13.01M
Cash, Cash Equivalents and Short-Term Investments	17.82M	18.67M	17.23M	8.33M	7.79M	8.03M
Total Debt	1.15M	619.00K	804.00K	465.00K	756.00K	1.11M
Total Liabilities	9.13M	11.66M	12.52M	10.41M	7.42M	8.26M
Stockholders Equity	16.46M	17.03M	13.18M	7.03M	5.51M	4.75M
Cash Flow
Free Cash Flow	4.33M	2.30M	9.27M	2.79M	77.00K	4.14M
Operating Cash Flow	4.45M	2.88M	9.63M	2.86M	110.00K	4.24M
Investing Cash Flow	-395.00K	-856.00K	-358.00K	-2.08M	-33.00K	-95.00K
Financing Cash Flow	-2.47M	-529.00K	-333.00K	-294.00K	-372.00K	-791.00K

Intercede Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IGP, the sentiment is Negative. The current price of 126 is above the 20-day moving average (MA) of 123.00, below the 50-day MA of 129.42, and below the 200-day MA of 157.04, indicating a bearish trend. The MACD of -4.09 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IGP.

Intercede Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	75 Outperform	£98.03M	13.36	5.30%	―	-3.95%	16.87%
SPSC	72 Outperform	£76.75M	―	―	4.16%	―	―
GBG	70 Outperform	£567.66M	66.85	1.56%	1.73%	-0.18%	11.49%
IGP	64 Neutral	£67.46M	18.63	23.08%	―	-19.19%	-41.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCC	54 Neutral	£428.77M	25.10	―	2.16%	―	―
COIN	41 Neutral	£16.81M	-4.44	-19.77%	―	―	―

Intercede Corporate Events

Intercede Issues New Shares After Employee Option Exercise, Updates Voting Rights

Intercede Group has issued 200,000 new ordinary shares following the exercise of employee share options under its Enterprise Management Incentive Plan, with admission of the new shares to trading on AIM expected around 22 January 2026. The issuance increases the company’s total share capital to 60,536,452 ordinary shares, of which 60,162,546 carry voting rights after accounting for treasury shares, providing an updated denominator for investors monitoring disclosure thresholds under UK transparency rules and modestly expanding the company’s equity base through employee-related incentives.

The most recent analyst rating on (GB:IGP) stock is a Hold with a £126.00 price target. To see the full list of analyst forecasts on Intercede stock, see the GB:IGP Stock Forecast page.

Intercede Issues New Shares After Employee Option Exercise, Updates Voting Rights

Intercede Group has issued 150,000 new ordinary shares following the exercise of employee share options under its Enterprise Management Incentive Plan, with the new shares expected to be admitted to trading on AIM around 2 January 2026. After admission, the company will have 60,336,452 ordinary shares in issue, of which 373,906 are held in treasury, resulting in 59,962,546 voting rights, a figure shareholders can use to assess disclosure obligations under UK transparency rules.

The most recent analyst rating on (GB:IGP) stock is a Hold with a £142.00 price target. To see the full list of analyst forecasts on Intercede stock, see the GB:IGP Stock Forecast page.

Intercede Secures $4.2 Million in New Contracts and Renewals

Intercede Group PLC, a leader in cybersecurity software, announced significant progress in contract awards and renewals for Q3 FY26, totaling approximately $4.2 million. Key contracts include a substantial US Federal Government order and major deals with government clients in Asia. These developments underscore Intercede’s strategic partnerships and its ability to secure significant contracts despite market delays. The company’s CEO, Klaas van der Leest, expressed satisfaction with the group’s performance and its success in converting pipeline opportunities into tangible orders, highlighting its strong industry positioning.

The most recent analyst rating on (GB:IGP) stock is a Hold with a £148.00 price target. To see the full list of analyst forecasts on Intercede stock, see the GB:IGP Stock Forecast page.

Intercede Group Reports Resilient Interim Results Amid Market Challenges

Intercede Group PLC has announced its interim results for the six months ended 30 September 2025, highlighting a strategic focus on innovation, expansion, and execution despite a challenging macroeconomic environment. The company reported a slight decline in revenue and profit compared to the previous year, yet maintained strong cash generation and a diversified revenue stream. Notable achievements include significant product enhancements and new orders from key sectors, reinforcing its position in high-assurance markets. Intercede’s commitment to innovation and strategic objectives positions it well to meet full-year financial expectations, with a focus on product evolution, geographic expansion, and targeted acquisitions to deliver sustainable value.

The most recent analyst rating on (GB:IGP) stock is a Hold with a £148.00 price target. To see the full list of analyst forecasts on Intercede stock, see the GB:IGP Stock Forecast page.

Intercede Group to Announce Interim Results and Host Investor Presentation

Intercede Group PLC, a leader in cybersecurity software focusing on digital identities, announced it will release its interim unaudited results for the six months ending 30 September 2025 on 25 November 2025. A live presentation of these results will be given by the CEO, CPO, and CFO on 27 November 2025, open to all existing and potential shareholders. The announcement highlights Intercede’s commitment to transparency and engagement with stakeholders, potentially impacting its industry positioning by reinforcing trust and confidence among investors.

The most recent analyst rating on (GB:IGP) stock is a Hold with a £165.00 price target. To see the full list of analyst forecasts on Intercede stock, see the GB:IGP Stock Forecast page.