Reviewing IntelliAM’s revenue streams
Following the FY25 results release we have reviewed our model. FY25 was a transitional
year, with the July 2024 acquisition of 53North (a long-established consulting business)
by IntelliAM and the capital raised at the group’s IPO. 53North contributed for only
nine months of the group’s consolidated figures to March 2025. Furthermore, Q425 saw
IntelliAM accelerate the rollout of its SaaS asset management solution, resulting
in 63 sites running SaaS solutions by year-end against our forecast of 23 sites (discussed
in our previous note). Now seems an opportune moment to incorporate more fully many of these changes into
our model, recategorising the group’s revenue streams.
We have previously described IntelliAM as generating revenues from three principal activities:
- Consultancy services comprising both asset management reliability-based contracts and project-based consultancy.
This includes elements of training and equipment sales.
- Platform services covering the process of implementing and accessing the IntelliAM AI platform. Implementation
includes a site assessment, dashboard customisation and data pre-processing/cleansing,
while access is via a monthly charge.
- Usage revenues comprising a monthly charge based on the number and frequency of parameters being
monitored in order to run the AI-based models.
While the above description still has value, we believe that the alternative approach
set out below offers a more nuanced description of the group’s income streams, as
well as providing a better framework for how future revenues are likely to develop.
1. Condition-based monitoring (CBM) sales
Previously described as asset management reliability contracts, these are fixed-term
(typically 12 months) asset care service contracts, which include elements of remote
monitoring and periodic site visits to optimise operational performance and/or support
compliance. This revenue stream is mainly from the 53North consultancy business and,
although contracts are relatively short in nature (typically twelve months), the sites
are operated by some of the group’s oldest customers.
While there was already software revenue associated with this revenue stream (particularly
the cloud-based computerised maintenance management system, My Maintenance Planner),
the emphasis in H225 was on converting contracts on renewal (almost 100 sites) to
include SaaS contracts.
We expect the services element from the CBM revenue base to continue growing, albeit
modestly, in the coming years, with any significant growth from these sites being
seen as software revenues.
2. Software sales
The process of adding SaaS agreements to CBM sites was highly successful in H225,
leading to an increase in the number of SaaS sites from low single figures in March
2024 to around 63 by March 2025. While most of these new sites have adopted entry
level (so-called Stage 3) solutions, there are more advanced contracts that include
regular use of the group’s large language models to aid asset optimisation. The current
portfolio of SaaS arrangements has established a significant ARR base, which stood
at £810k by March 2025.
Given its centrality to management’s strategy, we expect this revenue base to grow
significantly in the coming years, although the growth is likely to be second-half
weighted given the link to the contract renewal cycle.
3. Project sales
As part of its solutions offering, IntelliAM’s consultants undertake project-based
work with clients in order to address specific outcomes. Project work can include
automation, configuration and lubrication analysis, which is sometimes supported by
grants. Project revenues also include more advanced-level IntelliAM solution specification
work.
We expect this revenue to grow in line with increases in the group’s customer base.
4. Equipment sales
In July 2025, IntelliAM announced a partnership with US sensor supplier CTC, a family-owned company founded in 1994 that manufactures cables and vibration and
temperature analysis equipment for small and large customers across a wide range of
sectors. IntelliAM has plans to co-brand its software with the CTC sensors as part
of an out-of-the-box asset management solution, which should be available to customers
from Q4 CY25.
IntelliAM will benefit from both software and (where the sensors are sold as part
of a solution) equipment revenues. The agreement, which does not contain exclusivity
clauses, includes revenue-sharing for both front-end (eg equipment and installation)
and back-end (eg data analytics) revenues.
