Results for six months ended 31 August 2026
Summary by AI BETAClose X
AdvancedAdvT Limited
Financial Results for six months ended 31 August 2026
AdvancedAdvT Limited (AIM: ADVT, "AdvT", the "Group"), the international software solutions provider for the business solutions and compliance sectors, has published its unaudited interim results for the six months to 31 August 2026.
Financial performance
- Revenue increased by 13% to £28.8m (2025: £25.4m)
- Recurring revenue of £23.8m representing 83% of total revenues (2025: £20.6m and 81.0%)
- Adjusted EBITDA1 from operations increased by 17% to £8.4m, with half-year outturn ahead of management expectations (2025: £7.2m)
- Operating profit2 significantly increased to £8.2m (2025: £2.9m)
- Reported basic EPS: 5.99p (2025: 2.17p), Basic EPS on adjusted operating profit3: 6.16p (2025: 5.24p)
- Cash of £95.2m at 31 August 2026 (28 February 2026: £96.2m), with 134% cash conversion of adjusted EBITDA
Highlights
- £10m share buyback programme, launched in March 2026, completed in September 2026 at an average purchase price of £1.63 per share (£9.3m of £10.0m completed at 31 August 2026)
- Further £10m share buyback programme approved and launched in September 2026
- Simplified corporate structure with inSTREAM integrated into the Integra business line
- AI investment is translating into tangible customer outcomes, live pilots and embedded product functionality across the Group
Executive Chairperson’s statement
"We are pleased with the Group's double-digit revenue and EBITDA growth in the first half, with the performance reflecting the mission-critical nature of our solutions and the progress we are making across the Group.
"We continue to invest in our products and platforms. AI and automation are now embedded in how the Group operates, with capabilities live in customer environments and further features being piloted.
"We have a strong financial position and remain focused on disciplined execution, while continuing to identify acquisition opportunities that complement the Group and enhance long-term growth."
1 Adjusted EBITDA is EBITDA before acquisition expenses and exceptional gains or costs, as defined in Alternative Performance Measures.
2 Operating profit is stated after fair value gains/(losses) on financial assets at FVTPL
3 Basic EPS on adjusted operating profit is adjusted EBITDA less depreciation, divided by the weighted average number of ordinary shares.
The interim results will be published on the Company’s website shortly.
Enquiries:
AdvancedAdvT Limited
Vin Murria, Chairperson
Gavin Hugill, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker) Tel: 020 7496 3000
James Moat / James Fischer
KK Advisory (Investor Relations) Tel: 020 7039 1901
Kam Bansil
Note to Editors
AdvancedAdvT Limited (AdvT) provides software solutions and platforms across two business transformational areas: business solutions & healthcare compliance, and human capital management.
AdvT is an agent for change. The Group enables the delivery of Artificial Intelligence ("AI"), data analytics and business intelligence, all of which are key future drivers for growth in those sectors where long term digitisation trends are set to transform the workplace for professionals.
AdvT is developing both organically and through acquisitions, by expanding its presence across adjacent markets, geographical boundaries and digital sectors.
Management Report
Overview
In the six months ended 31 August 2026, the Group continued to advance its strategy, remaining focused on sectors shaped by long-term trends in Artificial Intelligence (“AI”), automation, digital transformation, data analytics and business intelligence. This strategic orientation continues to guide capital allocation across both M&A and operational initiatives within the portfolio.
The Group maintains a long-term approach to building a resilient and scalable business. This perspective informs investment decisions and operational priorities, with a continued emphasis on business-led digital transformation and ongoing improvement. These efforts support deeper engagement with clients and partners across both public and private sectors.
The management team brings extensive experience in software and services, having operated and invested in a range of successful businesses. This experience underpins the Group’s ability to drive operational efficiency and deliver consistent organic growth. The team’s track record in executing targeted and accretive acquisitions remains a core strength, supporting the development of a robust platform for future expansion.
The Group has focused on standardisation and simplification across all operations, aiming to embed best practices and enhance go-to-market execution, while improving operational alignment across the businesses.
Performance continues to be assessed against key financial metrics, including recurring revenue, adjusted EBITDA and free cash flow. These indicators remain central to tracking progress and ensuring alignment with strategic objectives and the Group’s commitment to long-term value creation.
The Group retains its 9.8% stake in M&C Saatchi plc.
Current trading and outlook
The Group continues to target opportunities for growth, both organically and through acquisition.
Trading in the second half to date remains in line with management expectations.
M&A
M&A activity continued during the period. The Group participated in a competitive process for a larger opportunity but maintained its disciplined approach to valuation and was ultimately outbid. In parallel, the Group continued to build a pipeline of bolt-on opportunities through its off-market origination partner, progressing a broad range of conversations, supplemented by a digital sourcing strategy and platform to support the identification of potential targets.
With cash reserves of £95.2m as at 31 August 2026, the Group remains well-positioned to pursue disciplined and accretive M&A opportunities.
M&A continues to be a central component of the Group’s strategy, targeting businesses that align with the management team’s operational focus and which demonstrate the potential to deliver long-term value. The Board will continue to evaluate each potential target against its acquisition criteria, seeking businesses in highly fragmented industries with opportunities for consolidation with:
• high recurring revenue streams and good forward visibility;
• sticky customer retention;
• mission critical products and services;
• opportunities for both organic and inorganic growth;
• strong cash generation, and
• sectors with high barriers to entry.
Operational review
Across the Group, priorities have evolved towards simplifying operations, sharpening go-to-market execution and strengthening customer focus. These actions are improving alignment across the portfolio and creating a clearer platform for product innovation, scalable delivery and sustainable growth.
AI understanding across the Group and its markets continues to mature, with tangible product and operational benefits beginning to be realised and customer demand becoming more clearly defined. Adoption remains subject to the customers’ readiness and progress is at different speeds, balancing potential value with security and evolving AI governance requirements. Against this backdrop, the Group is focusing on practical, outcome-led use cases, as illustrated below.
AI and automation are increasingly being applied to deliver measurable customer outcomes and extend the value of our Integra platform. At Dublin Port, the adoption of intelligent document processing has reduced manual invoice-processing hours by 86% while moving processing from daily to hourly, improving the timeliness of financial data. Building on the same platform and data, AI-assisted development enabled an ESG reporting proof of concept to be delivered through our forward deployed engineers in weeks. This demonstrates how our system of record platforms, domain expertise and AI capabilities can be combined to address adjacent customer needs and deepen customer relationships.
GOSS continues to extend its digital platform as an orchestration layer connecting existing public-sector systems with automation and AI. Its Digital Assistant is now being tested in live customer environments, including an employee-facing proof of concept with Sunderland City Council, which has generated c.550 interactions across 470 distinct users, including 73 repeat users. This early engagement demonstrates the potential to automate routine interactions, improve access to information and broaden the services delivered through the existing platform by integrating single sign-on, APIs, robotic process automation, AI and telephony.
The resource management business continues to grow its SaaS customer base, with SaaS ARR increasing by £1.3m, or 34%, over the last 12 months, maintaining strong growth from an increasingly established recurring revenue base. Product investment has progressed across Skills 2.0, MatchingCore, Workforce Intelligence, MCP Server/Copilot and AI-powered solutions, strengthening Retain’s role as a controlled system of record for workforce data and extending the platform from resource scheduling towards workforce optimisation and more intelligent, automated decision-making. These developments are focused on helping customers better match skills and capacity to demand, improve workforce productivity and make better use of their workforce data, strengthening the value of the platform and creating further opportunities for growth. Continued innovation and disciplined execution remain important as technology and customer requirements evolve.
We are embedding AI into how the Group operates, develops products and serves customers, through employee tools and agents, live internal projects, customer pilots and AI-enabled product capabilities. Alongside adoption, we are developing proportionate governance, supported by our AI Code of Conduct and informed by ISO/IEC 42001, applicable AI legislation and related guidance. Our objective is to accelerate practical adoption while maintaining appropriate security, oversight and accountability.
We also continue to standardise and optimise infrastructure across the Group, improving efficiency and resilience, strengthening strategic supplier relationships and reducing reliance on vendors whose commercial models no longer align with our objectives. This has delivered savings from our Azure arrangements and mitigated other significant supplier cost increases through alternative technology approaches. Cyber security remains a continuous priority, supported by enhanced monitoring tools as we respond to an evolving threat environment, including risks arising from the increasing use of AI.
The Group’s development team in India now comprises 52 people and is focused on new product development, with particular emphasis on embedding AI-enabled functionality. The team complements the Group’s UK product and development capabilities, increasing delivery capacity and accelerating time to value from product investment.
The Group reduced measured carbon emissions by 36.7% against its FY24/25 baseline to 2,399.62 tCO2e, despite growth in revenue and average headcount. Emissions intensity reduced by 48.7% per £m of revenue and 58.6% per FTE, principally reflecting reduced on-premises data centre usage and the exit from Spring Park, alongside improved emissions data capture. This represents progress towards the Group’s existing 2030 interim reduction objective, with continued focus on practical reductions, data quality and supplier-specific information.
We thank our investors for their continued support and their confidence in the Group’s strategy.
Financial highlights
The Group reported revenues of £28.8m for the six months ended 31 August 2026, up from £25.4m in the six months to 31 August 2025. Recurring revenue rose to £23.8m, representing 82.7% of total revenue (2025: £20.6m, 81.0%). Adjusted EBITDA increased to £8.4m (2025: £7.2m), with a margin of 29.2% (2025: 28.2%). The Group ended the period with cash of £95.2m.
Operational performance continues to improve, supported by contract wins and the adoption of best practices.
Recurring revenue increased to 82.7% of total revenue, reflecting the Group’s deliberate strategy to develop a higher recurring-revenue model, supported by pricing initiatives, strong customer retention and continued growth in subscription-based offerings. The Group also values a healthy contribution from transactional revenues, which reflects the trust, depth of understanding and strength of its customer relationships, while providing opportunities to address evolving customer requirements.
The table below reconciles EBITDA to operating profit including adjusting items.
Table 1:
Six months ending |
|
Aug-26 |
Aug-25 |
|
|
£000s |
£000s |
|
|
|
|
Revenue |
|
28,806 |
25,436 |
|
|
|
|
EBITDA |
|
8,335 |
6,862 |
Acquisition expenses and stamp duties |
|
80 |
306 |
Adjusted EBITDA |
|
8,415 |
7,168 |
Depreciation |
|
(198) |
(109) |
Adjusted operating profit |
|
8,217 |
7,059 |
Amortisation of intangible assets |
|
(2,595) |
(2,076) |
Acquisition expenses and stamp duties |
|
(80) |
(306) |
Operating profit before FVTPL |
|
5,542 |
4,677 |
Adjustment for fair value gain/(loss) on financial assets |
|
2,640 |
(1,800) |
Operating profit |
|
8,182 |
2,877 |
Margin expansion has been supported by operational efficiencies, a balanced revenue mix and continued investment in technology and process optimisation. The Group has maintained its focus on infrastructure standardisation and optimisation, including mitigating costs associated with technologies that are no longer well aligned with its requirements, securing improved commercial terms across its Microsoft Azure estate and strengthening key supplier relationships. These initiatives are improving efficiency, resilience and scalability, while supporting more predictable margins and future growth.
The Group’s established business platforms support faster integration of acquisitions and consistent ways of working across core functions. This provides a scalable operating foundation, enabling earlier focus on growth and value creation following acquisition.
Table 2:
| Free cash flow from continuing activities for six months
|
|
Aug-26 £000s |
Aug-25 £000s |
Operating profit |
|
8,182 |
2,877 |
Adjustment for fair value (gain)/loss on financial assets |
|
(2,640) |
1,800 |
Amortisation of intangible assets |
|
2,595 |
2,076 |
Depreciation |
|
198 |
109 |
Acquisition expenses and stamp duties |
|
80 |
306 |
Adjusted EBITDA |
|
8,415 |
7,168 |
Decrease in working capital |
|
2,858 |
6,310 |
Adj. Operating cash flow |
|
11,273 |
13,478 |
Cash conversion |
|
134% |
188% |
Capital expenditure |
|
(962) |
(1,282) |
Lease payments |
|
(66) |
(36) |
Acquisition expenses and stamp duties |
|
(80) |
(306) |
Unrealised exchange gains/(losses) |
|
(130) |
83 |
Interest and dividend income |
|
1,089 |
1,879 |
Tax paid |
|
(1,940) |
(258) |
Free Cash flow |
|
9,184 |
13,558 |
The initial £10.0 million share buyback programme completed in September, with 6.1 million shares acquired at a weighted average price of 162.63 pence per share and held in treasury. A further buyback programme of up to £10.0 million was subsequently launched, reflecting the Board’s view that share purchases at current market levels represent an attractive use of capital. As at 29 October, the Company had acquired a total of 7.9 million shares across the programmes for aggregate consideration of £13.1 million. The Board continues to assess further returns of capital alongside an active pipeline of bolt-on acquisition opportunities, maintaining a disciplined and flexible approach to capital allocation.
The Group recognised net finance income of £1.4m (2025: £1.7m) from interest on cash reserves. 2025 benefited from an additional £0.2m of dividend income from M&C Saatchi plc. Operating profit before fair value movements was £5.5m (2025: £4.7m).
The Group’s 9.8% stake in M&C Saatchi plc was valued at £18.0m at 31 August 2026 (28 February 2026: £15.4m), an increase of £2.6m.
The Group has recognised a deferred tax asset of £0.14m with respect to timing differences. The Group has a deferred tax liability of £4.6m relating to intangible assets recognised on acquisition. Basic and diluted EPS, including fair value movements on financial assets, were 5.99p and 5.52p respectively (31 August 2025: 2.17p and 2.16p), with diluted EPS reflecting the weighted impact of Incentive Shares in the current period and warrants in the comparative period. Basic EPS on adjusted operating profit was 6.16p (2025: 5.24p - see notes).
The Board does not currently recommend a dividend. It intends to review the Group’s dividend policy following significant deployment of AdvT’s capital and will only commence the payment of dividends when it becomes commercially appropriate.
The Group's cash position at 31 August 2026 was £95.2m (28 February 2026: £96.2m), after a cash outflow of £1.0m relating to deferred consideration payable in respect of the HFX acquisition completed in the prior year. A further £1.0m of deferred consideration remains payable in May 2027.
Adjusted operating cash flow was £11.3m, representing 134% cash conversion of adjusted EBITDA (31 August 2025: £13.5m and 188%). Cash conversion benefited from the timing of trade receivable collections, weighted towards the first half. The Group also capitalised £0.8m of research and development costs (2025: £1.0m).
Free cash flow from continuing activities was £9.2m (31 August 2025: £13.6m).
Consolidated Statement of Comprehensive Income
|
|
31 August 2026 |
31 August 2025 |
|
|
Unaudited |
Unaudited |
|
|
£000s |
£000s |
|
|
|
|
Revenue |
|
28,806 |
25,436 |
Cost of sales |
|
(9,020) |
(8,060) |
Gross profit |
|
19,786 |
17,376 |
|
|
|
|
Administrative expenses |
|
(11,451) |
(10,514) |
Depreciation |
|
(198) |
(109) |
Amortisation |
|
(2,595) |
(2,076) |
Fair value gain/(loss) on financial assets at FVTPL |
|
2,640 |
(1,800) |
Operating profit |
|
8,182 |
2,877 |
|
|
|
|
Dividend received |
|
- |
234 |
Net finance income |
|
1,440 |
1,680 |
Share-based payment expense |
|
(54) |
(55) |
Profit before tax from continuing operations |
|
9,568 |
4,736 |
|
|
|
|
Taxation |
|
(1,573) |
(1,806) |
Profit for the period from continuing operations |
|
7,995 |
2,930 |
|
|
|
|
Profit for the period from continuing operations attributable to owners of the parent |
7,995 |
2,930 | |
|
|
|
|
Other comprehensive income |
|
|
|
Items that may subsequently be reclassified to profit and loss |
|
|
|
|
|
|
|
Translation gain/(loss) |
|
(130) |
83 |
Total comprehensive income for the period attributable to owners of the parent |
7,865 |
3,013 | |
|
|
|
|
Profit per ordinary share (pence) |
|
|
|
Basic |
5.99 |
2.17 | |
Diluted |
5.52 |
2.16 | |
The Group’s activities derive from continuing operations.
Consolidated Statement of Financial Position
|
|
As at |
As at |
|
|
31 August 2026 |
28 February 2026 |
|
|
Unaudited |
Audited |
|
|
£000s |
£000s |
Non-current assets |
|
|
|
Intangible assets |
|
22,026 |
23,829 |
Goodwill |
|
36,160 |
36,160 |
Property, plant and equipment |
|
1,017 |
939 |
Contract fulfilment assets |
|
72 |
110 |
Deferred tax asset |
|
135 |
319 |
Financial asset at fair value through profit and loss |
|
18,000 |
15,360 |
|
|
77,410 |
76,717 |
Current assets |
|
|
|
Inventories |
|
126 |
155 |
Trade and other receivables |
|
11,996 |
12,626 |
Cash and cash equivalents |
|
95,170 |
96,238 |
Total current assets |
|
107,292 |
109,019 |
|
|
|
|
Total assets |
|
184,702 |
185,736 |
|
|
|
|
Equity and liabilities |
|
|
|
Sponsor shares |
|
- |
- |
Ordinary shares |
|
136,866 |
136,866 |
Treasury shares |
|
(9,252) |
- |
Share premium |
|
98 |
98 |
Share-based payment reserve |
|
745 |
691 |
Translation reserve |
|
(183) |
(53) |
Retained earnings |
|
22,010 |
14,015 |
Total equity |
|
150,284 |
151,617 |
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
|
6,696 |
7,850 |
Corporation taxation |
|
671 |
738 |
Contract liabilities |
|
19,887 |
16,713 |
Deferred consideration |
|
960 |
960 |
Total current liabilities |
|
28,214 |
26,261 |
|
|
|
|
Non-current Liabilities |
|
|
|
Deferred tax liability |
|
4,593 |
5,086 |
Contract liabilities |
|
181 |
414 |
Lease Liabilities |
|
194 |
161 |
Deferred consideration |
|
- |
961 |
Provisions |
|
1,236 |
1,236 |
Total non-current liabilities |
|
6,204 |
7,858 |
|
|
|
|
Total equity and liabilities |
|
184,702 |
185,736 |
Consolidated Statement of Changes in Equity
|
Sponsor share |
Ordinary shares |
Treasury shares |
Share Premium |
Warrant reserves |
Warrant cancellation Reserve |
Share based payment reserve |
Translation Reserve |
Accumulated profit/(losses) |
Total equity |
|
£000s |
£000s |
£000s |
£000s |
£000s |
£000s |
£000s |
£000s |
£000s |
£000s |
Balance as at 28 February 2025 (Audited) |
- |
131,166 |
- |
- |
98 |
350 |
582 |
(122) |
9,051 |
141,125 |
Profit for the period from continuing operations |
- |
- |
- |
- |
- |
- |
- |
- |
2,930 |
2,930 |
Issuance of Ordinary shares |
- |
5,000 |
- |
- |
- |
- |
- |
- |
- |
5,000 |
Share-based payment expense |
- |
- |
- |
- |
- |
- |
55 |
- |
- |
55 |
Translation |
- |
- |
- |
- |
- |
- |
- |
84 |
- |
84 |
Balance as at 31 August 2025 (Unaudited) |
- |
136,166 |
- |
- |
98 |
350 |
637 |
(38) |
11,981 |
149,194 |
Profit for the period from continuing operations |
- |
- |
- |
- |
- |
- |
- |
- |
1,684 |
1,684 |
Issuance of Ordinary shares |
- |
700 |
- |
98 |
(98) |
- |
- |
- |
- |
700 |
Share-based payment expense |
- |
- |
- |
- |
- |
- |
54 |
- |
- |
54 |
Reclassification of reserve |
- |
- |
- |
- |
- |
(350) |
- |
- |
350 |
- |
Translation |
- |
- |
- |
- |
- |
- |
- |
(15) |
- |
(15) |
Balance as at 28 February 2026 (Audited) |
- |
136,866 |
- |
98 |
- |
- |
691 |
(53) |
14,015 |
151,617 |
Profit for the period from continuing operations |
- |
- |
- |
- |
- |
- |
- |
- |
7,995 |
7,995 |
Share buy-back |
- |
- |
(9,252) |
- |
- |
- |
- |
- |
- |
(9,252) |
Share-based payment expense |
- |
- |
- |
- |
- |
- |
54 |
- |
- |
54 |
Translation |
- |
- |
- |
- |
- |
- |
- |
(130) |
- |
(130) |
Balance as at 31 August 2026 (Unaudited) |
- |
136,866 |
(9,252) |
98 |
- |
- |
745 |
(183) |
22,010 |
150,284 |
Consolidated Statement of Cash Flow
|
|
31 August 2026 |
31 August 2025 |
|
|
Unaudited |
Unaudited |
|
|
£000s |
£000s |
Cash flows from operating activities |
|
|
|
Profit before tax from continuing operations |
|
9,568 |
4,736 |
Adjustments for: |
|
|
|
Depreciation |
|
198 |
109 |
Amortisation |
|
2,595 |
2,076 |
Interest income |
|
(1,440) |
(1,680) |
Fair value (gains)/losses on financial assets |
|
(2,640) |
1,800 |
Add back share-based payment expense |
|
54 |
55 |
Dividend income |
|
- |
(234) |
Working capital adjustments: |
|
|
|
Decrease in trade and other receivables and prepayments |
|
1,048 |
5,249 |
Decrease in contractual fulfilment assets |
|
37 |
131 |
(Decrease) in trade and other payables |
|
(1,168) |
(17) |
Increase in contractual liabilities |
|
2,941 |
946 |
Tax paid |
|
(1,940) |
(258) |
Net cash flows from operating activities |
|
9,253 |
12,913 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment |
|
(161) |
(290) |
Development of intangible assets |
|
(801) |
(992) |
Acquisition of subsidiaries, net of cash acquired |
|
(1,000) |
(5,114) |
Net cash flows used in investing activities |
|
(1,962) |
(6,396) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Dividend income |
|
- |
234 |
Share buy-back |
|
(9,252) |
- |
Lease payments |
|
(66) |
(36) |
Interest income |
|
1,089 |
1,645 |
Net cash flows (used in)/from financing activities |
|
(8,229) |
1,843 |
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(938) |
8,360 |
Net foreign exchange differences |
|
(130) |
84 |
Cash and cash equivalents at the beginning of the period |
|
96,238 |
88,510 |
Cash and cash equivalents at the end of the period |
|
95,170 |
96,954 |
Notes to the Condensed Consolidated Interim Financial Statements
- GENERAL INFORMATION
AdvancedAdvT Limited was incorporated on 31 July 2020 in the British Virgin Islands (“BVI”) as a BVI business company (registered number 2040954) under the BVI Business Company Act, 2004. The Company has its registered address at Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1110 and UK establishment address at 11 Buckingham Street, London WC2N 6DF.
The Company has acquired a number of software and services businesses. The Group provides software solutions and platforms that support business transformation. Its operations comprise INTEGRA (financial management software and Intelligent Process Automation software solutions), GOSS (digital transformation platform), CHKS (healthcare intelligence, compliance and accreditation software), Retain (global resource planning and talent management software), WFM (enterprise workforce management software) and HFX (workforce management SaaS platform). The Company is an agent for change, enabling the delivery of AI, data analytics and business intelligence, all of which are key future drivers for growth in these sectors where long term digitisation trends are set to transform the workplace for professionals.
The Company’s wholly-owned subsidiaries are set out in full Condensed Consolidated Interim Financial Statements on the website, together with the Company, the “Group”.
The Group is developing both organically and through acquisitions, by expanding its presence across adjacent markets, geographical boundaries and digital sectors.
- CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of the Financial Statements under IFRS requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Key sources of estimation uncertainty
Identifiable assets acquired and liabilities assumed
As required by IFRS 3, we measure the assets acquired and liabilities assumed on the acquisitions in the period at their fair value on acquisition. The fair values of contract liabilities at acquisition dates were estimated to obtain a price that would be paid to transfer the liability in an orderly transaction between market participants. The approach used is based on a market participant’s estimate of the costs that will be incurred to fulfil the obligation plus a normal profit margin, based on the overall cost profile over the life of the contract.
The determination of the fair value of assets and liabilities including goodwill arising on the acquisition of businesses, the acquisition of branding, customer relationships and intellectual property, whether arising from separate purchases or from the acquisition as part of business combinations, and development expenditure which is expected to generate future economic benefits, are based, to a considerable extent, on management’s estimations.
The fair value of these assets is determined by discounting estimated future net cash flows generated by the asset where no active market for the assets exists. The use of different assumptions for the expectations of future cash flows and the discount rate would change the valuation of the intangible assets.
Whilst the accounting for business combinations is substantially completed in the period of acquisition, certain acquisition fair value estimates may not be finalised. Management engage with specialists in this regard and include appropriate disclosure.
Critical accounting judgements
Revenue recognition
There are a number of areas where judgement has been applied in respect of revenue recognition. A description of the way in which revenue and associated assets are recognised is detailed in notes of the Condensed Consolidated Interim Financial Statements. In applying IFRS 15 Revenue from Contracts with Customers significant judgement which may affect the determination of the amount and timing of revenue from contracts with customer include: assessment of the costs the Group incurs to deliver the contractual commitments and whether such costs should be expensed as incurred or capitalised.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Provisions
Onerous contract provisions are recognised where the unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.
For the period to 31 August 2026, the Directors do not consider that they have made any other significant estimates, judgments or assumptions which would materially affect the balances and results reported in these Condensed Consolidated Interim Financial Statements.
|
Closest equivalent IFRS measure |
Reconciling items to IFRS measure |
Definition and purpose |
Income Statement Measures | |||
Adjusted EBITDA or Profit before tax (PBT) |
Operating Profit OR Profit before Tax |
Adjusting items |
Adjusted Operating profit/Profit before tax excludes adjusting items. |
Adjusting items |
None |
Refer to definition |
Items which are not considered part of the normal operating costs of the business, are separately disclosed because of their size, nature or incidence are treated as adjusting. The Group believes the separate disclosure of these items provides additional useful information to users of the Condensed Consolidated Interim Financial Statements to enable a better understanding of the Group’s underlying financial performance. These may include the financial effect of adjusting items such as, inter alia, restructuring costs, impairment charges, amortisation of intangibles, costs relating to business combinations, one-off foreign exchange gains or losses, integration costs, acquisition-related expenses, share-based payment charges, contingent consideration and earn-outs, cloud computing configuration and customisation costs, and right-of-use asset disposal gains or losses. |
Recurring Revenue |
Revenue |
* |
Recurring Revenues are income occurring continuously and repeatedly. |
Transactional Revenue |
Revenue |
* |
Transactional Revenue are recognised at the point of transfer (delivery) to a customer. |
Balance Sheet Measures | |||
Net cash or debt |
None |
* |
Net cash/(debt) is defined as Cash and cash equivalents and short-term deposits, less Bank overdrafts and other current and non-current borrowings. |
Cash Flow Measures | |||
Cash conversion |
None |
Refer to definition |
Adjusted operating cash flow as a percentage of Adjusted EBITDA. |
Free cash flow |
None |
Refer to definition |
Cash flow in the period after accounting for operating activities, investing activities, lease payments, interest and tax. |
*For further information please see notes Condensed Consolidated Interim Financial Statements published on the companies website.
- ALTERNATIVE PERFORMANCE MEASURES
In reporting financial information, the Group presents alternative performance measures (“APMs”) which are not defined or specified under the requirements of IFRS. The Group believes that these APMs, which are not considered to be a substitute for IFRS measures, provide stakeholders with additional useful information on the underlying trends, performance and position of the Group and are consistent with how business performance is measured internally. The alternative performance measures are not defined by IFRS and therefore may not be directly comparable with other companies’ alternative performance measures. The key APMs that the Group uses are outlined below.
- SEGMENT INFORMATION
Revenue from continuing operations
|
|
31 August 2026 |
31 August 2025 |
|
|
Unaudited |
Unaudited |
|
|
£000s |
£000s |
Recurring revenues |
|
23,831 |
20,606 |
Transactional revenues |
|
4,975 |
4,830 |
|
|
28,806 |
25,436 |
Revenue is recognised for each category as follows:
• Recurring Revenues: income occurring continuously and repeatedly; and
• Transactional Revenues: recognised at the point of transfer (delivery) to a customer.
Operating segments
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision makers to allocate resources to the segments and to assess their performance.
The chief operating decision makers have been identified as the Executive Directors. The Group revenue is derived from the sale and subscription of recurring and transactional revenue engagements with its customers. Consequently, the Executive Directors review the two revenue streams, but as the costs are not recorded in the same way, the information on costs is presented as one segment and as such the information included below is presented in line with management information.
|
|
31 August 2026 |
31 August 2025 |
|
|
Unaudited |
Unaudited |
|
|
£000s |
£000s |
|
|
|
|
Revenue |
|
28,806 |
25,436 |
|
|
|
|
EBITDA |
|
8,335 |
6,862 |
Acquisition expenses, stamp duties and relisting expenses |
|
80 |
306 |
Adjusted EBITDA |
|
8,415 |
7,168 |
Depreciation |
|
(198) |
(109) |
Adjusted operating profit |
|
8,217 |
7,059 |
Amortisation of intangible assets |
|
(2,595) |
(2,076) |
Acquisition expenses, stamp duties and relisting expenses |
|
(80) |
(306) |
Operating profit before FVTPL |
|
5,542 |
4,677 |
EARNINGS PER ORDINARY SHARE
Basic EPS is calculated by dividing the profit/(loss) attributable to equity holders of a company by the weighted average number of ordinary shares in issue during the period. Diluted EPS is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potentially dilutive instruments into ordinary shares.
As more fully detailed in the annual financial statements to 28 February 2026, incentive shares in MAC I (BVI) Limited have been issued. On exercise, the value of these shares is expected to be delivered by the Company issuing new ordinary shares, and hence the Incentive Shares could have a dilutive effect, although the Company has the right at all times to settle such value in cash. As the Preferred Return threshold is currently satisfied and the Incentive Shares are within their exercise period and redeemable, they have been treated as dilutive and included in the diluted EPS calculation.
In the period ended 31 August 2025 there were 700,000 warrants with future exercisable dates. These were exercised on 4 December 2025. Accordingly, the warrants were not outstanding during the period ended 31 August 2026 and have not been included in the calculation of diluted EPS for the current period.
The Company has two issued Sponsor Shares. These shares have no rights to distributions and do not give rise to potential ordinary shares for the purposes of IAS 33. Accordingly, they have not been included in the calculation of basic or diluted EPS.
|
|
31 August 2026 |
31 August 2025 |
|
|
Unaudited |
Unaudited |
Basic |
|
|
|
Profit/(Loss) attributable to owners of the parent (£000s) |
|
7,995 |
2,930 |
Weighted average number of ordinary shares in issue |
|
133,480,459 |
134,795,371 |
Basic profit/(loss) per ordinary share (pence) |
|
5.99 |
2.17 |
Diluted |
|
|
|
Profit /(loss) attributable to owners of the parent (£000s) |
|
7,995 |
2,930 |
Weighted average number of ordinary shares in issue |
|
133,480,459 |
134,795,371 |
Adjustment to number of shares for incentive shares/warrants |
|
11,318,949 |
700,000 |
Adjusted weighted average shares in issue |
|
144,799,408 |
135,495,371 |
Diluted profit/(loss) per ordinary share (pence) |
|
5.52 |
2.16 |
|
|
|
|
Basic EPS on adjusted operating profit |
|
|
|
Adjusted operating profit |
|
8,217 |
7,059 |
Weighted average number of ordinary shares in issue |
|
133,480,459 |
134,795,371 |
Basic profit/(loss) per ordinary share (pence) |
|
6.16 |
5.24 |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 28 minutes ago Inchcape
- 48 minutes ago Elementis
- 1 hour ago Taylor Maritime Investments Limited NPV
- 1 hour ago Derwent London
- 1 hour ago Elementis