Operational and Strategic Business Update

Defence Holdings PLC

10 September 2026

 

10 September 2026 

London, UK

Defence Holdings Provides Operational and Strategic Business Update

Defence Holdings PLC (LSE: ALRT), the UK's software-led defence technology group, today provides investors and shareholders with an operational update ahead of the Company's Annual General Meeting on 22 September 2026, providing further detail on the continued execution of its Operating Model through updates on ongoing project delivery, commercial contracts, the development of its sovereign software capabilities and product ecosystem, and the expansion of its Investment Pillar. Operational updates of this nature will now be delivered on a quarterly basis.

Highlights

●    First UK Ministry of Defence contract continues to progress through delivery, with three priority use cases identified and completion remaining on track for October 2026.

●    Second UK Ministry of Defence customer engagement has advanced materially, with contracting discussions progressing and the Company continuing to expect the contract to be secured in the near term.

●    Sovereign software product ecosystem expands further, with the Company's fourth and fifth products now in active development following the identification of additional customer problem sets.

●    Defence Fund investment pipeline expands to nine opportunities, with three having progressed to an advanced stage of discussion and engagement with prospective third-party investors.

●    Defence Holdings and Whitespace to mark twelve months of their strategic partnership, with a recorded discussion between the companies' Chief Executives to be published on 15 September 2026.

Operational Update

This operational update comes at a time when Defence Holdings is making significant progress in the execution of its Operating Model across multiple strategic activities. In recent weeks, the Company announced the activation of the Investment Pillar of its Operating Model through the launch of the Defence Fund and, earlier this week, the formal commencement of the Meridian Accelerator Programme, introducing the ten companies selected for its inaugural cohort and the technologies and customer problem sets they have the potential to address across UK Defence.

Alongside these developments, the Company has continued to make progress across its commercial activities, including the active delivery of its first UK Ministry of Defence contract under Project Strong, the progression of a second anticipated Ministry of Defence engagement and the continued development of its broader commercial pipeline. The following update provides investors and shareholders with further detail on these activities, together with progress across the Company's sovereign software capabilities, strategic investment activities and defence technology ecosystem, ahead of its Annual General Meeting on 22 September 2026.

Customer & Commercial Update

First UK Ministry of Defence Contract

Delivery of the Company's first UK Ministry of Defence contract continues to advance, with the programme remaining on track for completion in October 2026.

Three priority use cases have now been identified in collaboration with the customer, with delivery progressing through a series of agile development sprints. Relevant end-user groups are actively engaged in developing representative operational scenarios, which are being incorporated into the capability to assess performance against each use case and inform further development and refinement.

This next phase of delivery will provide further validation of the capability against identified customer requirements ahead of the scheduled completion of the initial pilot in October.

Second UK Government Contract

The Company continues to progress contracting discussions in relation to the second customer engagement with the UK Government referenced in its previous updates to the market.

These discussions have advanced materially since the Company's last update and there has been no change to the anticipated scope or structure of the engagement. The Company continues to expect the contract to be secured in the near term.

The proposed engagement is expected to comprise an initial four-month pilot, structured similarly to the Company's first UK Ministry of Defence engagement. Subject to completion of the contracting process, delivery is expected to commence immediately thereafter, with the Company working directly with customer stakeholders through the initial pilot period.

Commercial Pipeline

Alongside its existing customer delivery activities, the Company is actively developing a broader pipeline of commercial opportunities across UK Defence and allied markets.

Within the UK Ministry of Defence, Defence Holdings is working across a broader range of stakeholders to identify opportunities for further design partnerships, applying the customer-led approach established through Project Strong to additional operational requirements and capability areas. The Company is also progressing discussions with private sector organisations around partnership models that combine Defence Holdings' sovereign software capabilities and commercial platform with complementary technologies, expertise and customer relationships when engaging with UK Ministry of Defence end users.

In parallel, work is underway to establish routes through which the Company's sovereign software products can be brought to market in allied jurisdictions, extending the commercial opportunity beyond the UK. Together, these activities are creating multiple routes through which the Company's commercial pipeline can develop, with the immediate focus on converting this engagement into defined customer opportunities, new partnerships and further contracted activity.

Defence Holdings and Whitespace Strategic Partnership Update

On 15 September 2026, Defence Holdings will mark twelve months of its strategic partnership with Whitespace through the publication of a recorded discussion between Defence Holdings Chief Executive Officer Andrew Roughan and Whitespace Chief Executive Officer Paul Jenkinson.

The discussion will reflect on the development of the partnership over its first year and how the relationship has expanded across customer delivery, sovereign software capability development and the broader national security landscape.

It will provide further detail on the evolution of Project Strong and the role of the Gloucestershire Police AI trial in developing capabilities with potential application across the national security landscape, while exploring how Defence Holdings' commercial platform and Whitespace's engineering expertise are being brought together to support the continued development and commercialisation of sovereign software capabilities.

Looking ahead, Andrew Roughan and Paul Jenkinson will outline the next phase of the partnership, including the companies' participation at the Emergency Services Show in Birmingham on 16 and 17 September 2026 and the opportunities being pursued across defence, law enforcement and the wider national security market.

Fourth and Fifth Sovereign Software Products in Active Development

The Company's sovereign software product ecosystem continues to expand, with progress across Project Strong, Ixian and the Gloucestershire Police ROTI / ROVI project now directly informing the next phase of product development.

Discovery sessions with customers and end users have identified additional and distinct problem sets where Defence Holdings can apply its sovereign software capabilities. These requirements have led directly to the scoping and development of what will become the Company's fourth and fifth sovereign software products. Both are now in active development, further extending the Product pillar of the Defence Holdings Operating Model, with further details on both products to be announced before the end of September 2026.

The development of Products 4 and 5 demonstrates the increasingly customer-led nature of the Company's product strategy, with engagement around existing capabilities providing a direct route to identifying further requirements and translating them into new sovereign software products.

Alongside the technologies and capabilities brought into the Defence Holdings ecosystem through Meridian, the expansion of the Company's own product portfolio has materially increased the breadth of requirements it can address across defence and national security.

Development of the Defence Holdings PLC Operating Model, Investment Pillar

As outlined within the Company's Operating Model, Defence Holdings intends to create long-term shareholder value through both the commercialisation of sovereign software capabilities and selective participation in the growth of strategically relevant defence technologies. Following the activation of the Investment Pillar through the launch of the Defence Fund, the Company continues to build momentum across both strategic investment activities and the development of a growing pipeline of opportunities originating from its wider defence technology ecosystem.

Defence Fund

Since establishing the Defence Fund, the Company has made significant early progress in developing both its investment pipeline and third party investor base. Nine investment opportunities are now under active consideration, with three having progressed to a more advanced stage of engagement.

The businesses currently being considered represent a high-calibre group of defence technology companies operating across areas closely aligned with the future requirements of the UK and its allies. While reflecting many of the same technology areas and operational requirements being addressed through Meridian, the Fund's pipeline is focused on businesses at a later stage of maturity, with established technologies, commercial traction and clearer pathways to scale. This gives Defence Holdings access to opportunities across different stages of the defence technology lifecycle, from emerging companies identified through Meridian through to more established businesses capable of supporting larger-scale investment.

Engagement with prospective third-party investors progresses positively. The Company is taking a considered approach to the development of the Fund's investor base, focused on bringing together the right combination of capital, sector understanding and strategic alignment to support both the Fund and the businesses in which it invests.

The progress being made across both sides of the Fund, developing a high-quality pipeline of investable businesses while building the appropriate capital base around them, continues to strengthen the foundations for its deployment.

Strategic Equity Positions

The Company's strategic equity position in OM Defence Systems has helped further develop its framework for using strategic equity, including success-based sweat equity, to participate in the growth and commercial development of businesses across the defence technology ecosystem.

Building on this approach, the Company is progressing a number of opportunities where its capabilities, expertise, customer access and commercial support can be combined with strategic equity participation. These opportunities are emerging from the Company's broader defence technology ecosystem, with a focus on businesses and technologies aligned with Defence Holdings' wider strategic and commercial objectives.

This approach reflects the Company's broader Operating Model and provides two complementary routes to value creation: generating commercial value through the deployment of Defence Holdings' capabilities and platform, while establishing strategic equity exposure to businesses where the Company can contribute directly to their growth and commercial progression.


Meridian Ecosystem Development

Following the formal commencement of the Meridian Accelerator Programme on 1 September 2026, Defence Holdings earlier this week introduced the ten companies selected for its inaugural cohort, showcasing the technologies they are developing and the priority customer problem sets they have the potential to solve across UK Defence.

With the programme now underway, the Company's focus has turned to the continued development of the Meridian ecosystem, broadening the range of strategic partners capable of supporting cohort members whilst creating additional pathways to customers, technical collaboration and strategic investment.

The quality of applications received for the inaugural cohort also demonstrated the depth of innovation emerging across the UK defence technology sector. Whilst places within the first cohort were necessarily limited, Defence Holdings intends to remain engaged with a number of applicants to explore future opportunities for collaboration across its wider ecosystem, recognising that Meridian is intended to become a long-term platform connecting innovative businesses with customers, strategic partners and investment opportunities.


Annual General Meeting

The Company's Annual General Meeting will be held on 22 September 2026.

The Board looks forward to updating shareholders on the progress outlined in this announcement and providing further insight into the continued execution of Defence Holdings' Operating Model. Shareholders are encouraged to attend and details relating to the meeting are available in the Notice of Annual General Meeting previously circulated by the Company, and available at www.defenceplc.com/investors/.

Defence Holdings Chief Executive Officer, Andrew Roughan, commented

"After five months as Chief Executive Officer, I am delighted with the progress we have made against the Operating Model we set out for Defence Holdings, focused on building valuable defence technology ecosystems, developing and commercialising sovereign intellectual property, and creating multiple routes to participate in the value generated across them. We are now seeing that model translate into tangible activity. Meridian is building an ecosystem around emerging UK defence technologies, while OM Defence Systems and our cornerstone position in the Defence Fund are creating opportunities to establish equity exposure to high-potential businesses.

Through our Product Studio, we are developing sovereign intellectual property both wholly owned and collaboratively, with our fourth and fifth products now in active development. Our first UK Ministry of Defence contract is progressing towards completion, while discussions around our anticipated second customer engagement have advanced materially. Through our Open Source Prime model, we are also building the commercial pathways through which technologies from across our ecosystem can reach defence customers.

In a relatively short period of time, we have moved Defence Holdings from an idea, to a defined strategy, to an operational business with customers, products, strategic equity positions and an expanding defence technology ecosystem. As we approach our AGM, I am excited by the progress we have made and the significant long-term growth opportunity ahead."

Defence Holdings Chief Technology Officer, Andy McCartney, commented:

"I have spent my career working at the leading edge of technology and defence, and the circumstances we face today are both unique and increasingly complex. The nature of the threats, the pace of technological change and the complexity of the problems that need to be solved underline how seriously we must approach the development and investment in the next generation of defence capability.

"Defence Holdings has created an approach designed for that environment. We are building an ecosystem where promising, agile and disruptive companies can develop alongside our own sovereign software capabilities, while working with customers and strategic partners to address some of the hardest problems that remain unsolved.

"We can already see that approach working. Direct engagement with customers and end users is shaping our product roadmap and has led to our fourth and fifth sovereign software products now entering active development, while Meridian has significantly broadened the technologies and capabilities accessible through our wider ecosystem.

"I often talk about the need to operate on a 'wartime footing'. For me, that means moving with urgency, working collaboratively and focusing our technology on the problems that matter most. I am proud that this is the approach Defence Holdings is taking, and of the progress our teams and partners are making."

About Defence Holdings PLC (ALRT)

Defence Holdings PLC (LSE: ALRT) is the UK's first listed software-led defence company. Its five-year strategic plan focuses on delivering sovereign digital capabilities across national security, resilience, and defence readiness.

website:www.defenceplc.com

Media Enquiries

Andrew Roughan, Director
Defence Holdings PLC
Tel: [phone]

Email: [e-mail]

 

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