Interim Results for the Six Months Ended 31 Dec 25

Arcontech Group PLC

05 February 2026

 

ARCONTECH GROUP PLC

("Arcontech" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, reports its unaudited results for the six months ended 31 December 2025.

Overview:

·        Revenue decreased by 4.7% to £1,439,382 (H1 2024: £1,511,346) with recurring revenues down by 3% and one-off revenues down by 69%

·        Recurring revenues represented 99% of total revenues for the period (H1 2024: 97%)

·        Adjusted EBITDA* decreased by 23.6% to £341,239 (H1 2024: £446,513) as the result of the revenue decrease noted above  and continuing investment in staff

(* adjusted ebitda is defined as operating profit before depreciation, amortisation, share based payments and releases of historic accruals relating to administrative expenses)

·        Profit before tax decreased by 23.8% to £394,622 (H1 2024: £518,166 )

·        Net cash of £7,774,037 at 31 December 2025, up 8.4% (H1 2024: £7,166,839)

Geoff Wicks, Chairman of Arcontech, said:

"With our strong pipeline we are confident that we will build back lost business and return to growth next year."

Enquiries:

Arcontech Group plc	020 7256 2300
Geoff Wicks, Chairman and Non-Executive Director
Matthew Jeffs, Chief Executive
Cavendish Capital Markets Ltd (Nomad & Broker)	020 7220 0500
Jonny Franklin-Adams/Isaac Hooper/Joe Smith  (Corporate Finance) Harriet Ward (Corporate Broking)

To access more information on the Group please visit: www.arcontech.com

The interim report will only be available to view online enabling the Group to communicate in a more environmentally friendly and cost-effective manner.

Chairman's Statement

Arcontech's revenue was lower in the first half of this financial year with a net reduction in annual contracted revenue due to the loss of a long-standing customer and some downsizing coupled with a drop in one-off revenues. Churn is inevitable but we have been very successful maintaining our excellent customer base with a material proportion on multi-year contracts.

We are now unlikely to make up the recurring revenue loss in the year which has been further impacted by lower levels of one-off revenue. We noted in our last full year's statement that one-off revenue was exceptionally high and not expected to continue at the previous year's levels.

Overall, given our strong pipeline we expect the recurring revenue run rate to recover around the end of the financial year. We have won a prestigious new customer with another in the last stages of contract negotiation and while our pipeline is strong lead times continue to be long. There are a number of very good prospects in advanced stages of the sales process and we are seeing growth in some existing customers enbling us to remain confident about the future.

Revenue was £1.44 million, down 4.7% on the same period last year, Profit before tax ("PBT") was £0.39 million, down 23.8% on the same period last year. Profit before tax was £0.39 million, down 24% on the previous year.

Financing

Our balance sheet remains robust with net cash of £7.8 million, £0.6 million higher than at 31 December 2024. This strong position allows us to continue to invest in our development team to ensure the work needed to bring on new customers is done efficiently. It also supports our strategy to look for new areas of business in order to augment growth in our core market.

The Board's objective for capital allocation is to deploy the Company's financial resources in a manner that maximises long-term shareholder value while maintaining financial strength, flexibility, and investment capacity. We continue to assess our policy taking into account business performance, capital requirements and shareholder expectations.

Dividend

No interim dividend is proposed to be paid in respect of the half year. The Board expects to continue its policy of paying a dividend following the announcement of full year results.

Outlook

With our strong pipeline we are confident that we will build back lost business and return to growth next year.

Geoff Wicks

Chairman and Non-Executive Director

GROUP INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

		Note	Six months ended 31  December		Six months ended 31  December		Year ended 30 June
			2025		2024		2025
			(unaudited) £		(unaudited) £		(audited) £
Revenue			1,439,382		1,511,346		3,106,991
Administrative costs			(1,141,483)		(1,109,882)		(2,328,438)
Operating profit		4	297,899		401,464		778,553
Finance income			114,336		139,066		249,816
Finance costs			(17,613)		(22,364)		(40,979)
Profit before taxation			394,622		518,166		987,390
Taxation		6	-		-		(43,960)
Profit for the period after tax			394,622		518,166		943,430
Total comprehensive income			394,622		518,166		943,430
Profit per share (basic)			2.95p		3.87p		7.05p
Adjusted* Profit per share (basic)			2.77p		3.70p		6.70p
Profit per share (diluted)			2.94p		3.85p		7.02p
Adjusted* Profit per share (diluted)			2.76p		3.68p		6.67p

All of the results relate to continuing operations and there was no other comprehensive income in the period.

* Before release of accruals for administrative costs in respect of prior years.

GROUP BALANCE SHEET

	Note	31 December 2025		31 December 2024		30 June 2025
		(unaudited) £		(unaudited) £		(audited) £
Non-current assets
Goodwill		1,715,153		1,715,153		1,715,153
Property, plant and equipment		7,588		10,220		7,964
Right of use asset	12	335,459		447,279		391,369
Deferred tax asset		336,000		358,000		336,000
Trade and other receivables	9	141,750		141,750		141,750
Total non-current assets		2,535,950		2,672,402		2,592,236
Current assets
Trade and other receivables	9	464,415		821,336		833,462
Cash and cash equivalents		7,774,037		7,166,839		7,395,514
Total current assets		8,238,452		7,988,175		8,228,976
Current liabilities
Trade and other payables	10	(488,910)		(594,088)		(681,562)
Deferred income		(1,247,327)		(1,221,194)		(910,517)
Lease liabilities	12	(124,641)		(114,893)		(119,668)
Total current liabilities		(1,860,878)		(1,930,175)		(1,711,747)
Non-current liabilities
Lease liabilities	12	(244,107)		(368,748)		(307,696)
Provisions		(70,000)		(70,000)		(70,000)
Total non-current liabilities		(314,107)		(438,748)		(377,696)
Net current assets		6,377,574		6,058,000		6,517,229
Net assets		8,599,417		8,291,654		8,731,769
Equity
Share capital		1,671,601		1,671,601		1,671,601
Share premium account		115,761		115,761		115,761
Share option reserve		331,626		340,668		323,688
Retained earnings		6,480,429		6,163,624		6,620,719
		8,599,417		8,291,654		8,731,769

GROUP CASH FLOW STATEMENT

		Note	Six months ended 31 December		Six months ended 31 December		Year ended 30 June
			2025		2024		2025
			(unaudited) £		(unaudited) £		(audited) £
Cash generated from operating activities		11	860,247		432,237		667,719
Tax paid		6	-		-		(61,304)
Net cash generated from operating activities			860,247		432,237		606,415
Investing activities
Interest received			114,725		137,775		249,816
Purchases of plant and equipment			(2,921)		(7,840)		(9,107)
Net cash generated from investing activities			111,804		129,935		240,709
Financing activities
Dividends paid			(534,912)		(501,479)		(501,480)
Payment of lease liabilities			(58,616)		(54,031)		(110,307)
Net cash used in financing activities			(593,528)		(555,510)		(611,787)
Net increase in cash and cash equivalents			378,523		6,662		235,337
Cash and cash equivalents at beginning of period			7,395,514		7,160,177		7,160,177
Cash and cash equivalents at end of period			7,774,037		7,166,839		7,395,514

GROUP STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Share-option reserve	Retained earnings	Total
	£	£	£	£	£
At 1 July 2024	1,671,601	115,761	330,746	6,146,937	8,265,045
Profit for the period	-	-	-	518,166	518,166
Total comprehensive income for the period	-	-	-	518,166	518,166
Dividends paid	-	-	-	(501,479)	(501,479)
Share-based payments	-	-	9,922	-	9,922
Total transactions with owners	-	-	9,922	(501,479)	(491,557)
At 31 December 2024	1,671,601	115,761	340,668	6,163,624	8,291,654
Profit for the period	-	-	-	425,263	425,263
Total comprehensive income for the period	-	-	-	425,263	425,263
Share-based payments	-	-	14,852	-	14,852
Transfer between reserves	-	-	(31,832)	31,832	-
Total transactions with owners	-	-	(16,980)	31,832	14,852
At 30 June 2025	1,671,601	115,761	323,688	6,620,719	8,731,769
Profit for the period	-	-	-	394,622	394,622
Total comprehensive income for the period	-	-	-	394,622	394,622
Dividends paid	-	-	-	(534,912)	(534,912)
Share-based payments	-	-	7,938	-	7,938
Total transactions with owners	-	-	7,938	(534,912)	(526,974)
At 31 December 2025	1,671,601	115,761	331,626	6,480,429	8,599,417

NOTES TO THE FINANCIAL INFORMATION

1.    The figures for the six months ended 31 December 2025 and 31 December 2024 are unaudited and do not constitute statutory accounts. The accounting policies adopted are consistent with those applied by the Group in the preparation of the annual consolidated financial statements for the year ended 30 June 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in the 2026 financial year, but these do not have a material impact on the interim condensed consolidated financial statements of the Group.   

2.   The financial information for the year ended 30 June 2025 set out in this interim report does not comprise the Group's statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 30 June 2025, which were prepared in accordance with UK-adopted international accounting standards, have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

3.   Copies of this statement are available from the Company Secretary at the Company's registered office at 1^st Floor 11-21 Paul Street, London, EC2A 4JU or from the Company's website at www.arcontech.com.

4.   Operating profit is stated after release of accruals for administrative expenses in respect of prior years of £23,806 (31 December 2024: £23,806; 30 June 2025: £47,611).

5.   Earnings per share have been calculated based on the profit after tax and the weighted average number of shares in issue during the half year ended 31 December 2025 of 13,372,811 (31 December 2024: 13,372,811 30 June 2025: 13,372,811).

The number of dilutive shares under option at 31 December 2025 was 38,618 (31 December 2024: 76,017; 30 June 2025: 63,570). The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is done to determine the number of shares that could have been acquired at the average market price during the period, based upon the issue price of the outstanding share options including future charges to be recognised under the share-based payment arrangements.

6.   Taxation is based on the unaudited results and provision has been estimated at the rate applicable to the Company at the time of this statement and expected to be applied to the total annual earnings. No corporation tax has been charged in the period as any liability has been offset against tax losses brought forward from prior years. The tax paid represents the cash payment of tax liability from the preceding income tax year.

7.   A final dividend in respect of the year ended 30 June 2025 of 4.00 pence per share (2024: 3.75 pence per share) was paid on 31 October 2025.

8.   The Directors have elected not to apply IAS 34 Interim financial reporting.

9.   Trade and other receivables

	31 December 2025 £ (unaudited)		31 December 2024 £ (unaudited)		30 June 2025 £ (audited)
Due within one year:
Trade and other receivables	292,830		628,762		659,197
Prepayments and accrued income	171,585		192,574		174,265
	464,415		821,336		833,462

	31 December 2025 £ (unaudited)		31 December 2024 £ (unaudited)		30 June 2025 £ (audited)
Due after more than one year:
Other receivables	141,750		141,750		141,750
	141,750		141,750		141,750

The long term trade receivable of £141,750 is the rental agreement deposit for the Group's Paul Street office.

10. Trade and other payables

	31 December 2025 £ (unaudited)		31 December 2024 £ (unaudited)		30 June 2025 £ (audited)
Trade payables	45,808		88,874		64,882
Other tax and social security payable	143,554		169,864		75,759
Other payables and accruals	299,548		335,350		540,921
	488,910		594,088		681,562

11. Cash generated from operations

	Six months ended 31 December	Six months ended 31 December	Year ended 30 June
	2025	2024	2025
	(unaudited) £	(unaudited) £	(audited) £
Operating profit	297,899	401,464	778,554
Depreciation charge	59,207	58,933	118,367
Non-cash share option charges	7,938	9,922	24,774
Lease interest charge	(16,984)	(21,569)	(40,891)
Other interest charge	(629)	(795)	(88)
Decrease / (increase) in trade and other receivables	368,658	(133,039)	(156,394)
Increase / (decrease) in trade and other payables	144,158	117,321	(56,603)
Cash generated from operations	860,247	432,237	667,719

12. Leases

As a lessee, under IFRS 16 the Group recognises right-of-use assets and lease liabilities for all leases on its balance sheet. The only lease applicable under IFRS 16 is the Group's office.

The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position are as follows:

	Right of use asset £		Lease liability £		Income statement £
As at 1 July 2025	391,369		(427,364)		-
Depreciation	(55,910)		-		(55,910)
Interest	-		(16,984)		(16,984)
Lease payments	-		75,600		-
Carrying value at 31 December 2025	335,459		(368,748)		(72,894)

	Right of use asset £		Lease liability £		Income statement £
As at 1 July 2024	503,190		(537,672)		-
Liability write-back at expiry	(55,911)		-		(55,910)
Interest	-		(21,569)		(21,569)
Lease payments	-		75,600		-
Carrying value at 31 December 2024	447,279		(483,641)		(77,479)

Contractual maturity analysis of lease liabilities as at 31 December 2025

	Less than 3 months £	3 - 12 months £	1 - 5 Years £	Longer than 5 Years £	Total £
Lease liabilities	37,800	86,841	244,107	-	368,748

 

END