REG - Arcontech Group PLC - Interim Results for the Six Months Ended 31 Dec 25
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RNS Number : 7754R 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
(http://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 Six months ended 31 Year ended
December December
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)
394,622 518,166
Profit for the period after tax 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
31 December 2025 31 December 2024 30 June
Note 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 Six months ended 31 Year ended
December December
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 Share Share-option reserve Retained Total
capital premium earnings
£ £ £ £ £
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
(http://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 31 December 30 June
2025
2024
2025
£
£
£
(unaudited)
(audited)
(unaudited)
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 31 December 30 June
2025
2024
2025
£
£
£
(unaudited)
(audited)
(unaudited)
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 31 December 30 June
2025
2024
2025
£
£
£
(unaudited)
(audited)
(unaudited)
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 Six months ended 31 Year ended
December December
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)
368,658 (133,039)
Decrease / (increase) in trade and other receivables
(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
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