REG - Cirata PLC - Interim results
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RNS Number : 7326X Cirata PLC 03 September 2025
3 September 2025
Cirata plc
("Cirata" or the "Company" or the "Group")
Interim unaudited results for the six months ended 30 June 2025
Cirata (LSE: CRTA), announces its interim unaudited results for the six months
ended 30 June 2025 ("H1 FY25" or the "Period"). A supporting video
presentation with Q&A will be available shortly after the release of this
RNS at Cirata Interims
(https://stream.brrmedia.co.uk/broadcast/68b1831412b902001256a362) or can be
accessed through the company website at Investor Relations
(https://cirata.com/investors/reports-and-presentations) .
Financial Headlines
· Revenue for the Period $4.8m 1 (H1 FY24: $3.4m)
· Bookings 2 of $3.8m (H1 FY24: $2.4m)
· Cash overheads 3 of $8.5m (H1 FY24: $11.8m)
· Adjusted EBITDA 4 loss of $4.0m (H1 FY24: $8.6m, loss)
· Total comprehensive loss for the period of $4.6m (H1 FY24: $9.6m,
loss)
· Cash position at 30 June 2025 of $6.1m (30 June 2024: $9.1m) and short
term receivable balance was $1.3m, giving cash plus receivables of $7.4m
· Outlook: the Company's outlook statement remains unchanged from the 31
March 2025, (FY24 preliminary results announcement)
Business Summary
· Bookings Metrics
o Total bookings in H1FY25 of $3.8m (H1FY24 $2.4m) an increase of 58% YoY
o H1FY25 Data Integration ("DI") bookings of $3.1m (H1FY24 $1m) 5 , an
increase of 210% YoY
o H1FY25 DevOps bookings of $0.7m (H1FY24 $1.4m) a decline of 57% YoY
· Commercial Momentum
o DI first enterprise-wide licence agreement with Leading UK retailer
o DI renewal with top 5 Canadian Bank
o New Logo in the Middle East (AMEA) with partner Databricks
o New partnership agreement with Microsoft Azure
§ Azure Storage Migration Program ("ASMP")
o 20 contracts signed, of which 7 contracts relate to DI
o DI 82% of total bookings value, validating the Company's decision to divest
DevOps on 11 August 2025 in order to focus on DI as the driver of the
Company's future growth
· Post period events: Divestiture, Cost Alignment, Appointment of CRO
o Divestiture of DevOps Assets
§ On 11 August 2025 Cirata announced the successful completion of the
divestment of its DevOps assets to BlueOptima (a UK-based leading provider of
software engineering insights) with a payment of $2.5m. A consideration of up
to $1.0m will be payable in December 2025, conditional upon the transfer of
Cirata's DevOps customers to BlueOptima.
§ This divestiture signals a focus on the growth potential of Cirata's DI
business, the Company's core growth driver
o Cost alignment & financial discipline
§ Divestiture of DevOps assets raises up to $3.5m
§ Annualized cost base expected to be reduced to $12-13m exiting Q3FY25
(exiting Q1 FY25 $16-$17m)
o Appointment of new CRO
§ Go-to-market leadership across both the US and international markets has
been strengthened with the appointment of a new Chief Revenue Officer, Dominic
Arcari, on July 1, 2025. Dominic brings 40 years of successful enterprise
solutions experience
Outlook
The outlook communicated on 31 March 2025 remains unchanged, with bookings
expected to be back end weighted with a similar profile to FY24 and continued
high growth in the Data Integration business.
The divestiture of the DevOps business combined with a further reduction of
the annualized overheads is expected to bring cash overheads to approximately
$12m-13m exiting Q3FY25.
The combination of cost-saving actions, DI growth and the recent divestment of
assets enables Management to reaffirm the previous expectation that a working
capital fundraise is not required in FY25.
Bookings
Total Bookings in H1FY25 were $3.8m (H1FY24: $2.4m), representing an increase
of 58% YoY. DI Bookings were $3.1m (H1FY24 $1m), delivering growth of 210%
YoY. In total, 20 contracts were signed, of which 7 were DI (H1FY24: 31
contracts signed in total, of which 7 were DI). DI accounted for 82% of
Cirata's Bookings value.
During H1FY25, Cirata announced a $2.0m 3-year DI contract with a leading
retailer, representing the first implementation of an enterprise-wide license
agreement, a DI renewal with a leading Canadian Bank and the first Data
Migration as a Service ("DMaaS") contract with Cirata's partner Databricks for
a Middle Eastern telecommunications company.
Q2FY25 fell short of Cirata's internal plan as certain opportunities slipped
into subsequent quarters. The actions taken in January 2025 to strengthen
sales execution in the international region have had a positive and immediate
impact on progress. However, as outlined in the Q1FY25 Trading Update,
execution in North America was disappointing relative to plan. To that end,
further performance improvements have been taken in the quarter to drive sales
execution across the go-to-market ("GTM") function. GTM leadership across both
the US and international markets has been strengthened with the appointment of
our new Chief Revenue Officer, Dominic Arcari, on July 1, 2025. Lead
generation and pipeline build improved during H1FY25 and these ongoing
improvements in pipeline build, alongside enhancements to sales planning,
increased training and further investment in sales personnel, will be led by
Dominic. Establishing greater sales cycle predictability remains a key
priority for management to enable Cirata to enhance its sustainable growth
potential.
Divestiture of DevOps Assets and Future DI Product Roadmap
The divestiture of the DevOps assets to BlueOptima announced on 15 July 2025
which closed on 11 August 2025 signals a focus on the growth potential of
Cirata's DI business, the Company's core growth driver. On the sale of the
DevOps assets, Cirata retains ownership of all existing intellectual property
("IP"). As part of the transaction, BlueOptima will secure rights to the IP
under an exclusive perpetual license agreement.
In FY23, DevOps accounted for 60% of Cirata's bookings. By H1FY25, this
proportion had declined to 18%. DevOps was primarily a renewals-driven
business. Given the Company's mission of pursuing a sustainable, high growth
strategy, the reliance on DevOps renewals was not aligned with that objective.
Accordingly, with the divestiture of its DevOps assets, Cirata is now fully
focused on driving growth through its Data Integration business.
Despite the divestiture of the renewals business, management believes the
transition strengthens the business with an emphasis on new DI business,
expansion of the DI product line and deeper customer adoption.
Looking ahead, Cirata's priority is to scale its DI business and broaden the
use cases of its Live Data Migrator ("LDM") offering. By leveraging Apache
Iceberg open table formats, Cirata aims to enable interoperability for
unstructured data across enterprise and cloud environments. Strategic
partnerships will also accelerate development of future data orchestration
capabilities.
Data orchestration reflects Cirata's long-term vision: tackling enterprise
data modernization challenges and extending LDM beyond Hadoop migration into
multiple large-scale modernization use cases, spanning structured and
unstructured data. Further product announcements, aligned with the
go-to-market plan, are planned in H2FY25.
Partnership Agreement
During Q2FY25, Cirata joined Microsoft's ASMP. Under the program, qualifying
clients can register for migration to Azure Data Lake Storage ("ADLS") Gen2
for static migration using the Cirata LDM product. ADLS Gen2 is more
cost-efficient for large-scale data storage and is better optimized storage
for big data analytics, offering better performance for data processing and
access. This represents another potential channel to market the LDM product
and, in the medium term, an opportunity to upsell Cirata's live data
capabilities.
Cash and Overheads
The cash burn in H1FY25 of $3.6m represents a 60% reduction compared to H1FY24
$9.1m.
As of 30 June 2025, the unaudited cash position was $6.1m and short-term trade
receivables balance was $1.3m, giving a cash plus short-term receivables
balance of $7.4m. The balance sheet will be strengthened with the cash
received from the DevOps divestment with $2.5m received in August 2025 and up
to $1m in December 2025. In addition, non-trade receivables of $1.5m are
expected to be realized within the next 12 months.
Management continues to focus on improving operating leverage and
sustainability.
Actions are being taken to reduce the annualized cash overhead from $16-$17m
to $12-13m exiting Q3FY25, representing a reduction of over 70% from a peak of
$45m per annum (Q1FY23).
Key Performance Indicators
Following the divestitures of the DevOps assets, the Key Performance
Indicators ("KPI") need to reflect the management team's focus on DI as Cirata
transitions from a renewal-led business (a necessary focus during the rescue
and recovery phase) to a growth business. Total contract value ("TCV"), annual
contract value ("ACV"), revenue and new logos will be the primary drivers of
performance assessment as Cirata moves through the remainder of FY25 and into
FY26. In the spirit of transparency, Cirata will be communicating KPIs
quarterly that reflect the progress in the business that also take into
account the impact of discontinued activities. Annual contract value ("ACV")
is an important metric signaling both new wins and expansion of customer
deployments.
FY22 FY23 FY24 FY25
KPI H1 H2 H1 H2 H1 H2 H1
Total Bookings (TCV) ($m) 7.3 4.1 2.8 4.4 2.4 4.7 3.8
Total revenue ($m) 5.8 3.9 3.0 3.7 3.4 4.3 4.8
-DevOps Revenue ($m) 3.3 2.1 2.3 1.4 2.1 1.0 1.6
-DI Revenue ($m) 2.5 1.8 0.7 2.3 1.3 3.3 3.2
-Services Revenue 0.3 0.0 0.2 0.0 0.2 0.2 0.0
#New DI contracts 5 4 3 4 4 10 7
#New DI Logos 4 2 3 3 1 1 1
#Contracts >$250K 7 4 2 7 2 3 3
Cash Overheads ($m) 19.5 20.2 17.6 12.7 11.8 9.0 8.5
Cash Balance ($m) 32.7 19.1 3.2 18.2 9.1 9.7 6.1
Note:
H1 KPI unaudited
Preliminary estimate of cash overheads
Stephen Kelly, Chief Executive Officer, commented:
"We signaled FY25 as a growth year for Cirata's Data Integration products, and
Q1FY25 gave us the strongest start since 2019. Lower cash burn, major wins
with a leading UK retailer following on the heels of the Q4FY24 contract win
with a top 3 US bank, and a new logo through our DataBricks partnership
demonstrate that customers need petabyte-scale data automation without vendor
lock-in. It has been pleasing to see that our 'land and expand' approach is
working. Existing customers are expanding and deepening their enterprise
deployments with Cirata.
We have been very open with investors that we needed to build the company from
the ground up, establishing the essential elements for a high growth
enterprise software company from 'hardening' the product to a complete build
of the GTM function. We've made progress, though I am not satisfied by our
speed of execution. Going forward, we need more new customer wins - especially
in North America, where sales fell short relative to our plans. We've taken
decisive action by reorganizing our go-to-market team with Dominic Arcari as
our new Chief Revenue Officer. We're putting the sales basics in place for
predictable growth.
In the first half of FY25, bookings grew 58% year-on-year and DI sales
increased by 210%. There is no structural reason why we can't expect
continuing triple digit growth as we look to the near-term. Marketing is
building stronger pipelines, and our international business is gaining
momentum. The operating leverage achieved by reducing the annualized costs by
over 70% is starting to show. By divesting our legacy DevOps assets to
BlueOptima, we've sharpened our focus on Data Integration, strengthened our
balance sheet, reduced running costs and removed any drag on overall growth.
The demand for Gen AI and advanced analytics is exploding and Cirata will be
at the heart of it - helping the world's largest companies move and
orchestrate petabyte-scale data securely, using open-table formats. We plan on
exiting FY25 on a strong growth trajectory."
This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging the release of this
announcement on behalf of Cirata plc is Stephen Kelly, Chief Executive
Officer.
For further information, please contact:
Cirata Via FTI Consulting
Stephen Kelly, Chief Executive Officer
Ricardo Assuncao Moura, Chief Financial Officer
Daniel Hayes, Investor Relations
FTI Consulting +44 (0)20 3727 1137
Matt Dixon / Kwaku Aning / Usama Ali
Stifel (Nomad and Joint Broker) +44 (0)20 7710 7600
Fred Walsh / Brough Ransom / Ben Good
Panmure Liberum (Joint Broker) +44 (0)20 3100 2000
Max Jones / John More
About Cirata
Cirata, accelerates data-driven revenue growth by automating data transfer and
integration to modern cloud analytics and AI platforms without downtime or
disruption. With Cirata, data leaders can leverage the power of AI and
analytics across their entire enterprise data estate to freely choose
analytics technologies, avoid vendor, platform, or cloud lock-in while making
AI and analytics faster, cheaper, and more flexible. Cirata's portfolio of
products and technology solutions make strategic adoption of modern data
analytics efficient and automated. For more information about Cirata,
visit www.cirata.com (http://www.cirata.com)
Financial Review
Revenue for the period ended 30 June 2025 was $4.8m 6 (H1 FY24: $3.4m).
Deferred revenue from sales booked during H1 FY25 and in previous years, and
not yet recognised as revenue, is $2.0m 7 as at 30 June 2025 (H1 FY24:
$2.3m). Our deferred revenue represents future revenue from new and renewed
contracts, many of them spanning multiple years.
Adjusted EBITDA loss was $4.0m 8 (H1 FY24: $8.6m, loss). The reduction in the
loss position has been primarily driven by a materially lower cost base than
the prior period, reflecting continued focus on cost optimisation.
Revenue
Revenue was $4.8m (H1 FY24: $3.4m). Revenue performance was driven by Bookings
in the Period and the movement in deferred revenue balance. Of the $4.8m of
revenue for the Period, $2.9m came from Bookings and $1.9m from deferred
revenue movement.
Prior to the Period end the Company had two main products: Data Integration
and DevOps. The Data Integration revenues were $3.2m (H1 FY24: $1.4m) with
DevOps revenues of $1.6m (H1 FY24: $2.0m) during the Period. The DI business
continues to be lumpy in nature, reflecting the non-linear timing of Bookings
as well as the accounting of booked business where most of the revenue from a
Booking is recognized as license at a point in time on delivery, with the
remainder allocated to support and maintenance which is spread over the life
of the underlying contract. The DevOps business was mainly driven by renewals
with revenues primarily coming from maintenance and support and recognized pro
rata over the period of the underlying contract: the exception, historically,
has been for perpetual license income as was the case in H1 FY24.
As we continue to re-build the business and our commercial model, we aim to
transition to greater recurring revenue over time, to reduce the volatility of
our revenue base and provide greater forward visibility.
Operating costs
Cash overheads decreased in the period to $8.5m in H1FY25 (H1FY24: $11.8m)
primarily reflecting the impact of the restructuring undertaken by the
business. The actions taken by Management during January 2025 significantly
reduced the cost base with relevant impact already coming through in H1. The
cost reductions were realized across the business with reductions in both
headcount (67 as at 30 June 2025 (31 December 2024: 90, 30 June 2024: 108 and
March 2023: 192) and non-headcount costs.
Management has continued to rationalize the cost base during H1FY25 and now
expects the overhead annualized cost base exiting Q3FY25 to be between $12m
and $13m. We believe that this cost base provides the capacity for the
business to deliver on its Bookings growth objectives and thus creates
significant operating leverage.
Profit and loss
Adjusted EBITDA loss for the period was $4.0m (H1 FY24: $8.6m loss). The
loss after tax for the period was $13.1m (H1 FY24: $8.9m), with the total
comprehensive loss for the period reducing to $4.6m (H1 FY24: $9.6m)
Balance sheet and cash flow
Trade and other receivables at 30 June 2025 were $3.3m (31 December 2024:
$4.7m). This includes $1.3m of trade receivables (31 December 2024: $3.0m) and
$2.0m related to non-trade receivables (31 December 2024: $1.7m) of which
$1.5m is expected to be realized within the next 12 months (31 December 2024:
$1.3m).
Net consumption of cash was $3.6m before financing (H1FY24: $9.1m), resulting
in a closing cash balance of $6.1m as at 30 June 2025. The lower cash burn was
driven by lower costs compared to the prior period. Management continues to
focus on driving the business to a cash flow break-even position.
Subsequent events
On 11 August 2025 Cirata announced the completion of the divestment of its
DevOps assets, to Blue Optima (a UK-based leading provider of software
engineering insights) for $2.5m. A $1.0m final consideration will be payable
in December 2025, conditional upon the transfer of Cirata's DevOps customers
to BlueOptima.
Chief Financial Officer
Ricardo Assuncao Moura
Condensed consolidated statement of profit or loss and other comprehensive
income
For the six months ended 30 June 2025
Six months ended Six months ended
30 June 30 June Year ended
2025 2024 31 December 2024
(Unaudited) (Unaudited) (Unaudited)
Note $'000 $'000 $'000
Revenue 3 3,208 1,368 4,619
Cost of sales (295) (236) (475)
Gross profit 2,913 1,132 4,144
Operating expenses 4 (7,809) (11,506) (19,556)
Other income - - 207
Impairment loss (68) - (563)
Operating loss 4 (4,964) (10,374) (15,768)
Finance income 5 34 715 1,584
Finance costs 5 (8,459) (39) (76)
Net finance (costs)/income 5 (8,425) 676 1,508
Loss before tax (13,389) (9,698) (14,260)
Income tax charge - - -
Loss for the period from continuing operations (13,389) (9,698) (14,260)
Profit from the period from discontinuing operations 11 339 797 751
Loss for the period (13,050) (8,901) (13,509)
Other comprehensive income/(loss)
Items that are or may be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation differences 8,406 (697) (1,577)
Other comprehensive income/(loss) for the period, net of tax 8,406 (697) (1,577)
Total comprehensive loss for the period attributable to owners of the parent (4,644) (9,598) (15,086)
Loss per share
Basic and diluted loss per share (cent) 6 (11) (8) (11)
The notes form an integral part of these condensed consolidated interim
financial statements.
Condensed consolidated statement of financial position
At 30 June 2025
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
Note $'000 $'000 $'000
Assets
Property, plant and equipment 198 121 198
Other non-current assets 7 538 73 22
Non-current assets 736 194 220
Assets held in disposal group classified as held for sale 11 253 527 310
Trade and other receivables 8 3,294 4,055 4,660
Cash and cash equivalents 6,079 9,089 9,732
Current assets 9,626 13,671 14,702
Total assets 10,362 13,865 14,922
Equity
Share capital 17,100 15,744 17,100
Share premium 261,726 256,281 261,726
Translation reserve (2,255) (9,781) (10,661)
Merger reserve 1,247 1,247 1,247
Retained earnings (272,393) (255,430) (259,839)
Total equity 5,425 8,061 9,573
Liabilities
Loans and borrowings 9 300 120 367
Deferred income 10 69 34 17
Deferred tax liabilities - 3 3
Non-current liabilities 369 157 387
Liabilities held in disposal group classified as held for sale 11 1,408 1,657 1,211
Current tax liabilities - - -
Loans and borrowings 9 449 466 522
Trade and other payables 2,154 2,892 2,125
Deferred income 10 557 632 1,104
Current liabilities 4,568 5,647 4,962
Total liabilities 4,937 5,804 5,349
Total equity and liabilities 10,362 13,865 14,922
The notes form an integral part of these condensed consolidated
interim financial statements.
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2025
Attributable to owners of the Company
Share Share premium Translation reserve Merger reserve Retained earnings Total
capital equity
Six months ended 30 June 2025 (Unaudited) $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2025 17,100 261,726 (10,661) 1,247 (259,839) 9,573
Total comprehensive loss for the period
Loss for the period - - - - (13,050) (13,050)
Other comprehensive loss for the period - - 8,406 - - 8,406
Total comprehensive loss for the period - - 8,406 - (13,050) (4,644)
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payment - - - - 496 496
Share options exercised - - - - - -
Total transactions with owners of the Company - - - - 496 496
Balance at 30 June 2025 17,100 261,726 (2,255) 1,247 (272,393) 5,425
Six months ended 30 June 2024 (Unaudited)
Balance at 1 January 2024 15,634 256,278 (9,084) 1,247 (247,461) 16,614
Total comprehensive (loss)/income for the period
Loss for the period - - - - (8,901) (8,901)
Other comprehensive income for the period - - (697) - - (697)
Total comprehensive income/(loss) for the period - - (697) - (8,901)) (9,598)
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payment - - - - 932 932
Share options exercised 110 3 - - - 113
Total transactions with owners of the Company 110 3 - - 932 1,045
Balance at 30 June 2024 15,744 256,281 (9,781) 1,247 (255,430) 8,061
The notes form an integral part of these condensed consolidated interim
financial statements.
Condensed consolidated statement of cash flows
For the six months ended 30 June 2025
Six months ended Six months ended
30 June 30 June Year ended
2025 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
Note $'000 $'000 $'000
Cash flows from operating activities
Loss for the period (13,050) (8,901) (13,509)
Adjustments for:
- Depreciation of property, plant and equipment 22 35 59
- Impairment of right of use asset 68 - 563
- Net finance income/(expense) (excluding foreign exchange) 7 (1) 16
- Foreign exchange 8,424 (666) (1,511)
- Equity-settled share-based payment 12 496 932 1,131
(4,033) (8,601) (13,251)
Changes in:
- Trade and other receivables 912 102 (276)
- Trade and other payables (35) (90) (852)
- Deferred income (298) (393) (379)
Net working capital change 579 (381) (1,507)
Cash used in operating activities (3,454) (8,982) (14,758)
Interest paid (7) (39) (16)
Net cash used in operating activities (3,461) (9,021) (14,774)
Cash flows from investing activities
Acquisition of property, plant and equipment (23) (5) (107)
Net cash used in investing activities (23) (5) (107)
Cash flows from financing activities
Gross proceeds from issue of share capital - 113 7,361
Share issue costs - - (447)
Payment of finance lease liabilities (209) (210) (470)
Net cash (used in)/generated from financing activities (209) (97) 6,444
Net decrease in cash and cash equivalents (3,693) (9,123) (8,437)
Cash and cash equivalents at 1 January 9,732 18,246 18,246
Effect of movements in exchange rates on cash held 40 (34) (77)
Cash and cash equivalents at the end of the period 6,079 9,089 9,732
The notes form an integral part of these condensed consolidated interim
financial statements.
Notes to the condensed consolidated interim financial statements
For the six months ended 30 June 2025
1. Reporting entity
Cirata plc (the "Company") is a public limited company incorporated and
domiciled in Jersey. The Company's ordinary shares are traded on AIM. These
condensed consolidated interim financial statements ("Interim financial
statements") as at and for the six months ended 30 June 2025 comprise the
Company and its subsidiaries (together referred to as the "Group"). The Group
is primarily involved in the development and provision of global collaboration
software.
2. Basis of preparation
a Basis of accounting
These interim financial statements have been prepared in accordance with IAS
34 "Interim Financial Reporting" and should be read in conjunction with the
Group's last annual consolidated financial statements as at and for the year
ended 31 December 2024 ("last annual financial statements"). They do not
include all the information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance since the last annual financial
statements. The accounting policies set out in the Group's statutory financial
statements for the year ended 31 December 2024 have been applied in the
preparation of the interim financial statements.
These interim financial statements were authorised for issue by the Company's
board of directors on 3 September 2025.
b Going concern
These interim financial statements have been prepared on a going concern
basis.
As at 30 June 2025 the Group had net assets of $5.4m (31 December 2024:
$9.6m), including cash of $6.1m (31 December 2024: $9.7m) as set out in the
interim condensed consolidated statement of financial position. In the six
months ended 30 June 2025, the Group incurred a loss before tax, including
both continuing and discontinuing operations, of $13.1m (H1 FY24: $8.9m) and
net cash outflows before financing of $3.9m (H1 FY24: $9.0m).
Revenue for H1 FY25, including continuing and discontinuing operations, was
$4.8m (H1 FY24: $3.4m), with an operating loss for continuing and
discontinuing operations of $4.6m (H1 FY24: $9.6m), mainly due to reduced
operating expenses.
The Directors have prepared a detailed budget and forecast of the Group's
expected performance over a period covering at least the next twelve months
from the date of the approval of these unaudited interim financial
statements.
In performing its going concern assessment, the Directors are required to
consider a minimum period of twelve months from the date of approving the
interim financial statements. Scenario modelling has been undertaken over the
period to 30 September 2026. The assessment involved the preparation of a
'Base' case and a 'Downside' case.
The Base case scenario included assumptions for quarterly sales targets,
anticipated changes to the Group's current contracting model, timeframes for
new sales personnel to convert sales pipelines, and cost assumptions
reflecting an overhead annualised cost base of c.$16m-$17m in FY25 and
c.$12m-13m in FY26. Under the Base case the Group is forecasting the ability
to meet all financial obligations as and when they fall due during the period
forecast.
The Downside case sensitised the Base case and modelled lower sales bookings
during the period without any further cost reduction, which would be taken in
such a scenario. Under the Downside case the Group is forecasting a reduction
in cash resources to less than $5m by the end of December 2026. The Downside
scenario does not consider any readily available mitigating actions that
Management could take. By their very nature forecasts and projections are
inherently uncertain. The biggest driver of the uncertainty continues to be
around the ability of the business to successfully close sales in a
predictable and sustainable way. Consequently, the loss-making position of the
Group and the low forecast cash balance sheet position heightens the
uncertainty such that circumstances could arise under which the downside
scenario may occur that would render the preparation of accounts based on the
assumption of a going concern inappropriate.
Accepting the material uncertainty, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. For these reasons, they continue to
adopt the going concern basis in preparing these Interim financial statements.
No adjustments have been made to the financial statements that would result if
the Group were unable to continue as a going concern.
2. Basis of preparation (continued)
c Functional and presentational currency
The interim consolidated financial statements are presented in US dollars, as
the revenue for the Group is predominately derived in this currency. Billings
to the Group's customers during the period by Cirata, Inc. were all in US
dollars with certain costs being incurred by Cirata Ltd in sterling and
Cirata, Pty Ltd in Australian dollars. All financial information has been
rounded to the nearest thousand US dollars unless otherwise stated.
d Alternative performance measures
The Group uses a number of alternative performance measures ("APMs") which are
non-IFRS measures to monitor the performance of its operations. The Group
believes these APMs provide useful information to help investors and other
stakeholders evaluate the performance of the business and are measures
commonly used by certain investors for evaluating the performance of the
Group. In particular, the Group uses APMs which reflect the underlying
performance on the basis that this provides a more relevant focus on the core
business performance of the Group and aligns with our KPIs. Adjusted results
exclude certain items because if included, these items could distort the
understanding of our performance for the period and the comparability between
periods. The Group has been using the following APMs on a consistent basis and
they are defined and reconciled as follows:
- Cash overheads: Operating expenses adjusted for: depreciation,
amortisation, equity‑settled share-based payment and other one-off
non-recurring items disclosed separately. See Note 4 for a reconciliation.
- Adjusted EBITDA: Operating loss adjusted for: impairment loss,
depreciation, amortisation, equity‑settled share-based payment, other income
and other one-off non-recurring items disclosed separately. See Note 4 for a
reconciliation.
e Use of judgements and estimates
In preparing these Interim financial statements, Management has made
judgements and estimates that affect the application of the Group's accounting
policies and the reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.
The significant judgements made by Management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those described in the last annual financial statements.
3. Revenue and segmental analysis
a Operating segments
The Directors consider there to be one operating segment, being that of
development and sale of licences for software, related maintenance and
support and professional services.
b Geographical segments
The Group recognises revenue in three geographical regions based on the
location of customers, as set out in the following table:
Revenue Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
North America 1,255 875 3,868
Europe 1,753 352 293
Rest of the world 200 141 458
3,208 1,368 4,619
3. Revenue and segmental analysis (continued)
b Geographical segments (continued)
Management makes no allocation of costs, assets or liabilities between these
segments since all trading activities are operated as a single business unit.
c Major products
The Group's core patented technology, Distributed Coordinated Engine,
("DConE"), enables the replication of data. This core technology is contained
in the vast majority of the Group's products.
d Major customers
Six months ended Six months ended Six months Six months Year ended Year ended
30 June 2025 30 June 2025 ended ended 31 December 2024 31 December 2024
(Unaudited) (Unaudited) 30 June 2024 30 June 2024 (Unaudited) (Unaudited)
(Unaudited) (Unaudited)
% of $'000 % of $'000 % of $'000
revenue revenue revenue revenue revenue Revenue
Customer 1 52% 1,662 44% 597 37% 1,729
Customer 2 18% 583 15% 205 21% 983
Customer 3 5% 162 11% 145 16% 718
Customer 4 4% 141 9% 119 6% 260
No other single customers contributed 10% or more to the Group's revenue
(2024: $nil).
e Split of revenue by timing of revenue recognition
Revenue Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
Licences and services transferred at a point in time 2,674 967 3,683
Maintenance and support services transferred over time 534 401 936
3,208 1,368 4,619
f Contract balances
The following table provides information about contract assets and liabilities
from contracts with customers.
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
Contract assets, which are included in "Other non-current assets - accrued 538 57 15
income"
Contract assets, which are included in "Trade and other receivables - accrued 517 461 39
income"
Total contract assets 1,055 518 54
Contract liabilities, which are included in "Deferred income - non-current" (69) (34) (17)
Contract liabilities, which are included in "Deferred income - current " (557) (632) (1,104)
Total contract liabilities (626) (666) (1,121)
4. Cash overheads and Adjusted EBITDA loss
Six months ended Six months ended
30 June 30 June Year ended
2025 2024 31 December 2024
(Unaudited) (Unaudited) (Unaudited)
a Reconciliation of operating expenses to "Cash overheads": Note $'000 $'000 $'000
Operating expenses from continuing operations 11 (7,809) (11,506) (19,556)
Operating expenses from discontinuing operations (1,206) (1,232) (2,249)
Adjusted for:
Amortisation and depreciation 22 35 59
Equity-settled share-based payment 12 496 932 1,131
Cash overheads (8,497) (11,771) (20,615)
Six months ended Six months ended
30 June 30 June Year ended
2025 2024 31 December 2024
(Unaudited) (Unaudited) (Unaudited)
b Reconciliation of operating loss to "Adjusted EBITDA loss": Note $'000 $'000 $'000
Operating loss from continuing operations (4,964) (10,374) (15,768)
Operating profit from discontinuing operations 11 339 797 751
Adjusted for:
Other income - - (207)
Impairment loss 68 - 563
Amortisation and depreciation 22 35 59
Equity-settled share-based payment 12 496 932 1,131
Adjusted EBITDA loss (4,039) (8,610) (13,471)
5. Net finance (costs)/income
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
Interest income on cash and cash equivalents - - -
Interest income on non-current assets 34 40 60
Net foreign exchange gain - 675 1,524
Finance income 34 715 1,584
Net foreign exchange loss (8,413) - -
Leases (46) (39) (76)
Finance costs (8,459) (39) (76)
Net finance (costs)/income (8,425) 676 1,508
5. Net finance (costs)/income (continued)
The net foreign exchange loss (2024: gain, H1 FY24: gain) arose on
sterling-denominated intercompany balances in a US dollar denominated
subsidiary. These balances were retranslated at the closing exchange rate at
30 June 2025, which was 1.37, a 9% appreciation of sterling compared to the
rate of 1.25 at 31 December 2024. The loss on intercompany balances in the
Condensed consolidated statement of profit or loss is offset by an equivalent
exchange gain (2024: loss, H1 2024: loss) on the retranslation of the
intercompany balances, which is included in the retranslation of net assets of
foreign operations, included in the other comprehensive income.
6. Loss per share
a Basic loss per share
The calculation of basic loss per share has been based on the following loss
attributable to ordinary shareholders and weighted average number of ordinary
shares outstanding:
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
Loss for the period attributable to ordinary shareholders 13,050 8,901 13,509
Weighted average number of ordinary shares Number of shares Number of shares
Number of shares '000s '000s
'000s
Issued ordinary shares at 1 January 120,165 114,963 114,962
Effect of shares issued in the period - 379 5,203
Weighted average number of ordinary shares during the period 120,165 115,342 120,165
Basic loss per share (cent) 11 8 11
b Adjusted loss per share
Adjusted loss per share is calculated based on the loss attributable to
ordinary shareholders before net foreign exchange (loss)/gain, impairment loss
and the cost of equity-settled share-based payment, and the weighted average
number of ordinary shares outstanding:
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Adjusted loss for the period: Note $'000 $'000 $'000
Loss for the period attributable to ordinary shareholders 13,050 8,901 13,509
Adjusted for:
Impairment loss (68) - (563)
Foreign exchange (loss)/gain (8,413) 675 1,524
Equity-settled share-based payment 12 (496) (932) (1,131)
Adjusted loss for the period 4,073 8,644 13,339
Adjusted loss per share (cent) 3 7 11
c Diluted loss per share
Due to the Group having losses in all years presented, the fully diluted loss
per share for disclosure purposes, as shown in the Consolidated statement of
profit or loss and other comprehensive income, is the same as for the basic
loss per share.
7. Other non-current assets
30 June 30 June 31 December 2024
2025 2024 (Unaudited)
(Unaudited) (Unaudited)
Due in more than a year: $'000 $'000 $'000
Other receivables - 16 7
Accrued income 538 57 15
Total other non-current assets 538 73 22
8. Trade and other receivables
30 June 30 June 31 December 2024
2025 2024 (Unaudited)
(Unaudited) (Unaudited)
Due within a year: $'000 $'000 $'000
Trade receivables
1,281 1,932 2,995
Other receivables 387 365 391
Accrued income 517 461 39
Corporation tax 617 686 882
Prepayments 492 611 353
Total trade and other receivables 3,294 4,055 4,660
9. Loans and borrowings
30 June 30 June 31 December 2024
2025 2024 (Audited)
(Unaudited) (Unaudited)
$'000 $'000 $'000
Non-current lease liabilities 300 120 367
Current lease liabilities 449 466 522
Total loans and borrowings 749 586 889
At 30 June 2025, 30 June 2024 and 31 December 2024 there was no bank loan
debt.
10. Deferred income
Deferred income represents contracted sales for which services to customers
will be provided in future periods.
30 June 30 June 31 December 2024
2025 2024 (Unaudited)
(Unaudited) (Unaudited)
Deferred income which falls due: $'000 $'000 $'000
Within a year 557 632 1,104
In more than a year 69 34 17
Total deferred income 626 666 1,121
11. Disposal group classified as held for sale and discontinued operations
On 11 August 2025 the Group announced the successful completion of the
divestment of the DevOps assets.
As a result of this divestment the assets and liabilities directly allocated
to DevOps have been classified as a disposal group. Revenue and expenses
directly related to the discontinuation of DevOps have been eliminated from
the income statement from the Group's continuing operations and are shown as a
single line item in the consolidated statement of profit and loss. In line
with IFRS 5, only direct costs relating to the discontinuation DevOps have
been allocated, no overheads or share of support function costs were included
when presenting the operating profit of DevOps.
The operating profit of DevOps until the reporting date is summarised as
follows:
Six months ended Six months ended
30 June 30 June Year ended
2025 2024 31 December 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
Revenue 1,558 2,066 3,062
Cost of sales (13) (37) (62)
Gross profit 1,545 2,029 3,000
Operating expenses (1,206) (1,232) (2,249)
Operating profit 339 797 751
Profit before tax 339 797 751
Income tax charge - - -
Profit for the period from discontinuing operations 339 797 751
The carrying amount of assets and liabilities in the disposal group are
summarised as follows:
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
Assets
Trade and other receivables 253 527 310
Total assets classified as held for sale 253 527 310
Total assets 253 527 310
Liabilities
Deferred income 1,408 1,657 1,211
Total liabilities classified as held for sale 1,408 1,657 1,211
Cash flows from generated by DevOps are as follows:
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Unaudited)
$'000 $'000 $'000
Net cash from operating activities 389 1,804 2,400
Cash flows from discontinued operations 389 1,804 2,400
12. Share-based payment
The Group operates share option plans for employees of the Group. Options in
the plans are settled in equity in the Company and are normally subject to a
vesting schedule but not conditional on any performance criteria being
achieved.
The terms and conditions of the share option grants are detailed in the Group
annual financial statements for the year ended 31 December 2024.
a Expense recognised in profit or loss
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
Total equity-settled share-based payment charge 496 932 1,131
b Summary of share options outstanding
Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
Number of share options outstanding: Number Number Number
Outstanding at the start of the period 5,404,680 4,984,365 4,984,365
Granted 2,351,951 117,000 941,000
Forfeited (5,000) (116,378) (486,498)
Exercised (28,334) (20,837) (34,187)
Cancelled - - -
Outstanding at the end of the period 7,723,297 4,964,150 5,404,680
Exercisable at the end of the period 2,284,471 977,310 2,312,805
Vested at the end of the period 2,284,471 977,310 2,312,805
13. Commitments and contingencies
The Group has no commitments or contingent liabilities at 30 June 2025 (31
December 2024: $nil, 30 June 2024: $nil).
14. Subsequent events
On 11 August 2025 the Group announced the successful completion of the
divestment of the DevOps assets. The divestment consisted of an agreement to
sell the business development, maintenance and licensing of DevOps solutions
software to a third party, BlueOptima. Blue Optima will secure rights to the
intellectual property under an exclusive licensing agreement, with the Cirata
Group retaining ownership of all existing intellectual property. The total
consideration payable by BlueOptima is up to $3.5m, with $2.5m having been
paid on 11 August and the remaining $1m payment due in December 2025,
conditional on the successful transfer of Cirata's DevOps customers to
BlueOptima. As part of the transaction, the Group has also entered into a
transitional services agreement with BlueOptima to provide certain services
related to the DevOps solutions software on a transitional basis following
completion of the divestment.
1 Includes both continuing and discontinued operations, revenue balance DI
$3.2m, & DevOps $1.6m: see note 11
2 Total contract value of contracts signed during the period.
3 Operating expenses adjusted for: depreciation, amortization,
equity-settled share-based payment and other one-off non -recurring items
disclosed separately. See Note 4 for a reconciliation.
4 Operating loss adjusted for: impairment loss, depreciation, amortisation,
equity-settled share-based payment, other (expense)/income and other one-off
non-recurring items disclosed separately. See Note 4 for a reconciliation.
5 In the Q2FY25 Trading update the H1FY24 DI Bookings number was recorded as
$0.9m
6 Includes both continuing and discontinued operations, revenue balance DI
$3.2m, & DevOps $1.6m: see note 11
7 Includes both continuing and discontinued operations, deferred revenue
balance, DI $0.6m, & DevOps $1.4m: see note 11
8 Includes both continuing and discontinued operations, EBITDA balance, DI
$4.4m, loss & DevOps $0.4m, profit: see note 11
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. END IR BIGDCDSGDGUDRecent news on Cirata
See all newsREG - Cirata PLC - Interim results
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AnnouncementREG - Cirata PLC - Completion of DevOps Divestment
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AnnouncementREG - Cirata PLC - Holding(s) in Company
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