REG - Cordel Group PLC - Business and Trading Update

CordelAnnouncement

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RNS Number : 1083R  Cordel Group PLC  16 July 2025

16 July 2025

Cordel Group PLC

("Cordel" or the "Company" or the "Group")

 

Business and Trading Update

 

Cordel Group PLC (AIM: CRDL), the Artificial Intelligence (AI) platform for
transport corridor analytics, provides an update on trading for the year ended
30 June 2025 and the progress made by the Company in the year.

The Company expects to report revenue for the year ending 30 June 2025
("FY25") of £4.79 million, subject to audit confirmation, representing growth
of c.8% over the previous corresponding period (FY24: £4.43 million).
Closing cash at 30 June 2025 was £1.50 million compared to £1.02 million at
the end of June 2024.  The FY25 audited results are expected to be announced
during November 2025.

Commentary from John Davis, Cordel CEO:

We began FY25 with a clear aspiration to win more new customers.  This was
successfully achieved with five new customers added in the course of FY25, the
highlights being contract wins with two major USA railroads.  However, as
reported in our update of 9 June 2025, protracted sales cycles have pushed
some initially expected revenues into FY26.

 

Notwithstanding this, the uplift in software revenues, compared to hardware
revenues, and ongoing careful expense management created an improved operating
margin and contributed to a strong positive cashflow performance over the
year, with closing cash ahead of plan.

We also continued to invest carefully in organisational growth across all our
regions, with new sales, sales support and delivery engineers in key
locations. We plan to invest further in marketing and delivery over the next
12 months to support the rollout of our new Positive Train Control ("PTC")
platform. We have the project backlog and sales pipeline in place to recover
our previous growth trajectory in FY26, although we remain cautious about
external economic factors and have moderated our growth target accordingly.

Cordel Chairman, Ian Buddery, said: "We have performed well in FY25, despite
the aforementioned revenue delays, with an excellent cashflow result, achieved
during a period of investment in capacity and technology.  We are excited by
the potential of our PTC product initiative, ahead of its upcoming launch. An
unexpected bonus has been the interest in PTC from other countries, the
applications for our Multimodal Artificial Intelligence technology are broader
and deeper than anticipated".

 

Enquiries:

 

 Cordel Group PLC                            c/o Strand Hanson
 Ian Buddery, Chairman

 John Davis, Chief Executive Officer

 Cavendish Capital Markets Limited, Broker   +44 (0)20 3220 0500
 Marc Milmo / (Corporate Finance)

 Sunila de Silva (ECM)

                                             +44 (0)20 7409 3494

 Strand Hanson Limited, Nominated Adviser

 Richard Johnson / James Bellman

 

About Cordel

Cordel produces specialist hardware and software for capturing, analysing and
reporting on large datasets within the transport sector, employing
sophisticated artificial intelligence algorithms.

 

Further information on the Company is available at: www.cordel.ai
(http://www.cordel.ai/)

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended. Upon the publication of
this announcement, this inside information is now considered to be in the
public domain.

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