REG - Cordel Group PLC - Trading Update

CordelAnnouncement

09/06/2025 07:00

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RNS Number : 9707L  Cordel Group PLC  09 June 2025

9 June 2025

Cordel Group PLC

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

 

Trading Update

 

Cordel Group PLC (AIM: CRDL), the Artificial Intelligence (AI) platform for
transport corridor analytics, provides the following update on trading for the
year ending 30 June 2025 ("FY25").

Having reviewed the timing of likely near-term contract wins, the Board
currently expects to report revenue for FY25  in the range of £4.7 to £5
million, representing growth of up to 12% over the previous corresponding
period (FY24: £4.4 million).  We expect to issue a further full year trading
update as usual in July 2025 with audited results expected to be announced
during November 2025.

Commentary from John Davis, Cordel CEO:

We have made excellent strategic progress in FY25 though are expecting to
report a lower than forecast full year revenue result, hence this early update
on the likely outcome for FY25.  Economic uncertainty, particularly in the
USA, has unfortunately led to protracted sales cycles and delayed revenue,
which has impacted our normally strong second half revenue.  Sales momentum
has recently recovered, though the majority of the revenue from new contracts
is now expected to be recognized in the next financial year (FY26).

 

Overall, we have made satisfactory trading progress, securing two existing
contract expansions and five new customers in the course of FY25.  Our
closing cash position is expected to be improved compared to the previous year
(30 June 2024: £1.02million), subject to normal cash collection performance
in June 2025.

 

We are particularly pleased with the progress of our PTC (Positive Train
Control) product initiative, ahead of the anticipated launch next month.  As
already announced, we have secured the support of existing USA railroad
customers and signed our first commercial PTC contract with a major Class 1
railroad.  This last aspect is many months ahead of where we expected to be
and gives us confidence in the continuing investment and our long term
forecast for the product.

Cordel Chairman, Ian Buddery, said: "Our recent breakthroughs in Multimodal
Artificial Intelligence have accelerated the acceptance of our PTC solution by
the rail industry and the board has confidence in the revenue growth this will
deliver in FY26.  We are frustrated by lower industry activity in the current
second half but our team continues to push hard on every revenue opportunity
that can be secured by the 30 June close."

 

Enquiries:

 

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

 John Davis, Chief Executive Officer

 Cavendish Capital Markets Limited, Broker   +44 (0)20 7220 0500

 Marc Milmo / (Corporate Finance)

 Sunila de Silva (ECM)

 Strand Hanson Limited, Nominated Adviser

 Richard Johnson / James Bellman             +44 (0)20 7409 3494

 

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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