RCS - Defence Holdings PLC - Key Themes from the UK Strategic Defence Review

Defence HoldingsAnnouncement

05/06/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250605:nRSE5144La&default-theme=true

RNS Number : 5144L  Defence Holdings PLC   05 June 2025

FOR IMMEDIATE RELEASE
5 June 2025

London, UK

Defence Holdings PLC

("Defence" or "the Company")

Assessment:
Key Themes from the UK Strategic Defence Review 2025

 

Defence Holdings PLC (ALRT) today publishes our assessment of the UK Strategic
Defence Review 2025, compiled by proposed Senior Non-Executive Director Andy
McCartney. Our analysis identifies what we believe to be five core strategic
themes that will fundamentally reshape the UK defence landscape and create
significant opportunities for sovereign technology companies over the next
decade.

Context: The Generational Shift

The SDR 2025 represents what we believe to be a profound transformation driven
by a significantly deteriorated and more complex global security landscape.
The Review establishes what the government terms a "new era of threat,"
requiring a fundamental step-change in British defence, away from
counter-insurgency operations towards peer-state deterrence and high-intensity
conflict preparedness.

Analysis: Themes and Market Implications
A. New Era of Threat

The SDR identifies state-on-state competition, particularly from Russia and
China, as driving an urgent need for advanced technological solutions. In our
view, this creates sustained demand for defensive technologies over the
planning horizon to 2035-2040.

B. Technology-Centric Military Power

Traditional platform-centric warfare is giving way to network-enabled,
data-driven operations. The Review prioritises AI, autonomy, cyber
capabilities, space assets, and digital transformation - which we see as
directly aligning with Defence Holdings' strategic focus areas.

C. Radical Procurement Reform

The introduction of segmented procurement pathways, including a "Rapid
Commercial Exploitation" stream targeting 3-month contracting cycles, we
believe fundamentally improves market access for innovative technology
companies. Our understanding is that at least 10% of equipment procurement
budget will be dedicated to novel technologies through this accelerated route.

D. Defence as Economic Engine

We interpret the concept of a "defence dividend" as explicitly linking
national security investment with economic prosperity, which we see as
signalling sustained government commitment to prioritising UK-based technology
businesses, particularly in "deep tech" sectors.

Andy McCartney, the proposed Senior Non-Executive Director of Defence Holdings
PLC, commented:

"The Strategic Defence Review 2025 represents the most significant
reorientation of UK defence priorities since the end of the Cold War. Having
analysed defence transformation initiatives across multiple jurisdictions, we
believe the UK government's commitment to technology-led capabilities, coupled
with their £400 million UK Defence Innovation budget and radical procurement
reforms, creates what we see as an unprecedented opportunity landscape for
sovereign technology companies. In our assessment, the explicit prioritisation
of UK-based businesses in critical technology areas directly validates our
strategic positioning across drone warfare, AI agents, information warfare,
and critical infrastructure defence."

Immediate Opportunities (2025-2027):

●    UK Defence Innovation (UKDI) £400m annual budget for commercial and
dual-use technologies

●    Rapid Commercial Exploitation procurement stream with 3-month
contracting targets

●    Digital transformation initiatives including "common digital
foundation" and "Secret Cloud"

●    New CyberEM Command establishment which we believe will drive demand
for cyber and electromagnetic warfare solutions

Medium-Term Growth Drivers (2027-2030):

●    "Digital targeting web" which we assess will require advanced AI and
data analytics platforms

●    Uncrewed systems dominance across land, sea, air, and space domains

●    Space-based capabilities including satellite communications and ISR
services

●    Critical infrastructure protection with AI-driven anomaly detection

Brian Stockbridge, Board Member of Defence Holdings PLC, added:

"The Strategic Defence Review 2025 reinforces our conviction that Defence
Holdings is strategically positioned at the intersection of what we believe to
be the UK government's most critical technology priorities. We see the SDR's
emphasis on rapid innovation cycles, sovereign capability development, and
export-orientated solutions as directly aligning with our product-studio and
buy-and-build model. We expect to see significant acceleration in our market
engagement opportunities, particularly through the new UKDI pathways and
reformed procurement processes."

Our Assessment of Strategic Positioning for Growth

Our analysis identifies what we believe to be three critical success factors
for technology companies seeking to capitalise on the SDR opportunities:

1.   Sovereign Credentials: Demonstrable UK-based R&D, domestic IP
ownership, and commitment to UK workforce development

2.   Rapid Innovation Capability: Ability to operate within accelerated
development and procurement timelines

3.   Interoperability Focus: Solutions designed for integration within NATO
frameworks and the UK's "Integrated Force" concept

 
About Defence Holdings PLC

Headquartered in London, Defence Holdings PLC is a publicly listed company
trading under the stock ticker (ALRT) dedicated to delivering high-performance
defence and security solutions for the UK and European markets. The Company's
strategic focus on drone warfare & aggregation, AI agents for defence
operations, information & influence warfare, and critical infrastructure
defence we believe directly aligns with the UK government's identified
technology priorities.

Website: (http://www.defencetechnologies.com) www.defencetechnologies.com
(http://www.defencetechnologies.com)

Strategic Analysis Report Availability

The complete Strategic Analysis Report, compiled by the proposed Senior
Non-Executive Director Andy McCartney, provides a detailed examination of what
we believe the SDR 2025's implications for sovereign technology companies and
will be available from 2 pm today at
(http://www.defencetechnologies.com/investors)
www.defencetechnologies.com/investors
(http://www.defencetechnologies.com/investors) .

For regular updates on Defence Holdings' strategic positioning and market
developments, follow (https://www.x.com/wearedefence)
https://www.x.com/wearedefence (https://www.x.com/wearedefence) .

Media Enquiries

Brian Stockbridge - Board Member

Defence Holdings PLC

Tel: +44 (0)20 3855 5551

Email: press@defencetechnologies.com

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAKZGGVGDGGKZZ