REG - Diales Group PLC - Preliminary Results
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RNS Number : 7255K Diales Group PLC 09 December 2025
DIALES GROUP Plc
("Diales", "Company" or "Group")
Preliminary Results for the year ended 30 September 2025
Diales Group Plc (AIM: DIAL), the leading global professional services
consultancy to the construction and engineering industries, providing
multi-disciplinary consultancy services including expert witness, claims and
dispute resolution services, is pleased to announce its Preliminary Results
for the financial year ended 30 September 2025.
Year ended Year ended
30-Sep-25 30-Sep-24 Change
£m £m £m
Revenue 43.0 43.0 -
Gross Profit 11.6 11.0 0.6
Gross Profit % 27.0% 25.6% 1.4%
Profit before tax 1.3 0.9 0.4
Add: Non-recurring costs - 0.2 (0.2)
Add: Share-based payment charge 0.1 0.1 -
Underlying* operating profit before tax 1.4 1.2 0.2
Underlying* operating profit before tax % 3.3% 2.8% 0.5%
Basic earnings per share from continuing operations 1.7p 0.8p 0.9p
Profit before tax 1.3 0.9 0.4
Loss from discontinued operations, net of tax (0.2) (1.0) 0.8
Underlying* profit/(loss) before tax 1.1 (0.1) 1.2
Net cash 3.0 4.3 (1.3)
Net cash per share 5.8p 8.1p (2.3p)
Dividend per share 1.5p 1.5p -
Financial Summary
· Revenue from continuing operations stable at £43.0m (2024:
£43.0m)
· Gross profit margin increased by 0.6% to 27.0% (2024: 25.6%), a
£0.6m increase in gross profit to £11.6m (2024: £11.0m)
· The Group recorded a 17% increase to £1.4m in underlying*
operating profit from continuing operations (2024: £1.2m), an increased
margin of 3.3% (2024: 2.8%)
· Basic earnings per share from continuing operations increased
113% to 1.7 pence (2024: 0.8 pence)
· Underlying* earnings per share increased 43% to 2.0 pence (2024:
1.4 pence)
· Basic earnings per share increased by 208.3% to 1.3 pence (2024:
loss 1.2 pence)
· Profit for the year from continuing operations increased by 125%
to £0.9m (2024: £0.4m)
· There was a decrease in net cash year on year to £3.0m (2023:
£4.3m), after funding dividend payments of £0.8m (2024: £0.8m), tax
payments of £0.8m (2024: £0.4m), share buybacks of £0.2m (2024: £0.1m) and
capital expenditure of £0.2m (2024: £0.1m)
· Cash returned to shareholders during the year of £1.0m via
dividends and share buyback, with dividend maintained at 1.5 pence per share
(2024: 1.5 pence per share)
Operational Highlights
· Utilisation decreased slightly to 71.6% (2024: 72.6%)
· UK and Europe revenue was stable at £34.3m (2024: £34.4m) with
an increased segmental underlying operating profit pre-central cost recharge
of £5.5m (2024: £5.4m)
· Revenue in Canada increased by 50% to £0.9m (2024: £0.6m) with
a segmental underlying operating profit pre-central cost recharge of £Nil
(2024: loss £0.2m)
· The Middle East region saw revenue increase during the year by
16% to £5.2m (2024: £4.5m) with an increased segmental underlying operating
profit pre-central cost recharge of £0.6m (2024: £0.3m)
· The APAC region saw revenue decrease by 29% to £2.5m (2024:
£3.5m) with an unchanged segmental underlying operating loss pre-central cost
recharge of (£0.1m) (2024: loss £0.1m
Capital Allocation
· Our approach to Capital Allocation remains focused on organic
growth, strategic acquisitions of talent and the return of surplus cash to our
shareholders
· In June 2024, the Company launched a new £0.25m share buy-back
programme, alongside the £0.1m extension announced in March 2025 fulfilling
its commitment to return surplus cash to shareholders. This programme remains
ongoing. The Group has actively considered a number of acquisition
opportunities and will review the potential to allocate further cash to the
buyback during the year
Outlook
· Strong start to FY26 with a promising and convertible pipeline of
leads
· Further efficiency gains expected from the investment in
technology with margin returns expected to continue to progressively increase
· New Non-Executive Chair and Independent Non-Executive Director
now on board
· H2 FY25 momentum expected to continue into H1 FY26
Mark Wheeler, Chief Executive Officer of Diales, said:
"I am pleased to report that Diales continues to make good progress with the
transformation strategy with underlying* operating profit for FY2025 slightly
ahead of expectations at £1.4m. Over the last three years we have
continually improved our profitability (from continuing operations) and
appointed a number of strategic new hires. There is a strong pipeline of new
business leads across our key markets which signals a good start to FY2026. We
anticipate strong demand for our expert services and operational improvements
from our ongoing IT investment, which will further strengthen shareholder
returns."
* Underlying figures are stated before share-based payment costs
Results presentation
Diales will host a presentation for analysts at 10:00 on 9 December 2025 at
Diales' offices at 125 Old Broad Street, London, EC2N 1AR, and virtually.
Analysts who would like to attend the presentation should register their
interest with Acuitas Communications at diales@acuitascomms.com or on 020 3745
0293.
The Group will also host a webinar presentation for investors at 14:00 on 9
December 2025. Questions can be submitted before and during the online event.
To register for the webinar, please visit this link:
https://www.equitydevelopment.co.uk/news-and-events/diales-group-fy-results-investor-presentation-9december2025
(https://www.equitydevelopment.co.uk/news-and-events/diales-group-fy-results-investor-presentation-9december2025)
A recording of the presentation will be available shortly afterwards here:
www.equitydevelopment.co.uk/research/tag/diales-group
(http://www.equitydevelopment.co.uk/research/tag/diales-group)
Change of registered office address
Diales Group Plc has changed its registered office address from Suite 706-708,
Floor 7, 125 Old Broad Street, London, EC2N 1AR to 8th Floor, Dawson House, 5
Jewry, London, EC3N 2EX with immediate effect.
ENDS
Enquiries:
Diales Group Plc
Mark Wheeler (Chief Executive Officer) 020 7377 0005
Charlotte Parsons (Chief Financial Officer)
Shore Capital (Nominated Adviser and Broker) +44 (0)207 408 4050
Mark Percy
George Payne
Acuitas Communications +44 (0)20 3745 0293 / +44 (0)7799 767676 / +44 (0)7557 155764
Simon Nayyar simon.nayyar@acuitascomms.com (mailto:simon.nayyar@acuitascomms.com)
Arthur Dingemans arthur.dingemans (mailto:arthur.dingemans@acuitascomms.com) @acuitascomms.com
(mailto:arthur.dingemans@acuitascomms.com)
Chair's Statement
Overview
I am delighted to report in this, my first statement since joining Diales
Group Plc as your Chairman in September, that FY25 has been a year of
significant achievement and one in which further accretive value has been
generated for our shareholders. The efficient management of the Group's global
business, together with the reorganisation of some of the overseas offices
builds on and reflects a continuing, cumulative and well-executed integrated
transformation strategy which is now half-way through its four-year life. This
continues to deliver valuable efficiency gains for the business, an improved
offering to our clients and a more competitive market position. The
transformation strategy was initiated under my predecessor, Shaun Smith, whom
I should like to take this opportunity to thank for his extremely valuable
contribution to the Group and to wish him well for the future.
The year has seen the delivery of considerably improved underlying
profitability and further enhancements in the way in which we manage our
business and deliver accountability, outcome and value to our clients. As the
Group enters FY26, it can do so confident that it is now able to focus with
greater clarity and conviction on making the next two years about strong and
sustainable delivery for our shareholders and I look forward, therefore, to
assisting the fulfilment of this strategically important mission for our
business.
Despite the headwinds in the global economy that we have previously noted, we
are beginning to see welcome early signs of a return to more normalised
trading conditions in some of our key markets. The stated and expected
investments of leading economies in infrastructure and energy, together with
several unresolved issues arising from the US Federal Administration's
introduction of new bilateral tariff arrangements at the start of H2 FY25, are
all likely to contribute to the Group's future pipeline of work. Taken
together with a more encouraging medium-term forecast for Eurozone
performance, I believe we can begin to feel more confident about future levels
of demand for the Group's services in FY26.
In everything we do, we will focus on improving margin and profitability
within the Group and I look forward to supporting our CEO and CFO as they work
through the next stage of the transformation strategy and return further value
to our shareholders in FY26.
Trading Performance
It is now two years since the Group returned to profitable trading from
continued operations. Last year the Board reported a notable increase in
profitability, and I am delighted to say that, thanks to the active management
of the business over the course of FY25, the FY25 results show a further
improvement in our trading performance. The Group's underlying operating
profit in FY25 has improved to £1.4m, compared to £1.2m last year, which is
the clearest possible evidence that the transformation strategy is really
starting to deliver for the business and its shareholders. This improved
profitability also reflects the importance that the Group rightly attaches to
the key performance indicator of staff retention, as well as to the
recruitment of the very best talent available in the markets in which we
compete.
The Middle East has made a noteworthy contribution to the business's
performance, reflecting strong regional leadership, a tireless focus on
building the business, the hub and spoke model that we introduced under the
transformation strategy, and the benefits that have flowed from all of this.
We have ended FY25 with a robust cash position of £3m, which represents a
marked improvement on the position at the end of H1 FY25 (£2.4m). I consider
this encouraging and a good foundation from which to begin FY26.
Strategy
FY25 has, as the CEO's Review explains in greater depth, seen significant
investment in upgrading the Group's technological capabilities; these will
bring real benefits to our clients, staff and shareholders in the short and
medium term. Fully integrated during FY25, our staff now have access to live
dashboards providing reporting data about the business and its performance
which enables and empowers management to ensure the deployment of resourcing
in a way that is efficient, timely and appropriate for our clients, and
returns growing value to our shareholders.
In FY26, the Group will invest further time and effort into margin improvement
in all areas of the Group. We need to ensure that the business is match fit
for the challenges that lie ahead and to deliver increasing returns for
shareholders over the medium term.
Governance
We continue to adhere to the highest standards of governance both in the UK
and in the territories and jurisdictions in which the Group conducts its
business. The Group follows the Quoted Companies Alliance "Corporate
Governance Guidelines for Smaller Quoted Companies" (the QCA Code) and its ten
principles. In this year's annual report, we report against the 2023 version
of the QCA Code for the first time.
People
Since joining the Board of Diales Group Plc, I have already had the enormous
pleasure of meeting members of the business's global management team and some
of its experts, all of whom contribute so vitally to ensuring our clients'
needs are properly and professionally served.
It is our team's combined wealth of knowledge, understanding and experience
that really sets Diales apart from its peers in the eyes of our clients and
prospects and whose expertise and capability is a hallmark of the Group's
professional and forward-facing global culture. In the coming period I look
forward to meeting many more of our team around the world and hearing their
ideas about how we may serve our clients better. I would like to take this
opportunity to thank all our staff for their hard work and dedication during
FY25 which have contributed so meaningfully to the Results we are reporting
today and is, in turn, a real tribute to them.
A key management action is the recruitment of the best hires in the markets in
which we compete for business; this is just as important for the Group as
retention of highly capable and effective staff. As we continue to grow and
strengthen our teams around the world, we will also focus on ensuring we bring
on board some exceptional hires where we believe there is a specific market
need and a good fit with our existing team. This kind of approach represents
the right outcome for all our stakeholders.
I would like to thank our CEO, Mark Wheeler, a key work winner, whose own
professional experience as an expert witness makes him exceptionally well
qualified to lead our business with insight, understanding and empathy, and
our CFO, Charlotte Parsons, whose tireless focus on financial forecasting and
monitoring has played a key role in driving our performance. Together, Mark
and Charlotte have delivered an accomplished performance for the business, our
clients, and our shareholders. I look forward to working closely with both of
them in FY26 as we move the business forward.
In October 2025, our Non-Executive Director of the Group, Elizabeth Filkin,
announced her intention to retire by the end of the calendar year. I should
like to extend my thanks to Elizabeth for her service to the Group over the
last 6 years. In November 2025, we welcomed on board Jane Dumeresque as a new
Non-Executive Director. Jane brings to the Group extensive relevant experience
from a successful career in leadership and non-executive director roles in the
financial services sector, and we look forward to working with her.
In FY25, I am pleased to report that the Group has turned a corner. It is now
delivering sustainable levels of profitability based on the sure foundations
that come with a global platform of experts who are themselves equipped with
metrics and tools that enable the business to manage its own arrangements in
an efficient and agile manner. The competitive requirements of our time demand
no less and, with a focus on margin improvement and growth, I believe we can
now with confidence look forward to a period of sustainable growth for the
Group and, in turn, the creation of enhanced value for our shareholders.
Chief Executive Officer's Review
Introduction
I am pleased to report that Diales has made good progress in FY25, continuing
to build on the performance in FY24. The Group delivered stable revenue from
continuing operations of £43.0m (2024: £43.0m) and realised an underlying*
operating profit of £1.4m, an increase of 17% compared to £1.2m in FY24.
The Group is well positioned to focus on enhancing the business and its
client-facing services to strengthen its competitive offering in the market
and maintain a sharp focus on the optimisation of our margins, where
management believes there is significant scope for improvement in both the
near and medium term.
FY25 saw the orderly completion of the US office closure, with all outstanding
cash successfully collected, and a minimal impact on the financial positioning
of the Group.
The Group has invested heavily in technology which has already begun to
deliver beneficial results. As of FY26, there are real time, detailed
dashboards available to our managers 24/7, which are integrated and
operational across the business. This has placed improved real time data at
the disposal of management, enabling our teams to make informed decisions in a
more timely and effective way.
The Group's continuing collaboration agreement with Lupa Technology, a market
leading data discovery platform, has helped to create a significant
competitive edge in the market place. This has enabled our staff to evaluate
projects more efficiently and predictably and identify additional
opportunities. Investment into Salesforce's cloud-based platform will drive a
transformation in the Group's customer relationship management (CRM) and
support the Group's ability to win new business on a more sustainable footing.
The CRM tool provides better visualisation of our pipeline and strengthens our
marketing and business development on a global scale.
In a professional services business like Diales, our people are our strongest
asset, and it is their wealth of experience and expertise which differentiates
us from our competitors in the eyes of our clients and prospects. I would like
to thank our staff around the world for their outstanding professionalism and
dedication which have delivered exceptional outcomes for our clients.
I should like to thank Diales' recently retired Chair, Shaun Smith, for his
valuable insights, counsel and support in FY25 and wish him the very best for
the future. Our Non-Executive Director Elizabeth Filkin will also step away
from her role at the end of December 2025, and I should like to put on record
my personal thanks for her magnificent support for the Company during her six
years of service to the Group.
We remain focused on identifying the right opportunities for the business
across a range of geographies and sectors where we believe these will deliver
for the Group, our clients and shareholders, and I expect to report further
progress in due course.
Overall Trading Environment
In FY24, we reported that the Autumn Budget had created unexpected challenges
to our business with the imposition of increased employer National Insurance
Contributions (NICs) that have reduced the profitability of the Group's UK
operations. The cumulative impact of this additional cost in FY25 has been
significant: had the Government not chosen to raise NICs in this way, our
shareholders would have seen the Group's performance on the full year
strengthened by an additional £120k in FY25, and c.£240k in FY26.
Post the UK Autumn statement in November 2025 it is clear that the slowdown in
the UK housing market is not going to end in the short term. The underlying
consequences of this for the Group are unclear, however I remain confident
that the momentum the Group has generated in H2 FY25 through other sectors, is
sufficient to gather further impetus in FY26.
Challenges in the UK economy and its performance, as well as salary inflation
during the first half of FY25 resulted in our north of England business unit
under-performing. However, decisive early action by management brought these
issues to a close. In Q4 FY25, that business and its performance almost
entirely recovered, demonstrating the robust underlying health of the
business. Without these operational issues, it is likely the business unit
concerned would have contributed an additional £100k in FY25, which suggests
the business is well placed for FY26.
Regional Breakdown
Europe
As our core business hub, the European team continues to make a keystone
contribution to the Group's profitable trading, with sustainable organic
growth projected over the medium term.
The Group's presence in Europe has continued to deliver, with all offices
performing well with nearly all positioned ahead of budget for the year.
Across the region we have welcomed some exceptional new hires who are already
delivering for the business. The Madrid and Paris offices are also winning
work in South America.
In the UK, previous operational issues within the growing technical team have
been improved; I am pleased to report the performance of this business unit
has improved significantly in Q4 FY25, and we expect it to play a sustainable
contribution to profit in FY26. Our Project Services team, which has
consistently delivered for the Group, was more directly exposed to the
temporary period of uncertainty arising from the US Federal Administration's
proposed tariffs. Now that trading conditions have normalised, which recovered
in Q4 FY25, that team are now back on the pathway to sustainable growth.
We have seen an improvement in performance in the UK Diales team who conduct
planning, delay and quantum activities. The current senior management team is
finely attuned to the requirements of our clients and the operational needs of
the business and understand what is needed to grow our margins sustainably.
Our recent addition of a fire engineering expert team is evidence of the
success the transformation strategy has started to deliver, that has focused
on hiring the right people by developing a forensic understanding of this
marketplace. We are delighted now to have the Head of department in place and
are excited about what this important new resource can deliver for existing
and future clients.
FY25 has been a year of regional consolidation, and a strong pipeline of
enquiries means the Group can be confident about the business's prospects in
both the short and medium terms.
Asia Pacific
In FY25, APAC has faced some challenges in the region. Early action in H1 FY25
has resolved issues in the Singapore office by right-sizing the team to meet
local trading conditions, with the full-year benefits of lower costs expected
in FY26. A temporary dip in planning work pipeline in Australia is currently
being resolved. Our South Korea office has traded profitably across FY25 and
we see it as a continuing source of opportunity for Korean clients, working
globally.
Middle East
The Middle East has successfully completed a multi-year transition and, with
strong and effective leadership now in place, the region has performed well in
FY25 and is well placed to benefit from sustainable growth in FY26.
I am pleased to report that KSA has developed strongly and sustainably over
FY25, which has resulted in increasing opportunities for work across the
region.
Projects in the Middle East have been serviced by experts in other regions
such as in the UK and Europe, including opportunities which have involved
Korean and Turkish contractors. These collaborations are another example of
the benefits arising from our strategic move to the hub and spoke model,
announced two years ago, which has delivered well for the Group and continues
to do so. Qatar has become an international hub for work across the globe, and
their workload includes a number of iconic stadium projects.
We believe the region is therefore well positioned to deliver in FY26 as an
important and integral part of the business.
Current Trading
The Group has delivered a significant improvement in underlying* operating
profit of £1.4m (FY24: £1.2m). In the face of significant geopolitical,
commercial, fiscal and operational risk, I believe we have delivered a highly
respectable result for the year.
Continued vigilance on cash collection has ensured that our cash position has
strengthened significantly to £3.0m compared to £2.4m at the FY25 Interim
Results. Whilst this is a decrease year on year of £1.3m (2024: £4.3m), this
is after funding dividend payments of £0.8m (2024: £0.8m) and does not
reflect c.£0.5m of client receipts received post year end.
Dividend
I am pleased to report a proposed final dividend to shareholders at 0.75 pence
per share, which if approved at the forthcoming Annual General Meeting will
make 1.5 pence per share paid as dividends for the year.
Capital Allocation
Our approach to Capital Allocation remains focused on organic growth,
strategic acquisitions of talent and the return of surplus cash to our
shareholders.
In June 2024, the Group initiated a new £0.25m share buy-back programme that
delivered on its promise to repatriate surplus cash to our shareholders and
this programme continues. The Group has actively considered a number of
acquisition opportunities and will review the potential to allocate further
cash to the buyback during the year.
Outlook
We have seen a strong start to FY26 with a promising and convertible pipeline
of leads and a global platform that is really delivering for the Group, and we
expect the business to benefit from further efficiency gains arising out of
our investment in technology.
In September 2025 we were delighted to welcome our new Non-Executive Chair,
Nicholas Stagg. As an accomplished non-executive Chair, Nicholas brings a
wealth of comparative experience and valuable business networks following a
distinguished career leading international businesses in sectors and
disciplines of great relevance to Diales Group. Already, the Group is
benefiting from Nicholas' insight, and I know how much the business stands to
benefit from his counsel and leadership in FY26 and beyond.
At the Interims Results, we anticipated the Group would benefit from a busier
H2 FY25. I can confirm we have delivered this and, based on recent trading
performance, I believe this momentum will continue into H1 FY26.
Chief Financial Officer's Review
INCOME STATEMENT 2025 2024
£m £m
Revenue 43.0 43.0
Cost of sales (31.0) (31.4)
Impairment movement (0.4) (0.6)
Gross Profit 11.6 11.0
Other operating expenses (10.3) (10.1)
Other operating income - -
Underlying* operating profit 1.4 1.2
Non-recurring costs - (0.2)
Share-based payment charges and associated costs (0.1) (0.1)
Operating profit 1.3 0.9
Finance income - -
Finance costs - -
Profit before Taxation 1.3 0.9
Tax expense (0.4) (0.5)
Profit from continuing operations 0.9 0.4
Loss in discontinued operations (0.2) (1.0)
Profit/(loss) for the year 0.7 (0.6)
Financial overview
The Group recorded a 17% increase to £1.4m in underlying* operating profit
(2024: £1.2m).
Gross profit, underlying* profit and operating profit have all grown on stable
revenue from continuing operations of £43.0m (2024: £43.0m).
Gross profit margin increased by 0.6% to 27.0% (2024: 25.6%), a £0.6m
increase to £11.6m (2024: £11.0m). This resulted in an increase in
underlying* operating profit of 17% to £1.4m (2024: £1.2m).
There was a decrease in net cash year on year to £3.0m (2024: £4.3m), after
funding dividend payments of £0.8m (2024: £0.8m), tax payments of £0.8m
(2024: £0.4m), share buybacks of £0.2m (2024: £0.1m) and capital
expenditure of £0.2m (2024: £0.1m).
Key financial metrics
2025 2024
Revenue £43.0m £43.0m
Gross Margin % 27.0% 25.6%
Underlying* operating profit £1.4m £1.2m
Profit/(loss) for the year £0.7m £(0.6)m
Cash balance £3.0m £4.3m
Utilisation Rates*** 71.6% 72.6%
Basic profit per share from continuing operations 1.7p 0.8p
Net cash per share** 5.8p 8.1p
Revenue and activity levels
· UK and Europe revenue was stable at £34.3m (2024: £34.4m) with
an increased segmental underlying operating profit pre-central cost recharge
of £5.5m (2024: £5.4m).
· Revenue in Canada increased by 50% to £0.9m (2024: £0.6m) with
a segmental underlying operating profit pre-central cost recharge of £Nil
(2024: loss £0.2m).
· The Middle East region saw revenue increase during the year by
16% to £5.2m (2024: £4.5m) with an increased segmental underlying operating
profit pre-central cost recharge of £0.6m (2024: £0.3m).
· The APAC region saw revenue decrease by 29% to £2.5m (2024:
£3.5m) with an unchanged segmental underlying operating loss pre-central cost
recharge of (£0.1m) (2024: loss £0.1m).
Inter-office revenues across the Group have grown, demonstrating our strategy
of the hub and spoke model, with increased collaborative working as one
international group and enhancing our service offering to clients.
Fee earner utilisation levels during 2025 remained stable at 71.6% (2024:
72.6%). Across the regions this was 71.0% in EuAm (2024: 72.3%), 75.3% in the
Middle East (2024: 75.8%) and 70.2% in APAC (2024: 70.5%).
Costs and margins
Parts of our four-year integrated transformation strategy announced in
December 2023 were to consolidate our brand as Diales, our premium brand, to
increase our number of experts and to expand our service offering into
specific areas around our core competencies. These steps have enabled us to
benefit from increased returns from fee rate increases, enhanced levels of
repeat revenue and we are starting to see increased returns from new areas of
investment. These and other initiatives have resulted in an increase to our
gross profit margin to 27.0% and we look forward to further enhancing this and
our net margin in the future.
Alongside the above the benefits now being felt from the ERP system, from
accurate time recording and the provision of real time data, will continue to
progressively increase margin returns and assist with a more sophisticated
process for future pricing to provide improved recoveries.
Average staff headcount has decreased by 3.6% from 250 to 241 total staff.
Average fee-earning staff headcount decreased slightly by 7 to 180, within
this the number of experts increased to 51 from 49 at the same time last year.
With a modestly reduced fee-earning headcount we were able to generate greater
returns from our staff base as shown by the increased gross margin.
Staff costs as a percentage of revenue in 2025 reduced to 65.2% (2024: 68.6%),
excluding IFRS 2 share-based payment charges of £0.1 (2024: £0.1m).
Other operating expenses at £10.3m (2024: £10.1m) is an increase as a
percentage of revenue from 23.5% in 2024 to 24.0% in 2025. This was due
mainly to the investment in IT systems, related to cyber risk, and
inflationary cost rises but we have maintained the headline reduction in those
costs from £11.3m in 2022.
Underlying operating profit
The Group recorded a 17% increase to £1.4m in underlying* operating profit
(2024: £1.2m). We continue to invest in our people and teams across the
Group, the decrease in staff costs as a percentage of the same revenue has
more than offset the increase in other operating expenses.
Underlying* operating profit excludes all share-based charges, in prior years
this has also excluded non-recurring costs.
Profit before tax increased by 44% to £1.3m (2024: £0.9m) after
non-recurring costs of £Nil (2024: £0.2m) and charge for share-based
payments of £0.1m (2024: £0.1m).
There was a loss from discontinued operations of £0.2m (2024: £1.0m)
relating mainly to the closure costs of the measurements division of Project
Services.
Earnings Per Share (EPS)
Basic profit per share increased by 208.3% to 1.3 pence (2024: loss 1.2
pence).
Underlying* basic earnings per share increased by 42.9% to 2.0 pence (2024:
1.4 pence).
Share option schemes
Long-Term Incentive Plan awards ("LTIP") over 588,338 share options over
Ordinary Shares were exercised during the year (2024: 1,270,671) and 78,333
lapsed (2024: 228,000). At 30 September 2025, 250,000 share options were
exercisable, and 250,000 share options were yet to vest.
The Remuneration Committee are working on the long-term incentivisation of the
Executive Directors and designated senior executives given the last scheme ran
to September 2023.
Taxation
The Group's tax charge for the Year was £0.4m (2024: £0.5m) which comprised
of a corporation tax charge of £0.5m (2024: £0.4m) and a deferred tax credit
of £0.1m (2024: charge of £0.1m).
The tax charge includes the effects of expenses not deductible for tax
purposes and is calculated at the prevailing rates for the jurisdictions in
which the Group operates. The deferred tax credit arose due to short term
temporary differences.
The total effective rate of tax is 28.3% (2024: 53.5%) based on reported
profits before tax from continuing operations. The decrease in the effective
rate of tax is mainly due to a reduction in non-deductible expenses and the
increase in the deferred tax asset.
Dividend
The Board proposes a final dividend for 2025 of 0.75 pence per share (2024:
0.75 pence per share) in addition to the interim dividend paid in October 2025
of 0.75 pence per share (2024: 0.75 pence). This will be paid on 9 April 2026
to shareholders who are on the register of members at the close of business on
27 February 2026, with an ex-dividend date of 26 February 2026, subject to
approval at the Group's Annual General Meeting.
Balance sheet
The Group's net asset position has decreased by £0.2m (2024: £1.8m) to
£14.0m (2024: £14.2m), due to the following movements:
There was a £0.5m decrease in total current assets, resulting from £0.5m
increase in trade and other receivables mainly due to the timing of year end
collections and a £1.3m decrease in cash held at the year end.
Total liabilities decreased by £0.3m primarily due to the corporation tax
liability.
The Board has carefully considered the potential impact of macro-economic
uncertainties, on the future forecasts used in assessing the value of the
business streams to which the goodwill and intangibles relate. The
determination was that those forecasts are more than sufficient to justify the
carrying value of goodwill. Therefore, as at 30 September 2025, the Board
concluded that the goodwill and intangible assets do not require impairment.
Liquidity and going concern
The Group continues to be in a strong financial position. At the year-end the
Group had net cash balances of £3.0m (2024: £4.3m) which is appropriate for
the Group's operating requirements going forward. The £1m overdraft facility
with Barclays remains unutilised.
The Board has completed a review of the Group's financial forecasts for a
period of twelve months from the date of approving these financial statements.
This review included sensitivity analysis and stress tests which took account
of reasonable and foreseeable scenarios. Under all scenarios modelled, the
Directors anticipate that any funding needs required would be sufficiently
covered by the existing cash reserves. As such the Directors have a reasonable
expectation that the Group has sufficient resources to meet its obligations
when they fall due for at least twelve months from the date of signing this
report and hence these financial statements include information prepared on a
going concern basis.
The Group has £2.4m (2024: £2.4m) of distributable reserves to carry forward
in support of future dividends.
Cash flow
Net cash inflows from operating activities before changes in working capital
increased to £1.9m (2024: £0.9m), including the current year benefit of
£0.6m (2024: £0.6m) from the amortisation of right of use assets under
IFRS16. The movement also reflects the reported profit for the year of £0.7m
(2024: loss £0.6m) after depreciation of £0.2m (2024: £0.2m).
There was a small decrease of £0.1m in trade and other receivables (2024:
decrease of £0.2m) reflecting the continuing strong debt collection, and a
decrease in trade and other payables of £0.6m (2024: decrease £0.4m)
resulting in a net cash inflow from operating activities of £0.4m (2024:
£0.4m). Net tax paid in the year was £0.8m (2024: £0.4m).
There was a net cash outflow from investing activities of £0.2m (2024:
£0.1m) which relates to IT systems, related to cyber risk.
Net cash flow from financing activities was an outflow of £1.6m (2024:
£1.5m) reflecting the dividends paid of £0.8m (2024: £0.8m), purchase of
treasury shares of £0.2m (2024: £0.1m) and lease repayments under IFRS 16 of
£0.6m (2024: £0.6m).
CASH FLOW £m
Net cash** at 30 September 2024 4.3
Operating cash flow before changes in working capital 1.9
Decrease in Trade and other receivables (0.1)
Decrease in Trade and other payables (0.6)
Tax paid (0.8)
Net cash inflow from operating activities 0.4
Net interest received 0.0
Net Capital spend (0.2)
Dividends paid (0.8)
Purchase of Treasury shares (0.2)
Repayment of leases (0.6)
Effects of Foreign Exchange 0.1
Net cash** at 30 September 2025 3.0
Summary
In an increasingly challenging global economic, cost-conscious and competitive
market, we have successfully increased our operating profit for the third year
running.
Activity levels are increasing; we have strong cost management and the Group's
recent investments into complimentary service areas are already starting to
show early returns, we look forward to FY26 positively.
Along with the increase in gross margin in FY25, the rationalisation of some
specific service areas and geographical locations due to either a reduction in
the demand for their services or mix of skills, we feel confident about
forecasting margin improvement in the near term.
We have therefore commenced FY26 feeling positive of future improved
profitability in line with our margin improvement plan. This improvement plan
is being supported by focus, energy and the provision of data from our ERP
system and the drive towards more efficiency throughout the Group; targeted on
margin improvement and cash generation.
* Underlying figures are stated before the share-based payment costs and
non-recurring costs
**Net cash consists of cash and cash equivalents
***Utilisation % is calculated by dividing the total hours billed by the total
working hours available for chargeable staff
Consolidated Income Statement
For the year ended 30 September 2025
Notes 2025 2024
£000 £000
REVENUE 2 42,957 42,966
Cost of sales (30,978) (31,449)
Impairment movement 13 (389) (553)
GROSS PROFIT 11,590 10,964
Other operating expenses (10,309) (10,084)
Other operating income - -
Underlying* operating profit 1,408 1,183
Non-recurring operational costs 10 - (171)
Share-based payment charges and associated costs 18 (127) (132)
OPERATING PROFIT 2,4 1,281 880
Finance income 11 45
Finance costs 6 (21) (9)
PROFIT BEFORE TAXATION 2 1,271 916
Tax expense 7 (360) (490)
PROFIT FROM CONTINUING OPERATIONS 2 911 426
Loss from discontinued operations, net of tax 2 (228) (1,043)
PROFIT / (LOSS) FOR THE 683 (617)
YEAR
2
Loss attributable to non-controlling interest from continuing operations - -
Loss attributable to non-controlling interest from discontinued operations - -
Profit attributable to equity shareholders of the Parent from continuing 911 426
operations
Loss attributable to equity shareholders of the Parent from discontinued (228) (1,043)
operations
683 (617)
Basic profit / (loss) per share attributable to equity shareholders of the 9 1.3p (1.2)p
Parent (pence)
Diluted profit / (loss) per share attributable to equity shareholders of the 9 1.3p (1.2)p
Parent (pence)
Basic earnings per share attributable to equity shareholders of the Parent 9 1.7p 0.8p
(pence) from continuing operations
Diluted earnings per share attributable to equity shareholders of the Parent 9 1.7p 0.8p
(pence) from continuing operations
* Underlying figures are stated before the share-based payment costs and
non-recurring operational costs
** DPS Reading was classified as a discontinued operation during the year. In
the prior year, DPS Reading generated revenue of £225k and incurred a loss of
£62k. The prior year comparatives have not been restated, as the impact of
reclassifying these amounts is not material to the Group's financial
statements.
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2025
2025 2024
£000 £000
PROFIT / (LOSS) FOR THE YEAR 683 (617)
Other comprehensive income:
(292)
134
Items that could subsequently be reclassified to the Income Statement:
Exchange differences on translating foreign operations
OTHER COMPREHENSIVE PROFIT/(LOSS) FOR THE YEAR NET OF TAX 134 (292)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 817 (909)
Total comprehensive income attributable to:
Owners of the Parent 817 (909)
Non-controlling interest - -
817 (909)
Consolidated Statement of Financial Position
As at 30 September 2025
Notes 2025 2024
COMPANY NUMBER: 3475146 £000 £000 £000 £000
NON-CURRENT ASSETS
Goodwill 12 2,969 2,969
Property, plant and equipment 11 371 318
Intangible asset 32 546 630
Right of use asset 19 753 752
Deferred tax asset 17 200 165
4,839 4,834
CURRENT ASSETS
Trade and other receivables 13 14,369 13,878
Current tax receivable 221 -
Cash and cash equivalents 16 3,036 4,254
17,626 18,132
TOTAL ASSETS 22,465 22,966
CURRENT LIABILITIES
Lease creditor 20 (310) (492)
Trade and other payables 14 (7,625) (7,715)
Current tax payable - (186)
(7,935) (8,393)
NON-CURRENT LIABILITIES
Lease creditor 20 (428) (238)
Deferred tax liabilities 17 (142) (167)
(570) (405)
TOTAL LIABILITIES (8,505) (8,798)
NET ASSETS 13,960 14,168
SHAREHOLDERS' EQUITY
Share capital 18 216 216
Share premium 22 11,496 11,496
Merger reserve 22 1,055 1,055
Currency reserve 22 (1,108) (1,242)
Capital redemption reserve 22 18 18
Treasury shares 22 (1,851) (1,661)
Retained earnings 22 4,137 4,285
Own shares 22 (7) (3)
TOTAL SHAREHOLDERS' EQUITY 13,956 14,164
NON-CONTROLLING INTEREST 22 4 4
TOTAL EQUITY 13,960 14,168
Consolidated Cash Flow Statement
For the year ended 30 September 2025
Notes 2025 2024
£000 £000
CASH FLOWS FROM OPERATING ACTIVITIES
683 (617)
Profit / (Loss) for the year
Adjustments for:
Depreciation 11 148 142
Exchange adjustments 23 58
Amortisation of right of use asset 19 558 604
Amortisation of intangible asset 32 84 84
Finance expense 10 (36)
Tax expense 308 671
Equity settled share-based payment charge(1) 119 15
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS 1,933 921
(Increase)/decrease in trade and other receivables (97) 155
(Decrease)/increase in trade and other payables (624) (340)
CASH GENERATED IN OPERATIONS 1,212 736
Tax paid (777) (380)
NET CASH INFLOW FROM OPERATING ACTIVITIES 425 356
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 11 45
Acquisition of property, plant and equipment 11 (220) (123)
Proceeds from the disposal of property, plant and equipment - (23)
Acquisition of intangible assets - -
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (209) (101)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid (21) (3)
Repayment of borrowings - -
Proceeds of borrowings - -
Repayment of lease liabilities 20 (565) (621)
Purchase of Treasury shares (194) (136)
Dividends paid to equity shareholders of the Parent (789) (789)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (1,569) (1,549)
Net (decrease)/increase in cash and cash equivalents (1,343) (1,294)
Effect of foreign exchange on cash and cash equivalents 125 (285)
Cash and cash equivalents at start of period 4,254 5,833
CASH AND CASH EQUIVALENTS AT END OF PERIOD 16 3,036 4,254
(1) The amount stated reflects only the share-based payment charge and does
not include the associated costs that are included within the amount stated on
the consolidated Income Statement.
(2) The Group has elected to present the statement of cash flows that
includes an analysis of all cash flows in total i.e. including continuing and
discontinued operations. Amounts relating to discontinued operations by
operating, investing and financing activities are disclosed below:
CASH FLOWS (USED) IN DISCONTINUED OPERATIONS ((2)) 2025 2024
£000 £000
Net cash used in operating activities 116 (33)
Net cash used in investment activities - -
Net cash used in financing activities - -
NET CASH FLOWS FOR THE YEAR 116 (33)
Consolidated Statement of Changes in Equity
For the year ended 30 September 2025
Share capital Share premium Treasury shares Merger reserve Other reserves((2)) Retained earnings Own Non- controlling interest Total Equity
£000 £000 £000 £000 £000 £000 shares((3)) Total((1)) £000 £000
£000 £000
OPENING BALANCE AT 1 OCTOBER 2023 216 11,496 (1,525) 1,055 (932) 5,676 (3) 15,983 4 15,987
(Loss) for the year - - - - - (617) - (617) - (617)
Other comprehensive income for the year - - - - (292) - - (292) - (292)
Total comprehensive income for the year - - - - (292) (617) - (909) - (909)
Dividends - - - - - (789) - (789) - (789)
Share-based payment((4)) - - - - - 15 - 15 - 15
Purchase of Treasury shares - - (136) - - - - (136) - (136)
CLOSING BALANCE AT 30 SEPTEMBER 2024 216 11,496 (1,661) 1,055 (1,224) 4,285 (3) 14,164 4 14,168
OPENING BALANCE AT 1 OCTOBER 2024 216 11,496 (1,661) 1,055 (1,224) 4,285 (3) 14,164 4 14,168
Profit for the year - - - - - 683 - 683 - 683
Other comprehensive income for the year - - - - 134 - - 134 - 134
Total comprehensive income for the year - - - - 134 683 - 817 - 817
Dividends - - - - - (789) - (789) - (789)
Share-based payment((4)) - - - - - (42) - (42) - (42)
Purchase of Treasury shares - - (190) - - - (4) (194) - (194)
CLOSING BALANCE AT 30 SEPTEMBER 2025 216 11,496 (1,851) 1,055 (1,090) 4,137 (7) 13,956 4 13,960
(1) Total equity attributable to the equity holders of the Parent.
(2) 'Other reserves' combines the currency reserve and capital redemption
reserve. The movement in the current and prior year relates to the translation
of foreign currency equity balances and foreign currency non-monetary items.
Explanatory details for these reserves are disclosed in note 22.
(3) The shortfall in the market value of the shares held by the EBT and the
outstanding loan is transferred from own shares to retained earnings.
(4) The amount stated reflects only the share-based payment charge and does
not include the associated costs that are included within the amount stated on
the consolidated Income Statement.
BASIS OF PREPARATION
The Financial Statements have been prepared under the historical cost
convention, as modified by the revaluation of certain assets, and in
accordance with Applicable Accounting Standards.
The Financial Statements have been prepared on a going concern basis. In
reaching their assessment, the Directors have considered a period extending at
least twelve months from the date of approval of this financial report.
The Directors have prepared cash flow forecasts covering a period of more than
12 months from the date of releasing these financial statements. This
assessment has included consideration of the forecast performance of the
business for the foreseeable future, the cash and financing facilities
available to the Group. At 30 September 2025 the Group had cash reserves of
£3.0m (2024: £4.3m) The strong cash position was after a year of turnaround
within the Group. The Group reported a profit of £0.7m (2024: Loss £0.6m),
with profit from continuing operations of £0.9m (2024: £0.4m).
The Directors have also prepared a stress case scenario that demonstrates the
Group's ability to continue as a going concern even with a significant drop in
revenues and limited mitigating cost reduction to re-align with the revenue
drop.
Based on the cash flow forecasts prepared including appropriate stress
testing, the Directors are confident that any funding needs for at least 12
months from the date of signing the report required by the business will be
sufficiently covered by the existing cash reserves. As such these Financial
Statements have been prepared on a going concern basis.
SEGMENTAL ANALYSIS REPORTABLE SEGMENTS
For management purposes, the Group is organised into three operating
divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific
(APAC). This has remained unchanged from the previous year. These divisions
are the basis on which the Group is structured and managed, based on its
geographic structure. The following key service provisions are provided across
all three operating divisions: quantity surveying, planning / programming,
quantum and planning experts, dispute avoidance / resolution, litigation
support, contract administration and commercial advice / management. Segment
information about these reportable segments is presented below.
Europe & Americas Middle East Asia Pacific Eliminations Unallocated Continuing Discontinued
YEAR ENDED 30 SEPTEMBER 2025 £000 £000 £000 £000 £000 £000 £000
Total external revenue 35,204 5,223 2,455 - - 42,882 1,058
Total inter-segment revenue 955 886 235 (2,001) - 75 (75)
Total revenue 36,159 6,109 2,690 (2,001) - 42,957 983
Segmental profit/(loss) pre central cost 5,502 645 (126) - (4,613) 1,408 (228)
recharge
Central cost charge (4,153) (419) (197) - 4,769 - -
Segmental profit/(loss) 1,349 226 (323) - 156 1,408 (228)
Unallocated corporate expenses((1)) - - - - - - -
Share-based payments charge and associat- ed costs - - - - (127) (127) -
Non-recurring operational costs - - - - - - -
Operating profit/(loss) 1,349 226 (323) - 29 1,281 (228)
Finance income - - - - 11 11 -
Finance expense - - - - (21) (21) -
Profit/(loss) before taxation 1,349 226 (323) - 19 1,271 (228)
Taxation - - - - (360) (360)
Profit/(loss) for the period 1,349 226 (323) - (341) 911 (228)
OTHER INFORMATION
Non current assets 3,296 92 13 - 1,301 4,702 137
Reportable segment assets 12,823 2,533 1,694 - 5,079 22,129 336
Capital additions((2)) 772 - 7 - - 779 -
Depreciation and amortisation 680 17 8 - - 705 -
(1) Unallocated costs represent Directors' remuneration (the audited
Directors' remuneration report can be found on pages 60 and 61 of the
financial statements), administration staff, corporate head office costs and
expenses associated with AIM. (2) Capital additions comprise additions to
property, plant and equipment and intangible assets. No client had revenue
exceeding 10% of the Group's revenue in the year to 30 September 2025.
Europe & Americas Middle East Asia Pacific Eliminations Unallocated Continuing Discontinued
YEAR ENDED 30 SEPTEMBER 2024 £000 £000 £000 £000 £000 £000 £000
Total external revenue 35,004 4,464 3,532 - - 43,000 1,585
Total inter-segment revenue 1,513 1,525 68 (3,140) - (34) 34
Total revenue 36,517 5,989 3,600 (3,140) - 42,966 1,619
Segmental profit/(loss) pre central cost 5,176 326 (119) - (4,324) 1,059 (693)
recharge
Central cost charge (3,704) (364) (281) - 4,473 124 (124)
Segmental profit/(loss) 1,472 (38) (400) - 149 1,183 (817)
Unallocated corporate expenses((1)) - - - - - - -
Share-based payments charge and associat- ed costs - - - - (132) (132) -
Non-recurring operational costs - - - - (171) (171) -
Operating profit/(loss) 1,472 (38) (400) - (154) 880 (817)
Finance income - - - - 45 45 -
Finance expense - - - - (9) (9) -
Profit/(loss) before taxation 1,472 (38) (400) - (118) 916 (817)
Taxation - - - - (490) (490) (226)
Profit/(loss) for the period 1,472 (38) (400) - (608) 426 (1,043)
OTHER INFORMATION
Non current assets 3,207 50 21 - 1,402 4,680 154
Reportable segment assets 14,398 3,118 2,282 - 2,111 21,909 1,057
Capital additions((2)) 495 2 14 - - 511 -
Depreciation and amortisation 710 24 8 - - 742 4
(1) Unallocated costs represent Directors' remuneration (the audited
Directors' remuneration report can be found on pages 60 and 61 of the
financial statements), administration staff, corporate head office costs and
expenses associated with AIM. (2) Capital additions comprise additions to
property, plant and equipment and intangible assets. No client had revenue
exceeding 10% of the Group's revenue in the year to 30 September 2024.
GEOGRAPHICAL INFORMATION
TOTAL EXTERNAL REVENUE BY LOCATION OF CUSTOMERS 2025 2024
£000 £000
United Kingdom 21,731 20,823
Germany 3,119 3,067
Saudi Arabia 2,722 709
Netherlands 2,356 3,332
Italy 2,253 777
Australia 1,908 2,371
Denmark 1,582 117
Singapore 1,222 1,213
France 1,019 1,861
United States 889 1,803
Spain 787 573
United Arab Emirates 695 4,139
Uruguay 466 -
South Korea 446 953
Canada 346 526
Finland 313 -
Qatar 302 247
Turkey 246 454
Sweden 191 376
Ireland 167 178
Belgium 129 40
Slovenia 123 -
Serbia 106 -
Oman 82 59
Indonesia 73 -
South Africa 43 106
Libya 43 19
Peru 33 47
Norway 14 -
Ecuador 1 56
Chile - 372
Other countries 533 365
43,940 44,585
GEOGRAPHICAL INFORMATION OF NON CURRENT ASSETS
2025 2024
£000 £000
UK 4,397 4,543
Oman 113 113
UAE 75 28
Singapore 7 10
Qatar 16 21
Malaysia 23 32
Kuwait - -
Hong Kong - -
Netherlands 158 32
France 11 -
Australia 5 10
Canada 4 2
USA - 8
Spain 14 8
Germany 15 26
Saudi Arabia - -
South Korea 1 1
4,839 4,834
ANALYSIS OF THE TAX CHARGE
The tax charge on the profit for the year is as follows:
2025 2024
£000 £000
Current tax:
UK corporation tax on profit for the year 200 290
Non-UK corporation tax 147 102
Adjustments to the prior period estimates 74 22
421 414
Deferred tax:
Origination and reversal of temporary differences (note 17) (61) 76
Tax charge for the year 360 490
FACTORS AFFECTING THE TAX CHARGE
The tax assessed for the year varies from the standard rate of corporation tax
in the UK. The difference is explained below:
2025 2024
£000 £000
Profit/(loss) before tax 1,043 98
Expected tax charge based on the standard average rate of corporation tax in 261 229
the UK of 25% (2024: 25%)
Effects of:
Expenses not deductible (55) 61
Deferred tax - other differences (note 17) (81) 76
Share options exercised (29) (64)
Foreign tax rate differences (2) 2
Adjustment to prior period estimates 72 22
Utilisation of losses (93) (80)
Unprovided losses 287 244
Tax charge for the year 360 490
FACTORS THAT MAY AFFECT FUTURE TAX CHARGES
The Corporation tax rate for the year ended 30 September 2025 was 25% (2024:
25%). No factors noted that would impact future charges.
EARNINGS PER SHARE
2025 2024
£000 £000
Profit/(loss) for the financial year attributable to equity shareholders 683 (617)
Non-recurring operational costs - 171
Share-based payment charges and associated costs (note 18) 127 132
Loss from discontinued operations 228 1,043
Underlying profit for the year before share-based payments, non-recurring 1,038 729
operational costs and loss from discontinued operations
Weighted average number of shares:
- Ordinary shares in issue 53,962,868 53,962,868
- Shares held by EBT (3,677) (3,677)
- Treasury shares (1,673,583) (1,169,536)
Basic weighted average number of shares 52,285,608 52,789,655
Effect of Employee share options 525,000 866,671
Diluted weighted average number of shares 52,810,608 53,656,326
Basic (loss)/earnings per share 1.3p (1.2)p
Diluted (loss)/earnings per share 1.3p (1.2)p
Underlying basic earnings per share before share-based payments, non-recurring 2.0p 1.4p
operational costs and loss from discontinued opera- tions
Basic earnings per share attributable to equity shareholders of the parent 1.7p 0.8p
(pence) from continuing operations
Diluted earnings per share attributable to equity shareholders of the parent 1.7p 0.8p
(pence) from continuing operations
TRADE AND OTHER RECEIVABLES
2025 2024
£000 £000
Trade receivables 13,000 11,952
Other receivables 103 637
Prepayments 1,116 1,168
Accrued income 150 121
14,369 13,878
TRADE AND OTHER PAYABLES
2025 2024
£000 £000
Trade payables 2,061 1,747
Social security and other taxes 1,325 1,252
Other payables 1,453 1,958
Accrued expenses 2,786 2,758
7,625 7,715
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Some asset and liability amounts reported in the Consolidated Financial
Statements contain a degree of management estimation and assumptions. There is
therefore a risk of significant changes to the carrying amounts for these
assets and liabilities within the next financial year. The estimates and
assumptions are made on the basis of information and conditions that exist at
the time of the valuation.
The following are considered to be key accounting estimates:
IMPAIRMENT REVIEWS
Determining whether intangible assets including goodwill are impaired requires
an estimation of the value in use of the cash generating units to which
intangible assets or goodwill have been allocated. The value in use
calculation requires an entity to estimate the future cash flows expected to
arise from the cash generating unit and a suitable discount rate in order to
calculate present value. An impairment review test has been performed at the
reporting date and no impairment is required. Further details can be found in
note 12.
RECEIVABLES IMPAIRMENT PROVISIONS
The amounts presented in the Consolidated Statement of Financial Position are
net of allowances for doubtful receivables, estimated by the Group's
management based on the expected credit loss within IFRS 9. This is calculated
using a simplified model of recognising lifetime expected losses based on the
geographical location of the Group's entities and considers historical default
rates, projecting these forward taking into account any specific debtors and
forecasts relating to local economies. At the Statement of Financial Position
date a £1,723,000 (2024: £1,793,000) provision was required. If management's
estimates changed in relation to the recoverability of specific trade
receivables the provision could increase or decrease. Any future increase to
the provision would lead to a corresponding increase in reported losses and a
reduction in reported total assets.
REVENUE RECOGNITION ON FIXED FEE PROJECTS
Where the Group enters into a formal fixed fee arrangement revenue is
recognised by reference to the stage of completion of the project. The stage
of completion will be estimated by the Group's management based on the Project
Manager's assessment of the contract terms, the time incurred and the
performance obligations achieved and remaining.
POST BALANCE SHEET EVENTS
There have been no significant events requiring disclosure since 30 September
2025.
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AnnouncementREG - Diales Group PLC - Preliminary Results
AnnouncementREG - Diales Group PLC - Notice of Results and Investor Presentation
AnnouncementREG - Diales Group PLC - Appointment of Non-Executive Director
AnnouncementREG - Diales Group PLC - Year End Trading Update
Announcement