REG - Fonix PLC - Final Results
Tue 07:00
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RNS Number : 3098A Fonix PLC 23 September 2025
23 September 2025
Fonix plc
("Fonix" or the "Company")
Final Results for the year ended 30 June 2025 (the "Year")
Robust performance with product launches and international expansion set to
accelerate growth
Financial Highlights
2025 2024 Change
Gross profit £18.6m £17.9m +3.9%
Adjusted EBITDA(1) £14.6m £13.7m +6.6%
Adjusted PBT(2) £14.3m £14.0m +2.1%
Adjusted EPS(3) 11.3p 10.8p +4.6%
Proposed Final DPS 5.90p 5.70p +3.5%
Underlying cash(4) £9.9m £11.3m -12.4%
Special DPS (paid Feb 2025) 3.0p - n/a
Highlights
● Strategic execution in FY25: Delivered earnings growth in line
with expectations while laying strong foundations for the next phase of
expansion.
● International progress: Overseas markets now represent c.13% of
gross profit, driven primarily by Ireland; first live campaigns launched in
Portugal in June with broader commercial rollout taking place in mid-September
and additional customer launches expected later in FY26; legal entities
established and contracting underway in two additional European territories.
● Product innovation advancing: Strong progress across the product
suite - PayFlex launched with major UK broadcasters, CompsPortal scheduled for
first launches in October 2025, and RCS (Rich Communication Services)(5)
preparations underway for FY26 - extending Fonix's capabilities beyond SMS and
positioning the Company as a leader in multi-channel interactivity and
payments.
● Growing and scalable platform: 29m unique mobile user interactions
during the year (FY24: 23m) with 100% uptime; platform proven to scale
reliably with increasing demand.(6)
● Solid client base: High retention maintained, including renewal of
the Bauer UK contract on an exclusive two-year basis. New customer wins such
as GB News and News UK added further momentum in the UK media sector.
● Shareholder returns: Final dividend of 5.9p per share recommended,
in line with progressive dividend policy to distribute at least 75% of
adjusted earnings; together with the interim and special dividends already
paid, total distributions for FY25 exceed 100% of adjusted earnings.
The Board expects to publish its Annual Report for the year ending 30 June
2025 on the Company's website on Friday 17 October 2025. The Annual General
Meeting is scheduled to take place on Thursday 13 November 2025.
Outlook
Fonix enters FY26 with strong momentum. Full commercial services are now live
with a major broadcaster in Portugal, and two further European markets are
progressing at pace. At the same time PayFlex, CompsPortal and RCS broaden the
product suite and create new revenue opportunities. Together, these
initiatives will diversify earnings beyond the UK and reinforce Fonix's
leadership in interactive services. With a highly cash-generative model and
proven track record of execution, the Board is confident in delivering
sustained, profitable growth.
Notes
(1) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest, R&D tax credits and tax from the
measure of profit.
(2) Adjusted PBT is profit before tax excluding share-based payment charges
and R&D tax credits.
(3) Adjusted EPS is earnings per share excluding share-based payment charges.
(4) Underlying cash is actual cash excluding cash held on behalf of customers.
(5) RCS means Rich Communication Services and is the next generation of native
mobile messaging, supporting rich media, interactivity, and branded business
communication.
(6) Unique mobile users are calculated as the number of unique Mobile Station
International Subscriber Directory Numbers (MSISDNs) processed through Fonix
services.
Rob Weisz, CEO, commented:
"FY25 has been a pivotal year of preparation, and we now move into FY26 with
the strongest growth platform in our history. With Portugal live, two further
European markets progressing, and additional geographies already on our
roadmap, international expansion is set to become a major driver of growth.
At the same time, our product innovations are opening entirely new revenue
streams. PayFlex, CompsPortal and RCS together represent a step-change in
capability - enabling richer consumer journeys, higher-value transactions and
deeper relationships for our clients. These are not incremental add-ons but
transformational products that expand our addressable market and reinforce our
position as the leading provider of interactive services.
The combination of international scale and product innovation means Fonix is
entering its next phase with powerful momentum. We are confident that FY26
will mark the start of an acceleration in growth, greater diversification of
our earnings, and sustained long-term value creation. Above all, we believe
the opportunity ahead of us is larger and more exciting than at any point
since IPO, and we look forward to delivering on it."
Enquiries
Fonix plc
Tel: +44 20 8114 7007
Robert Weisz, CEO
Michael Foulkes, CFO
Cavendish Capital Markets Limited (Nomad and Broker)
Tel: +44 20 7220 0500
Jonny Franklin-Adams / Seamus Fricker / Hamish Waller (Corporate Finance)
Sunila de Silva / Harriet Ward (ECM)
About Fonix
Founded in 2006, Fonix is a leading provider of mobile payments and messaging
solutions, enabling businesses to connect, engage, and transact seamlessly
through mobile technology.
Fonix helps organisations across media, charity, entertainment, and enterprise
sectors drive revenue and enhance audience engagement.
Headquartered in London, Fonix is a fast-growing, innovation-driven company,
trusted by industry leaders such as ITV, Bauer Media, RTÉ, Global, Comic
Relief, and BBC Children in Need. With a strong focus on technology and
consumer experience, Fonix continues to shape the future of mobile payments
and interactivity.
Chair's Review
I am pleased to present my review of the year ended 30 June 2025, a period
marked by investment, innovation and international expansion for Fonix.
Although headline growth was more measured than in recent years, the business
delivered resilient earnings and strong cash generation, underpinned by
disciplined execution of our strategy. FY25 has been a strategically important
year in which we have broadened our product offering, expanded our
international footprint, and laid the foundations for the next phase of
growth.
Gross profit grew by 3.9% to £18.6m, adjusted EBITDA increased by 6.6% to
£14.6m, and adjusted earnings per share rose by 4.6% to 11.3p. These results
underline the strength of our business model, with profitability holding firm
and gross margins improving year-on-year. The decline in total payment volumes
was largely attributable to lower charitable giving, reduced telephone voting
traffic, and a decision by a gaming client to exit the market - all of which
had lower margins and limited impact on Fonix's earnings. In addition, some
broadcasters encouraged consumers towards higher price points, which reduced
volumes but maintained margins. Taken together, these dynamics highlight the
resilience of our revenues and our ability to deliver sustainable returns,
even as market formats evolve. Return on capital employed rose further to
125%, reflecting the efficiency of our operations.
Fonix remains highly cash generative, and the Board is recommending an
increased final dividend of 5.9p per share in line with market expectations,
taking the full-year ordinary dividend to 78% of adjusted earnings, in line
with our progressive policy. In addition, a special dividend of 3p was paid in
February, reflecting our strong cash generation and balance sheet. These
distributions demonstrate our commitment to returning surplus capital to
shareholders while continuing to invest in growth.
Strategy and growth
Our UK and Ireland SMS business has remained resilient, supported by strong
client relationships and a leading market position, such that we attracted new
clients News UK and GB news in the year. We continue to see opportunities for
growth in this area, while recognising that the primary drivers of future
expansion will be international markets and product innovation. New
capabilities such as RCS and online interactivity will broaden our addressable
market and position Fonix to capture additional opportunities across
competitions and adjacent sectors.
International expansion has been a major focus, with a live trial in Portugal
being completed in June 2025, followed by full commercial launch earlier in
mid-September. This represents an important milestone: while Ireland
demonstrated the potential of our client-led model in closely aligned markets,
Portugal reinforces the broader opportunity and proves our ability to expand
successfully into geographies where cultures and languages are less closely
aligned with the UK. Building on this success, we are establishing legal
entities and entering into contracts with broadcasters and mobile operators in
two further European markets, with additional geographies identified on our
roadmap. Many of these markets remain underdeveloped in interactive services,
where incumbents have placed limited focus. With our proven technology,
trusted reputation with regulators and operators, and broadened product suite,
Fonix is well positioned to capture and expand this significant opportunity.
Governance and people
During the year we appointed Michael Foulkes to the expanded role of Chief
Financial and Operating Officer (CFOO). This reflects the increasing scale and
complexity of our business as we broaden our product suite and expand into
multiple new geographies. Michael's dual oversight of finance and operations
ensures Fonix is well positioned to deliver disciplined execution alongside
ambitious growth.
The Board continues to progress the appointment of an additional independent
non-executive director, in line with shareholder feedback and best practice
under the QCA Corporate Governance Code. A key consideration in our search is
to identify a candidate with deep local market knowledge in the new
geographies we are targeting. Having board-level expertise in these regions
would provide valuable insight as we navigate entry, strengthen relationships
and establish our presence.
More broadly, the Board recognises the strength of Fonix's entrepreneurial,
specialist team, which has consistently demonstrated its ability to deliver
innovation, scale efficiently, and maintain the Company's competitive edge.
As always, I would like to thank our talented team for their dedication and
hard work, our customers and partners for their collaboration, and our
shareholders for their ongoing support.
Outlook
Fonix enters FY26 with strong momentum. With launches planned in multiple new
markets, and new products such as PayFlex, CompsPortal and RCS set to broaden
our reach and deepen customer relationships, the Board is confident in the
Company's long-term prospects.
Our strategic focus remains clear: to drive sustainable, high-quality growth,
expand internationally in partnership with leading broadcasters, and deliver
long-term value creation for our shareholders.
Edward Spurrier, Non-executive Chair
CEO's Statement
FY25 has been a year of delivery and preparation, in which Fonix has made
strong progress across products, clients and international markets. While
overall growth was steadier than in prior years, this has been a period of
real momentum behind the scenes, laying the foundations for the next phase of
expansion.
Our strategy is clear and focused, built around three core pillars that guide
how we deliver growth and scale the business:
1. Driving revenue growth through technological innovation
Our UK business continues to be the foundation of Fonix. While SMS revenues
remain steady, SMS remains a crucial foundation of our business, as the only
truly universal mobile channel available on every handset and there is
meaningful opportunity for further growth as newer clients, such as News UK,
scale their activity. At the same time, we are broadening our product suite in
ways that we believe will significantly increase our addressable market for
both new and existing customers:
PayFlex
PayFlex enables consumers to complete online payments directly within, or
from, a message-based chat. Its first application is helping broadcasters
recover failed SMS billing transactions by offering alternatives such as Apple
Pay, Google Pay or PayPal. More broadly, PayFlex allows customers to offer
online payment options where SMS billing is restricted by regulation or
commercial limits, supporting higher-value transactions and new campaign
formats. Fully integrated into Campaign Manager, PayFlex provides a flexible
way for clients to increase revenues while keeping the user journey simple and
familiar. Payflex has been trialled by a number of clients over the summer,
and is ready for a full launch this autumn.
CompsPortal
CompsPortal allows broadcasters to extend their on-air competitions with a
dedicated online site promoted alongside SMS campaigns. This expands the
broadcaster's opportunity to promote their competitions to an online audience,
increasing engagement channels and creating opportunities to drive for higher
revenues. Integration with Campaign Manager makes campaign setup, management
and winner selection straightforward across every channel. By unifying
consumer data across SMS, PayFlex, RCS and online, CompsPortal also enables
more personalised marketing and ensures the most effective channel is promoted
at the right time. CompsPortal is being launched with one major customer in
October 2025, and will be rolled out to others over the coming year.
RCS
RCS is the next major evolution of interactive messaging, giving brands the
ability to deliver richer, branded experiences directly within consumers'
native messaging apps. It combines embedded payments, interactive content and
real-time engagement within a single conversation. For customers, this means
higher participation, stronger audience relationships and entirely new formats
that go beyond the limitations of SMS or email. Fonix is one of the few
providers able to deliver RCS with integrated payments, giving us a clear
advantage as adoption accelerates. We see RCS as a major opportunity to bring
conversational commerce to life, with purchases, upgrades and upsells taking
place directly within the chat.
Together, these innovations extend Fonix's capabilities beyond SMS,
positioning us as the market leader in multi-channel interactivity and
payments.
2. Client- and sector-led international expansion
International growth adds a significant new dimension to our strategy. In
September, we completed a full rollout across a major broadcaster's radio
portfolio, marking an important milestone and proving our ability to expand
successfully into markets beyond those closely aligned with the UK. With
direct connectivity across all operators and a growing broadcaster pipeline,
Portugal clearly demonstrates the scalability of our model.
We are also in the process of establishing legal entities and contracting with
broadcasters and carriers in two further European markets, with other
geographies identified for future expansion. Early engagement has been highly
encouraging, and we look forward to updating shareholders as and when services
are live and generating revenues.
Crucially, the innovations we have developed in the UK - PayFlex, CompsPortal
and RCS - will be major differentiators overseas. Many international markets
remain underserved in interactive services, with incumbents focused elsewhere.
Broadcasters and operators are actively seeking modern, flexible solutions,
and Fonix's reputation as a trusted partner - built on years of regulator and
operator collaboration - gives us a strong platform to accelerate adoption.
3. Sustaining long-term profitability for shareholders
We continue to take a disciplined approach to growth, balancing investment in
innovation and international expansion with consistent shareholder returns.
Our highly leveraged operating model allows profitability to scale faster than
costs, enabling us to invest in new products and international infrastructure
from a position of strength. At the same time, we remain committed to
returning surplus cash to shareholders, as demonstrated by both the ordinary
and special dividends paid during the year.
Looking ahead, we may incur one-off exceptional costs where we see
opportunities to accelerate international expansion. In particular, certain
larger neighbouring markets represent a very significant medium-term
opportunity but may require additional upfront investment in overheads,
regulatory work and local operations before delivering material revenues.
Where such opportunities exist, we will take a measured approach - investing
selectively to establish an early-mover advantage, while ensuring the
underlying business remains highly profitable and cash generative.
The expansion of Michael Foulkes' role to CFOO has been an important
development, bringing together oversight of finance, operations and technology
delivery. This unified remit ensures that as we broaden our product suite and
scale into new geographies, we maintain tight cost control, operational
resilience, and the agility to allocate resources quickly to areas of greatest
opportunity.
People and culture
Fonix's success is built on its people. Headcount increased to 52 during the
year, with senior hires in engineering and operations strengthening our
capacity to deliver multiple product workstreams. As we expand
internationally, we are also building teams with local expertise to help
navigate regional dynamics and support relationships with broadcasters and
operators.
Our entrepreneurial, specialist team is a key differentiator. Their deep
sector expertise and innovative mindset enable us to deliver unique value to
clients, while maintaining the scalability of a technology-led business rather
than a services model.
Outlook
FY25 has been a pivotal year of preparation, and we now move into FY26 with
the strongest growth platform in our history. With Portugal live, two further
European markets progressing, and additional geographies already on our
roadmap, international expansion is set to become a major driver of growth.
At the same time, our product innovations are opening entirely new revenue
streams. PayFlex, CompsPortal and RCS together represent a step-change in
capability - enabling richer consumer journeys, higher-value transactions and
deeper relationships for our clients. These are not incremental add-ons but
transformational products that expand our addressable market and reinforce our
position as the leading provider of interactive services.
The combination of international scale and product innovation means Fonix is
entering its next phase with powerful momentum. We are confident that FY26
will mark the start of an acceleration in growth, greater diversification of
our earnings, and sustained long-term value creation. Above all, we believe
the opportunity ahead of us is larger and more exciting than at any point
since IPO, and we look forward to delivering on it.
Robert Weisz, Chief Executive Officer
Financial Review
Key performance indicators
Financial 2025 2024 Change
Gross profit £18.6m £17.9m 3.9%
Adjusted EBITDA(1) £14.6m £13.7m 6.6%
Adjusted PBT(2) £14.3m £14.0m 2.1%
Underlying cash(3) £9.9m £11.3m -12.4%
Adjusted EPS(4) 11.3p 10.8p 4.6%
Adjusted ROCE(5) 125% 116%
Non-financial 2025 2024 Change
Total payments volume (TPV)(6) £280.9m £303.3m -7.4%
( )
( )
(1) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest, R&D tax credits and tax from the
measure of profit.
(2) Adjusted PBT is profit before tax excluding share-based payment charges
and R&D tax credits.
(3) Underlying cash is actual cash excluding cash held on behalf of customers.
(4) Adjusted EPS is earnings per share excluding share-based payment charges.
(5) Adjusted ROCE is return on capital employed calculated as adjusted EBIT
(being earnings before interest, R&D tax credits and tax excluding
share-based payment charges) divided by capital employed (total assets less
total current liabilities).
(6) Total payments volume is consumer spend inclusive of VAT processed via
carrier billing, SMS billing and voice, along with the total value of payments
facilitated through third-party payment service providers via Google Pay,
Apple Pay, PayPal and bank card.
Financial Review
Total payments volume (TPV)
Total Payment Volume (TPV) represents the cash payments processed or
facilitated by Fonix on behalf of customers. TPV declined to £281m (2024:
£303m), primarily due to fewer charity campaigns and the planned exit of
certain low-margin services. These included a gaming client withdrawing from
the UK market in response to tighter gambling regulations and the
discontinuation of paid voting by a broadcast customer. In addition, some
broadcaster customers encouraged consumer spend at higher price
points-delivering them stronger margins but typically lower volumes. Overall,
the impact on gross profit was limited, reflecting our strategic focus on
sustainable, higher-margin revenue.
Revenue and other income
Gross profit remains the Company's key indicator of growth and is regarded as
the most meaningful measure of performance. By contrast, reported revenues
include the share of each payment transaction retained by mobile network
operators (MNOs), which can vary significantly depending on product mix,
operator, price point, and geography. Revenues for the year decreased to
£72.7m (2024: £76.1m), reflecting changes in the service and product
mix-most notably the discontinuation of certain gaming and voting services
which, while low-margin for the Company, were valuable to MNOs, as well as
greater use of higher price points by customers, where the average MNO share
of transactions is lower.
Gross profit
Gross profit is the business' most important financial indicator as this
represents the Company's share of revenue for processing mobile payments and
messages.
Gross profit for the year increased to £18.6m (2024: £17.9m) growing 3.9% on
the previous year, with mobile payments growing 1% (2024: 17%), mobile
messaging growing 26% (2024: 43%) and managed services growing 6% (2024: 2%).
Blended gross profit margin increased to 25.6% (2024: 23.5%), reflecting the
same product and client mix dynamics described above. The discontinuation of
lower-margin voting and gaming services reduced the share of revenue retained
by mobile network operators, while some customers shifted towards higher
average transaction values. These factors lowered MNO transaction shares and,
in turn, lifted gross margins for mobile payments.
Adjusted operating expenses
Operating costs were kept firmly under control, with increases arising mainly
from investments to support future growth. Adjusted operating costs remained
broadly unchanged at £4.1m (2024: £4.2m). The reduction reflects lower staff
bonuses, in line with more modest business growth, a decrease in one-off
marketing spend, and an additional £0.2m of headcount spend allocated to
capitalised new product development.
Staff-related costs and incentives-including remuneration, bonuses, benefits,
recruitment, and training-rose to £4.5m (2024: £4.3m), driven by growth in
engineering and operations headcount, partly offset by reduced bonuses.
Average headcount increased to 52 (2024: 49).
IT hosting costs fell slightly to £200k (2024: £217k) following the
consolidation of certain platform databases.
Software development costs of £1,285k (2024: £1,061k) were capitalised,
representing 67% of development costs (2024: 67%). The increase reflects
expansion of the development team and further investment in the Fonix
platform. Capitalised spend was offset by an amortisation charge of £874k
(2024: £693k), with development costs amortised on a straight-line basis over
three years.
Adjusted EBITDA
Growth in gross profit, combined with continued cost control, drove a 6.6%
increase in adjusted EBITDA to £14.6m (2024: £13.7m). Adjusted EBITDA is
presented as a clearer measure of underlying business performance, excluding
share-based payment charges, depreciation, amortisation, interest, R&D tax
credits, and tax.
Finance income and expenses
Finance expense, relating to the unwinding of the discounted lease liability,
increased slightly to £21k (2024: £18k) following the renewal of the
Company's office lease for a further three years in November 2023.
Finance income decreased to £0.8m (2024: £1.1m), reflecting lower base
interest rates during the year.
Corporation tax
The Company's effective corporate tax rate decreased to 22.7% (2024: 23.2%)
following the adoption of an HMRC-approved branch profits exemption from 1
July 2024. Under this arrangement, profits generated by branches outside the
UK are taxed at the applicable local rate rather than UK corporation tax.
While the UK headline rate remains 25%, the corporation tax rate in Ireland,
where the Company operates a branch, is 12.5%.
EPS and Dividends
Given the Company's strong performance, cash resources, distributable reserves
and confidence in future prospects, the board recommends paying out 78% of
adjusted EPS as an ordinary dividend, in line with the Company's progressive
policy to distribute at least 75% of adjusted earnings per share each year.
This excludes the special dividend of 3p paid in February; when included,
total dividends for the year amount to more than 100% of adjusted EPS. The
board therefore intends to recommend an increased final dividend of 5.90p per
share (2024: 5.70p), to be approved at the AGM in November.
Statement of Financial Position
The Company had net assets of £10.5m (2024: £10.7m) at the year-end,
including capitalised software development costs with a carrying value of
£2.0m (2024: £1.6m). The movement in net assets reflects profit after tax
less dividend payments and share options exercised.
Current assets decreased to £56m (2024: £62m), primarily reflecting lower
cash balances at year end. This was driven by the Company holding less cash on
behalf of customers, which is correspondingly reflected in reduced trade and
other payables.
Current liabilities decreased to £47m (2024: £53m), reflecting lower trade
payables at year end due to changes in the timing of certain customer
campaigns, as well as a reduction in VAT owed, driven by invoicing timing
differences.
Non-current liabilities decreased to £0.3m (2024: £0.4m) as the Company
partially unwound its office lease liability following the lease renewal in
November 2023.
Cash and underlying cash
The board distinguishes between actual cash, which includes cash held on
behalf of customers, and underlying cash, which excludes cash held on behalf
of customers.
Underlying cash is considered a better reflection of the cash flow available
to the business. It decreased to £9.9m (2024: £11.3m), primarily due to
additional shareholder distributions, including a £3.0m special dividend paid
in February 2025.
Actual cash, which includes cash held on behalf of customers, can vary
substantially from period to period and is particularly sensitive to the
timing of passthrough outpayments. Actual cash held decreased to £22.0m
(2024: £26.5m) in the year. The reduction, beyond the movement in underlying
cash, was purely timing-related and reflects the settlement of certain
customer liabilities around the year end.
Michael Foulkes, Chief Finance Officer
Audited results for the year ended 30 June 2025
Statement of Comprehensive Income
For the year ended 30 June 2025
2025 2024
Note £'000 £'000
Continuing operations
Revenue 4 72,780 76,089
Cost of sales (54,152) (58,203)
Gross profit 3 18,628 17,886
Other income - -
Adjusted operating expenses(1) (4,074) (4,193)
Profit before interest, tax, depreciation, amortisation, share-based payment 14,554 13,693
charge and exceptional costs
R&D tax credit 131 58
Share-based payment charge (86) (100)
Depreciation and amortisation (1,014) (825)
Operating profit 13,585 12,826
Finance income 826 1,127
Finance expense (21) (19)
Profit before taxation 14,390 13,934
Taxation (3,245) (3,317)
Total comprehensive profit for the financial year 11,145 10,617
(1) Adjusted operating expenses excludes R&D tax credits, share-based
payment charge, depreciation and amortisation
Earnings per share 2025 2024
Basic earnings per share 11.3p 10.7p
Diluted earnings per share 11.2p 10.6p
Adjusted basic earnings per share 11.3p 10.8p
Statement of Financial Position
As at 30 June 2025
2025 2024
£'000 £'000
Non-current assets
Intangible asset 2,017 1,606
Right of use asset 166 286
Tangible assets 31 30
2,214 1,922
Current assets
Trade and other receivables 33,766 35,947
Cash and cash equivalent 21,998 26,480
55,764 62,427
Total assets 57,978 64,349
Equity and liabilities
Equity
Share capital 100 100
Share premium account 679 679
Treasury shares (2,051) (2,273)
Share option reserves 422 362
Retained earnings 11,380 11,834
10,530 10,702
Liabilities
Non-current liabilities
Deferred tax liabilities 287 237
Lease liabilities 19 146
306 383
Current liabilities
Trade and other payables 47,015 53,148
Lease liabilities 127 116
47,142 53,264
Total liabilities 47,448 53,647
Total equity and liabilities 57,978 64,349
Statement of Changes in Equity
For the year ended 30 June 2025
Share capital Share premium Share option reserve Treasury shares Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 100 679 297 (495) 8,807 9,388
Profit for the financial year - - - - 10,617 10,617
- - - - 10,617 10,617
Transactions with shareholders
Dividends - - - - (7,481) (7,481)
Share-based payment charge - - 100 - - 100
Purchase of own shares - - - (2,040) - (2,040)
Exercise of share options issued from treasury shares - - - 262 (144) 118
Fair value of options exercised in the period - - (35) - 35 -
- - 65 (1,778) (7,590) (9,303)
Balance at 30 June 2024 100 679 362 (2,273) 11,834 10,702
Profit for the financial year - - - - 11,145 11,145
- - - - 11,145 11,145
Transactions with shareholders
Dividends - - - - (11,493) (11,493)
Share-based payment charge - - 86 - - 86
Purchase of own shares - - - - - -
Exercise of share options issued from treasury shares - - - 222 (132) 90
Fair value of options exercised in the period - - (26) - 26 -
- - 60 222 (11,599) (11,317)
Balance at 30 June 2025 100 679 422 (2,051) 11,380 10,530
Statement of Cash Flows
For the year ended 30 June 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Profit before taxation 14,390 13,934
Adjustments for
Depreciation 20 15
Amortisation 994 809
Share-based payment charge 86 100
Finance income (826) (1,127)
Finance expense 21 19
(Increase)/decrease in trade and other receivables 2,180 111
Increase/(decrease) in trade and other payables (5,758) 4,297
Income tax paid (3,570) (2,839)
Net cash flows from operating activities 7,537 15,319
Cash flows from investing activities
Interest received 826 1,127
Payments to acquire tangible assets (20) (18)
Payments to acquire intangible assets (1,285) (1,061)
Net cash flows from investing activities (479) 48
Cash flows from financing activities
Net proceeds from issue of equity 90 119
Dividends paid (11,493) (7,481)
Purchase of own shares - (2,040)
Capital payments in respect of leases (116) (115)
Interest paid in respect of leases (21) (18)
Net cash flows from financing activities (11,540) (9,535)
Net increase in cash and cash equivalents for the period (4,482) 5,832
Cash and cash equivalents at beginning of period 26,480 20,648
Cash and cash equivalents at end of period 21,998 26,480
Statement of Underlying Cash Flows
For the year ended 30 June 2025
The company's mobile payments segment involves collecting cash on behalf of
clients which is then paid to clients net of the company's share of revenues
or fees associated with collecting the cash. The company's cash balance
therefore fluctuates depending on the timing of "pass through" cash received
and paid. The analysis below shows the movements in the company's underlying
cash flow excluding the monies held on behalf of customers. The underlying
cash is derived from actual cash by adjusting for customer related trade and
other receivables less customer related trade and other payables and customer
related VAT liabilities.
2025 2024
£'000 £'000
Underlying cash flows from operating activities
Profit before taxation 14,390 13,934
Adjustments for
Depreciation 20 15
Amortisation 994 809
Share-based payment charge 86 100
Finance income (826) (1,127)
Finance expense 21 19
(Increase)/decrease in trade and other receivables (410) (31)
Increase/(decrease) in trade and other payables (133) 485
Income tax paid (3,570) (2,839)
Net underlying cash flows from operating activities 10,572 11,365
Underlying cash flows from investing activities
Interest received 826 1,127
Payments to acquire tangible assets (20) (18)
Payments to acquire intangible assets (1,285) (1,061)
Net underlying cash flows from investing activities (479) 48
Underlying cash flows from financing activities
Net proceeds from issue of equity 90 119
Dividends paid (11,493) (7,481)
Purchase of own shares - (2,040)
Capital payments in respect of leases (116) (115)
Interest paid in respect of leases (21) (18)
Net underlying cash flows from financing activities (11,540) (9,535)
Net increase in underlying cash for the period (1,447) 1,878
Underlying cash at beginning of period 11,324 9,446
Underlying cash equivalents at end of period 9,877 11,324
Notes to the preliminary financial information
1. Basis of preparation
The financial information set out herein does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The financial
information for the Year ended 30 June 2025 has been extracted from the
company's audited financial statements which were approved by the Board of
Directors on 22 September 2025 and which, if adopted by the members at the
Annual General Meeting, will be delivered to the Registrar of Companies for
England and Wales.
The financial information for the Year ended 30 June 2024 has been extracted
from the company's audited financial statements which were approved by the
Board of Directors on 23 September 2024 and which have been delivered to the
Registrar of Companies for England and Wales.
The reports of the auditor on both these financial statements were
unqualified, did not include any references to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
did not contain a statement under Section 498(2) or Section 498(3) of the
Companies Act 2006.
The information included in this preliminary announcement has been prepared on
a going concern basis under the historical cost convention, and in accordance
with International Accounting Standards in conformity with the requirements of
the Companies Act 2006 and the International Financial Reporting
Interpretations Committee (IFRIC) interpretations issued by the International
Accounting Standards Board ("IASB") that are effective as at the date of these
financial statements.
The company is a public limited company incorporated and domiciled in England
& Wales and whose shares are quoted on AIM, a market operated by The
London Stock Exchange.
2. Going concern
At the time of approving the financial statements, the directors have a
reasonable expectation that the company has adequate resources to continue in
operational existence for the foreseeable future. Fonix is not externally
funded and accordingly is not affected by borrowing covenants. In addition,
the cost of capital represents dividend distributions or share buy-backs -
which are discretionary.
At 30 June 2025 the company had cash and cash equivalents of £22.0 million
(2024: £26.5 million) and net current assets of £8.6 million (2024: £9.2
million). The business model of Fonix is cash generative - with increased
sales generally impacting positively on the working capital cycle and profits
from trading activities being rapidly reflected in cash at bank.
The directors maintain sufficient net assets in the company by moderating or
increasing dividend distributions or share buy-backs as necessary.
The directors have prepared detailed cash flow forecasts for the next 18
months that indicate the existing activities of the company do not require
additional funding during that period. The forecasts are challenged by various
downside scenarios to stress test the estimated future cash and net current
asset position. The directors are pleased to note that the stress tests did
not have a significant impact on the funding requirement. In addition, current
trading is in line with the forecast for the year.
Accordingly, the directors continue to adopt the going concern basis of
accounting in preparing these financial statements.
3. Segmental reporting
Management currently identifies one operating segment in the company under
IFRS 8 - being the facilitating of mobile payments and messaging. However, the
directors monitor results and performance based upon the gross profit
generated from the service lines as follows:
2025 2024
Gross profit £'000 £'000
Mobile payments 14,871 14,782
Mobile messaging 2,937 2,332
Managed services 820 772
18,628 17,886
Differences between the way in which the single operating segment is reported
in the financial statements and the internal reporting to the Board for
monitoring and strategic decisions, relates to the recording of revenue in
line with IFRS 15. The IFRS adjustments do not impact on the calculation or
reporting of gross profit.
Gross profits can be attributed to the following geographical locations, based
on the end user and the associated mobile network operators' location:
2025 2024
Gross profit by geography £'000 £'000
United Kingdom 16,268 15,691
Rest of Europe 2,360 2,195
18,628 17,886
4. Revenue
The company disaggregates revenue between the different streams outlined as
this is intended to show its nature and amount.
The total revenue of the company has been derived from its principal activity
undertaken wholly in the United Kingdom and EU.
Revenue is recognised at the point in time of each transaction when the
economic benefit is received. The total revenue of the company by service line
is as follows:
2025 2024
Revenue by service line £'000 £'000
Mobile payments 48,784 54,199
Mobile messaging 21,831 19,859
Managed services 2,165 2,031
72,780 76,089
Revenues can be attributed to the following geographical locations, based on
the end user and the associated mobile network operators' location:
2025 2024
Revenue by geography £'000 £'000
United Kingdom 60,209 63,915
Rest of Europe 12,571 12,174
72,780 76,089
The number of customers representing more than 10% of gross profit in the year
was 3 (2024: 3).
5. Earnings per share
The calculations of earnings per share are based on the following profits and
number of shares:
2025 2024
£'000 £'000
Retained profit for the financial year 11,145 10,617
2025 2024
Number of shares Number Number
Weighted average number of shares outstanding 99,036,308 99,651,884
Share options 695,763 803,079
99,732,071 100,454,963
Earnings per ordinary share
Basic 11.3p 10.7p
Diluted 11.2p 10.6p
The calculations of adjusted earnings per share are based on the following
adjusted profits and number of shares listed above:
2025 2024
Adjusted earnings per share £'000 £'000
Retained profit for the financial year 11,145 10,617
Adjustments
Share-based payment charge 86 100
Net adjustments 86 100
Adjusted earnings 11,231 10,717
Adjusted basic earnings per ordinary share 11.3p 10.8p
At 30 June 2025, the total number of ordinary shares of 0.1 pence each in the
capital of the Company, in issue was 100,000,000. The Company held 924,472
shares in treasury, and therefore the total number of ordinary shares
outstanding in the Company was 99,075,528.
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