REG - Fonix PLC - Interim Results
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RNS Number : 8389W Fonix PLC 17 March 2026
17 March 2026
Fonix plc
("Fonix", the "Group", or the "Company")
Interim Results for the six months ended 31 December 2025
Strong H1 performance with continued delivery of innovation and European
expansion
Fonix, the UK focused mobile payments and messaging company, is pleased to
announce its unaudited interim results for the six months to 31 December 2025
(the "Period").
Financial Highlights
H1 FY26 H1 FY25 Change
Gross profit £10.5m £9.8m +7.1%
Adjusted EBITDA(1) £8.3m £7.8m +6.4%
Interim DPS 3.10p 2.90p +6.9%
Adjusted PBT(2) £8.0m £7.8m +2.6%
Adjusted EPS(3) 6.2p 6.2p +0.0%
Underlying cash at period end(4) £9.2m £11.0m -16.4%
Operational Highlights
· International expansion:
○ In Portugal, engagement with additional major broadcasters is
progressing well, reflecting growing momentum in the market. Fonix launched
services in the country in late September with a leading national broadcaster,
and the launch has delivered encouraging early traction, supported by Fonix's
sector expertise and solutions tailored to local market dynamics. Portugal
represents Fonix's second European market launch, following its successful
expansion into Ireland.
○ A pilot of interactive services is now live with a leading
broadcaster in a third European market, representing the first offering of its
kind in that country. The pilot remains at an early stage, and the Board will
provide a further update as it progresses and additional data becomes
available.
○ Fonix has commenced expansion into a fourth European market, a
large and well-established territory with a mature interactive services
ecosystem and significant scale potential. During the period, the Group
established a local presence, incorporating a legal entity and appointing its
first in-country hire, alongside the addition of further industry and market
expertise within the wider Group to support market entry and customer
engagement. Engagements with major mobile network operators and leading
broadcasters are progressing positively, with service launch targeted for
FY27.
· Product progress:
○ Campaign Manager: A number of infrastructure enhancements were
delivered during the period, including upgrades to the Winner Picker
functionality to manage increased peak-time volumes, support for additional
time zones to facilitate international expansion, and broader code base
improvements to enhance resilience, scalability and long-term maintainability.
○ PayFlex expansion: PayFlex is now live with our first Irish
broadcaster, alongside two existing UK broadcaster deployments. Subject to
local regulatory requirements, the Group intends to roll out PayFlex
progressively across its SMS billing customer base.
○ CompsPortal: The first customer launch was successfully completed in
December 2025, with encouraging early levels of user engagement. During the
period, the Group continued to enhance product capabilities, improving
integration, performance and the overall customer experience. Further customer
deployments are expected as the product continues to develop.
○ RichMessaging: a second successful pilot of RCS messaging was
delivered with a leading UK broadcaster during the period. Building on this
progress, a broader expanded trial is now underway to further validate use
cases and commercial potential.
· ITV has extended its contract with Fonix for live broadcast
interactivity services, with the partnership now entering its tenth year.
· Fonix continues to maintain a high level of client retention, with
over 99% of income of a repeating nature.
· 100% platform uptime throughout the Period.
· Fonix's key service lines have each grown in the Period and the
business retains a significant pipeline of enterprise prospects going into H2
FY25.
· Increased interim dividend of 3.1p (FY25: 2.9p) per share, in line
with the Group's progressive dividend policy to pay out at least 75% of
adjusted EPS.
Outlook
Fonix enters the second half of FY26 with continued positive momentum across
its core UK and Ireland markets and encouraging progress internationally. All
key service lines have grown in the period and the business retains a strong
pipeline of enterprise opportunities.
Portugal continues to develop well, with engagement progressing with
additional broadcasters. The pilot in a third overseas European market is
underway, while foundational work in a fourth territory is advancing, with
operator engagement and regulatory processes progressing and launch targeted
for early FY27.
Product innovation remains central to the Group's strategy. PayFlex is
contributing to gross profit growth, CompsPortal development continues and
expanded RichMessaging trials are in progress as these capabilities are
integrated into a unified product roadmap.
While the Board remains mindful of UK tax changes affecting certain gaming
operators, the sector represents less than 6% of Group gross profit. A number
of operators are expected to continue operating and adapt their models, with
volumes historically consolidating among remaining providers. The Group's
diverse geographical footprint, broad customer base and high levels of
recurring income provide resilience, and any downside impact is expected to be
absorbed within the broader growth trajectory of the business.
The Board remains confident in the Group's strategy and its ability to deliver
sustainable gross profit growth and long-term value for shareholders in line
with market expectations.
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.
Rob Weisz, CEO, commented:
"We have delivered a strong first half, with gross profit up 7.1% and
continued momentum across both the UK and our international markets. Growth
has been supported by ongoing product innovation, format evolution among
customers and the strength of our long-standing partnerships, resulting in all
key service lines expanding during the period.
International expansion is progressing well, with Portugal gaining traction
and further European markets advancing in line with our strategy. At the same
time, PayFlex, CompsPortal and RichMessaging are enhancing our product
capability and supporting sustainable gross profit growth as we integrate
these solutions into a unified roadmap. With a strong pipeline, high levels of
recurring income and a highly reliable platform, the Board remains confident
in meeting expectations for the full year and in the Group's long-term growth
strategy.
We are also conscious of the rapid development of artificial intelligence
technologies and the potential implications for software-led businesses.
Fonix's platform is not a traditional SaaS model but operates as a specialist
mobile payments intermediary embedded within mobile network operator
infrastructure and long-standing broadcaster ecosystems. These operator
integrations, regulatory frameworks and commercial relationships create
significant structural barriers to entry around our core platform. At the same
time, we are actively leveraging emerging AI capabilities within our own
development and operational processes to enhance product functionality,
optimise campaign performance and improve customer outcomes."
Enquiries
Fonix plc
Tel:
+44 20 8114 7000
Robert Weisz, CEO
Michael Foulkes, CFOO
Cavendish Capital Markets Limited (Nomad and Broker)
Tel: +44 20 7220 0500
Jonny Franklin-Adams / Seamus Fricker (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.
CEO's review
The first half of the financial year has been one of strong operational and
financial progress for the Group. We have delivered robust growth in our core
UK and Ireland markets, continued to execute against our international
expansion strategy, and made significant advances in product innovation that
strengthen our long-term competitive positioning.
Performance in the period demonstrates the continued strength of our core
markets, supported by new product initiatives, format evolution among our
customers and sustained consumer engagement.
At the same time, we have laid important foundations for our next phase of
European expansion and continued to invest in the people, infrastructure and
technology required to support sustainable long-term returns for shareholders.
The Board is mindful of the wider geopolitical environment and the potential
inflationary pressures that have affected many sectors in recent years.
However, the Group's business model has limited direct exposure to energy or
commodity costs and operates primarily through low-value consumer transactions
embedded within media and entertainment formats. Historically these formats
have demonstrated resilience across economic cycles, supported by their broad
consumer appeal and the relatively small individual transaction values
involved. As a result, the Board believes the Group remains well positioned to
navigate periods of macroeconomic uncertainty.
Growth pillars
To align with our evolving priorities, we have refined our growth strategy to
three key pillars:
1. Driving revenue growth through technological innovation
Innovation remains at the core of our strategy and continues to underpin both
growth and resilience.
PayFlex rollout
The Group's PayFlex product has now been rolled out across a significant
proportion of our portfolio and is making a meaningful contribution to gross
profit growth. As a differentiated capability combining traditional SMS
billing flows and real-time online payments within live campaign environments,
PayFlex is delivering high and increasing conversion rates on eligible
transactions. In the medium term, we believe PayFlex will increase customers'
transaction volumes by up to 2-3%, further strengthening our defensive market
position.
CompsPortal launch
In December, we launched our first CompsPortal customer with a major UK TV
broadcaster. Early consumer engagement and conversion metrics have been very
encouraging. We are continuing to enhance the feature set and broaden the
available payment options, further optimising the user journey.
RichMessaging (RCS) trials
Alongside PayFlex and CompsPortal, we have undertaken a series of
RichMessaging (RCS) marketing trials, embedding rich, conversational messaging
experiences into Fonix's campaign management processes to support live
broadcast interactive services. The results have shown high levels of consumer
engagement and strong conversion performance.
We can already reach approximately 75% of UK users through RCS messaging. We
are now progressing extended trials with a broader group of customers and
evolving the product to address a wider range of user journeys.
2. Client and sector led international expansion
International expansion remains a key growth pillar, and we have made
substantial progress during the period.
Portugal - second overseas European market
We launched into the Portuguese market in late September and have seen strong
early growth. We are currently working with a large national radio broadcaster
introduced through an existing UK and Ireland client relationship,
demonstrating the power of our client-led expansion model.
The broader opportunity in Portugal is significant. Several leading TV and
radio broadcasters currently operate competition services solely through
premium rate telephone numbers and do not yet offer SMS or RCS entry
mechanics. This mirrors the historical structure of the UK and Ireland
broadcast competitions markets prior to the introduction of SMS.
We have a meaningful pipeline of broadcaster prospects in Portugal and believe
the market has the potential to develop into a territory comparable in scale
to Ireland over time.
Third overseas European market - pilot launch
At the end of February, we launched a pilot competition across a small number
of radio stations within a major broadcaster group in a third European market.
Interactive services are relatively new in this territory and the pilot has
been intentionally limited in scope. While it is too early to assess the pace
of development, the broadcaster has a significant national footprint and, with
effective execution, we believe the long-term opportunity could be material.
Fourth overseas European market - strategic investment phase
In parallel, we have begun a significant investment into a fourth European
market with a large but currently underserved broadcaster interactivity
sector. We believe this market has the potential, over time, to be comparable
in scale to the UK.
During the period, we established a formal legal entity, made our first
in-country hire, and are progressing operator contracts and regulatory licence
approvals. We have also strengthened our wider Group capability by bringing in
industry expertise with deep knowledge of this territory, which we expect will
materially enhance our market entry strategy.
3. Create sustainable, long-term profitability for
shareholders
The Group delivered strong gross profit growth in the period, supported by
continued momentum in the UK and Ireland. Performance in our core markets has
been driven by a combination of factors, including the contribution from new
product lines, format changes that have increased addressable audience sizes,
larger prize funds, organic growth among existing customers and the
introduction of higher baseline entry price points by certain customers.
Together, these drivers reinforce the structural quality of our earnings and
support continued sustainable gross profit generation.
We were also pleased to have extended our contract with ITV. Our relationship
began in 2017 with carrier billing services, expanded in 2018 with charity
services including Soccer Aid, and further evolved in 2023 with the addition
of premium SMS services under our main commercial contract. The latest
extension will see our partnership approach a decade in duration and enter its
fourth year of delivering all key live broadcast interactive services for ITV.
Long-standing relationships of this nature demonstrate the strategic
importance of our services and provide strong visibility of future earnings.
We have seen a small number of gambling customers cease services in advance of
changes to the UK tax regime due in April 2026. Gambling now represents less
than 6% of Group gross profit and we therefore expect the impact to be
manageable. Historically, when operators exit the market, a proportion of
transaction volumes migrate to remaining providers, and we would expect to see
some reallocation of carrier billing traffic over time.
People
Our progress is underpinned by the quality and commitment of our people.
During the period, we made our first in-country hire in our fourth European
market and added wider industry expertise with significant knowledge of that
territory to the Group. These hires strengthen both local execution capability
and strategic oversight as we expand internationally.
We continue to invest selectively in product, technology and commercial talent
to ensure we have the depth and experience required to support increasing
geographic scale and product sophistication.
Financial Review
Key performance indicators
Financial H1 FY26 H1 FY25 Change
Gross profit £10.5m £9.8m 7.1%
Adjusted EBITDA(1) £8.3m £7.8m 6.4%
Adjusted PBT(2) £8.0m £7.8m 2.6%
Underlying cash(3) £9.2m £11.0m -16.4%
Adjusted EPS(4) 6.2p 6.2p 0.0%
Non-financial H1 FY26 H1 FY25 Change
Total payments volumes (TPV) £160m £150m 6.7%
( )
(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.
Gross Profit
Gross profit is the business' most important financial indicator as this
represents the Group's share of revenue for processing mobile payments and SMS
messages.
Gross profit for the period increased to £10.5m (H1 FY25: £9.8m) growing
7.1% on the previous period. This was driven by 6% growth in mobile payments,
20% growth in mobile messaging, and 1% growth in managed services.
Geographically, gross profit grew by 6% in the UK and 24% across the rest of
Europe, with strong growth in Ireland alongside new services in Portugal. The
more modest growth in managed services reflects the absence of significant new
charity campaign launches in the period, as the Group's current international
and product strategy is primarily focused on scaling broadcaster and media
sector opportunities.
Growth in the mobile messaging business line reflects increased demand from
enterprise messaging customers leveraging the Group's robust and reliable UK
mobile network operator connections to deliver high-volume communications to
UK consumers on behalf of their own corporate clients. In addition, demand
from media customers increased during the period, driven by higher campaign
volumes and continued adoption of messaging as a core engagement channel.
The Directors therefore monitor results and performance of the Group based
upon the gross profit generated, which is considered the more meaningful
measure of performance than revenue.
Revenue for the period grew by 9% to £42.3m (H1 FY25: £38.8m), slightly
outgrowing gross profits growth due to changes in the customer and product
mix.
As a result of the change in the revenue mix, blended gross profit margins
decreased slightly to 24.9% (H1 FY25: 25.2%).
Total payment volumes (TPV) increased to £160m (H1 FY25: £150m), mirroring
aggregate growth in the company's mobile payments business line.
Adjusted Operating Expenses
Operating costs have increased in the period where the business has made
additional strategic investments in product and internationally focused
resources. Adjusted operating costs increased 16% in the period to £2.27m (H1
FY25: £1.95m). The increase largely relates to additional staff costs,
hosted IT infrastructure and external legal fees. Costs include £0.1m of
exceptional legal and consultancy costs associated with preparations for
future international expansion, which have not been added back.
Staff related costs and incentives increased to £2.5m (H1 FY25: £2.1m) in
the period reflecting the additional investment in product and exploring
international markets. Average headcount for the period was 57 (H1 FY25: 50).
Software development costs of £717k (H1 FY25: £600k) were capitalised in the
period, representing 64% (H1 FY25: 66%) of development costs. The modest
reduction in the capitalisation rate reflects a slightly greater emphasis on
UX and performance enhancements in the current period. The capitalisation of
current period development spend was offset by an amortisation charge of
£525k (H1 FY25: £412k). Development costs are amortised on a straight-line
basis over 3-years.
Adjusted EBITDA
The growth in gross profit and the continued control of costs has resulted in
an equivalent increase in adjusted EBITDA, which is up 6.4% at £8.3m (H1
FY25: £7.8m) for the period. To provide a better guide to the underlying
business performance, adjusted EBITDA excludes share-based payment charges
along with depreciation, amortisation, interest, R&D tax credits and tax
from the measure of profit.
Finance income and expenses
Finance expenses which relate to the unwinding of the discounted lease
liability were £6k (H1 FY25: £12k).
Interest income on bank deposits fell due to the decrease in base interest
rates.
Corporation tax
The Group's effective corporation tax rate increased modestly during the
period, primarily driven by changes in the geographical mix of profits subject
to differing local tax rates. The rate was also impacted by non-deductible
legal and professional costs incurred in relation to the Group's expansion
into new international markets. In addition, R&D tax credit claims were
lower year-on-year following changes to the UK R&D tax framework,
including the restriction on relief for certain overseas development
activities, which has reduced the level of qualifying expenditure recognised
in the period.
Adjusted earnings
Whilst adjusted EBITDA increased by 6.4% year-on-year, adjusted earnings per
share rose only marginally, reflecting lower interest income, higher
amortisation associated with increased capitalised software investment over
the past three years and a modest rise in the effective corporation tax rate.
Statement of Financial Position
The Group had net assets of £10.9m at the period end (H1 FY25: £11.2m),
including capitalised software development costs with a carrying value of
£2.2m (H1 FY25: £1.8m). The movement in net assets reflects profits after
tax less dividend payments and small movements related to employee share
options exercised.
The Group pays out monies to customers (merchants) once reconciliations have
been completed and the equivalent monies have been received from mobile
network operators. As a result, the Group often holds significant amounts of
customer related receivables, payables and cash, which can vary substantially
from period to period, depending on timing of customer campaigns and mobile
operator outpayments.
Current assets at the period end totalled £79.9m (H1 HY25: 73.2m). Trade and
Other Receivables, which include amounts receivable on behalf of customers,
increased during the period, primarily reflecting higher trading volumes
year-on-year in the final months of the period.
Current liabilities increased to £71.1m (H1 FY25: £63.7m) primarily driven
by higher trading volumes year-on-year in the final months of the period.
Non-current liabilities remained largely unchanged at £0.3m (H1 FY25:
£0.3m).
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 far better represents the free cash flow available to the
business. Underlying cash decreased to £9.2m (H1 FY25: £11.0m), primarily
reflecting additional shareholder distributions in the current period,
together with a £3m special dividend paid in H2 FY25.
Actual cash, which includes cash held on behalf of customers, varies
substantially from period to period and is particularly sensitive to the
timing of mobile network operator payments at month end, as well as
pass-through outpayments for customer charity campaigns. Actual cash held at
the period end was £27.1m (H1 FY25: £25.0m) in the period, primarily
reflecting higher customer monies held as a result of increased trading
volumes year-on-year in the final months of the period.
Dividend declaration
We are pleased to declare our increased interim dividend of 3.1p per share, in
line with the Group's progressive dividend policy to pay out at least 75% of
adjusted EPS to shareholders in the form of an ordinary dividend each period.
The interim dividend will be paid on 2 April 2026 to shareholders on the
register on 27 March 2026 (record date), with an ex-dividend date of 26 March
2026.
Outlook
Fonix enters the second half of FY26 with continued positive momentum across
its core UK and Ireland markets and encouraging progress internationally. All
key service lines have grown in the period and the business retains a strong
pipeline of enterprise opportunities.
Portugal continues to develop well, with engagement progressing with
additional broadcasters. The pilot in our third European market is underway,
while foundational work in our fourth territory is advancing, with operator
engagement and regulatory processes progressing and launch targeted for FY27.
Product innovation remains central to our strategy. PayFlex is contributing to
gross profit growth, CompsPortal development continues and expanded
RichMessaging trials are in progress as we integrate these capabilities into a
unified product roadmap.
The Board remains confident in the Group's strategy and its ability to deliver
sustainable gross profit growth and long-term value for shareholders.
Robert Weisz
Chief Executive Officer
Unaudited interim results for the 6 months ended 31 December 2025
Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2025
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Note £'000 £'000 £'000
Continuing operations
Revenue 4 42,334 38,750 72,780
Cost of sales (31,799) (28,986) (54,152)
Gross profit 3 10,535 9,764 18,628
Adjusted operating expenses(1) (2,267) (1,952) (4,074)
Profit before interest, tax, depreciation, amortisation, share-based payment 8,268 7,812 14,554
charge and exceptional costs
R&D tax credit 78 122 131
Share-based payment charge (43) (39) (86)
Depreciation and amortisation (595) (482) (1,014)
Operating profit 7,708 7,413 13,585
Finance income 303 464 826
Finance expense (6) (12) (21)
Profit before taxation 8,005 7,865 14,390
Taxation (1,893) (1,804) (3,245)
Total comprehensive profit for the period 6,112 6,061 11,145
(1) Adjusted operating expenses excludes share-based payment charge,
depreciation and amortisation
Earnings per share Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Basic earnings per share 6.2p 6.1p 11.3p
Diluted earnings per share 6.1p 6.1p 11.2p
Adjusted basic earnings per share 6.2p 6.2p 11.3p
Consolidated Statement of Financial Position
As at 31 December 2025
Unaudited Unaudited Audited
31 December 31 December 2024 30 June
2025 2025
£'000 £'000 £'000
Non-current assets
Intangible asset 2,210 1,795 2,017
Right of use asset 105 226 166
Tangible assets 30 33 31
2,345 2,054 2,214
Current assets
Trade and other receivables 52,856 48,215 33,766
Cash and cash equivalent 27,065 25,034 21,998
79,921 73,249 55,764
Total assets 82,266 75,303 57,978
Equity and liabilities
Equity
Share capital 100 100 100
Share premium account 679 679 679
Treasury shares (1,989) (2,051) (2,051)
Share option reserves 455 374 422
Foreign exchange reserve - - -
Retained earnings 11,624 12,142 11,380
10,869 11,244 10,530
Liabilities
Non-current liabilities
Deferred tax liabilities 277 228 287
Lease liabilities - 85 19
277 313 306
Current liabilities
Trade and other payables 71,036 63,625 47,015
Lease liabilities 84 121 127
71,120 63,746 47,142
Total liabilities 71,397 64,059 47,448
Total equity and liabilities 82,266 75,303 57,978
Consolidated Statement of Changes in Equity
For the 6 months ended 31 December 2025
Share capital Share premium Share option reserve Treasury shares Foreign exchange reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2024 100 679 362 (2,273) - 11,834 10,702
Profit for the period - - - - - 6,061 6,061
- - - - - 6,061 6,061
Transactions with shareholders
Dividends - - - - - (5,647) (5,647)
Share-based payment charge - - 39 - - - 39
Exercise of share options issued from treasury shares - - - 222 - (133) 89
Fair value of options exercised in the period - - (27) - - 27 -
- - 12 222 - (5,753) (5,519)
Balance at 31 December 2024 100 679 374 (2,051) - 12,142 11,244
Profit for the period - - - - - 5,084 5,084
- - - - - 5,084 5,084
Transactions with shareholders
Dividends - - - - - (5,846) (5,846)
Share-based payment charge - - 48 - - - 48
- - 48 - - (5,846) (5,798)
Balance at 30 June 2025 100 679 422 (2,051) - 11,380 10,530
Profit for the period - - - - - 6,112 6,112
Other comprehensive income
Exchange differences on translation of foreign operations - - - - - - -
Total comprehensive income for the period - - - - - 6,112 6,112
Transactions with shareholders
Dividends - - - - - (5,847) (5,847)
Share-based payment charge - - 43 - - - 43
Exercise of share options issued from treasury shares - - - 62 - (31) 31
Fair value of options exercised in the period - - (10) - - 10 -
- - 33 62 - (5,868) (5,773)
Balance at 31 December 2025 100 679 455 (1,989) - 11,624 10,869
Consolidated Statement of Cash Flows
For the 6 months ended 31 December 2025
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Cash flows from operating activities
Profit before taxation 8,005 7,865 14,390
Adjustments for
Depreciation 10 10 20
Amortisation 585 472 994
Share-based payment charge 43 39 86
Finance income (303) (464) (826)
Finance expense 6 12 21
(Increase)/decrease in trade and other receivables (19,090) (12,270) 2,180
Increase/(decrease) in trade and other payables 25,011 10,985 (5,758)
Income tax paid (2,893) (2,321) (3,570)
Net cash flows from operating activities 11,374 4,328 7,537
Cash flows from investing activities
Interest received 303 464 826
Payments to acquire tangible assets (9) (13) (20)
Payments to acquire intangible assets (717) (600) (1,285)
Net cash flows from investing activities (423) (149) (479)
Cash flows from financing activities
Net proceeds from issue of equity 31 90 90
Dividends paid (5,847) (5,647) (11,493)
Purchase of own shares - - -
Capital payments in respect of leases (62) (56) (116)
Interest paid in respect of leases (6) (12) (21)
Net cash flows from financing activities (5,884) (5,625) (11,540)
Net increase/(decrease) in cash and cash equivalents for the period 5,067 (1,446) (4,482)
Cash and cash equivalents at beginning of period 21,998 26,480 26,480
Cash and cash equivalents at end of period 27,065 25,034 21,998
Statement of Underlying Cash Flows
For the 6 months ended 31 December 2025
The Group's mobile payments segment involves collecting cash on behalf of
clients which is then paid to clients net of the Group's share of revenues or
fees associated with collecting the cash. The Group's cash balance therefore
fluctuates depending on the timing of "pass through" cash received and paid.
The analysis below shows the movements in the Group'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.
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Underlying cash flows from operating activities
Profit before taxation 8,005 7,865 14,390
Adjustments for
Depreciation 10 10 20
Amortisation 585 472 994
Share-based payment charge 43 39 86
Finance income (303) (464) (826)
Finance expense 6 12 21
Decrease/(increase) in trade and other receivables 126 6 (410)
Increase/(decrease) in trade and other payables 41 (209) (133)
Income tax paid (2,893) (2,321) (3,570)
Net underlying cash flows from operating activities 5,620 5,410 10,572
Underlying cash flows from investing activities
Interest received 303 464 826
Payments to acquire tangible assets (9) (13) (20)
Payments to acquire intangible assets (717) (600) (1,285)
Net underlying cash flows from investing activities (423) (149) (479)
Underlying cash flows from financing activities
Net proceeds from issue of equity 31 90 90
Dividends paid (5,847) (5,647) (11,493)
Purchase of own shares - - -
Capital payments in respect of leases (62) (56) (116)
Interest paid in respect of leases (6) (12) (21)
Net underlying cash flows from financing activities (5,884) (5,625) (11,540)
Net (decrease)/increase in underlying cash for the period (687) (364) (1,447)
Underlying cash at beginning of period 9,877 11,324 11,324
Underlying cash equivalents at end of period 9,190 10,960 9,877
Notes to the preliminary financial information
1. Basis of preparation
The financial information relating to the half year ended 31 December 2025 is
unaudited and does not constitute statutory financial statements as defined in
section 434 of the Companies Act 2006. It incorporates the results of the
Company and its subsidiaries (together, the "Group").
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. The subsidiaries were incorporated during the period
and are consolidated from the date on which control was obtained by the Group.
As a result, the interim financial information has been prepared on a
consolidated basis for the first time. The presentational currency of the
Group is Sterling. Results in this financial information have been prepared to
the nearest £1,000.
Whilst the financial information included in these interim accounts has been
prepared in accordance with IFRS, they do not contain sufficient information
to comply with IFRS. In addition, this report is not prepared in accordance
with IAS 34.
The Profit before interest, tax, depreciation, amortisation, share-based
payment charge and exceptional costs is presented in the statement of total
comprehensive income as the Directors consider this performance measure
provides a more accurate indication of the underlying performance of the Group
and is commonly used by City analysts and investors.
The comparative financial information for the year ended 30 June 2025 has been
extracted from the annual financial statements of Fonix plc. These interim
results for the period ended 31 December 2025, which are not audited, do not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. The financial information does not therefore include all of the
information and disclosures required in the annual financial statements.
Full audited accounts of the Group in respect of the year ended 30 June 2025,
which received an unqualified audit opinion and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006, have been delivered to
the Registrar of Companies.
2. Going concern
At the time of approving the financial information, the directors have a
reasonable expectation that the Group 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 the dividend distributions and share buy-backs,
which are discretionary.
At 31 December 2025 the Group had Cash and Cash Equivalents of £27.1 million
(31 December 2024: £25.0 million) and Net Current Assets of £8.8 million (31
December 2024: £9.5 million). The business model of Fonix is cash generative,
with increased sales impacting positively on the working capital cycle and
profits from trading activities being rapidly reflected in cash at bank.
Accordingly the Directors continue to adopt the going concern basis of
accounting in preparing this financial information.
3. Segmental reporting
Management currently identifies one operating segment in the Group 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:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Gross Profit £'000 £'000 £'000
Mobile Payments 8,426 7,939 14,871
Mobile Messaging 1,724 1,442 2,937
Managed Services 385 383 820
10,535 9,764 18,628
Differences between the way in which the single operating segment is reported
in the financial information 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:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Gross profit by geography £'000 £'000 £'000
United Kingdom 9,024 8,542 16,268
Rest of Europe 1,511 1,222 2,360
10,535 9,764 18,628
4. Revenue
The Group disaggregates revenue between the different streams outlined as this
is intended to show its nature and amount.
The total revenue of the Group 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 Group by Service Line
is as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Revenue by Service Line £'000 £'000 £'000
Mobile Payments 27,517 25,995 48,784
Mobile Messaging 13,741 11,719 21,831
Managed Services 1,076 1,036 2,165
42,334 38,750 72,780
The number of customers representing more than 10% of revenue or gross profit
in period were 3 (31 December 2024: 3)
Revenues can be attributed to the following geographical locations, based on
the end user and the associated mobile network operators' location:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Revenue by geography £'000 £'000 £'000
United Kingdom 34,219 32,229 60,209
Rest of Europe 8,115 6,521 12,571
42,334 38,750 72,780
5. Earnings per share
The calculations of earnings per share are based on the following profits and
number of shares:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Retained profit for the period 6,112 6,061 11,145
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Number of shares Number Number Number
Weighted average number of shares 99,097,158 98,997,727 99,036,308
Share options 624,647 716,264 695,763
99,721,805 99,713,991 99,732,071
Earnings per ordinary share
Basic 6.2p 6.1p 11.3p
Diluted 6.1p 6.1p 11.2p
At 31 December 2025 the Group had 100,000,000 (31 December 2024: 100,000,000)
shares in issue of which 896,335 (31 December 2024: 924,472) were held in
treasury.
The calculations of adjusted earnings per share are based on the following
adjusted profits and number of shares listed above:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2025 2024 2025
Adjusted earnings per share £'000 £'000 £'000
Retained profit for the period 6,112 6,061 11,145
Adjustments
Share-based payment charge 43 39 86
Net adjustments 43 39 86
Adjusted earnings 6,155 6,100 11,231
Adjusted basic earnings per ordinary share 6.2p 6.2p 11.3p
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