REG - Gfinity PLC - Half-year Financial Report
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RNS Number : 6719X Gfinity PLC 23 March 2026
For immediate release
23 March 2026
Gfinity plc
("Gfinity" or the "Company")
Half Year Results
Gfinity (AIM: GFIN) announces its unaudited results for the six-month period
ended 31 December 2025.
Operational Highlights:
· Revenue increased 8% to £421,381 (six months to 31 December
2024: £390,099), reflecting continued recovery in Gfinity Digital Media
("GMD") and initial contributions from Connected IQ ("CIQ").
· Gross profit improved to £161,940 (H1 FY25: £129,935), with
gross margin expanding to 38.4% from 33.3%, driven by a shift towards
higher-value direct sales and technology-driven revenue streams.
· Operating loss reduced to £220,082 (H1 FY25: £271,285),
reflecting the combined benefits of revenue growth, improved margin quality
and disciplined cost management.
· Administrative expenses decreased to £382,022 (H1 FY25:
£401,220), continuing the trend of overhead reduction whilst supporting new
growth initiatives.
· Cash position strengthened to £430,788 at 31 December 2025 (30
June 2025: £137,878; 31 December 2024: £60,602), supported by successful
equity fundraising in November 2025 of £355,000 net of costs.
Outlook
David Halley, Chief Executive Officer, commented:
"We are excited about the prospects for Gfinity as we enter the second half of
the financial year. The period under review saw meaningful progress across all
three of our growth pillars: Gfinity Digital Media returned to consistent
profitability, Connected IQ is starting to generate commercial revenue and
building momentum with brands and agencies, and Yentra.AI is creating an
entirely new revenue stream in the fast-growing sovereign AI market.
Connected IQ's proprietary contextual advertising technology is differentiated
and in demand. We are in active discussions with major advertising agencies
for broader deployment of the technology and see significant potential in
white-label licensing partnerships as a scalable and capital-light route to
commercialisation.
Yentra.AI's Evolve product is addressing one of the most pressing challenges
facing organisations globally - how to deploy AI in a way that protects data
and intellectual property.
Gfinity has excellent IP and technology in its AI-enabled contextual
advertising platform, a lean and focused operating model, and multiple routes
to meaningful revenue growth. We look forward to the remainder of FY26 with
confidence and anticipate strong revenue growth in the coming months and
thereafter into 2026."
Operational Review:
The six months to 31 December 2025 represented a period of continued
transformation and commercial progress for Gfinity, with the Group executing
across its three core business areas: Gfinity Digital Media, Connected IQ and
Yentra.AI.
Gfinity Digital Media ("GDM")
GDM continued its recovery during the period. Following a challenging FY25 for
the broader digital advertising market - characterised by Google algorithm
changes and increasing competitive pressure from AI-generated content - the
division pursued a renewed focus on direct sponsorship partnerships and social
media revenue streams, which drove an improvement in both the quality and
value of revenues generated.
The positive trajectory that emerged in Q4 FY25, when GDM revenues increased
by up to 60% compared to Q1 FY25, carried into the current period, with the
division returning to profitability. The transition to a flexible,
freelance-focused operating model, implemented during FY25, continued to
deliver operational benefits, with cost of sales remaining broadly flat whilst
revenues grew. The gaming and esports sector continues to attract a large and
engaged global audience, and the Board believes there remains long-term demand
for the quality gaming content produced across the Group's portfolio of
websites. The Directors continue to monitor the evolving landscape of
AI-driven search and content discovery and are adapting the business
accordingly.
Connected IQ ("CIQ")
CIQ, the Group's exclusive AI-driven contextual advertising technology
licensed from 0M Technology Solutions Ltd and specifically targeted at the
connected video market, made commercial and product progress during the
period.
Following the execution of the binding commercial agreement in January 2025
and first revenues from brand campaigns in April and May 2025, CIQ continued
to generate revenue from campaigns during the six months to December 2025. The
commercial team advanced discussions with major advertising agencies for
broader deployment of the technology, and the Group is exploring potential
white-label technology partnerships that could provide a scalable and
capital-light route to wider commercialisation.
Product development progressed meaningfully during the period, including the
integration of AI agentic software designed to automate parts of the media
planning process for advertising agencies, improvements to the platform's
emotion detection capabilities to better analyse the underlying emotional
themes of video content, and the development of a self-serve interface
allowing US companies to access CIQ's contextual services directly. These
enhancements broaden the addressable market for CIQ and support the Group's
strategy of commercialising the technology across multiple client channels.
Yentra.AI
Yentra.AI, the Group's AI consulting and engineering business unit - 51% owned
by Gfinity and led by an experienced management and engineering team - made
good progress during the period with the formal launch of Evolve.
Evolve is an AI product designed to empower companies, countries and
educational institutions to build and deploy ethical, sovereign AI systems
that are owned and operated by their users, protecting their intellectual
property and data from incorporation into third-party large language models.
The sovereign AI market is experiencing unprecedented demand, as organisations
increasingly recognise that data sovereignty is both a compliance imperative
and a source of strategic competitive advantage.
Yentra.AI is actively working to onboard initial partners partners across the
education and enterprise sectors, driving innovation in privacy-preserving AI.
The Board believes this positions Yentra.AI well to capture a share of a
fast-growing and strategically important market.
Financial Review:
Revenue for the six months to 31 December 2025 increased by 8% to £421,381
(H1 FY25: £390,099), reflecting improvement across the GDM division and
initial contributions from CIQ campaigns.
Gross profit improved to £161,940 (H1 FY25: £129,935), with the gross margin
expanding to 38.4% from 33.3% in the comparative period. This improvement
reflects the Group's strategic pivot towards more value-added revenue streams,
with cost of sales remaining broadly stable at £259,442 (H1 FY25: £260,164)
whilst revenues grew.
Administrative expenses decreased to £382,022 (H1 FY25: £401,220), a
reduction of approximately 5%, reflecting the continued benefit of the Group's
lean operating model and disciplined approach to cost management. The
operating loss for the period was £220,082 (H1 FY25: £271,285), an
improvement of £51,203, as the combined benefits of revenue growth, improved
margins and ongoing cost discipline narrowed the deficit.
Finance costs of £13,862 (H1 FY25: nil) relate to interest on the convertible
loan note. The loss before taxation for the period was £233,944 (H1 FY25:
£271,284).
The Group successfully raised net proceeds of £355,000 (gross: £380,000,
issue costs: £25,000) through an equity placing during the period, providing
additional working capital and investment capacity to support the
commercialisation of CIQ and the development of Yentra.AI.
The Group's cash position improved materially to £430,788 at 31 December 2025
(30 June 2025: £137,878; 31 December 2024: £60,602). Net cash used in
operating activities improved to an outflow of £75,082 (H1 FY25: £162,060
outflow), reflecting the improvement in trading and a reduction in trade
receivables of £180,085 as cash collections strengthened.
The Board continues to monitor the Group's financial position carefully. As
noted in the 2025 Annual Report, the auditors noted a material uncertainty
with regards to going concern, conditional upon certain growth targets being
achieved within 12 months of the date of the Annual Report. The Directors are
encouraged by the progress made during the period across all three business
areas and continue to believe that the growth targets are reasonable and
attainable. The Board therefore considers the going concern basis of
preparation to remain appropriate.
Other Information
A copy of this announcement is available at the Company's website:
www.gfinityplc.com (http://www.gfinityplc.com)
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for
the release of this announcement on behalf of the Company was David Halley,
Chief Executive.
Enquiries:
Gfinity Plc David Halley +44 (0)7516 948427
Beaumont Cornish Limited Roland Cornish +44 (0)207 628 3396
Nominated Adviser and Broker Michael Cornish www.beaumontcornish.co.uk (http://www.beaumontcornish.co.uk/)
Further Information
Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is
acting as nominated adviser to the Company in connection with this
announcement and will not regard any other person as its client and will not
be responsible to anyone else for providing the protections afforded to the
clients of Beaumont Cornish or for providing advice in relation to such
proposals. Beaumont Cornish has not authorised the contents of, or any part
of, this document and no liability whatsoever is accepted by Beaumont Cornish
for the accuracy of any information, or opinions contained in this document or
for the omission of any information. Beaumont Cornish as nominated adviser to
the Company owes certain responsibilities to the London Stock Exchange which
are not owed to the Company, the Directors, Shareholders, or any other person.
Group Statement of Profit or Loss
6 months to 31 December 2025 Unaudited 6 months to 31 December 2024 Unaudited Year to 30 June 2025 Audited
£ £ £
CONTINUING OPERATIONS Note
Revenue 4 421,381 390,099 860,580
Cost of sales (259,442) (260,164) (716,918)
Gross profit 161,940 129,935 143,662
Administrative expenses (382,022) (401,220) (664,449)
Operating loss (220,082) (271,285) (520,787)
Impairment charge - - (254,155)
Finance income - 1 -
Finance costs (13,862) - (29,716)
Loss on ordinary activities before tax (233,944) (271,284) (780,877)
Taxation - (1,273) (1,856)
(Loss)/Profit for the period (233,944) (272,557) (782,733)
Earnings per Share (Basic) 3 (0.005) (0.077) (0.02)
Group statement of comprehensive income
6 months to 31 December 2025 Unaudited 6 months to 31 December 2024 Unaudited Year to 30 June 2025 Audited
£ £ £
(Loss)/Profit for the period (233,944) (272,557) (782,733)
Items which may subsequently be reclassified to profit or loss
Foreign exchange (loss)/gain on retranslation of foreign operations 26,856 (494) (839)
Other Comprehensive (loss)/Income for the period 26,856 (494) (839)
(Loss)/profit and total comprehensive (loss)/profit for the period (207,088) (273,051) (783,572)
Group Statement of Financial Position
As at 31 December 2025 Unaudited As at 30 June 2025 Audited
£ £
NON CURRENT ASSETS
Property, plant and equipment - -
Goodwill 56,788 56,788
56,788 56,788
CURRENT ASSETS
Trade and other receivables 196,502 376,571
Cash and cash equivalents 430,788 137,878
Total 627,290 514,449
TOTAL ASSETS 684,078 571,252
EQUITY AND LIABILITIES
Equity
Share capital 2,908,487 2,828,487
Share premium 56,391,720 56,116,720
Other reserves 267,524 240,668
Retained earnings (59,232,533) (58,998,588)
Convertible loan - equity component 110,336 110,336
Total equity 445,533 297,623
Current liabilities
Trade and other payables 238,544 273,629
Provisions - -
Total liabilities 238,559 273,629
TOTAL EQUITY AND LIABILITIES 684,078 697,983
Group Cash Flow Statement
6 months to 31 December 2025 Unaudited 6 months to 31 December 2024 Unaudited Year to 30 June 2025 Audited
£ £ £
Operating activities
(Loss)/profit for the period (233,944) (272,557) (782,733)
Adjustments for
Depreciation - 400 400
Amortisation - - -
Impairment of assets - - 254,155
Finance Cost 13,862 - 29,716
Interest received - (1) -
Share based payments - 63,339 46,117
(Decrease)/Increase in provisions - (92,640) (92,640)
Remeasurement gain on loan - - (23,781)
Total (220,082) (301,459) (568,766)
(increase)/decrease in receivables 180,085 198,766 212,074
(decrease)/Increase in payables excluding contingent consideration (35,085) (59,367) (37,975)
Tax credit recovered - - (1,856)
Net operating cash (outflow) (75,082) (162,060) (396,523)
Investing activities
Interest - 1 -
received
Cash generated by investing activities - 1 -
Financing activities
Issue of equity share capital (net of costs) 355,000 30,000 360,100
Proceeds from issue of loan note - 120,000 120,000
Loan received 30,000 50,000 50,000
Loan Repayment (30,002) (18,855)
Interest paid (13,862) - -
Cash generated by financing activities 341,136 200,000 511,245
Increase/(decrease) in cash and cash equivalents 266,054 37,941 114,722
Effect of currency translation on cash 26,856 (494) -
Net increase/(decrease) in cash 292,910 37,447 114,722
Opening cash and cash equivalents 137,878 23,155 23,156
Closing cash and cash equivalents 430,788 60,602 137,878
Net increase/(decrease) in cash 292,910 37,447 114,722
Statement of Changes in Equity
Share Capital Share premium Share option reserve Convertible Loan Equity Component Retained earnings Foreign currency translation reserve Total equity
£ £ £ £ £ £ £
At 30 June 2024 2,724,030 55,661,077 411,937 - (58,419,049) (13,042) 364,953
Loss for the period - - - - (272,558) - (272,558)
Other comprehensive loss - - - - - (494) (494)
Total comprehensive income - - - - (272,558) (494) (273,052)
Shares issued 30,000 - - - - - 30,000
Share Issue Costs - - - - - - -
Share options issued - - 63,339 - - - 63,339
Release to retained earnings - - (65,058) - 65,058 - -
Total transactions with owners, recognised directly in equity 30,000 - (1,719) - 65,058 - 93,339
At 31 December 2024 2,754,030 55,661,077 410,218 - (58,626,549) (13,536) 185,240
Loss for the period - - - - (510,175) - (510,175)
Other comprehensive loss - - - - - (345) (345)
Total comprehensive income - - - - (510,175) (345) (510,520)
Shares issued 74,457 485,543 - - - - 590,000
Share Issue Costs - (29,900) - - - - (29,900)
Share options issued - - (17,533) - - - 45,806
Convertible Loan - - - 110,336 - - 110,336
Release to retained earnings - - (138,136) - 138,136 - -
Total transactions with owners, recognised directly in equity 74,457 455,643 (155,669) 110,336 (372,039) (345) 112,383
At 30 June 2025 2,828,487 56,116,720 254,548 110,336 (58,998,588) (13,881) 297,623
Loss for the period - - - - (233,945) - (233,945)
Other comprehensive loss - - - - - 26,856 26,856
Total comprehensive income - - - - (233,945) 26,856 (207,089)
Shares issued 80,000 300,000 - - - - 380,000
Share Issue Costs - (25,000) - - - - (25,000)
Share options issued - - - - - - -
Release to retained earnings - - - - - - -
Total transactions with owners, recognised directly in equity 80,000 275,000 - - (233,945) 26,856 147,911
At 31 December 2025 2,908,487 56,391,720 254,548 110,336 (59,232,533) 12,975 445,533
Notes to the interim financial statements
1. General Information
Gfinity plc is a public limited company limited by shares, incorporated and
domiciled in England and Wales under the Companies Act 2006. Its registered
office is 128 City Road, London, England, EC1V 2NX. Its shares are quoted on
the AIM market of the London Stock Exchange.
The functional and presentational currency is £ sterling because that is the
currency of the primary economic environment in which the group operates.
These condensed interim financial statements were approved for issue on 20
March 2026.
2. Accounting Policies and Basis of Preparation
Basis of Preparation
The interim financial statements for the six months ended 31 December 2025
have been prepared using accounting policies that are consistent with those of
the audited financial statements for the year ended 30 June 2025. The interim
financial information should be read in conjunction with the Group's Annual
Report and Accounts for the year ended 30 June 2025, which has been prepared
in accordance with IFRS as adopted by the United Kingdom.
The interim financial information contained in this report does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006.
The Annual Report and Accounts for the year ended 30 June 2025 has been filed
with the Registrar of Companies. The auditors' report on those accounts was
unqualified, however, they did note a material uncertainty with regards to
going concern, relating to the fact that the going concern basis of
preparation was dependent on certain growth targets being met within 12 months
from the date of signature of the Annual Report.
Significant Accounting Policies
The critical accounting policies and presentation followed in the preparation
of this interim report have been consistently applied to all periods in these
financial statements and are the same as those applied in the Company's Annual
Report and Accounts for the year ended 30 June 2025.
A copy of the Annual Report and Accounts to 30 June 2025 can be obtained from
the Company's website: www.gfinityplc.com (http://www.gfinityplc.com) .
Critical Accounting Judgements
The preparation of financial statements in conforming with adopted IFRS
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets, liabilities,
income and expenses. The estimates and assumptions are based on historical
experience and other factors considered reasonable at the time, but actual
results may differ from those estimates. Revisions to these estimates are made
in the period in which they are recognised.
The critical accounting judgements made in preparing this interim report are
the same as those in preparing the Annual Report and Accounts of the Company
for the year ended 30 June 2025 which can be obtained from the Company's
website: www.gfinityplc.com (http://www.gfinityplc.com) .
Going Concern
At 31 December 2025 the group had cash of £430,788.
The Company focuses on investing in and developing websites and advertising
technology. Capital will be deployed in the following year to further develop
our technologies.
As also fully set out in the 2025 Annual Report:
The Directors have prepared a base case cashflow forecast, which assumes
certain growth targets are met; and
The Directors consider that the growth targets are reasonable and attainable,
and in view of this, believe that the going concern basis of preparation
continues to be appropriate.
3. Earnings per share
Basic earnings per share is calculated by dividing the profit (previous
periods - loss) attributable to shareholders by the weighted average number of
ordinary shares in issue during the period.
For the 6 months to 31 December 2025, diluted EPS is shown below. For previous
periods, for a loss-making company with outstanding share options, net loss
per share would be decreased by the exercise of options and therefore the
effect of options has been disregarded in the calculation of diluted EPS for
those previous periods.
6 months to 31 December 2025 6 months to 31 December 2024 Year to 30 June 2025
All operations
Earnings (£) (233,944) (272,557) (782,733)
Weighted average number of ordinary shares (000's) 3,504,030 3,768,733
4,866,656
Earnings per share (£) (0.005) (0.077) (0.02)
Continuing operations
Earnings (£) (233,944) (272,557) (782,733)
Weighted average number of ordinary shares (000's) 4,866,656 3,504,030 3,768,733
Earnings per share (£) (0.005) (0.077) (0.02)
Diluted earnings per share
Earnings (£) (233,944) (272,557) (782,733)
Weighted average number of ordinary shares (000's) 4,866,656 3,833,056 3,768,733
Loss per ordinary share for continuing operations (£) (0.005) (0.071) (0.02)
4. Revenue
The Group's policy on revenue recognition is as outlined in note 2 of the
financial statements for the year ending June 2025. The period ending December
2025 included £Nil in the contract liability balance and at the beginning of
the period (December 2025: £Nil and year ending June 2025: £Nil).
The Group's revenue disaggregated by primary geographical markets is as
follows:
6 months to 31 December 2025 6 months to 31 December 2024 Year to 30 June 2025
£ £ £
United Kingdom 54,370 8,073 248,614
North America 237,728 314,102 424,291
ROW 129,283 67,923 187,675
Total 421,381 390,098 860,580
The Group's revenue disaggregated by pattern of revenue of revenue recognition
is as follows:
6 months to 31 December 2025 6 months to 31 December 2024 Year to 30 June 2025
£
Services transferred at 421,381 252,572 797,223
a point in time
Services transferred over time - 136,776 63,357
Total 421,381 390,098 860,580
5. Goodwill and Intangible Fixed Assets
The Group holds goodwill in respect of the acquisitions of the trade and
assets of EpicStream and RealSport in earlier periods.
A comprehensive impairment review was performed for the purposes of assessing
the carrying value of goodwill as at 30 June 2025, using a fair value method,
on the basis of a multiple of revenue achieved for the respective brands in
the year ended 30 June 2025.
As a result of the close proximity of the assessment of the carrying values
undertaken as at 30 June 2025, and now, the Directors do not consider any
further impairment provisions are required.
A full review of the carrying values for goodwill and intangible fixed assets
will be undertaken at the time of reporting on the full year results to 30
June 2026.
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