REG - Ingenta PLC - Half-year Report
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RNS Number : 2328Z Ingenta PLC 15 September 2025
15 September 2025
Ingenta plc
("Ingenta", the "Company" or the "Group")
Interim Results
Ingenta plc (AIM: ING), a leading provider of software and services to the
global publishing industry, announces its unaudited interim results for the
six months to 30 June 2025.
Financial Key Points
· Group revenues of £5.2m (2024: £5.1m)
· 88% of Group revenues recurring in nature (2024: 87%)
· Gross profit margin 51% (2024: 48%)
· Adjusted EBITDA(*) up 29% to £0.9m (2024: £0.7m)
· Cash from operations up 75% to £0.7m (2024: £0.4m)
· Cash balances of £3.9m (31 December 2024: £3.0m)
· Adjusted earnings per share(**) up 38% to 5.86 pence (2024: 4.25
pence)
· 17% increase in interim dividend to 1.75 pence per share (2024:
1.5 pence)
Operational Key Points
· Commercial revenue increased by 9% to £3.7m (2024: £3.4m)
driven by additional Managed Services revenue from the existing customer base
· Content revenue decreased by 13% to £1.4m (2024: £1.6m) due to
lower implementation revenue and previously announced customer exits
· Investment in new sales team now completed and staff in place
· Active upsell opportunities progressing with existing customer
base
· Strong pipeline of proposals delivered and awaiting customer
decisions in H2 2025
(*)Earnings before Interest, Tax, Depreciation and Amortisation is calculated
before foreign exchange differences. See Statement of Comprehensive Income for
reconciliation
(**) Adjusted earnings per share is calculated before foreign exchange
differences. See note 4 for reconciliation
Dividend Timetable
The Company is pleased to confirm that an increased interim dividend of 1.75
pence per share will be paid on 31 October 2025. The ex-dividend date is 25
September 2025 and the record date is 26 September 2025.
Martyn Rose, Chairman of Ingenta plc, commented:
"The Board previously signalled its plans to accelerate new business
acquisition through a substantial strengthening of the Group's sales and
marketing teams. I'm pleased to report that progress has been made on all
fronts and that all positions have now been filled. The Board remains
confident that the new team will be instrumental in the expansion of future
sales pipeline opportunities, which should more than offset the expected
progressive decline in legacy business in the coming years, as previously
reported.
Elsewhere, the core of the business continues to run efficiently, generating
revenue growth along with improved margins and cash generation, through a
focus on expanding services provided to existing customers as well as
stimulating a pipeline of new prospects. The Board is pragmatic about the lead
time between onboarding new sales and marketing positions and the ultimate
generation of new business, but remains confident that results for the year
will be in line with market expectations.
Overall, the Group's results at the half year show growth in revenues, gross
profit, EBITDA and net profit, and a consequent increase in cash balances. As
a result, the Board is recommending an increased interim dividend of 1.75p per
share.
Looking beyond the current year, the Board anticipates the generation of more
substantial new business wins which should enable the Group to resume overall
growth in revenues and profits."
Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.
For further information please contact:
Ingenta
plc
Tel: 01865 397 800
Scott Winner / Jon Sheffield
Cavendish Capital Markets Limited Tel: 0207 220 0500
Katy Birkin / Callum Davidson
Operational Review
In January 2025, the Group recruited a Director of Marketing who has taken
responsibility for enhancing digital outreach and raising Ingenta's profile in
key industries. These efforts have already helped increase the quality and
breadth of opportunities which the sales teams are actively engaged on. The
expansion of the sales team has taken longer than expected, however
recruitment in two key sales positions in July 2025 has provided relevant
specialism in our Content and Commercial sectors where we see opportunities to
generate revenue growth. Whilst these sales and marketing activities have been
progressing, we have also been embedding our account management processes to
identify opportunities and offer practical solutions to customer requirements.
Encouragingly, this has developed significant work for the coming year with
further recurring revenue anticipated in 2026 and beyond. All Group project
work remains on track with completion scheduled for the end of 2025.
Looking ahead, there are a substantial amount of potential new business
proposals awaiting customers' final decisions in the second half and we are
confident that the momentum of new business wins will build during this period
into next year, particularly as the new sales team begins to become effective.
Financial Review
The Group operates as one reporting segment with two core revenue categories
being Ingenta Commercial and Ingenta Content.
Ingenta Commercial
Ingenta Commercial provides a variety of modular publishing management systems
for both print and digital products. Its core area of expertise is
intellectual property management, including the associated contracts, rights
and royalties. The software has an established publisher client base and is
highly adaptable, so it can also be applied to broader media markets including
music, television and film.
Commercial revenues increased to £3.7m (2024: £3.4m) with the increase
driven by the expansion of recurring Managed Services engagements within the
customer base.
Ingenta Content
The Ingenta Content suite of products enables publishers of any size,
discipline or technical proficiency to convert, store, deliver and monetise
digital content on the web.
Annual revenue decreased to £1.4m (2024: £1.6m), mainly as a result of lower
than expected new sales and the associated implementation revenues.
Financial Performance
Group revenues increased to £5.2m (2024: £5.1m) with the increases being
driven by the Ingenta Commercial software base as described above. In
addition, gross margins increased from 48% to 51% as the business continues to
streamline operational delivery via its cloud based infrastructure.
Sales and marketing spend was broadly stable in the first half of the year,
however, the Group has been actively recruiting additional sales personnel to
fill strategic vacancies. As previously announced, the Company is prioritising
acceleration of new business acquisition to offset the expected larger scale
reduction in revenues from legacy platforms in future years and return the
Company to growth in revenues and profits. Two of these key roles have been
filled and came on board in July.
Administrative expenses decreased to £1.0m (2024: £1.4m) largely as a result
of non-cash exchange differences on translation of intercompany balances. In
the current year, this amounted to a gain of £0.3m versus a loss of £28K in
2024.
EBITDA, adjusted for the effects of foreign exchange, increased to £0.9m
(2024: £0.7m) with the gains driven by operational efficiency as the business
streamlines its use of cloud infrastructure.
Financial Position
Trade and other receivables reduced to £1.1m (2024: £1.8m) largely due to
accelerated receipts timing as evidenced in the cashflow statement.
Trade and other payables also decreased to £1.0m (2024: £1.4m) primarily due
to the release of £0.3m of provisions following successful completion all of
Group software obligations and writing off its China joint venture payable.
The Group has no debt or lease obligations.
The Group has accumulated tax losses of £12.0m in the UK and $5.7m in the US
and has utilised £4.8m of this over a 5 year period to recognise a £1.1m
(2024: £1.6m) deferred tax asset. The deferred tax asset has declined over
the 5 year assessment period because the Group expects that profitability will
be initially lower whilst it integrates a new sales and marketing team and
manages potential decline of legacy platforms. Management anticipate using the
remaining tax losses, but do not believe they have adequate information to
make an assessment of utilisation beyond 5 years.
Cashflow
Cash inflow from operations improved to £0.7m (2024: £0.4m) driven by
improved profitability and timely cash collections, despite the earlier
payment of the final 2.6 pence dividend of £0.4m in the period: the final
dividend payment in 2024 was made in the second half of the year so did not
impact cash generation in the first half of that year. The Group has cash
deposited in liquidity funds which started to generate interest from June.
Outlook
Results for the year remain on track and the Group is pleased to report
investment progress made in its sales and marketing teams with key positions
filled for the second half of the year. The Board believes that there is a
substantial market for its Commercial and Content products which, along with a
solid base of referenceable clients, will provide a strong foundation for
future success. The Group anticipate an initial integration period as the new
teams bed in, but look forward with increased optimism that new sales momentum
will build over the coming months.
Jon Sheffield
Chief Financial Officer
Unaudited Condensed Consolidated Interim Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
Note £'000 £'000 £'000
Revenue 3 5,160 5,080 10,199
Cost of sales (2,519) (2,655) (5,214)
Gross profit 2,641 2,425 4,985
Sales and marketing expenses (444) (429) (750)
Administrative expenses (996) (1,379) (2,408)
Profit from operations 1,201 617 1,827
Finance income 5 - -
Finance costs (2) (2) (2)
Profit before tax 1,204 615 1,825
Tax (14) (26) (546)
Retained profit for the period 1,191 589 1,279
Other comprehensive expenses which will be reclassified subsequently to profit
or loss:
Exchange differences on translating foreign operations (454) 28 78
Total comprehensive profit for the period 737 617 1,357
Basic profit per share - pence 4 8.21 4.05 8.81
Diluted profit per share - pence 4 7.96 3.93 8.60
Adjusted profit per share - pence 4 5.86 4.25 11.69
Adjusted EBITDA reconciliation:
Profit from operations 1,201 617 1,827
Depreciation 35 29 56
Foreign exchange (gain) / loss (340) 28 52
Joint venture payable write off - - (149)
EBITDA before foreign exchange gains / losses 896 674 1,786
Unaudited Condensed Consolidated Interim Statement of Financial Position
Unaudited Unaudited Audited
30 Jun 2025 30 Jun 2024 31 Dec 2024
Note £'000 £'000 £'000
Non-current assets
Goodwill 2,661 2,661 2,661
Other intangible assets - - -
Property, plant & equipment 116 65 121
Deferred tax 1,071 1,622 1,108
3,848 4,348 3,890
Current assets
Trade and other receivables 5 1,616 2,183 2,065
Cash and cash equivalents 3,919 3,006 3,619
5,535 5,189 5,684
Total assets 9,383 9,537 9,574
Equity
Share capital 1,510 1,512 1,510
Capital redemption reserve 182 180 182
Merger reserve 11,055 11,055 11,055
Reverse acquisition reserve (5,228) (5,228) (5,228)
Translation reserve (864) (460) (410)
Share option reserve 185 154 172
Retained earnings (43) (921) (856)
6,797 6,292 6,425
Non-current liabilities
Deferred tax liability 2 - 2
2 - 2
Current liabilities
Trade and other payables 6 974 1,252 1,159
Provisions - 150 -
Contract liabilities 1,610 1,843 1,988
2,584 3,245 3,147
Total equity and liabilities 9,383 9,537 9,574
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
Share capital Capital redemption reserve Merger reserve Reverse acquisition reserve Translation reserve Share option reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 Jan 2024 1,512 180 11,055 (5,228) (488) 140 (1,510) 5,661
Share based payment expense - - - - - 14 - 14
Transactions with owners - - - - - 14 - 14
Profit for the period - - - - - - 589 589
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - 28 - - 28
Total comprehensive income / (expense) for the period - - - - 28 - 589 617
Balance at 30 Jun 2024 1,512 180 11,055 (5,228) (460) 154 (921) 6,292
Share capital Capital redemption reserve Merger reserve Reverse acquisition reserve Translation reserve Share option reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 Jan 2025 1,510 182 11,055 (5,228) (410) 172 (856) 6,425
Dividend paid - - - - - - (378) (378)
Share based payment expense - - - - - 13 - 13
Transactions with owners - - - - - 13 (378) (365)
Profit for the period - - - - - - 1,191 1,191
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - (454) - - (454)
Total comprehensive income / (expense) for the period - - - - (454) - 1,191 737
Balance at 30 Jun 2025 1,510 182 11,055 (5,228) (864) 185 (43) 6,797
Unaudited Condensed Consolidated Interim Statement of Cash Flows
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
£'000 £'000 £'000
Profit before tax 1,204 615 1,825
Adjustments for:
Depreciation and amortisation 35 29 56
Share based payment expense 13 14 32
Interest expense 2 2 2
Interest income (5) - -
Decrease / (increase) in trade and other receivables 485 3 121
(Decrease) in trade and other payables (562) (147) (44)
(Decrease) / increase in provisions - (157) (307)
Cash inflow from operations 718 359 1,684
Tax Paid (14) (26) (30)
Net cash inflow from operating activities 704 333 1,654
Cash flows from investing activities
Purchase of property, plant and equipment (29) (1) (84)
Net cash used in investing activities (29) (1) (84)
Cash flows from financing activities
Dividend paid (378) - (596)
Interest paid (2) (2) (2)
Interest received 5 - -
Cost of shares repurchased and cancelled in the year - - (29)
Net cash used in financing activities (375) (2) (627)
Net increase / (decrease) in cash and cash equivalents 300 330 943
Cash and cash equivalents at beginning of period 3,619 2,676 2,676
Exchange differences on cash and cash equivalents - - -
Cash & cash equivalents at end of period 3,919 3,006 3,619
Notes to the Unaudited Interim Report for the six months ended 30 June 2025
1. Nature of operations and general information
Ingenta plc (the "Company") and its subsidiaries (together the "Group") is a
provider of technology and supporting services to content providers and
publishers. The nature of the Group's operations and its principal activities
are set out in the full annual financial statements.
The Company is incorporated in the United Kingdom under the Companies Act
2006. The Company's registration number is 00837205 and its registered office
is Suite 2, Whichford House, Oxford, OX4 2JY. The condensed consolidated
interim financial statements were authorised for issue by the Board of
Directors on 15 September 2025.
The financial information set out in this interim report does not constitute
statutory accounts as defined in section 404 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31 December 2024,
prepared under IFRS as adopted by the European Union, have been filed with the
Registrar of Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498 (2) or section
498 (3) of the Companies Act 2006.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements are for
the six months ended 30 June 2025. They have been prepared following the
recognition and measurement principles of UK adopted international accounting
standards in conformity with the requirements of the Companies Act 2006. They
do not include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2024.
These condensed consolidated interim financial statements have been prepared
on the going concern basis under the historical cost convention and have been
prepared in accordance with the accounting policies adopted in the last annual
financial statements for the year ended 31 December 2024.
The accounting policies have been applied consistently throughout the Group
for the purposes of preparation of these consolidated interim financial
statements.
A detailed set of accounting policies can be found in the annual accounts
available on our website, www.ingenta.com (http://www.ingenta.com) or by
writing to the Company Secretary at the registered office as above.
3. Revenue
An analysis of the Group's revenue by activity is shown below:
Six months ended Six months ended
30 Jun 2025 30 Jun 2024
£'000 £'000
Consulting services 593 674
Non-recurring revenue 593 674
Hosted services 1,814 1,816
Managed services 1,502 1,319
Support and upgrade 1,068 1,085
PCG 183 186
Recurring revenue 4,566 4,406
5,160 5,080
An analysis of the Group's revenue by product type is shown below:
Six months ended Six months ended
30 Jun 2025 30 Jun 2024
£'000 £'000
Content products 1,418 1,646
Commercial products 3,742 3,434
5,160 5,080
4. Profit per share
Basic profit per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
For diluted profit per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares.
Six months ended Six months ended
30 Jun 2025 30 Jun 2024
Attributable profit (£'000) 1,191 589
Foreign exchange loss / (gain) (£'000) (340) 29
Adjusted attributable profit (£'000) 851 618
Weighted average number of ordinary basic shares (basic) 14,510,195 14,535,195
Weighted average number of ordinary shares (diluted) 14,965,264 14,990,264
Profit per share (basic) arising from both total and continuing operations 8.21p 4.05p
Profit per share (dilutive) arising from both total and continuing operations 7.96p 3.93p
Adjusted profit per share (basic) arising from both total and continuing 5.86p 4.25p
operations
5. Trade and other receivables
Trade and other receivables comprise the following:
30 Jun 2025 30 Jun 2024
£'000 £'000
Trade receivables - gross 1,120 1,768
Less: provision for impairment of trade receivables (55) (53)
Trade receivables - net 1,065 1,715
Other receivables 4 4
Prepayments and unbilled receivables 548 464
1,617 2,183
6. Trade and other payables
Trade payables comprise the following:
30 Jun 2025 30 Jun 2024
£'000 £'000
Trade payables 238 312
Social security and other taxes 345 329
Other payables 69 239
Accruals 322 372
974 1,252
7. Contingencies and commitments
There were no contingencies or commitments at the end of this period or the
comparative period.
8. Post balance sheet events
There were no material events subsequent to the end of the interim reporting
period that have not been reflected in the interim financial statements.
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