REG - PathosCommunications - First Day of Dealings on AIM

Pathos CommunicationsAnnouncement

16/12/2025 07:00

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RNS Number : 6607L  Pathos Communications PLC (Wts)  16 December 2025

16 December 2025

 

Pathos Communications plc

("Pathos Communications", "Pathos" or the "Company")

First Day of Dealings on AIM and Completion of Fundraising

 

Pathos Communications, the technology-enabled, human-led PR company, is
pleased to announce that the admission of its ordinary shares of 0.1 pence
each ("Ordinary Shares") to trading on the AIM Market of the London Stock
Exchange will take place today ("Admission").

Admission follows the successful closure of a fundraising of £5.6 million
(before expenses) through a placing of new and existing Ordinary Shares with
certain institutional and other investors (the "Placing").

Dealings in Pathos Communications' Ordinary Shares on AIM will commence at
08:00 a.m. today under the TIDM "NEWS" and ISIN code GB00BTWSXW71.

Highlights

·    Pathos is a technology-enabled, human-led PR company founded to
democratise small-medium enterprises' ("SMEs") access to established news
publications utilising a "pay-on-results" model. The Company collaborates with
its clients to create and distribute articles across a variety of platforms
including established news outlets, digital media and podcast channels,
leveraging its proprietary AI-driven technologies, which are currently
validated, functional internal assistants at minimum viable product ("MVP")
stage.

·    In 2025, Pathos was ranked as the fastest growing advertising and
marketing company in the UK in the Financial Times 1000 ("FT 1000"), the 33rd
fastest growing company in Europe in the FT 1000, and the 6th fastest growing
technology company in the Deloitte UK Technology Fast 50.

·    Pathos was founded in 2019 by Omar Hamdi, who combined a background
in computing, journalism and television presenting to create a rapidly
scaling, technology-enabled PR and media company.

·    The Company has a strong, fully "bootstrapped" financial track
record, recording over US$28 million in revenue since 2022 and an average
gross profit margin of over 79%. From FY22 to FY24, the Company's revenue
achieved a compound annual growth rate ("CAGR") of 83%*. Pathos's growth has
been achieved to date without external funding sources.

·    The Company's growth is underpinned by a diversified base of over
6,000 clients across 89 countries, with no single client accounting for more
than 1% of annual revenue from FY22 to FY24.

*  FY22 was a 17-month period. The CAGR is based on revenue for the 12 months
to 31 December 2022 of US$3,410k (unaudited).

Placing Highlights

·    Successful fundraising included the placing of 16,666,666 new
Ordinary Shares, raising gross proceeds of approximately £5.0 million for the
Company, and 2,034,704 existing Ordinary Shares, raising gross proceeds of
approximately £0.6 million for the selling shareholder, in each case at a
price of 30 pence (the "Issue Price") per Ordinary Share.

·    At the Issue Price, the Company would have a market capitalisation on
Admission of approximately £20.0 million.

·    The net proceeds of the Placing receivable by the Company are
expected to be used primarily to accelerate the Company's growth strategy
through:

o  Expanding the Company's sales, marketing and management teams;

o  Developing Pathos's AI-based technological products; and

o  Supporting entry into new geographies.

·    Strand Hanson Limited acted as nominated and financial adviser to the
Company in connection with Admission.

·    Cavendish Capital Markets Limited acted as broker in connection with
the Placing and is acting as sole broker from Admission.

Omar Hamdi, CEO of Pathos Communications, commented, "Today marks an important
milestone for Pathos as we begin our journey on AIM. Bringing the business to
the London Stock Exchange is a natural next step for such an ambitious,
global, scalable business. I founded Pathos to do something the PR industry
has never done: to bridge the divide between the globe's newsrooms and the
world's 400 million SMEs.

"More impactful and measurable outcomes, delivered at scale through simple
accessible processes, allow us to do what the traditional PR approach
couldn't. Our proprietary AI technologies provide a clear competitive edge and
allow us to execute on our vision faster than even we previously imagined.

"Since our inception in 2019, we have delivered substantial and sustained
growth, but we are still early in our journey. Admission to AIM will provide
us with an enhanced platform, expanded resources, and increased market
visibility to accelerate this momentum, strengthening our offering and
supporting the next phase of growth."

Lucy Rigby KC MP, Economic Secretary to the Treasury, commented: "There's real
momentum behind companies listing in London - boosted by this government's
drive to make the UK the best place in the world to start, scale, list and
stay.

"I'm delighted to see that momentum continue with Pathos listing on AIM,
Europe's leading growth market, today."

Admission Document

The Admission Document, which contains further information concerning the
Placing and Admission, is available to download from the Company's website at:
www.pathoscommunicationsplc.com (http://www.pathoscommunicationsplc.com)

Key Strengths

The Directors believe the success of the Company and the expectations for its
future development are founded on the following key strengths:

·    Differentiated Business Model - Pathos operates a differentiated
approach to the traditional PR model, without the requirement of costly,
long-term subscription fees, by offering a "pay-on-results" model. This
reduces clients' risk and commitment, which is particularly beneficial for
SMEs that typically operate with smaller PR budgets.

·    Competitive Advantage - The Company's differentiated business model,
alongside its proprietary MVP stage AI technology and ability to successfully
place its clients' articles in established news outlets, challenges
traditional PR agencies and their existing business models.

·    Market Opportunity - The Company's business model targets a vast
market opportunity and is aiming to offer cost-effective PR services to the
400 million SMEs globally. This is also a rapidly replenishing market with an
estimated 50 million new businesses started each year.

·    Opportunity to Expand into Additional Jurisdictions - Pathos is well
positioned to expand the business into additional jurisdictions, supported by
the Company's intention to increase the number of languages offered, including
Spanish and Mandarin, accessing substantial growth opportunities across Latin
America and China.

·    Client Diversification - The Company retains a diversified existing
client base of over 6,000 clients, with minimal sector concentration, across
89 countries. No single client has represented more than 1% of the Company's
annual revenue from FY22 to FY24.

·    Client Retention - The Company prides itself upon its ability to
retain clients after it has published an initial article for them, as
reflected in repeat customers accounting for 45% of total cash collection
during the FY25 period through to 30 September 2025.

·    Experienced Directors - A strong Board of Directors, comprising
individuals with expertise across London public capital markets, technology,
services and accountancy. The Board consists of two Executive Directors, and
three Non-Executive Directors. Omar Hamdi, Chief Executive Officer, and Adam
Hurst, Chief Financial Officer, are Executives, while Mark Elliott, Linda
Marston-Weston, and Tunji Akintokun are Independent Non-Executives. Mark has
been appointed as Chair of the Board.

Rationale for Admission

The Board believes the Company's Admission to AIM will provide it with several
advantages, including:

·    Allowing the Company to accelerate its growth strategy through the
advancement of its AI-based technologies, which the Directors intend to reach
production grade, to support wider partner and client deployment, and
targeting new geographies.

·    Raising the Company's public profile and brand awareness,
particularly as Pathos continues to expand geographically.

·    Improving Pathos's ability to attract and retain key employees and
managers of the business through incentivisation arrangements as the Company
continues to grow.

·    Facilitating potential inorganic expansion opportunities by
potentially issuing new equity, in full or in part, as consideration, and by
expanding relationships with corporate partners.

Business Overview

Differentiated "Pay-on-Results" Approach

·    Pathos is a technology-enabled, human-led PR company, which
collaborates with SME clients to create and distribute articles and media
across a variety of platforms. The Company operates a differentiated
"pay-on-results" approach, which challenges the traditional PR model by
removing costly, long-term subscription fees, and provides SMEs meaningful
access to established media publications to increase their public relations
exposure capabilities.

Scalable Model Targeting a Vast Market

·    The Company targets a vast market opportunity, aiming to offer
cost-effective PR services to 400 million SMEs globally, which is a rapidly
self-replenishing market that introduces an estimated 50 million new
businesses each year.

·    It is estimated that less than 1% of SMEs in the US have access to
external PR or marketing, reflecting the underrepresentation of SMEs' presence
in mainstream media and highlighting an unmet need in the market.

·    The global SME market is expected to grow to approximately US$3.3
trillion by 2031 with an approximately 8.6% CAGR.

Proprietary AI-Driven Tools

·    Pathos's offerings are enabled by its two primary proprietary
AI-driven technologies, which at present are validated, functional internal
assistants at MVP stage. They are currently used to generate ideas, undertake
market research and create news articles. These comprise:

o  PathosMind: The Company's in-house large language models ("LLM") AI agent,
which monitors over 50,000 news sources for existing clients and leads daily,
identifies news hooks, generates article ideas and drafts full publications.

o  Pressella: A virtual publicist that attends meetings with clients and
leads to take notes, and also leverages PathosMind to generate article ideas
and provides an accessible chatbot interface to refine output and develop the
PR strategy.

·    Further investment in PathosMind and Pressella, funded by the
proceeds of the Placing, are intended to advance the technologies to
production-grade maturity. This would enable their deployment with partners,
clients and prospects, enhancing service delivery and commercial outcomes.
This will aim to support a scalable, automated, and cost-efficient
go-to-market strategy and sales funnel for Pathos.

Track Record and "Bootstrapped" Growth

·    Since incorporation in July 2019, the Company's revenue increased to
US$3.7 million in FY22 and US$11.4 million in FY24, at a CAGR of 83%*.

·    The Company has generated aggregate revenues of over US$28 million
since 2022, achieving an average gross profit margin of over 79%.

·    Pathos has generated an adjusted profit before tax and been cash
generative at an operating level in each year since inception**.

·    The Company's growth has been achieved to date without external
funding sources.

** Adjusted for normalisation of director fees and one-off non-recurring
expenditure.

Client Leads and Retention

·    Pathos has continually developed and refined its sales cycle into a
process, which has had a significant influence on the Company's growth to
date. The sales pipeline has generated over 324,000 leads since incorporation
and the Company continues to expand its network of leads through its wide
range of marketing channels.

·    The Company serves a diverse existing client base of over 6,000
clients with minimal sector concentration. The Company's ability to retain
clients is evidenced with repeat business having accounted for 45% of total
cash collected during FY25 period through to 30 September 2025.

For additional information, please contact:

 

 Pathos Communications plc                                  info@pathoscommunicationsplc.com (mailto:info@pathoscommunicationsplc.com)

 Omar Hamdi - CEO

 Adam Hurst - CFO

 Strand Hanson Limited (Nominated & Financial Adviser)      +44 (0)20 7409 3494

 James Harris

 Rob Patrick

 Edward Foulkes

 Cavendish Capital Markets Limited (Broker)                                                         +44 (0)20 7908 6000

 Stephen Keys / George Lawson / Elysia Bough - Corporate Finance

 Michael Johnson / Sunila de Silva - Sales and ECM

 BlytheRay (Financial PR)                                   +44 (0)20 7138 3204

 Tim Blythe                                                 pathos@blytheray.com (mailto:pathos@blytheray.com)

 Megan Ray

 Said Izagaren

 

About Pathos

Pathos Communications is a technology-enabled, human-led PR company that was
established to democratise SMEs' access to established news publications to
increase their PR exposure capabilities. The Company operates a differentiated
approach to the traditional PR model of long-term subscription fees, by
offering a "pay-on-results" model, thereby providing an opportunity for the
over 400 million SMEs globally, which typically have lower PR budgets.

Pathos collaborates with its clients, comprising SMEs and micro-SMEs, to
create and distribute articles across a variety of platforms including
established news outlets, digital media and podcast channels. This is
supported by Pathos's proprietary AI-driven MVP stage technologies, PathosMind
and Pressella, which are used to generate ideas, undertake market research and
create news articles with limited human input required to generate highly
efficient outputs.

Pathos is a multiple award-winning growth company. It was recognised in the
Financial Times 1000 as the fastest growing advertising and marketing firm in
the UK and the 33rd fastest growing company in Europe in 2025. Pathos was also
named by Deloitte as one of the UK's 50 fastest-growing tech companies in
2025. Additionally, Pathos was named in the UBS UK Fast Growth Index (2024) as
the fastest growing professional services firm in the UK.

 

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