REG - Pulsar Group PLC - Interim Results
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RNS Number : 8985Q Pulsar Group PLC 14 July 2025
PULSAR GROUP PLC
("Pulsar Group", the "Company" or the "Group")
INTERIM RESULTS
Pulsar Group Plc (AIM: PULS), the technology innovator delivering
Software-as-a-Service ("SaaS") solutions for the global marketing and
communications industries, is pleased to announce its unaudited half year
results for the six months ended 31 May 2025.
Highlights:
The Group has continued to make good progress against its strategic
objectives, delivering further Annual Recurring Revenue ("ARR") growth in both
its APAC and EMEA & North America regions:
· The Group's ARR increased by £1.1m(1) in the period, with a further
£0.5m of ARR growth delivered in the last two months of the period in
addition to the £0.6m growth previously reported for the first four months of
the period.
ARR (£'m) November 2023 H1 2024 May H2 2024 November 2024 H1 2025 May
Change 2024 Change Change 2025
EMEA & North America 29.0 1.2 30.2 0.5 30.7 0.9 31.6
(Constant Currency)
EMEA & North America 29.7 0.4 30.1 1.0 31.1 0.5 31.6
(Reported)
APAC 28.6 1.0 29.6 (0.7) 28.9 0.2 29.1
(Constant Currency)
APAC 31.6 0.9 32.5 (1.9) 30.6 (1.5) 29.1
(Reported)
Group 57.6 2.2 59.8 (0.2) 59.6 1.1 60.7
(Constant Currency)
Group 61.3 1.3 62.6 (0.9) 61.7 (1.0) 60.7
(Reported)
· Total revenue for the period was £30.1m, compared to £29.9m(1) in
H1 2024 (£31.3m reported) with 95% of revenue being recurring (H1 2024: 96%).
· The Group delivered Adjusted EBITDA(2) in the period of £3.6m, a
year-on-year increase of £0.7m(1) (H1 2024 Reported: £3.1m).
· During the first half of the year, annualised cost savings of £1.6m
were delivered. Since the period end, significant further savings have already
been actioned and will become effective during the third quarter of the
current financial year.
· Net debt at the period end of £4.2m and, as a result of the actions
taken to optimise the business for profitable growth and free cash flow
generation, the Board anticipates much improved cash generation in the second
half of the financial year.
· Given the momentum being shown across the regions, the Group
continues to trade in line with the Board's expectations.
Joanna Arnold, Global Chief Executive Officer, commented:
"The last 18 months have been pivotal for the Group. We've carefully navigated
significant volatility across the media and technology landscapes, responding
with agility to deliver essential real-time audience intelligence. This
strategic integration has built a robust foundation for scalable, long-term
profitability and enhanced client value.
During the first half, we've sustained strong commercial momentum, evidenced
by continued ARR growth and significant client wins, including the expansion
of a landmark group-wide partnership. Our disciplined focus on operational
efficiency and cost reduction is translating into improved trading results,
setting us on a clear path for sustainable margin expansion and cash
generation.
Looking ahead, the transformative power of generative AI presents exciting
opportunities for both new revenue streams and significant operating model
enhancements. Pulsar Group remains committed to embedding AI across our suite,
reinforcing our market leadership and empowering clients to shape narratives
with confidence, while delivering lasting shareholder value.
Overall, the Board remains confident in Pulsar Group's outlook for the second
half of the year and beyond."
( )
1. On a constant currency basis. Prior periods recalculated at H1 2025
rates. The movement of the AUD:GBP FX rate from ~A$1.95:£1 in November 2024
to ~A$2.09:£1 in May 2025, and the USD:GBP FX rate from ~US$1.27:£1 in
November 2024 to ~US$1.35:£1 in May 2025 has had a significant impact on the
reported value of the Group's ARR over the last six months.
2. Adjusted EBITDA is earnings before interest, tax, depreciation and
amortisation and adjusted for share based payments, share of losses of an
associate and non-recurring expenses primarily relating to acquisition,
integration and restructuring costs in respect of Isentia.
For further information:
Pulsar Group plc 020 3426 4070
Joanna Arnold, CEO
Mark Fautley, CFO
020 7220 0500
Cavendish Capital Markets Limited (Nominated Adviser and Broker)
Corporate Finance:
Marc Milmo / Fergus Sullivan
Corporate Broking:
Sunila de Silva
Chairman's statement
I am pleased to announce our unaudited interim results for the six months
ended 31 May 2025.
The first half of 2025 has underscored the enduring need for clarity and trust
amidst a complex global landscape, marked by geopolitical shifts, economic
uncertainty, and the rapid ascent of generative AI. At Pulsar Group, we've
continued to embrace this dynamic environment as a significant opportunity,
solidifying our position as an indispensable partner for organisations
navigating the intricate intersection of media, technology, and public
sentiment. Our unwavering focus remains on empowering clients with the
real-time audience intelligence and trusted insights crucial for confident,
impactful decision-making.
We've diligently executed our three-pillar strategy: streamlining operations
for enhanced efficiency, scaling our product-led growth model, and reinventing
client expectations through AI-driven innovation. This disciplined approach
has enabled us to deliver media and audience intelligence with greater speed
and precision, ensuring our robust and agile platform is well-positioned for
sustainable, profitable growth.
We've seen continued positive commercial momentum during the first half,
evidenced by continued ARR growth and significant client wins. The expansion
of our relationships with existing clients, alongside numerous new government
and enterprise collaborations, highlights the widespread relevance of our
platform. These successes, combined with our ongoing cost-reduction program,
reflect the Board's focus on ensuring that the Company can deliver an improved
operating performance and sustainable margin expansion, together with cash
generation.
Sustained growth in EMEA & North America
In EMEA & North America the Group has continued to grow, delivering an
increase in ARR of £0.9m in the period. Overall ARR growth in the region
during the first half was underpinned by the expansion of the Group's
partnership with one of the world's largest advertising and marketing services
holding companies, increasing its annual recurring spend by 150% as reported
in April 2025.
EMEA & North America revenue has increased by £0.2m(1) compared to the
comparative period last year, benefitting from the ongoing ARR growth in the
region. Regional adjusted EBITDA has also improved due to the year-on-year
revenue growth alongside cost optimisation initiatives undertaken by the
Group.
New client wins in the EMEA & North America region during the period
include: Amey; Anglo American; Apple; Arts Council England; BT; Cathay
Pacific; Department of Health and Social Care; Foreign, Commonwealth and
Development Office; Inmarsat; Live Nation; Network Rail; and Papa Johns.
Acceleration of ARR growth in APAC
In APAC we have delivered a return to ARR growth(1) after a challenging H2
2024, with £0.2m(1) of ARR growth in the first six months of the year.
APAC revenue remained stable(1) year on year with the Group continuing to
focus its sales team's efforts on the delivery of long-term recurring revenue
contracts. Adjusted EBITDA in the region has increased year on year as a
result of further cost optimisation initiatives delivered to date, with
further savings to be realised during the second half of the year.
The Group has won a number of new clients in the APAC region during the first
half, including: Airservices Australia; Australian Football League; Australian
Ministry of Investment, Trade and Industry; Australian Olympic Committee;
Australian Pharmaceutical Industries; Hyundai; One New Zealand; Petronas;
Serco; Singapore Land Authority, SM Group Philippines; Sport Ireland; and UOB
Malaysia.
Optimisation of the Group's operations
As part of the Group's strategic objective to streamline operations and
optimise the business for profitable growth and free cash flow generation, we
have successfully realised annualised cost savings of £1.6 million during the
first half of the financial year. These savings include efficiencies achieved
across data, infrastructure, and headcount rationalisation.
On May 8, 2025, the Group successfully completed an equity placing, raising
gross proceeds of £3.0 million. A proportion of these proceeds has been
strategically deployed to accelerate the Group's cost reduction program. In
addition to the cost savings delivered in the first half, the Board has
already implemented substantial further cost-saving measures and anticipate
the full financial benefits of these actions to be realised during the second
half.
The Group's net debt position at the end of the period was £4.2m with the
Board focused on delivering significantly improved cash generation in the
second half as the Group sees the benefits of its saving initiatives. It has
in place a £3.0m loan facility and a £3.0m overdraft facility.
Results for the half year
The primary key performance indicator monitored by the Board is the growth in
ARR year-on-year. This reflects the annual value of new business won, together
with upsell into the Company's existing customer base as it delivers against
its land and expand strategy, less churn. It is an important metric for the
Group as it is a leading indicator of future revenue.
During the period, the Group's ARR grew by £1.1m(1) (H1 2024: £2.2m(1)). ARR
at 31 May 2025 was £60.7m, comprising £31.6m in EMEA and North America and
£29.1m in APAC.
Revenue for the period was £30.1m (H1 2024: £29.9m(1), £30.8m reported),
with recurring revenue comprising 95% of total revenue for the period (H1
2024: 96%).
EMEA & North America revenue increased by £0.2m year on year to £14.5m
(H1 2024: £14.3m) as a result of ongoing ARR growth in the region. Recurring
revenue comprised 99% of total EMEA & North America revenue in the period
(H1 2024: 99%).
APAC revenue remained stable year on year at £15.6m (H1 2024: £15.6, £16.5m
reported). Recurring revenue comprised 92% of total APAC revenue in the period
(H1 2024: 94%), with the small increase in non-recurring revenue being due to
short-term, ad hoc purchases of media intelligence by customers for multiple
national elections.
The Group delivered a gross margin of 69% in the period (H1 2024: 72%), with
FX rates having a more significant impact on revenue than on cost of sales.
Following the efforts made by the Board to deliver cost savings and improve
the operational efficiency within the Group, recurring administrative expenses
reduced by c 11% to £17.1m (H1 2024: £19.0m). Non-recurring expenses
incurred in the period were £3.7m made up of: non-recurring salary costs,
including redundancies of £3.2m; and non-recurring duplicate technology and
other costs of £0.5m.
Adjusted earnings before interest, tax, depreciation and amortisation
("EBITDA") were £3.6m (H1 2024: £3.0m(1), £3.1m reported). Adjusted EBITDA
excludes certain non-recurring expenses totalling £3.7m for the period (H1
2024: £3.6m), in addition to the Group's share of loss of an associate of
£Nil (H1 2024: £0.1m) and a share-based payments charge of £0.2m (H1 2024:
£0.2m).
The Group's reported EBITDA loss was £0.2m (H1 2024: loss of £0.9m).
The Group has continued to invest in its software platforms with identifiable
new product development activity being capitalised. The Group capitalised
development costs of £3.0m for the period (H1 2024: £3.4m), with a further
£0.7m (H1 2024: £0.5m) of product, research and development costs being
expensed through profit and loss.
The Group's operating loss was £4.4m (H1 2024: loss £4.3m). The Group
incurred £4.2m of depreciation and amortisation charges (H1 2024: £3.4m).
The basic loss per share was 4.96p (H1 2024: 2.92p).
Outlook
As we look to the second half of 2025 and beyond, Pulsar Group is
well-positioned to meet the evolving demands of a complex global landscape.
The persistent need for real-time audience intelligence and trusted insights
underscores the enduring relevance of our platform. We're intently focused on
accelerating global Annual Recurring Revenue (ARR) growth, further refining
our operating model for enhanced EBITDA margins and robust free cash flow
conversion, and continuing to advance our market-leading products to surpass
client expectations.
Our H1 ARR growth and robust pipeline provide significant momentum, setting
the stage for higher revenue in H2. This expansion affirms the growing demand
for our omnichannel intelligence. Operationally, the efficiencies delivered
during H1, with more to be delivered throughout the course of the second half,
will continue to improve the company's cash generation with a focus on
reducing the Group's indebtedness and underscoring our commitment to financial
discipline and sustainable margin expansion.
Crucially, the rise of generative AI presents both significant new revenue
opportunities and pathways for substantial enhancements to our operating
model. Pulsar is uniquely positioned to help clients navigate this AI-driven
world, understanding and influencing evolving narratives. Internally, AI will
continue to drive unprecedented efficiency, automating processes and
delivering faster, more precise insights, reinforcing our leadership in
strategic intelligence for the long term.
Overall, the Board is pleased with the progress being made and remains
confident in the outlook for the Group in the second half of the year and
beyond.
Christopher Satterthwaite
Non-executive Chairman
Pulsar Group Plc
Consolidated Statement of Comprehensive Income
for the six months ended 31 May 2025
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31-May-25 31-May-24 30-Nov-24
£'000 £'000 £'000
Revenue 30,088 30,817 61,997
Cost of sales (9,354) (8,748) (16,889)
Gross profit 20,734 22,069 45,108
Recurring administrative expenses (17,100) (19,017) (35,829)
Adjusted EBITDA 3,634 3,052 9,279
Non-recurring administrative expenses (3,653) (3,614) (8,561)
Share of loss of associate - (100) (128)
Profit on sale of associate - - 1,457
Share-based payments (180) (227) (580)
EBITDA (199) (889) 1,467
Depreciation of tangible fixed assets (148) (144) (308)
Depreciation of right-of-use assets (663) (535) (1,370)
Amortisation of intangible assets - internally generated (2,602) (1,890) (4,186)
Amortisation of intangible assets - acquisition related (832) (843) (1,707)
Operating loss (4,444) (4,301) (6,104)
Financial income 4 8 18
Financial expense (413) (159) (584)
Loss before tax (4,853) (4,452) (6,670)
Taxation credit 522 761 97
Loss for the period (4,331) (3,691) (6,573)
Other comprehensive income
Items that will or may be reclassified to profit or loss (2,387) (39) (1,009)
Total comprehensive loss for the period attributable to the owners of parent (6,718) (3,730) (7,582)
company
Earnings per share:
Basic loss per share (4.96)p (2.92)p (5.94)p
Diluted loss per share (4.96)p (2.92)p (5.94)p
Pulsar Group Plc
Consolidated Statement of Financial Position
at 31 May 2025
Unaudited Unaudited Audited
As at As at As at
31-May-25 31-May-24 30-Nov-24
£'000 £'000 £'000
Non-current assets
Intangible assets 64,845 69,253 68,406
Investments 75 164 75
Right-of-use assets 2,582 1,454 3,067
Property, plant and equipment 569 669 683
Deferred tax assets 6,220 6,554 5,884
Total non-current assets 74,291 78,094 78,115
Current assets
Trade and other receivables 11,279 9,968 9,240
Current tax receivables 95 222 45
Cash and cash equivalents 1,766 1,252 1,001
Total current assets 13,140 11,442 10,286
TOTAL ASSETS 87,431 89,536 88,401
Current liabilities
Trade and other payables 14,769 12,167 11,132
Accruals 3,459 4,252 4,876
Contract liabilities 17,324 16,360 16,139
Provisions - - -
Lease liabilities 1,142 481 1,107
Current tax payable - - -
Interest bearing loans and borrowings 2,971 2,942 5,943
Total current liabilities 39,665 36,202 39,197
Non-current liabilities
Provisions 270 173 302
Lease liabilities 1,655 1,063 2,132
Deferred tax liabilities 3,780 4,415 4,086
Interest bearing loans and borrowings 3,000 1,500 -
Total non-current liabilities 8,705 7,151 6,520
TOTAL LIABILITIES 48,370 43,353 45,717
NET ASSETS 39,061 46,183 42,684
Equity
Share capital 6,921 6,526 6,526
Treasury shares (141) (141) (141)
Share premium account 76,944 74,424 74,424
Capital redemption reserve 395 395 395
Share option reserve 3,697 3,164 3,517
Foreign exchange reserve (4,361) (1,004) (1,974)
Other reserve 502 502 502
Retained earnings (44,896) (37,683) (40,565)
TOTAL EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS 39,061 46,183 42,684
Pulsar Group Plc
Consolidated Statement of Changes in Equity
for the six months ended 31 May 2025
Share Treasury Share Capital Share Foreign Other Retained Total
capital shares premium redemption option exchange reserve earnings
account reserve reserve reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 November 2024 6,526 (141) 74,424 395 2,937 (965) 502 (33,992) 49,686
Loss for the period - - - - - - - (3,691) (3,691)
Other comprehensive loss for the period - - - - - (39) - - (39)
Share-based payments - - - - 227 - - - 227
At 31 May 2024 6,526 (141) 74,424 395 3,164 (1,004) 502 (37,683) 46,183
Profit for the period - - - - - - - (2,882) (2,882)
Other comprehensive loss for the period - - - - - (970) - - (970)
Share-based payments - - - - 353 - - - 353
At 30 November 2024 6,526 (141) 74,424 395 3,517 (1,974) 502 (40,565) 42,684
Loss for the period - - - - - - - (4,331) (4,331)
Other comprehensive loss for the period - - - - - (2,387) - - (2,387)
Issue of share capital 395 2,520 - - - - - 2,915
Share-based payments - - - - 180 - - - 180
At 31 May 2025 6,921 (141) 76,944 395 3,697 (4,361) 502 (44,896) 39,061
Pulsar Group Plc
Consolidated Statement of Cash Flow
for the six months ended 31 May 2025
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31-May-25 31-May-24 30-Nov-24
£'000 £'000 £'000
Loss for the year attributable to shareholders (4,331) (3,691) (6,573)
Adjusted for:
Taxation (522) (761) (97)
Financial expense 413 159 584
Financial income (4) (8) (18)
Depreciation and amortisation 4,245 3,411 7,570
Share based payments 180 227 580
Share of loss of associate - 100 128
Gain on disposal of associate - - (1,457)
Loss on termination of lease - - (372)
Operating cash (outflow)/inflow before working capital changes (19) (563) 345
(2,039) 625
(Increase)/decrease in trade and other receivables (203)
Increase/(Decrease) in trade and other payables 4,163 (1,258) (2,486)
(Decrease)/increase in accruals (1,417) (59) 565
Increase in contract liabilities 1,185 1,329 1,108
Decrease in provisions (32) (217) (88)
Net cash inflow/(outflow) from operations before taxation 1,841 (971) 69
Tax paid - - (143)
Net cash inflow/(outflow) from operations 1,841 (971) (74)
Investing
Interest received 4 8 18
Acquisition of property, plant and equipment (33) (32) (383)
Acquisition of intangible assets (2,963) (3,374) (6,577)
Consideration on disposal of associate - - 1,418
Net cash outflow from investing activities (2,992) (3,398) (5,524)
Financing
Interest paid (413) (151) (566)
Drawdown of loans and other borrowings - 4,442 3,000
Lease liabilities paid (684) (905) (1,013)
Issue of shares (net of expenses) 2,915 - -
Net cash inflow from financing activities 1,818 3,386 1,421
667 (983) (4,177)
Net increase /(decrease) in cash
Opening cash and cash equivalents (1,942) 2,248 2,248
Exchange gains/(losses) on cash and cash equivalents 70 (13) (13)
Closing cash and cash equivalents (1,205) 1,252 (1,942)
Notes
1. Unaudited notes
Basis of preparation and accounting policies
The financial information for the six months to 31 May 2025 is unaudited and
was approved by the Board of Directors on 11(th) July 2025.
The interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements for the year ended 30
November 2024.
The interim financial information for the six months ended 31 May 2025,
including comparative financial information has been prepared on the basis of
the accounting policies set out in the last annual report and accounts.
The preparation of the interim financial statements requires management to
make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may subsequently differ from those estimates.
In preparing the interim financial statements, the significant judgements made
by management in applying the Group's accounting policies and key sources of
estimation uncertainty were the same, in all material respects, as those
applied to the consolidated financial statements for the year ended 30
November 2024.
The Group has elected to present comprehensive income in one statement.
Going concern assumption
The Group meets its day to day working capital requirements through its cash
balance and during the prior period entered into a £3.0m overdraft facility
and a £3.0m loan facility which are both in place at the date of this
announcement. The £3.0m debt facility is in place until July 2026 whilst the
overdraft is repayable on demand. As at the date of this report, the directors
have a reasonable expectation that the Company and the Group have adequate
resources to continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in preparing the
financial statements.
Information extracted from the Group's 2024 Annual Report
The financial figures for the year ended 30 November 2024, as set out in this
report, do not constitute statutory accounts but are derived from the
statutory accounts for that financial year.
The statutory accounts for the year ended 30 November 2024 were prepared under
IFRS and have been delivered to the Registrar of Companies. The auditors
reported on those accounts. Their report was unqualified, did not draw
attention to any matters by way of emphasis and did not include a statement
under Section 498(2) or 498(3) of the Companies Act 2006.
2. Revenue
The Group's revenue is primarily derived from the rendering of services. The
Group's revenue was generated from the following territories:
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31-May-25 31-May-24 30-Nov-24
£'000 £'000 £'000
United Kingdom 11,285 11,452 22,253
North America 1,792 1,518 3,360
Europe excluding UK 1,374 1,193 3,300
Australia and New Zealand 11,464 12,821 25,379
Asia 4,034 3,694 7,451
Rest of the world 139 139 254
30,088 30,817 61,997
3. Earnings per share
The calculation of earnings per share is based upon the loss after tax for the
respective period. The weighted average number of ordinary shares used in the
calculation of basic earnings per share is based upon the number of ordinary
shares in issue in each respective period.
The impact of share options granted under the company's share option scheme
are anti-dilutive due to the Group being in a loss-making position, so the
weighted average number of ordinary shares used in the calculation of diluted
earnings per share is the same as for basic earnings per share.
This has been computed as follows:
Unaudited Unaudited Audited
As at As at As at
31-May-25 31-May-24 30-Nov-24
Numerator
Loss for the year and earnings used in basic EPS (£'000) (6,718) (3,730) (7,582)
Earnings used in diluted EPS (£'000) (6,718) (3,730) (7,582)
Denominator
Weighted average number of shares used in basic EPS ('000) 135,537 127,699 127,699
Effects of:
Dilutive effect of options N/A N/A
Weighted average number of shares used in diluted EPS ('000) 135,537 127,699 127,699
Basic loss per share (pence) (4.96) (2.92) (5.94)
Diluted loss per share (pence) (4.96) (2.92) (5.94)
4. Availability of interim results
The interim results will not be sent to shareholders but will be available at
the Company's registered office at Northburgh House, 10 Northburgh Street,
London, EC1V 0AT and on the Company's website: www.pulsargroup.com
(http://www.pulsargroup.com) .
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