REG - RC Fornax plc - Interim Results for the 6 Months Ended 28 Feb 2026

RC FornaxAnnouncement

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RNS Number : 7758F  RC Fornax plc  27 May 2026

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR"), and the UK version of MAR which is part
of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as
amended. Upon the publication of this announcement via a Regulatory
Information Service, such inside information is now considered to be in the
public domain.

27 May 2026

RC FORNAX PLC

("RC Fornax" or the "Company")

Interim Results for the Six Months Ended 28 February 2026

Pipeline conversion positions RCFX for growth in FY26 and beyond

RC Fornax (AIM: RCFX), the UK-based consultancy delivering outcome-based
engineering solutions to the defence sector's most critical platforms,
announces its unaudited interim results for the six months ended 28 February
2026 ("H1 FY26" or the "Period").

Financial Highlights

•      Revenue of £2.2m (H1 FY25 restated: £2.5m), with H1 FY26
revenue 40% ahead of H2 FY25 (£1.6m), reflecting improving order conversion
momentum during the Period.

•      Outcome-based services represented 72% of revenue mix (H1 FY25
restated: 52%), in line with strategy set out at IPO.

•      Average 26% month-on-month increase in revenue during the
Period.

•      Gross profit of £0.7m (H1 FY25: £0.7m), with gross margin of
31% (H1 FY25: 27%), demonstrating improved delivery mix and operational
leverage.

•      Operating loss of £0.9m (H1 FY25: operating profit £0.1m),
reflecting continued investment in capability, governance and headcount to
support expected growth in H2 FY26 and beyond.

•      Cash of £1.8m at 28 February 2026 (31 August 2025: £0.9m),
following the £2.1m net equity fundraise completed in December 2025.

•      Net assets of £3.0m (31 August 2025: £1.9m).

Operational Highlights

•      £4.1m in new orders (including subject to contract) and
extensions booked in H1 FY26, demonstrating clear pipeline conversion.

•      Contract award from a UK Public Sector Space Client, marking
meaningful progress in diversification beyond core MoD work.

•      Unconditional acceptance by Aurora Engineering Partnership as a
Specialist Provider on the Evolve Engineering Delivery Partnership (EDP)
Provider Network, a major UK defence engineering framework.

•      Further contract extension of approximately £0.5m from an
existing tier-1 defence client.

•      SME Procure platform development advancing on track, with
commercialisation expected in FY26.

•      Board strengthened: Richard Smith (Non-Executive Director,
September 2025), Chris Brooks (Executive Director) and Andrew McInerney
(Non-Executive Director), both January 2026.

Post-Period Highlights & Outlook

•      Board remains confident in current market expectations for FY26.

•      As at 30 April 2026, firm visibility of c.£5.7m in FY26 sales,
comprising £3.1m already invoiced, c.£1.5m contracted for the remainder of
the year, £0.4m subject to contract, and c.£0.5m in-year PO extensions where
there is confidence of renewal.

•      Invoiced sales in April 2026 were 3x those achieved in September
2025.

•      First phase of contract with UK Public Sector Space Client
delivered successfully, with exceptional customer feedback and current
commercial discussions over a potential second phase.

•      Substantial progress made towards a major framework agreement
with a top-seven prime contractor to MoD, now in the final stages of
commercial approvals.

•      Strong commercial execution driving results, with eight new
clients (including two top-six prime contractors to MoD), a further Prime
framework on track, and a c.2.5x uplift in win rate.

•      The Board remains encouraged by long-term UK defence spending
trajectory, with spending projected to reach 2.5% of GDP by 2027.

•      Total purchase orders received ensure the Company is well
positioned to benefit in FY26, FY27 and beyond as procurement clarity improves
and framework participation generates increasing revenue opportunities.

Chief Executive's Comment

Paul Reeves, Chief Executive Officer of RC Fornax, commented: "H1 FY26 has
been defined by conversion - turning the pipeline we built through FY25 into
firm orders and revenue. With £4.1m of new orders booked in the first half,
we are executing on the strategy. Revenue of £2.2m was 40% ahead of H2 FY25,
with an average month-on-month increase of 26% during the Period, and gross
margin improved to 31%."

"Entering the second half, we have visibility over more than £5.7m of FY26
revenue. The Company is well-funded, with cash of £1.8m at the Period end,
and the Board remains confident in meeting market expectations for FY26."

"The structural case for RC Fornax's services has never been stronger. The
UK's transition to a war-fighting readiness posture demands precisely the kind
of agile, outcomes-focused capability we deliver. With £5.7m in FY26 revenue
visibility, a well-funded balance sheet and a pipeline of high-quality
opportunities at advanced stages, I am confident in the Company's ability to
deliver a materially improved second half and a stronger full year and
beyond."

Summary Financial Information

Statement of Comprehensive Income - For the six months ended 28 February 2026
(unaudited)

                                        H1 FY26 Unaudited £   H1 FY25 Unaudited Restated £   FY25 Audited £
 Revenue                                2,207,761             2,508,240                      4,069,444
 Cost of sales                          (1,518,371)           (1,818,939)                    (3,118,758)
 Gross profit                           689,390               689,301                        950,686
 Administrative expenses                (1,649,591)           (575,659)                      (2,217,490)
 Exceptional items                      -                     (50,000)                       (124,000)
 Operating (loss) / profit              (960,201)             63,642                         (1,390,804)
 Finance costs                          (46,567)              (123,368)                      (164,149)
 (Loss) before taxation                 (1,006,768)           (59,726)                       (1,588,453)
 Taxation credit                        251,692               14,931                         205,411
 (Loss) and total comprehensive income  (755,076)             (44,795)                       (1,383,042)
 Basic loss per share (pence)           1.0                   0.4                            4.0
 Diluted loss per share (pence)         1.0                   0.4                            3.9

The H1 FY25 comparative figures are unaudited and have been restated. See Note
12 of the Interim Report.

Restatement of H1 FY25 Comparative Figures

The H1 FY25 comparative figures presented in this announcement have been
restated to correct material bookkeeping errors identified in June 2025. Those
errors principally affected the recognition and classification of revenue and
cost of sales in the unaudited interim financial statements for the six months
ended 28 February 2025, resulting in overstatements of both revenue and
operating costs as originally reported. Cash balances and cash movements were
not materially affected.

The effect of the restatement is to reduce previously reported H1 FY25 revenue
from £3.8m to £2.5m, and to reduce previously reported H1 FY25 operating
profit from £0.6m to £0.06m. Gross profit reduces from £1.3m to £0.7m,
consistent with the restated revenue and cost of sales figures.

Full details of the restatement, including a reconciliation table and the
remedial actions taken by the Board, are set out in Note 12 of the Interim
Report, which will be made available on the Company's website at
www.rcfornax.co.uk.

Availability of Interim Report

The full Interim Report for the six months ended 28 February 2026 will be made
available on the Company's website at www.rcfornax.co.uk
(http://www.rcfornax.co.uk) shortly following the release of this
announcement.

- ENDS -

For additional information, please contact:

 RC Fornax plc                                              info@rcfornax.co.uk

 Paul Reeves - CEO

 Rob Shepherd - FD
 Strand Hanson Limited (Nominated & Financial Adviser)      +44 (0)20 7409 3494

 Christopher Raggett

 Rob Patrick

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

 Stephen Keys / George Lawson - Corporate Finance

 Dale Bellis / Harriet Ward - Sales and ECM
 BlytheRay (Financial PR)                                   +44 (0)20 7138 3204

 Megan Ray                                                  rcfornax@blytheray.com

 Said Izagaren

 

Notes to Editors

RC Fornax PLC is an AIM-quoted company providing outcome-based engineering
solutions to the UK defence industry. It was founded in 2020 by RAF veterans
Paul Reeves and Daniel Clark who, having also worked for a number of years as
defence contractors, are passionate about improving project efficiencies and
driving value for money in the sector.

 Web:       https://www.rcfornax.co.uk/
 X:         @RFornax
 LinkedIn:  RC Fornax

 

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