REG - Touchstar PLC - Interim Results
16/09/2025 07:00
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RNS Number : 4027Z Touchstar PLC 16 September 2025
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
16 September 2025
Touchstar plc
(the "Company", "Touchstar" or the "Group")
Interim results for the
Six months ended 30 June 2025
"Results in line with management expectations.
Significant transformation of the business in progress under new leadership"
Touchstar plc ((AIM: TST), a supplier securing the logistics of people and
product to a variety of industrial sectors, is pleased to announce its interim
results for the six months ended 30 June 2025 ("H1 25" and "Period").
Key Financials
H1 25 H1 24
Revenue £3,365,100 £3,377,000
Recurring revenue £1,533,500 £1,496,000
Gross Margins 55% 59.1%
Operating (loss)/profit before exceptional costs*
£(155,000) £254,000
Adjusted EPS** (0.96)p 2.82p
Adjusted EBITDA** £235,000 £589,000
Cash net of overdraft £2,002,000 £1,742,000
Order book at end H1*** £2,520,865 £2,275,733
Pre-tax profit £(176,000) £254,000
Basic EPS (1.22)p 2.82p
Proposed interim dividend per share 1.75p 1.50p
* Refer to note 3 for definition
** adjusted for £21,000 exceptional costs. Refer to note 5 for details
*** includes booked recurring revenue
· Order book at Period end up 11% year-on-year to £2,520,865
· 2025 results are expected to be second half weighted due to
timing of major installations
· Recurring revenue accounted for 45% of total revenues
· Gross margins impacted by increases in direct salary costs, NI
tax rises and product mix
· Balance sheet remains strong with net cash of £2 million and
£260,000 cash generated in the Period
· Increased investment in sales, technology and marketing impacted
short term profitability
· Dividend increased 17% to 1.75p per share
Operational Highlights
The opportunity for Touchstar is to rapidly establish itself as the leading
partner in secured logistics for customers, people and products. To achieve
this ambition, the Group has commenced a comprehensive restructuring of its
business designed to drive efficiency, collaboration, focus, ownership and
consistency - laying a strong foundation for sustainable growth. These
measures reflect the Board's ambition and include:
· Lynden Jones appointed CEO to lead the transformation and growth
of the business
· Production processes streamlined to improve efficiency
· Software development roles migrating from India to Manchester
· Sales team restructured to improve customer engagement and enable
cross-selling
· Analysis of acquisition targets underway to accelerate growth
· Identifying the next-generation product set that meets our brand
promise
· Enhanced website and refreshed marketing materials to reinforce
brand presence and deepen local engagement
Commenting, Ian Martin, Chair of Touchstar, said:
"Today, we are not only announcing our interim results but also beginning to
unveil a more ambitious strategy, positioning the Company as a leading partner
in the secured logistics of people and products. Under new leadership, there
is renewed purpose, energy and determination to deliver on this vision.
"In 2025, our focus is on strengthening the foundations of the business and
enhancing its growth prospects. We expect this phase of transformation to be
substantially completed by the year end.
"The Board expects a stronger second half, with full-year performance
anticipated to be in line with expectations. Demand for our products and
services continues to be strong. That said, much remains to be done.
Transformation is rarely linear; there will be challenges along the way.
Nevertheless, we are making strong progress, and I remain optimistic for the
future of the Company."
For further information, please contact:
Touchstar plc www.touchstarplc.com (http://www.touchstarplc.com)
Ian Martin 0161 874 5050
Lynden Jones 0161 874 5050
Zeus - Nominated Adviser & Broker www.zeuscapital.co.u (http://www.zeuscapital.co.uk) k
(http://www.zeuscapital.co.uk)
Corporate Finance - Mike Coe/Darshan Patel
0203 829 5000
IFC Advisory - Investor Relations www.investor-focus.co.uk (http://www.investor-focus.co.uk)
Graham Herring / Florence Staton 0203 934 6632 (tel:+442039346632)
Information on Touchstar plc can be seen at: www.touchstarplc.com
(http://www.belgravium-technologies.com)
Chairman's Report
Overview
In February, the strategic review announced by the Company in September 2024
was concluded. The Board determined that, at that time, the best interests of
shareholders would be served by the Company remaining a standalone AIM-quoted
entity.
Following this, the Board set out a plan to build on the Group's operational
and financial performance, with a series of measures aimed at accelerating its
next stage of development, increasing the underlying value of the business,
and enhancing returns to shareholders. These measures include:
· Driving stronger organic growth through further investment in the
fuel delivery business in overseas markets and building on the ability of the
Group's technology platform and solutions to be applied in a wider range of
vertical sectors;
· Changes to the management team to facilitate the execution of the
plan;
· Increasing the Company's marketing and promotional activities;
and
· Returning surplus cash to shareholders via dividends and deploying
it to enhance underlying value through a recommencement of share buybacks.
The Board is delighted to report that progress has been made in all these
areas, most notably with the appointment of Lynden Jones to the Board in March
and his subsequent appointment as CEO in June 2025.
It has become clear during the Period that to achieve this scale of progress
and ambition, the Group must embrace transformation that is radical rather
than evolutional. That transformation is now firmly underway under Lynden's
leadership.
Touchstar is currently best known for its work in the fuel industry. While
this is a profitable sector, it represents a relatively small market in terms
of that Touchstar can service. The Group's solutions, however, are highly
adaptable and capable of serving a much broader set of industries.
Accordingly, the Company is repositioning how the business is presented and
marketed. The goal is to establish Touchstar as the partner of choice to all
depots, warehouses and retailers, a market opportunity many times greater than
our historic roots. The Company will build on the trust its customers already
have in place, broaden its engagement by offering more of the solutions, and
leverage its skills and expertise to deliver a one-stop solution.
Under the Touchstar name, and through its two principal offerings, the Company
intends to be known as the supplier who can "Secure the Logistics of People
and Product".
Financial Results
Touchstar has delivered satisfactory results for the period, in line with
management's expectation. The Company previously highlighted that the FY 25
results would be second half weighted, the order book rising by 11% year on
year gives validity to this statement. The comparison to the prior year was
expected to show a year in transition and would not reflect the tremendous
progress made in improving the organisation.
H1 25 H1 24 Variance
Revenue £3,365,000 £3,377,000 (0.35%)
Operating profit/(loss) (£176,000) £217,000
Interest and finance costs £34,000 £37,000 +£3,000
(Loss)/profit before tax (£142,000) £254,000
Tax (charge) / Credit £43,000 (£23,000) +£13,000
Profit after tax (£99,000) £231,000
Basic earnings (loss) per share (1.22p) 2.82 p (11.9%)
Dividend per share 1.75p 1.50p +0.25p
Revenue in the Period decreased slightly to £3,365,000 (H1 24: £3,377,000).
This is due to the larger petrochemical distribution installations being
predominately weighted in the second half of 2025 in comparison to last year,
thereby reverting to the traditional seasonal pattern.
Growth of 2.5% in recurring revenue softened the overall rate of decline in
total sales. For H1 25 recurring revenue was £1,533,500, representing 45%
of total sales (H1 24: 44%). The business strategy is still to build the level
of recurring revenues in both absolute terms and in relation to total sales.
Recurring revenue growth in the year to date has been constrained by delays in
installations seen in 2024, which in turn postponed go-live dates and in turn
the recognition of deferred revenue. These timing impacts have temporarily
softened the trajectory, but the underlying progress remains unchanged.
Although gross margins remained at a healthy level, they declined by 410 basis
points to 55% in H1 25 (H1 24: 59.1%). This reduction is due to three
factors: an increase in direct salaries (a combination of additional resource,
salary increases and an increase in employers NI costs), product mix and an
increase in the UK R&D head count as the Group on shores software
development.
These factors resulted in administrative costs rising by £259,000 or 15% to
£2,012,000 in H1 25 (H1 24: £1,753,000). Although vital for the long-term
development this increase, combined with the decrease in revenue, has led the
Company to record a loss before tax in the H1 25 of £142,000 (H1 24:
£254,000 profit).
A tax credit of £43,000 (H1 24: charge (£23,000)) resulted in a more modest
loss in H1 25 on a post-tax basis of £99,000 in H1 25 (H1 24: £231,000
profit).
This equates to a basic loss per share of 1.22p per share in H1 25 (H1 24
earnings: 2.82 p).
The Company had an exceptional charge of £21,000 in the period relating to a
director's severance cost (H1:24 nil), which, if excluded, results in an
adjusted loss per share of 0.96p on a post-tax loss of £78,000.
The Company bought back 24,161 shares in the Period (H1 24: nil) pursuant to
its share buyback programme which commenced in May 2025. The total number of
shares with voting rights as at the Period end was 8,176,116 (H1 24:
8,200,277).
Adjusted EBITDA* declined in H1 25 to £235,000 (H1 24: £589,000).
The interim ordinary dividend of 1.75p per share will be paid on 20 November
2026 to shareholders on the register on 24 October 2025. The ex-dividend date
will be 23 October 2025.
H1 25 H1 24 Change
Operating profit before interest and tax (£176,000) £217,000 (£393,000)
Amortisation £300,000 £261,000 (£41,000)
Depreciation £90,000 £111,000 £21,000
EBITDA (Basic) £213,000 £589,000 (£376,000)
Exceptional costs £22,000 - £22,000
EBITDA (Adjusted) £235,000 £589,000 (£354,000)
Spending on R&D increased as further investment was made into our
technology and services. In H1 25 we invested £349,000 in R&D (H1 24:
£283,000). In FY25 we are budgeted to spend £770,000 in R&D updating and
enhancing our existing product portfolio, a 29% increase on the 2024 level of
investment.
The balance sheet remains strong. Cash and cash per share were higher with the
operations generating positive cash flow of £260,000.
H1 25 H1 24 Change
Cash net of overdraft £2,002,000 £1,742,000 £260,000
Cash per share 24.5p 21.2p 3.3p
The order book, rose by 11% to £2,520,865 at the period end (H1 24:
£2,275,733).
Current Trading and Outlook
The Board expects a stronger second half, with full-year performance
anticipated to be in line with expectations. That said, much remains to be
achieved to deliver that outcome. Transformation is not a smooth or linear
process; there will inevitably be challenges along the way. We must navigate
increased costs, the short-term impact of investing ahead of revenue growth,
and a higher burden from taxation all at a time of flatlining in the UK
economy.
The key objectives for 2025 are, by the year end, to:
· Complete the transition to the next-generation management team
· Restructure the internal organisation to support stronger organic
growth and the integration of future acquisitions
· Repositioned the business to serve the wider depot, warehouse and
retail markets
· Enhanced our market profile through an improved digital presence,
communications and marketing
· Finalise improvements in sales capability
· Conducted a detailed review of acquisition opportunities
· Define the next-generation product set aligned with our brand
promise
· Clearly articulate our future direction to external stakeholders
In relation to share buybacks, the Board has decided to bring the formal
programme to an end with effect from the end of September. Thereafter,
buybacks will be considered on an ad hoc basis.
Success will depend on our ability to win new sales, strengthen our brand and
digital presence, expand into new markets and broaden our offering to existing
customers. At the same time, the Board will consider select acquisitions to
bridge any product gaps, strengthen the Group's market position, and give it
the best platform for long-term success. With the renewed ambition and
refreshed strategy, the Board is confident of the outlook of the business.
I Martin
Executive Chairman
15 September 2025
Unaudited consolidated income statement for the six months ended 30 June
2025
30 June
30 June 2024 31 December
2025 2024
£'000 £'000 £'000
Revenue 3,365 3,377 6,893
Cost of sales (1,515) (1,382) (2,743)
Gross profit 1,850 1,995 4,150
Distribution costs (14) (25) (43)
Administrative expenses (2,012) (1,753) (3,785)
Operating (loss)/profit before share-based
Payment provision and exceptional costs (150) 251 408
Exceptional costs (21) - (57)
Share-based payment provision included in administrative expenses (5) (34) (29)
Operating (loss)/profit (176) 217 322
Finance income 46 43 79
Finance costs (12) (6) (13)
(Loss)/profit before income tax (142) 254 388
Income tax credit/(charge) 43 (23) (22)
(Loss)/profit for the year attributable to the owners of the parent (99) 231 366
Earnings per ordinary share (pence) attributable to owners of the parent
during the period:
30 June 2024
30 June 31 December 2024
2025
Basic (1.222)p 2.82p 4.47p
Adjusted (0.961)P 2.82p 5.16p
Diluted (1.222)p 2.79p 4.43p
Unaudited consolidated statement of changes in equity for the six months ended
30 June 2025
Share Treasury shares Share based payment reserves Retained earnings Total
capital
Note £'000 £'000 £'000 £'000 £'000
For the six months ended 30 June 2025
Balance at 1 January 2025 424 (252) 146 3,118 3,436
Purchase of own shares - (20) - - (20)
Share based payment charge - - 5 - 5
Transactions with shareholders for the period - (20) 5 - (15)
Total comprehensive income (loss for the period) - - - (99) (99)
Balance at 30 June 2025 424 (272) 151 3,019 3,322
For the six months ended 30 June 2024
Balance at 1 January 2024 424 (252) 117 2,974 3,263
Dividends repatriated - - - 24 24
Share based payment charge - - 34 - 34
Transactions with shareholders - - 34 24 58
Total comprehensive income (profit for the period) - - - 231 231
Balance at 30 June 2024 424 (252) 151 3,229 3,552
Unaudited consolidated statement of changes in equity for the six months ended
30 June 2025 (continued)
Share capital Treasury shares Share based payment reserves Retained earnings Total
Note £'000 £'000 £'000 £'000 £'000
For the year ended 31 December 2024
Balance at 1 January 2024 424 (252) 117 2,974 3,263
Dividend to shareholders - - - (246) (246)
Repatriation of unclaimed dividends - - - 24 24
Share based payment charge - - 29 - 29
Transactions with shareholders - - 29 (222) (193)
Total comprehensive income (profit for the year) - - - 366 366
Balance at 31 December 2024 424 (252) 146 3,118 3,436
Unaudited consolidated statements of financial position at 30 June 2025
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Non-current assets
Intangible assets 1,337 1,236 1,288
Property, plant, and equipment 119 113 108
Right of use asset 606 229 180
Deferred tax assets 9 20 9
Trade and other receivables 116 - 88
2,187 1,598 1,673
Current assets
Inventories 880 1,364 992
Trade and other receivables 1,672 1,974 1,650
Current tax receivable 87 18 87
Cash and cash equivalents 2,002 1,742 2,918
4,641 5,098 5,647
Total assets 6,828 6,696 7,320
Current liabilities
Trade and other payables 1,165 1,268 1,383
Contract liabilities 1,496 1,422 2,018
Lease liabilities 157 125 91
2,818 2,815 3,492
Non-current liabilities
Deferred tax liabilities 127 113 170
Contract liabilities 121 133 148
Lease liabilities 440 83 74
688 329 392
Total liabilities 3,506 3,144 3,884
Unaudited consolidated statements of financial position at 30 June 2025
(continued)
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Capital and reserves attributable
to owners of the parent
Share capital 424 424 424
Treasury shares (272) (252) (252)
Share-based payment reserve 151 151 146
Profit and loss account 3,019 3,229 3,118
Total equity 3,322 3,552 3,436
Total equity and liabilities 6,828 6,696 7,320
Unaudited consolidated cash flow statement for the six months ended 30 June
2025
30 June 2025 30 June 2024 £'000 31 December 2024
£'000 £'000
Cash flow from operating activities
Operating (loss)/profit (177) 217 322
Adjustments for:
Depreciation 90 111 243
Amortisation 300 261 534
Share-based payment provision 6 34 29
Movement in:
Inventories 112 (211) 161
Trade and other receivables (52) (774) (539)
Trade and other payables (766) (436) 290
Cash (used in)/ generated from operating activities (487) (798) 1,040
Interest received 46 43 79
Interest paid (12) (6) (13)
Net cash (used in)/ generated from operating activities (453) (761) 1,106
Cash flows from investing activities
Purchase of intangible assets (349) (360) (684)
Purchase of property, plant, and equipment (32) (70) (89)
Net cash used in investing activities (381) (430) (773)
Cash flows from financing activities
Dividend paid to shareholders - - (246)
Purchase of own shares (20) - -
Repatriation of unclaimed dividends - 24 24
Principal elements of lease payments (62) (96) (198)
Net cash used from financing activities (82) (72) (420)
Net (decrease)/ increase in cash and cash equivalents (916) (1,263) (87)
Cash and cash equivalents at start of the year 2,918 3,005 3,005
Cash and cash equivalents at end of the year 2,002 1,742 2,918
Notes to the interim report and accounts for the six months ended 30 June 2025
1. General information
Touchstar plc is a public company limited by share capital incorporated and
domiciled in the United Kingdom. The Company has its listing on AIM. The
address of its registered office is 1 George Square, Glasgow, G2 1AL.
2. Status of interim report and accounts
The financial information comprises the consolidated interim balance sheet as
of 30 June 2025, 30 June 2024 and the year ended 31 December 2024 along with
related consolidated interim statements of income and cash flows for the six
months to 30 June 2025 and 30 June 2024 and year ended 31 December 2024 of
Touchstar plc (hereinafter referred to as 'financial information').
This financial information for the half year ended 30 June 2025 has neither
been audited nor reviewed and does not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. This financial information
was approved by the Board on 15 September 2025.
The figures for the year ended 31 December 2024 have been extracted from the
audited annual report and accounts that have been delivered to the Registrar
of Companies. The auditors, HaysMac LLP, reported on those accounts under
section 495 of the Companies Act 2006. Their report was unqualified and did
not contain a statement under section 498 of that Act.
3. Basis of preparation
The interim report and accounts have been prepared, in accordance with IAS 34
Interim Financial Reporting, using accounting policies to be applied in the
annual report and accounts for the year ending 31 December 2025. These are
consistent with those included in the previously published annual report and
accounts for the year ended 31 December 2024, which have been prepared in
accordance with IFRS as adopted by the European Union.
Non - GAAP financial measures
For the purposes of this interim announcement and annual report and accounts,
the Group uses alternative non-Generally Accepted Accounting Practice
('non-GAAP') financial measures which are not defined within IFRS. The
Directors use the measures in order to assess the underlying operational
performance of the Group and as such, these measures are important and should
be considered alongside the IFRS measures.
The following non-GAAP measure referred to in the interim announcement relates
to operating profit/(loss) before exceptional costs.
'Operating loss' is separately disclosed, being defined as operating
profit/(loss) adjusted to exclude directors severance costs (note 5). These
exceptional costs related to items which the management believe did not
accurately reflect the underlying trading performance of the business in the
period. The Directors believe that the trading profit/(loss) is an important
measure of the underlying performance of the Group.
Going concern
The directors have a reasonable expectation that the Group has adequate
resources to continue operating for the foreseeable future, and for this
reason they have adopted the going concern basis of preparation in the
consolidated interim financial statements. The financial statements may be
obtained from Touchstar plc, 7 Commerce Way, Trafford Park, Manchester, M17
1HW or online at www.touchstarplc.com (http://www.touchstarplc.com) .
4. Critical accounting estimates and assumptions
The Group and Company makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal the
related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
(a) Development expenditure
The Group recognises costs incurred on development projects as an intangible
asset which satisfies the requirements of IAS 38. The calculation of the costs
incurred includes the percentage of time spent by certain employees on the
development project. The decision whether to capitalise and how to determine
the period of economic benefit of a development project requires an assessment
of the commercial viability of the project and the prospect of selling the
project to new or existing customers.
(b) Impairment of intangibles
Judgement is required in determining both the useful economic life of the
asset along with any impairment, notably intangible software development
costs. Useful economic life is based on the life expectancy of software
licences and recoverable amounts are based on a calculation of expected future
cash flows, which require assumptions and estimates of future performance to
be made. Cash flows are discounted to their present value using pre-tax
discount rates based on the Directors market assessment of risks specific to
the asset.
(c) Stock provisions
Judgement is required in relation to the appropriate provision to be made for
the write down of slow moving or obsolete inventory. Such provisions are made
based on the assessment of the Group's prospective sale of inventories and
their net realisable value, which are subject to estimation uncertainty.
5 Exceptional costs
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Exceptional costs
Cost of the Strategic review - - 57
Director severance costs 21 - -
Director severance costs classified as exceptional costs relate to Mr Mark
Hardy, former CEO, who retired on 31st May 2025 and subsequently resigned as a
director on 24th June 2025.
The total cost incurred on the Strategic Review was £77,500 reduced by the
release of a historical exceptional liability £20,500 no longer required.
6 Income tax credit
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Corporation tax
Current tax credit - - (87)
Adjustment in respect of prior years - - 18
Deferred tax (credit)/charge (43) 23 91
Total current tax charge (43) 23 22
The deferred tax charge release for period ended 30 June 2025 and 30 June 2024
relates to brought forward losses surrendered against the current period tax
charge. For the year ended 31 December 2024 available tax losses were
surrendered through R&D tax credit.
7 Earnings per share
30 June 2025 £'000 30 June 2024 £'000 31 December 2024
£'000
(Loss)/profit after tax attributable to the owners of Touchstar plc - for
Basic EPS
(93) 231 366
Exceptional costs 21 - 57
Adjusted earnings attributable to owners of the parent - for adjusted EPS (72) 231
423
30 June 2025 £'000 30 June 2024 £'000 31 December 2024
£'000
Weighted average number of shares used in calculating basic earnings per share 8,149,577 8,200,077 8,200,077
Number of considered dilutive shares 17,639 72,356 64,479
Weighted average number of shares used in calculating dilutive earnings per
share
8,167,216 8,272,433 8,262,556
Earnings per ordinary share (pence) attributable to owners of the parent
during the period:
Earnings per share 30 June 2025 30 June 2024 31 December 2024
Basic (1.222)p 2.82p 4.47p
Adjusted (0.961)p 2.82p 5.16p
Diluted (1.222)p 2.79p 4.43p
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the year.
Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account the after-tax effect of interest
and other financial costs associated with the dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares.
During the period 30 June 2025 no options were issued (30 June 2024: nil)
(year ended 31 December 2024: nil).
8 Purchase of own shares
At the 30 June 2025 the Group held 299,161 of its own shares with a fair value
of £272,000, these are being held in treasury (30 June 2024: 275,000 with a
fair value of £252,000). 24,161 shares were repurchased during the period at
a fair value of £20,800 (30 June 2024: 275,000 at a fair value of £252,000).
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