REG - Touchstar PLC - Trading Update

TouchstarAnnouncement

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RNS Number : 6540L  Touchstar PLC  16 December 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.

 

 

 

Touchstar plc

 

(the "Company", "Touchstar" or the "Group")

 

Trading update for the year ending 31 December 2025 (FY25)

At the time of the interim results for the period ended 30 June 2025 the
Company noted the softness in the economy - this softness has continued and
has led to customer hesitancy in placing orders and made it difficult to
forecast the timing of sales, particularly short-term ones. As a result, FY25
revenue is expected to be below market expectations at around £6.7m, with
only a small pre-tax trading profit for the year.

 FY25 results have also been impacted by non-trading costs including the
restructuring of our senior management team over the last few months and, as
from the 1 December 2025, changing our accounting treatment of software
development costs. These are dealt with in more detail below.

Despite lower profitability, the Company's balance sheet remains healthy and
year end cash should remain at over £2m.

 

Significant transformation of the Business

 

In 2025, our focus has been on strengthening the foundations of the business
and enhancing its growth prospects. To achieve this ambition the Group, under
the new CEO, has completed a comprehensive restructuring seeking to drive
additional efficiency, collaboration, focus, ownership and consistency into
the business, laying a strong foundation for sustainable growth. This
underpinning has now been completed.

 

The key objectives for 2026 are to:

 

·      Complete the transition to the next-generation management team

·      Complete the restructure of the internal organisation and commit
to additional investment to support stronger organic growth and the
integration of future acquisitions

·      Reposition the business to serve the wider depot, warehouse and
retail markets

·      Enhance our market profile through an improved digital presence,
communications and marketing

·      Finalise improvements in sales capability

·      Conduct a detailed review of acquisition opportunities

·      Define the next-generation product set aligned with our brand
promise

·

 

FY 25 exceptional costs and expensing of Software Development

In 2025 the Company will take two non-trading exceptional charges to the
profit and loss account - the first is related to the costs of the
reorganisation of the senior management team of approximately £0.2m. The
second relates to the treatment of software development costs which  have
changed with effect from 1 December 2025. Historically these have been
capitalised and subsequently amortised over 48 months. Under the new policy
future costs will be fully recognised as costs at the time, and expensed.

For the period prior 1 December 2025, the Company expects to take a charge for
the impairment of software of £1.25m. This adjustment reflects both the
practical realities of  current development cycle and the new strategic
direction of the business and will also bring the Company in line with other
comparable global software businesses.

 

Lynden Jones, CEO of Touchstar

"Since my appointment I have undertaken a review of the business and have
started to implement measures to help build Touchstar into a better and more
substantial company over the medium term. I am confident this can be delivered
setting a new direction for Touchstar to become the leading partner in
securing the logistics of people and product.

"The short term will be difficult as we are now budgeting for the faltering
economy to persist throughout 2026. Thus, we are resetting and reducing
expectations for next year. We now expect only modest revenue growth in 2026
overall. Over the next twelve months, driven by our new focus, energy and
strategy we anticipate some acceleration of the rate of growth in revenue
which we expect to manifest itself into a step change in 2027 with further
acceleration into 2028.

"The transformation within the Company has been radical, effective and has
given the business new energy and purpose - it was an aggressive timeline to
complete the process by year end - but it has been completed. We look to the
future with a clear vision and confidence to be known as the supplier who can
"Secure the Logistics of People and Product"".

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             0203 829 5000

 Investment Banking - Mike Coe/Darshan Patel

 

Information on Touchstar plc can be seen at: www.touchstarplc.com
(http://www.touchstarplc.com/)

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