UK's Touchstar H1 revenue flat, gross margin falls
UK's Touchstar H1 revenue flat, gross margin falls
Overview
UK technology provider's H1 2026 revenue was flat yr/yr, while recurring revenue grew 4.6%
Gross margin declined due to expensing development salaries and salary inflation
Adjusted EBITDA fell sharply from a year earlier
Outlook
Touchstar expects H2 2026 revenue to be slightly lower than H1 2026
Company anticipates FY 2026 loss will be lower than previous market expectation
Touchstar aims to return to profitability in 2027
Result Drivers
ACCOUNTING CHANGE - Co said gross margin declined mainly due to expensing development salaries following impairment of intangible assets
SALARY INFLATION - Co said salary inflation and higher employer National Insurance contributions further reduced gross margin
COMMERCIAL MODEL TRANSITION - Co said shift to office-based internal sales structure moderated short-term order intake and revenue growth
Company press release: ID:nRSb4411Wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Gross Margin |
| 46.40% |
|
H1 Loss Per Basic Share |
| GBP 0.01 |
|
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)