Amcomri (AMCO) H1 2026 earnings summary

Executive summary

• EBITDA rose to £4.7 million, up 7% year-over-year, with revenue reaching £42.4 million, a 33% increase compared to H1 2025, driven by strong demand in core markets and successful integration of acquisitions.

• Major project wins and acquisitions, including GridCore, NTS, and National Compliance and Testing, contributed to growth, while the divestment of Premier Limpet improved the balance sheet and strategic focus.

• The business model emphasizes acquiring mature SME industrial businesses in the UK and Ireland, focusing on operational improvement and sector expertise, with diversified exposure to defensive end markets.

• The group completed its first disposal, Premier Limpet, crystallizing a 28x return on invested capital and redeploying proceeds into higher-margin, strategically aligned acquisitions.

• Significant reduction in net debt and increased liquidity followed the Premier Limpet sale, supporting future acquisitions.

Financial highlights

• Revenue for H1 2026 was £42.4 million, up 33% year-over-year, with Embedded Engineering up 68% to £24.4 million and B2B Manufacturing up 4% to £18.0 million.

• Adjusted EBITDA increased to £4.7 million, up 7% year-over-year.

• Gross margin declined to 32.9% from 38.4% due to a major renewables project; excluding this, margin was stable at just over 38%.

• Net cash increased by £5.2 million, and net debt reduced from £11.3 million to £2.9 million.

• Profit on disposal of Premier Limpet was £5.5 million, boosting NPAT to £7.3 million and EPS to 10.1p.

Outlook and guidance

• Trading remains in line with market expectations, supported by recent acquisitions, a strong acquisition pipeline, and diversified end markets.

• Continued demand and forward order coverage in electronics, aerospace, subsea, energy, and defence sectors.

• Management expects continued resilience and growth, despite global uncertainties and project timing variability.

• Anticipates incremental, not significant, increases in group overhead as scaling continues.

• Short-term issues in Embedded Engineering expected to normalize into 2027.