Defence Holdings (ALRT) H1 2024 earnings summary

Executive summary

• Loss before tax reduced by 21% to £1.8m for H1 2024, driven by a 38% reduction in administrative expenses.

• Revenue declined to £2.1m from £3.7m year-over-year, impacted by a challenging macroeconomic environment and absence of a one-off tournament win.

• Guild Studios revenue surged 537% to £586k, establishing a significant new revenue stream.

• Net cash position was £17k at 31 March 2024, rising to £110k by 25 June 2024.

• Strategic investments and partnerships, including £500k from 00Nation AS and sponsorship extensions, supported international expansion and brand integration.

Financial highlights

• Gross profit for H1 2024 was £1.39m, down from £2.54m in H1 2023.

• Administrative expenses fell to £2.64m from £4.28m year-over-year.

• Operating loss improved to £1.68m from £2.16m in H1 2023.

• Basic and diluted EPS was (0.26)p, compared to (0.44)p in H1 2023.

• Cash used in operations was £630k, a significant improvement from £1.46m in H1 2023.

Outlook and guidance

• Cost-cutting and Guild Studios growth achieved despite sector headwinds.

• International expansion, especially in MENA, is progressing well.

• Board remains cautiously optimistic for the remainder of 2024 and beyond.

• Diversification of revenue streams and reduced reliance on sponsorship and tournament winnings are key strategic focuses.