Defence Holdings (ALRT) H2 2025 earnings summary

Executive summary

• Completed a major strategic transformation, selling all esports assets and liabilities to DCB Sports LLC in October 2024, removing over £2 million in liabilities and generating £100,000 in cash proceeds.

• Rebranded as Defence Holdings plc in May 2025, shifting focus to AI-driven defence technologies and launching a five-year strategic plan targeting drone warfare, AI agents, information warfare, and critical infrastructure defence.

• Raised £3.45 million via an oversubscribed placing and subscription to support the new strategy, with non-executive directors contributing £350,000.

Financial highlights

• Revenue for the 18 months ended 31 March 2025 declined 21.5% to £4.33m (2023: £5.53m).

• Operating loss reduced to £2.97m (2023: £4.25m).

• Net loss for the period was £1.28m (2023: £4.50m).

• Gross profit was £3.13m (2023: £3.99m); gross margin improved due to cost reductions.

• Basic and diluted EPS was (0.17)p (2023: (0.82)p).

• Cash and cash equivalents at period end were £69k (2023: £459k).

Outlook and guidance

• Five-year strategic plan (2025–2030) aims to establish leadership in software-defined, AI-driven defence solutions.

• Funding will support recruitment, prototype development, pilot programs, and research partnerships.

• No profit forecasts provided; business plan sensitive to defence sector spending, technology timelines, and regulatory changes.