PCI-PAL (PCIP) H1 2025 earnings summary

Executive summary

• Achieved record new business sales and strong operational performance in the half-year, with significant progress on the product roadmap and successful resolution of a major patent case.

• Revenue grew 26% year-over-year to £10.57m for H1 FY25, with recurring revenues at 91% of total.

• Transitioned to profitability, entering a new growth phase with a focus on expanding the platform and product offerings.

• Maintains a robust partner ecosystem, with over 700 customers and a strong presence in the UK and North America.

• Record new business sales with ACV up 19% to £1.91m; strong partner ecosystem contributed 75% of new customers.

Financial highlights

• Revenue increased 26% year-over-year, with underlying normalized growth at 13% due to prior period revenue deferral.

• Annual Recurring Revenue (ARR) grew 21% to £16.8 million; Total Annual Contract Value (TACV) up 16% to £20.3 million.

• Achieved group profitability with profit before tax of £175,000 and gross profit margin of 89.6%.

• Gross margin improved to 90% from 89% year-over-year.

• Cash balance of £4 million at period end, with access to an undrawn £3 million HSBC facility.

Outlook and guidance

• Strong start to the second half with continued new business sales momentum and a growing 12-month pipeline.

• Focus remains on driving deployments and revenue recognition to meet ARR and top-line targets while maintaining profitability.

• Plans to expand internationally, launch new products, and consider selective M&A to complement organic growth.

• Ongoing three-year plan refresh, with directional guidance provided in the interim update.

• Board remains confident in delivering near-term objectives and scaling over the next 3-5 years.