PCI-PAL (PCIP) H1 2025 earnings summary

Executive summary

• H1 FY25 revenue rose 26% to £10.575m; underlying growth was 13%, reflecting prior-period revenue deferral.

• Record new-business sales: ACV increased 19% to £1.91m, with partners generating 77% of new-logo ACV.

• Adjusted PBT was £0.198m and adjusted EBITDA £0.949m, compared with losses in H1 FY24.

• Exit ARR grew 21% to £16.75m; recurring revenue represented 91% of total.

• Renewed the Department for Work and Pensions contract for an initial three years, worth over £5m, with an option for a further three-year term.

Financial highlights

• Revenue was £10.575m vs £8.419m in H1 FY24; gross profit was £9.470m vs £7.479m.

• Adjusted EBITDA was £0.949m vs a £0.070m loss; adjusted operating profit was £0.175m vs a £0.735m loss.

• Gross margin improved to 89.6% from 88.8%; recurring revenue rose to 91% from 89%.

• Adjusted PBT was £0.198m vs a £0.735m loss in H1 FY24; comparatives were restated.

• Administrative expenses increased 8% to £9.78m, reflecting ongoing investment.

Outlook and guidance

• New-business momentum continued into H2; ACV reached £2.7m by the end of February 2025, with a growing 12-month pipeline.

• Accelerating customer deployments is key to converting contracted sales into recognized revenue and meeting FY25 objectives.

• Plans include international expansion, new products and selective M&A to complement organic growth.

• A data-platform reporting suite is expected in H2 FY25; voice and chatbot API availability is expected by summer 2025, with in-product AI later in 2025.

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