PCI-PAL (PCIP) Trading Update summary

Financial performance

• FY24 revenue expected at £18.0m, up 20% year-on-year, but £0.7m below Board expectations due to deferred revenue recognition for a specific project; this deferral benefits FY25 outlook.

• Adjusted loss before tax for FY24 is approximately £0.6m; adjusted EBITDA profit is around £0.9m, a significant improvement from the prior year's £1.1m loss.

• Adjusted free cash inflow reached £0.9m, reversing a £2.4m outflow in FY23; net cash at year-end stands at £4.3m.

• New business licence sales were £3.8m ACV, 10% lower than FY23, but new logo contracts increased by 13%, indicating stronger underlying sales momentum.

• Market consensus for FY24 was £19.1m revenue and £0.1m adjusted profit before tax.

Strategic and operational highlights

• Partner ecosystem expanded, with Zoom now a global reseller; integrated offerings available in North America and EMEA, resulting in several new customer wins.

• Signed a major new global reseller contract with a US-based business communications vendor, with the first customer already secured and a phased rollout planned over six months.

• Successfully resolved patent litigation as of June 2024, removing a significant distraction and risk.

• Continued focus on both organic and inorganic growth opportunities, supported by a strong balance sheet and positive cash flow.

Leadership commentary

• Board expressed disappointment over missing adjusted profit before tax due to revenue timing, but highlighted the positive swing to free cash inflow.

• CEO emphasized strong ARR growth, product enhancements, and partner additions, despite challenges from patent litigation.

• Leadership remains confident in future growth prospects and is focused on capitalizing on market opportunities.