Walker Crips Group (WCW) H1 2025 earnings summary

Executive summary

• Revenue rose 2.3% year-over-year to £15.8m, but the Group posted an operating loss of £1.68m and a pre-tax loss of £1.45m, reversing last year's profits.

• Adjusted EBITDA turned negative at £832k, compared to a positive £1.06m last year; underlying cash used in operations was £1.08m versus £1.61m generated previously.

• No interim dividend declared due to trading performance and capital requirements.

• Strategic initiatives include outsourcing back-office operations to BNY Pershing and strengthening compliance and risk management.

Financial highlights

• Gross profit increased 4.1% to £13.1m, but operating costs (excluding salaries and client redress) rose 24.5% year-over-year.

• Salary costs rose 13.1% due to market benchmarking; central unallocated costs increased 87.2% to £365k.

• Net cash position at £12.8m, down from £14.1m last year; net assets at £20.1m.

• EPS swung to a loss of 2.56p from a profit of 0.47p in the prior period.

Outlook and guidance

• Second half expected to remain challenging, but management anticipates strategic initiatives will support a return to sustainable profitability.

• Migration to Pershing targeted for the final quarter of the current financial year.