AdvancedAdvT (ADVT) H2 2025 earnings summary

Executive summary

• Revenue for the year ended 28 February 2025 was £43.3m, up from £21.1m for the 8 months to 29 February 2024, with recurring revenue at 80.3% of total revenue.

• Adjusted EBITDA reached £11.3m, exceeding management expectations, and pre-tax profit from continuing operations was £11.3m.

• Proforma organic revenue grew 17.8% and adjusted EBITDA rose 90% year-over-year for acquired businesses.

• Cash at year-end was £88.5m, supporting ongoing M&A and operational initiatives.

• Three acquisitions completed: Celaton (inSTREAM), HFX Limited, and GOSS Technology, expanding SaaS and digital transformation capabilities.

Financial highlights

• Recurring revenue was £34.8m, up from £16.3m in the prior 8-month period, representing 80.3% of total revenue.

• Adjusted EBITDA margin improved to 26.0% from 20.0% in the prior period.

• Free cash flow from continuing activities was £11.6m, up from £4.4m in the prior period.

• Basic and diluted EPS was 8p, compared to 5p in the prior period.

• Net finance income was £3.9m, up from £2.3m year-over-year.

Outlook and guidance

• Trading in the new financial year remains in line with management expectations, with continued contract wins and successful integration of recent acquisitions.

• The group is well-positioned for further disciplined, synergistic, and accretive M&A, supported by strong cash reserves and a 9.8% stake in M&C Saatchi plc.

• Ongoing investments in technology and process optimisation are expected to drive further operational efficiency and growth.