Defence Holdings (ALRT) H1 2025 earnings summary

Executive summary

• Completed a strategic transformation from esports to defence technology, including a full divestment of esports assets and liabilities, and a rebrand to Defence Holdings PLC.

• Launched a five-year strategic plan (2025–2030) focused on AI-driven, software-defined defence solutions across four technology pillars: drone warfare, AI agents, information warfare, and critical infrastructure defence.

• Raised £3.45 million in an oversubscribed placement to fund the new strategy, with significant board participation.

• Installed a new leadership team and board with deep defence, AI, and national security expertise.

Financial highlights

• Revenue declined from £5.53 million (2023) to £4.33 million (2024), reflecting the exit from esports.

• Operating loss reduced from £4.25 million to £2.90 million; net loss after tax improved from £4.50 million to £1.25 million.

• Earnings per share improved from a loss of (0.82)p to (0.16)p.

• Other income of £2.13 million, including a £942k gain on asset sales.

• Total assets dropped from £5.55 million to £121k; liabilities fell from £5.78 million to £741k.

• Cash reserves decreased from £459k to £15k by year-end.

Outlook and guidance

• Entering FY2025 with momentum, a clear vision, and foundational infrastructure to execute the new strategy.

• Priorities include delivering operational milestones across technology pillars, recruiting top technical talent, building a defensible IP portfolio, and engaging with UK/EU defence procurement.

• Committed to scaling responsibly with a lean, capital-efficient model.