AdvancedAdvT Limited

Financial Results for year ended 28 February 2026

AdvancedAdvT Limited (LSE: ADVT, "AdvT", the "Group"), the international software solutions provider for the business solutions, compliance, and human capital management sectors, announces its audited results for the twelve months to 28 February 2026.

Financial Highlights

·      Revenue increased 23% to £53.4m (2025: £43.3m).

·      Recurring revenue grew 24% to £43.2m representing 81% of total revenues (2025: £34.8m and 80%).

·      Adjusted EBITDA¹ was up 28% to £14.5m, (2025: £11.3m).

·      Pre-tax profit before fair value movements on financial assets of £13.4m up 21% (2025: £11.1m).

·      Reported basic EPS (impacted by fair value movements): 3.4p (2025: 8.2p). Basic EPS on adjusted operating profit²: 10.5p (2025: 8.5p).

·      Cash of £96.2m at 28 February 2026 (29 February 2025: £88.5m).

Operational Highlights

·      Acquired HFX Limited ("HFX"): a cloud based workforce management SaaS product, broadening coverage across enterprise and SME customers and supporting migration pathways to cloud adoption in May 2025 for £5.0m net of cash acquired.

·      Acquired GOSS Technology Group Limited ("GOSS"): a scalable, low code digital platform enabling public sector organisations to deliver digital transformation and improved citizen engagement platform in May 2025 for £7.4m net of cash acquired.

·      Acquired MatchingCore intellectual property for professional services, a leading AI driven resource optimisation capability in December 2025 for £0.5m. This acquisition is intended to accelerate the delivery of advanced AI functionality within the Group's workforce and resource management platforms and to expand addressable market opportunities in professional services use cases.

·      Launched a share buyback programme (March 2026), with 4,869,000 Ordinary Shares repurchased and held in treasury as at 24 June 2026.

·      Operational improvements: Continued execution of efficiency and performance initiatives across acquired businesses.

·      Business Solutions: Deepened engagement in regulated, mission-critical environments, with strong renewals, measured platform modernisation, and improving professional services delivery readiness.

·      Human Capital Management: Accelerating SaaS migration and new business, supported by investment in product roadmaps, customer success, and refined go-to-market strategies and operations.

·      Market demand / positioning: Digital transformation demand remains structurally positive, especially where customers need trusted systems of record with governance, auditability and control under productivity pressure.

·      AI & automation approach: Embedding AI/automation into core workflows to remove friction, automate repetitive tasks, and improve insight while preserving data integrity and regulatory assurance.

·      Cloud momentum & product differentiation: Cloud adoption remains in demand (new and existing clients), with recent releases strengthening capability in skills, matching, and multi-department resource planning, reinforcing the need for ongoing innovation and clear roadmaps as expectations evolve (including AI-enabled workflows).

Vin Murria, AdvancedAdvT's Executive Chairperson, said

"The Group has delivered strong progress during the year, with revenue from operations increasing to £53.4m and Adjusted EBITDA rising to £14.5m, ahead of management expectations. This performance reflects continued operational focus, high renewal activity, the expansion of recurring and multi-year revenues, and growing customer demand for dependable software that supports digital transformation in complex and regulated environments. Many of the workflows we support are deterministic, mission-critical systems where accuracy, resilience and control are essential, and where successful modernisation requires deep domain skills, long operating experience and practical understanding of customers' processes. We are investing in AI and automation in a practical and commercially grounded way, embedding capability into trusted systems of record to help customers remove friction, improve productivity, strengthen insight and maintain governance and auditability. We see a significant opportunity ahead as customers continue to modernise critical workflows through SaaS, cloud, AI and automation-enabled solutions. Following the acquisitions of HFX, GOSS and the MatchingCore intellectual property, and with cash of £96.2m at the year end, the Group remains well positioned to pursue disciplined organic investment and selective acquisitions that support long-term growth."

¹ Adjusted EBITDA is EBITDA before acquisition expenses and exceptional gains or costs, as defined in Alternative Performance Measures (note 3).

² Basic EPS on adjusted operating profit is adjusted EBITDA less depreciation, divided by the weighted average number of ordinary shares.

The full final results will be published on the Company's website shortly.

Enquiries:

AdvancedAdvT Limited

Vin Murria, Chairperson

Gavin Hugill, Chief Financial Officer

Singer Capital Markets (Nominated Adviser and Broker)                                  Tel: 020 7496 3000

James Moat / James Fischer

KK Advisory (Investor Relations)                                                                             Tel: 020 7039 1901

Kam Bansil

Note to Editors

AdvancedAdvT Limited (AdvT) provides software solutions and platforms across two business transformational areas: business solutions & healthcare compliance, and human capital management.

AdvT is an agent for change. The Group enables the delivery of Artificial Intelligence ("AI"), data analytics and business intelligence, all of which are key future drivers for growth in these sectors where long term digitisation trends are set to transform the workplace for professionals.

AdvT is developing both organically and through acquisitions, by expanding its presence across adjacent markets, geographical boundaries and digital sectors.

Chairperson's statement

I am pleased to share that in the year ended 28 February 2026, the Group made excellent progress in executing on its strategy which is centred around backing sectors characterised by long term AI, automation, digital transformation and data analytics and business intelligence trends. Across both operating divisions, management teams remained focused on execution quality, product progression, customer delivery, service reliability and disciplined pipeline conversion, whilst always open to the impact of outside market developments.

In the current market context, investors are rightly focused on the potential impact of AI on software value. No organisation can be immune to disruption risk, however our businesses typically win and retain customers because they embed decades of domain expertise, workflow depth, regulatory understanding and integration into mission‑critical processes. These characteristics create high switching costs and a defensible "system of record" position for many customers, where data governance, trust and auditability are mandatory and where buyers prefer predictable, supportable and compliant solutions.

Importantly, AI is a potential multiplier for solutions like ours. As AI copilots and agents are plugged into trusted systems of record, they can help users complete tasks faster; automate previously uneconomic activities and improve compliance outcomes, without compromising governance or control. In the public sector in particular, adoption is often cautious and policy‑driven, which naturally favours established suppliers with proven resilience, support models and long operating histories in regulated environments.

Across our markets, demand for digital transformation remains structurally underpinned by the need to modernise complex, regulated workflows while maintaining governance, auditability and operational resilience. Our focus is to support through the active use of technology those customers who continue to face sustained productivity pressure, workforce constraints and heightened regulatory scrutiny.  We do this by reinforcing the importance of trusted systems of record rather than point solutions.

During the year, we saw this translate into continued engagement across both operating divisions, with strong renewal activity, contract expansions and increasing interest in cloud and automation‑enabled capability. The underlying need to simplify and automate mission‑critical processes has not diminished. In this context, customers are prioritising vendors with demonstrable domain expertise, long operating histories in regulated environments and clear product roadmaps that balance innovation with risk management.

The Board remains confident that these dynamics align well with the Group's portfolio and long‑term strategy, providing a supportive backdrop for disciplined organic development alongside selective, value‑enhancing acquisitions.

Since 2023, the Group has carried out a number of acquisitions, including the original carve-out of 5 entities from Capita plc, which has greatly expanded both our platform and our capabilities.

Upon acquiring each business, we unlock value by focusing on standardising and simplifying processes to adopt best practices and improve go-to-market strategies and operations.

The Group's strategy is centred on the disciplined development of software businesses that operate at the heart of customers' critical processes. Our focus is on retaining and deepening long‑standing customer relationships, supporting measured modernisation through cloud and automation, and selectively extending capability through acquisition where this accelerates delivery or broadens addressable markets.

Organic progress is driven through a combination of high renewal rates, targeted platform enhancements and careful expansion of use cases within existing customer estates, particularly where modernisation and automation can deliver clear operational benefits. This is complemented by a selective M&A approach, targeting businesses with strong recurring revenue characteristics, embedded customer relationships and technologies that can be integrated pragmatically into the Group's operating model.

This balance between organic development and acquisition reflects a long‑term approach to compounding value, prioritising quality of execution, resilience and sustainability over short‑term optimisation.

The management team's experience in software and services, along with their track record in mergers and acquisitions, provides a strong foundation for future expansion.

The Group's performance is measured through a set of core financial metrics, including recurring revenue, adjusted EBITDA, and free cash flow. These indicators serve as benchmarks in gauging our progress, ensuring alignment with our overarching strategic objectives and commitment to delivering sustainable value to our stakeholders.

The Group continues to hold a 9.8% stake in M&C Saatchi plc.

Current trading and outlook

Entering the new financial year, the Group is encouraged by the level and quality of customer engagement across the portfolio. Activity to date reflects ongoing demand for dependable, mission‑critical software that supports automation, insight and governance in complex operating environments.

While macroeconomic and policy uncertainty continues to influence the pace of decision‑making for some customers, particularly in the public sector, management remains focused on execution quality, delivery readiness and disciplined pipeline conversion. Integration of recent acquisitions is progressing as expected, and ongoing investment in product, technology and operational capability is being managed within the Group's established capital allocation framework.

Taking these factors together, the Board remains confident in the Group's ability to deliver sustainable progress, supported by strong cash generation, improving revenue visibility and a balanced approach to organic development and selective acquisition.

Overall, the Group is trading in line with the management's expectations. 

Financial highlights

The Group reported revenues from operations of £53.4m in the year under review (2025: £43.3m), with recurring revenue of £43.2m representing 81% of total revenue (2025: £34.8m and 80%). Adjusted EBITDA from continuing operations was £14.5m (2025: £11.3m), which was ahead of management expectations. The Group ended the period with cash of £96.2m (2025: £88.5m).

The Group's operational performance has strengthened materially since admission, underpinned by high renewal rates, targeted platform enhancements, contract expansions and the adoption of best practices that continue to drive operational improvement across the portfolio. Since the platform acquisitions in 2023, this has resulted in revenue increasing from £34.9m to £53.4m for the 12 months to February 2026, alongside an expansion in adjusted EBITDA margin from 16% to 27%, and an increase in recurring revenue as a proportion of total revenue from 75% to 81%, this has resulted in a basic EPS on adjusted operating profit of 10.5p for the 12 months to February 2026 (2025: 8.5p) (see table 1 and note 5).

The Group has continued to implement operational improvements throughout its businesses, boosting performance and long-term potential. The Group has updated its go-to-market strategies to leverage the investments in SaaS and software solutions.

M&A

There was significant M&A activity during the year, including due diligence, successful completion and integration of three acquisitions (two businesses and one intellectual property). Other potential acquisitions advanced but discussions ended due to issues with strategic fit, timing, or value. We continue to evaluate opportunities based on mission-critical software, recurring revenue, strong customer relationships, and clear value creation potential.

In May 2025, the Group completed the acquisitions of GOSS and HFX.

GOSS expands the Group's Business Solutions capability with a scalable, low‑code digital platform enabling public sector organisations to deliver digital transformation and improved citizen engagement and also strengthens integration potential across the Group's enterprise software footprint. Consideration for GOSS comprised approximately £8.5m in cash from existing resources and approximately £5.0m in Ordinary Shares. After accounting for £6.1m of cash acquired, the net consideration was approximately £7.4m.

HFX complements the Group's Human Capital Management offering with a cloud‑based workforce management SaaS product, broadening coverage across enterprise and SME customers and supporting migration pathways to cloud adoption. Total consideration was £5.0m net of cash acquired of £0.6m, of which £2.3m is deferred over two years.

In December 2025, the Group also acquired the MatchingCore intellectual property for professional services, a leading AI‑driven resource optimisation capability. This acquisition is intended to accelerate the delivery of advanced AI functionality within the Group's workforce and resource management platforms and to expand addressable market opportunity in professional services use cases. MatchingCore applies holistic optimisation to workforce scheduling and scenario planning, helping customers improve utilisation, increase productivity and support more informed, data‑driven decision‑making at scale.

With substantial cash reserves (£96.2m as at 28 February 2026), and our investment in M&C Saatchi plc (valued at £15.4m as at 28 February 2026), we remain well-positioned, with significant available capital, to pursue disciplined M&A while retaining flexibility over capital allocation.

Our capital allocation approach continues to balance investment in product, technology and talent with selective acquisitions that extend capability, strengthen integration across the portfolio and enhance the Group's long‑term compounding potential. In addition, we remain focused on delivering value to our shareholders through disciplined capital management, including actions targeting investor returns.

In March 2026, the Board announced the launch of a share buyback programme to purchase up to £10.0m of the Company's Ordinary Shares over a 12‑month period. The Board believes that, at prevailing market prices, a buyback represents an attractive and responsible use of capital alongside continued investment in the portfolio. The programme is being executed by Singer Capital Markets on the Company's behalf, with trading decisions taken independently of the Company. Any shares acquired may be held in treasury (for example, to satisfy future obligations under employee share schemes or as consideration for acquisitions) or may be cancelled. In addition to the Buyback Programme, the Board is considering a further substantial return of capital to Shareholders, potentially by way of a tender offer, but will continue to assess all available capital allocation options, including a tender offer, alongside, or as an alternative to, on‑market buybacks.

As at 24 June 2026, the Company had repurchased 4,869,000 Ordinary Shares under the programme, which are held in treasury, representing an aggregate consideration of approximately £7.8m. The Company's issued share capital remains 137,125,806 Ordinary Shares, with 132,256,806 Ordinary Shares carrying voting rights (being the issued share capital less treasury shares). The programme contains customary price and volume parameters, including that the maximum price paid will not exceed 105% of the average middle market quotation for the five business days preceding a purchase.

M&A continues to be central to the Group's strategy, focusing on businesses that align closely with our management team's vision and demonstrate key characteristics necessary to generate long-term value.

The Board will continue to evaluate each potential target against its acquisition criteria, seeking businesses with:

• high recurring revenue streams and good forward visibility.

• sticky customer retention.

• mission critical products and services.

• opportunities for both organic and inorganic growth.

• strong cash generation.

• sectors with high barriers to entry.

• highly fragmented industries with opportunities for consolidation.

Operational review

Our Business Solutions division continued to deepen customer engagement in regulated and mission‑critical environments, with progress characterised by strong renewal performance, measured platform modernisation and improving delivery execution. In parallel, Human Capital Management continued to balance stability in on-premise customer estates, displaying deep workflow and configuration characteristics, with accelerating SaaS and new technology adoption, supported by investment in product roadmaps, customer success and targeted go‑to‑market refinement.

In Business Solutions, demand for digital transformation remains structurally positive, particularly where customers face sustained productivity pressures and require "trusted" systems of record that support governance, auditability and control. This is especially evident in the public sector, where pockets of momentum are emerging in areas with strong demand for digital services. Nevertheless, progress across the sector is uneven, with delays in decision-making due to ongoing uncertainty around budgets and strategic priorities slowing adoption in other areas. These conditions present both opportunities and challenges, requiring a flexible and responsive approach to engagement and delivery. The Group's approach is to embed AI and automation into core workflows to remove friction, automate repetitive tasks and improve access to insight, while maintaining data integrity and regulatory assurance.

Within Human Capital Management, the Group continued to expand its customer base on cloud platforms, reflecting sustained market demand for modern workforce and resource management solutions. Alongside this migration, we maintained disciplined investment in new functionality and platform capability; focused on scalability, automation, reporting and AI‑enabled planning, while carefully managing investment risk and execution complexity.

Cloud adoption trends within Human Capital Management continue to grow, with both new and existing international clients adopting SaaS platforms to simplify processes and support standardised delivery. Investment in new capabilities and product enhancements have strengthened differentiated capability in areas such as skills, matching and multi‑department resource planning, creating scope for improved customer outcomes and more scalable deployment. The pace of technological change and evolving client expectations, including around AI‑enabled workflows, reinforces the need for ongoing innovation and clear product roadmaps.

The Group considers AI and automation opportunities by weighing potential benefits such as efficiency gains, ease of adoption and value against the scale of change and potential disruption involved, with the aim of delivering practical low risk and measurable outcomes for both the business and its customers. In Business Solutions, AI capability and natural language querying is being embedded directly into core finance workflows and automation libraries to accelerate processing and improve access to insight while preserving governance and auditability. In Human Capital Management, AI‑enabled capabilities are being applied to enhance resource allocation, skills and matching, and advanced planning, supporting improved utilisation and decision‑making for customers. We are also applying AI internally to improve build, test and release processes, supporting higher quality and cadence across product teams.

Across the portfolio, this reinforces the importance of continuing to invest in workflow depth, integration capability and the operational disciplines that underpin customer trust (service reliability, security, data governance and supportability). These are the factors that make replacement risk structurally lower than in less regulated, less embedded software categories, and they also provide a strong foundation on which AI‑enabled automation and premium capability can be adopted over time.

The Group has continued to build its Indian offshore development centre which is now established as an integral part of our product engineering capability. One year on from its original setup, the centre's headcount has grown to 37 colleagues and delivering high-quality enhancements and new capabilities that add incremental value to our existing products, with an original focus across the Human Capital Management portfolio and expanded to the whole portfolio during the year. Importantly, this capability represents a key element of the Group's investment in AI, enabling us to develop and deploy practical, customer-led AI and automation features that improve productivity and outcomes within trusted systems of record.

Importantly, our progress is underpinned by audited outcomes rather than aspiration. The Group has delivered continued EBITDA discipline, strong cash generation and a demonstrable shift in revenue quality toward higher‑visibility recurring income. These themes are reflected consistently through the Consolidated Financial Statements, including the composition of revenue, margin delivery and cash conversion, providing confidence that operational momentum is translating into durable financial performance.

CFO's Report

For the year ended 28 February 2026, the Group generated revenues of £53.4m, compared to £43.3m for the year to 28 February 2025.

Recurring revenues as a proportion of total revenue increased to 81%, up from 80% for the year to 28 February 2025. This performance reflects continued progress in shifting the mix toward higher‑visibility subscription and support income across both operating businesses, supported by disciplined renewal execution, targeted pricing and packaging improvements, and strong conversion of quality pipeline into multi‑year contracts. Notably, GOSS and HFX, both acquired during the year, had previously reported recurring revenues of 71% and 73% respectively, underscoring that the overall improvement in the Group's recurring revenue mix is more significant than the headline figure alone suggests.

The continued shift toward higher‑visibility recurring revenue remains a core feature of the Group's financial performance and is a key focus for management. This reflects disciplined renewal execution, ongoing migration toward subscription and cloud‑based arrangements, and a selective approach to pricing and packaging that aligns value delivered with long‑term customer outcomes.

Beyond reported results, management monitors a range of operational indicators to assess momentum and visibility, including renewal strength, pipeline quality and customer adoption patterns across new and existing platforms. These indicators provide confidence that activity seen during the year is not solely period‑driven but reflects broader engagement with customers as they progress modernisation and automation initiatives within constrained operating environments. While the timing of individual contracts can vary, particularly in regulated sectors, the overall profile of customer demand continues to support sustained progress in revenue quality and cash generation.

This Group's performance is reflected in the composition and quality of the revenues as reported in the notes to the consolidated financial statements. Within Business Solutions, renewed customer confidence translated into both net new wins and deeper engagement from existing customers through extensions, upgrades and adoption of practical AI and automation capabilities. Within Human Capital Management, growth continued to be driven by SaaS adoption and the progressive migration of customers from on‑premise arrangements to cloud subscription models, while maintaining near‑term cash generation and funding product investment.

Alternative performance measures