ARCONTECH GROUP PLC

("Arcontech" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, reports its unaudited results for the six months ended 31 December 2025.

Overview:

·        Revenue decreased by 4.7% to £1,439,382 (H1 2024: £1,511,346) with recurring revenues down by 3% and one-off revenues down by 69%

·        Recurring revenues represented 99% of total revenues for the period (H1 2024: 97%)

·        Adjusted EBITDA* decreased by 23.6% to £341,239 (H1 2024: £446,513) as the result of the revenue decrease noted above  and continuing investment in staff

(* adjusted ebitda is defined as operating profit before depreciation, amortisation, share based payments and releases of historic accruals relating to administrative expenses)

·        Profit before tax decreased by 23.8% to £394,622 (H1 2024: £518,166 )

·        Net cash of £7,774,037 at 31 December 2025, up 8.4% (H1 2024: £7,166,839)

Geoff Wicks, Chairman of Arcontech, said:

"With our strong pipeline we are confident that we will build back lost business and return to growth next year."

Enquiries:

To access more information on the Group please visit: www.arcontech.com

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Chairman's Statement

Arcontech's revenue was lower in the first half of this financial year with a net reduction in annual contracted revenue due to the loss of a long-standing customer and some downsizing coupled with a drop in one-off revenues. Churn is inevitable but we have been very successful maintaining our excellent customer base with a material proportion on multi-year contracts.

We are now unlikely to make up the recurring revenue loss in the year which has been further impacted by lower levels of one-off revenue. We noted in our last full year's statement that one-off revenue was exceptionally high and not expected to continue at the previous year's levels.

Overall, given our strong pipeline we expect the recurring revenue run rate to recover around the end of the financial year. We have won a prestigious new customer with another in the last stages of contract negotiation and while our pipeline is strong lead times continue to be long. There are a number of very good prospects in advanced stages of the sales process and we are seeing growth in some existing customers enbling us to remain confident about the future.

Revenue was £1.44 million, down 4.7% on the same period last year, Profit before tax ("PBT") was £0.39 million, down 23.8% on the same period last year. Profit before tax was £0.39 million, down 24% on the previous year.

Financing

Our balance sheet remains robust with net cash of £7.8 million, £0.6 million higher than at 31 December 2024. This strong position allows us to continue to invest in our development team to ensure the work needed to bring on new customers is done efficiently. It also supports our strategy to look for new areas of business in order to augment growth in our core market.

The Board's objective for capital allocation is to deploy the Company's financial resources in a manner that maximises long-term shareholder value while maintaining financial strength, flexibility, and investment capacity. We continue to assess our policy taking into account business performance, capital requirements and shareholder expectations.

Dividend

No interim dividend is proposed to be paid in respect of the half year. The Board expects to continue its policy of paying a dividend following the announcement of full year results.

Outlook

With our strong pipeline we are confident that we will build back lost business and return to growth next year.

Geoff Wicks

Chairman and Non-Executive Director

GROUP INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

All of the results relate to continuing operations and there was no other comprehensive income in the period.

* Before release of accruals for administrative costs in respect of prior years.

GROUP BALANCE SHEET

GROUP CASH FLOW STATEMENT

GROUP STATEMENT OF CHANGES IN EQUITY

NOTES TO THE FINANCIAL INFORMATION

The number of dilutive shares under option at 31 December 2025 was 38,618 (31 December 2024: 76,017; 30 June 2025: 63,570). The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is done to determine the number of shares that could have been acquired at the average market price during the period, based upon the issue price of the outstanding share options including future charges to be recognised under the share-based payment arrangements.

12. Leases

As a lessee, under IFRS 16 the Group recognises right-of-use assets and lease liabilities for all leases on its balance sheet. The only lease applicable under IFRS 16 is the Group's office.

The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position are as follows:

Contractual maturity analysis of lease liabilities as at 31 December 2025