26 June 2025

Built Cybernetics plc (formerly Aukett Swanke Group Plc)

("Built Cybernetics", the "Company", or, together with its subsidiaries, the "Group")

Interim results
For the six months ended 31 March 2025

Built Cybernetics (AIM: BUC), the Smart Buildings group, is pleased to announce its interim results for the six months ended 31 March 2025.

Highlights

·      Revenue from continuing operations increased 12% to £10.6 million (2024: £9.5 million)

·      Trading loss for the period reduced to £0.1 million (2024: £0.8 million)

·      Post tax loss of £0.1 million (2024: £1.3 million)

·      Smart Buildings revenues up 30% to £6.0m on organic growth, aided by cross selling from architecture

·      Smart Core deployed at a 0.9 million sq ft City site taking total deployment past 2 million sq feet of commercial floorspace across 14 countries

·      Veretec shows good top line growth

·      Improved performance of our German investments

·      Name change to demonstrate increasing scale of PropTech activities

Post period

·      Stronger second half underway in both the Smart Buildings and Architecture divisions

·      £140,000 raised from warrant exercise by main board directors/PDMR

Commenting, Chief Executive Nick Clark said,

"Our first half trading was substantially better than in the equivalent period last year, and that progress is continuing into the second half with significant positive contributions for the year as a whole expected from both the Smart Buildings and Architecture divisions."

For further information, please contact:

Built Cybernetics plc                                                                                                                           +44 (0) 20 7843 3001
Clive Carver, Chairman
Nick Clark, Chief Executive
Canaccord Genuity Limited, Nominated Adviser and broker                                                     +44 (0) 20 7523 8000 Stuart Andrews, Elizabeth Halley-Scott

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

An electronic version of the Interim Report is available on the Group's website www.builtcybernetics.com.

Chairman's Statement

Introduction

We are pleased to present these interim results covering the six months ended 31 March 2025.

The Group's performance in the period covered by these interim results was significantly better than the corresponding period ended on 31 March 2024, with turnover 12% ahead at £10.6 million and a much reduced loss before tax of £0.1 million compared to a loss before tax of £1.5 million in the corresponding period.

Key to the improved performance was the continuing progress at our Smart Buildings businesses, where turnover grew 30% to £6.0 million representing 57% of total turnover compared to 49% in the corresponding period.

Our continued transition to Smart Buildings

Our journey to become a leading provider of Smart Buildings services began in 2023 with the acquisition of Torpedo Factory Group. Acquisitions of Anders + Kern and ecoDriver followed but it was the acquisition of the Vanti assets in 2024 that has provided the impetus to expand our Smart Buildings activities.

The integration of these acquisitions has been completed and we are again looking to expand to accelerate our growth. The ever-increasing costs associated with being a Group with a London Stock Exchange quotation means we cannot sensibly stay as we are.

Outlook

Our intention is that our Smart Buildings activities, and in particular revenues associated with our Smart Core software, will come to form the dominant part of the Group's revenue and profits.

Clive Carver

Non-executive chairman

25 June 2025

Chief Executive's report

Introduction

The six months under review was a period of change - not least that we rebranded during the period, from Aukett Swanke Group Plc to Built Cybernetics plc, to better reflect the Group's focus on its Smart Buildings strategy.

The much-reduced overall loss reflects both our Smart Buildings and Architecture divisions trading profitably before central costs, although the Aukett Swanke business continued to suffer from commencement delays in projects that had been won. As noted below that situation is now much improved.

Actions taken over the past 12 months to address the cost base have started to work through to our published results. Inevitably, it has taken a while to adjust, but by the end of the period under review the benefits are clear, in that we are now a leaner business focused on profitable growth.

The Group's performance has in recent years been skewed towards the second half of the financial year and we expect that pattern to continue this year with stronger performance in both our Smart Buildings and Architecture divisions.

Overview

Smart Buildings

Our Smart Buildings business is increasingly based around our suite of proprietary software products, including Smart Core, and a range of supporting activities.  Additionally, our ecoDriver business provides energy management services and our master systems integration business links different building systems together and delivers immersive audio visual and staging experiences. In total 69 staff worked in our Smart Buildings division at the period end.

The Smart Buildings division reported revenue 30% higher at £6.0 million and profit before central costs of £267,000.

Vanti

In the period under review Vanti revenue grew by 40% to £4.0 million, helped by a full contribution from the Vanti assets acquired in March 2024, and TFG Stage Technology revenue was at £1.6 million up 54% on the corresponding period.

At the start of the period under review Torpedo Factory Ltd rebranded to Vanti and completed the relocation from Acton to Birmingham, following the sale of our freehold property to reduce debt and improve operating efficiencies.

Project highlights during the period include:

·      Informa's Dubai office - a landmark smart building installation.

·      A significant commercial development in the City of London.

·      For TFG Stage Technology, the successful delivery of technical systems for the newly rebuilt Sainsbury Wing at The National Gallery.

Vanti has continued to strengthen its commercial model through the development and deployment of Smart Core, our proprietary building operating system. This IP-led platform approach complements our core systems integration services.

This strategic shift towards platform-based delivery enhances client value by enabling greater automation and building intelligence. It also supports margin expansion through recurring revenue streams such as software licences, and service and support contracts.

Following the period end, Vanti has been in discussions with two prospective clients and is confident of securing significant contracts for system integration work with Smart Core licences, bringing both one off and recurring revenue streams, both with clients known to the Architecture businesses. Additionally, Vanti has internally launched "The AI-Powered Integrator", a transformation programme aimed at driving operational efficiency and embedding artificial intelligence into daily operations to accelerate innovation and productivity.

ecoDriver

ecoDriver delivered marked progress with 30% revenue growth compared with the prior period, and an approximately unchanged loss. It was aided by a maturing sales pipeline and several NHS contract wins delivered at short notice in March 2025. It continues to build recurring revenue streams and strategic partnerships have begun to convert into secured opportunities, demonstrating the effectiveness of a channel-led approach.

On the technology front, the launch of EDDIE its retrieval-augmented generative AI chatbot has been well received. It links to users' specific building energy data and local weather conditions, and its advice allows the team to serve more customers than would otherwise be the case. Significant upgrades to the EDDIE platform since the period end have enhanced system intelligence, responsiveness, and user contextualisation - strengthening the value proposition.

The development of a new management portal has also improved customer control and operational efficiency. These advancements collectively position ecoDriver for sustainable, scalable growth for the rest of this financial year and beyond.

Architecture

Our architecture division comprises Veretec, an executive architecture business, and Aukett Swanke, a full service design business.  Additionally, we hold equity investments in, and receive dividends from, two German architects where we report our share of their profits and the management recharges received, rather than including their revenue and associated costs in our reported results.

In total an average of 89 full time equivalent ("FTE") technical staff worked in our UK Architecture division, supported by 11 FTE administrative staff during the period. However, with recruitment progressing following significant increase in workload, we expect FTE technical staff to exceed 100 for the final quarter of the year to September 2025.

Our UK Architecture businesses reported combined turnover 4.5% lower at £4.56 million with profit before central costs at £75k. This masks differing performances within the two businesses.

Veretec

Veretec our executive architecture brand continues to grow both its revenue and profit before central costs, delivering a 15.7% growth in revenue to £3.42 million.

In the period under review it delivered the 41 Lothbury project, creating additional office accommodation whilst refurbishing the existing Grade II* listed former bank in the heart of the City.

Additional significant projects secured in the period include the delivery of a 36-home redevelopment of a one-hectare site on Hampstead's well-known and exclusive The Bishops Avenue.

Veretec's specialist offering is in great demand which is powering its continued growth. They were thrilled to be placed in the AJ100 in their own right - this is the Architects' Journal's list of the largest architecture practices in the UK. Veretec have been ranked at number 73, and are bigger now than the end December position on which the ranking was assessed, so look set to climb further next year.

Aukett Swanke

Aukett Swanke struggled in the period under review, with revenues falling by 37.4% to £1.14 million, principally as the result of extended delays in confirmed projects starting.

With a small number of potentially large projects, the performance of Aukett Swanke is vulnerable if the timing of these projects create gaps in workflow. Delays to the start dates for confirmed projects continued to be a problem during the period under review.  However, I am pleased to report that during the second half this has been resolved, with a sizeable new build hotel project in MidTown London receiving funding after a two year gap, a major interiors project for a landmark City building getting the go-ahead following delays from a change in management, and a new project with an immediate start arriving with minimal forward visibility. This has transformed Aukett Swanke's order book and prospects, with the strong forward momentum set to continue into the new financial year.

Aukett Swanke is also a valuable bridge to the decision makers for new smart buildings projects and has already introduced several valuable opportunities for Vanti.

German investments

In the period under review our German architecture investments traded profitably contributing £154,000 before management charges compared to a £14,000 loss in the corresponding period.

Dividends received in the period of £83,000 are 23% lower than in the corresponding period due to the timing of the Frankfurt annual dividend, which was received in the first half of the year last year. Management recharges received in the period of £64,000 were £2,000 lower than the corresponding period due to foreign exchange movements.

Group costs

Group costs fell by 12.4% to £0.6 million largely as the result of lower professional fees. While our bank debt is low, the continued repayment of the remaining facilities across the period to summer 2026 creates a drain on cash, and our project-based turnover means there can be relatively large swings in our cash position intra-month. Vanti draws on a trade finance facility, and has access to significant additional short term lending facilities, but these are drawn relatively sparingly as they are an expensive form of debt.

Continued growth

As noted in the chairman's statement, with the costs associated in maintaining a public quote for the Group's shares there is no point staying as we are.  We need to continue to grow.

While much of this growth can come from the development of our existing Smart Buildings activities, and in particular the development of the Smart Core software, we plan to make further acquisitions to build out our Smart Buildings presence. As the largest shareholder I am acutely conscious of the need to avoid dilution by issuing shares at unattractive prices, but we do see opportunities for earnings-enhancing acquisitions.

To that end the Board considered a number of potential acquisitions during the period under review but for various reasons none progressed to agreed heads of terms.

Outlook

We expect second half trading in both our divisions to be stronger than both the first half of this year and the second half of last year leading to a much better full year performance than last year.

We expect notable contract wins in both divisions, which in addition to their financial benefits are expected to highlight the Group's capabilities and aid further organic growth.

We continue to review a number of prospective acquisitions, to develop Smart Core, and to increase the rate of deployment of Smart Core and ecoDriver.

Nick Clark

Chief Executive

25 June 2025

Consolidated income statement

For the six months ended 31 March 2025

Consolidated statement of comprehensive income

For the six months ended 31 March 2025