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INTRODUCTION

In the first half of FY25, Diales has continued to trade profitably, and has continued to focus on driving improvements in utilisation while facing challenging trading conditions across global markets. The Group is pleased to report positive progress in Q2 of H1 FY25 and can confirm that this momentum has continued into H2 FY25.

BUSINESS REVIEW

The Group's underlying* profit before tax for H1 FY25 has remained broadly constant at £0.7m (H1 FY24: £0.8m as restated after reclassifying the prior half year USA loss as discontinued) on stable revenue of £21.6m (H1 FY24: £21.6m**).

Satisfactory trading in Q1 FY25 was followed by stronger activity in Q2 FY25, with a higher level of commissions, meaning that the Group ended H1 FY25 close to plan and having sustained the performance achieved in the corresponding period in FY24.

The Group's four-year integrated strategy, launched in December 2023, continues to deliver value for clients and shareholders. The investment in digital tools, such as the real-time management information platform, continues to drive efficiency and enhance client service. The real time management information platform (previously tested by our European teams) is expected to be rolled out during H2 FY25, enabling more efficient reporting on utilisation and efficiency gains, due to daily time recording, and improved management reporting.

The uncertainty caused by the US Government's evolving plans for the imposition of tariffs on bilateral trade with its international partners is creating opportunity as clients seek strategic guidance on supply chain challenges and cost escalation claims, and we have already seen a significant positive impact on demand-side sentiment.

The Group is pleased to report that it has reached agreement to collaborate with Lupa Technology, a market leading data discovery platform, on commissions where the Group's teams need to be able to review and analyse significant volumes of data at speed. This enhances the Group's competitive positioning against its peer group across all its key markets, sectors and disciplines.

We are pleased to report that the Middle East region has delivered a significant improvement in operating profit of £0.5m in H1 FY25 (H1 FY24: £0.1m). This region is also now contributing work smoothly and seamlessly to the Group's central hub in Europe, thereby delivering further benefits for clients and shareholders as envisaged in the Company's transformation strategy. A strong pipeline of work in the Kingdom of Saudi Arabia is feeding opportunities through to our business in the UAE, and we are also winning more work from Qatar and

strengthening our presence there.

The EuAm region, our core business hub, continues to perform well overall, despite variable trading conditions. The previously announced closure of our New York office has been completed, and the North and South American markets are now being serviced efficiently and with agility via our network of offices in Canada and Madrid. Germany has had a steady H1 FY25 with some workload deferred to H2 FY25, meaning that our Munich office expects to finish FY25 on or close to plan. With an investment in new office space in the Netherlands, whilst the office has seen slightly lower levels of activity in H1 FY25 with work unexpectedly deferred to H2 FY25, the team remain on course to be at or close to plan for the full year.

The APAC market has experienced significant economic headwinds and uncertainty arising from US tariff protection. This, and an initiative in Singapore that failed to materialise, has led to the regional office in Singapore experiencing an operational loss during H1 FY25. Management has therefore taken early and decisive action to right-size the operational cost-base. The Group remains well positioned to expand its work with South Korean clients and looks forward to presenting at an industry conference in Seoul in the Autumn. Australia has also seen a less vigorous H1 FY25 than usual, but it has a positive pipeline of opportunity and is therefore well positioned to deliver in H2 FY25.

PEOPLE

Our people are our greatest asset, and we continue to attract and retain market-leading experts, including the successful hire of two new testifying experts in the period to bolster the expert witness team. Our commitment to diversity and strategic hiring strengthens our global capabilities. The Group continues to look actively for strategic additions to its teams across key markets.

In addition, the hiring of a Portuguese speaker into our Paris office, and the development of a close working relationship with a Portuguese expert services firm, have strongly supported the Group's collective expertise and capability in servicing its Brazilian clients.

TRADING PERFORMANCE

Group Revenue for the six months to 31 March 2025 remained stable at £21.6m, compared to the same period in H1 FY24 of £21.6m**. Whilst utilisation rates (excluding Driver Project Services) reduced marginally in the half year to 71.4% (FY24: 73.4%**), Q2 FY25 saw a much-improved rate, rising to 74.2% from 68.9% in Q1 FY25. Gross margin was lower in the project services subsidiary with a reduction of 3.7% year on year, due to increased direct costs driven by market forces. Overall, the Group reported underlying* operating profit before tax in H1 FY24 of £0.7m (H1 FY24: £0.8m**).

Revenue in the EuAm region remained stable at £17.3m (H1 FY24: £17.6m**) with revenue in the Middle East increasing to £2.8m (H1 FY24: £2.2m) and revenue in APAC decreasing to £1.5m (H1 FY24: £1.8m).

The EuAm region delivered an underlying* profit before tax of £2.3m (H1 FY24: £2.6m**) while the Middle East region reported an underlying* profit before tax of £0.5m (H1 FY24: £0.1m) and the APAC region reported an underlying* loss before tax of £0.1m (H1 FY24: profit £0.1m).

Underlying* basic earnings per share from continuing operations was 1.0p (H1 FY24: 1.4p**).

The Group had a net cash balance of £2.4m as at 31 March 2025 (FY24: £4.3m, H1 FY24: £3.6m). The movement is due mainly to £400,000 of dividends paid in H1 FY25, £165,000 under the Company's ongoing share buyback programme, tax payments and a net increase in trade receivables (expected to be received shortly). As at 31 May 2025, the Group's net cash balance was £2.5m post a further £400,000 of dividends paid on 10 April 2025.

The Group has recently put in place with Barclays Bank an overdraft facility of £1m which is unutilised.

DIVIDEND

The final dividend announced at the time of the results for the year to 30 September 2024 (0.75p per share) in December 2024 was paid in April 2025. Reflecting the Group's confidence in its medium-term prospects and its strong balance sheet position, the Board is pleased to recommend the payment of an interim dividend of 0.75p per share for 2025 (2024: 0.75p per share). The interim dividend will be paid on 24 October 2025 to shareholders who are on the register of members at the close of business on 19 September 2025, with an ex-dividend date of 18 September 2025.

CAPITAL ALLOCATION

The Group commenced an initial ordinary share buyback programme of £250k in June 2024 which completed in December 2024. In March 2025, the Group commenced a further programme of £100k, which is now nearing completion.

Over the last 12 months, the Company has returned c.£1.1 million to shareholders through a combination of share buybacks and dividend payments, reflecting the Board's ongoing commitment to prudent capital management and the delivery of shareholder returns.

In line with the aims of the Group's transformation strategy, and to achieve the best possible returns for shareholders, the Board continues to invest in organic growth and working capital requirements, evaluate potential acquisition opportunities and balance this against a continuation of the buyback programme.

OUTLOOK

Diales has made an encouraging start to H2 FY25 with the UK and, in particular, the Middle East, all performing strongly.

The US Government's tariff proposals and their likely effects may also be expected to support further uplift in demand for our services.

The Group benefited from strong trading in Q2 FY25, supported by improved utilisation, with this momentum flowing into H2 FY25. Anticipating a busier H2 FY25, the Board expects the Group to deliver full year results in line with market expectations.

Looking ahead, Diales is well positioned to capitalise on increased demand for dispute resolution and expert advisory services arising from global trade uncertainties. Our robust pipeline, strong balance sheet, and ongoing investment in talent and technology underpin the Board's confidence in delivering sustainable growth and value for shareholders.

*Underlying figures are stated before share-based payment costs

**Restated after reclassifying the prior half year USA loss as discontinued

Consolidated Income Statement

Interim report for the six months ended 31 March 2025

*Underlying figures are stated before the share-based payment costs and non-recurring operational costs (this is not a GAAP measure)

** Presentation of results restated to reclassify Diales USA as the operation discontinued in the 2024 financial year.

Consolidated Statement of Financial Position

Interim report for the six months ended 31 March 2025

Consolidated Cash flow Statement

Interim report for the six months ended 31 March 2025

Consolidated Statement of Changes of Equity

For the six months ended 31 March 2025 (Unaudited):

Consolidated Statement of Changes of Equity

For the six months ended 31 March 2024 (Unaudited):

Consolidated Statement of Changes of Equity

For the year ended 30 September 2024 (Audited):

1      BASIS OF PREPARATION

The consolidated interim financial information has been prepared using accounting policies which are consistent with those applied at the prior year end 30 September 2024 and that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2025. The financial information in this interim report is in compliance with the recognition and measurement principles of international accounting standards but does not include all disclosures that would be required under IFRSs and are not IAS 34 compliant. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2025 and 31 March 2024 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.

The comparative financial information for the year ended 30 September 2024 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2024 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2024 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The Financial Statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least twelve months from the date of approval of this financial report.

The Directors have prepared cash flow forecasts covering a period of more than 12 months from the date of releasing these financial statements. This assessment has included consideration of the forecast performance of the business for the foreseeable future and the cash and financing facilities available to the Group.

At 31 March 2025 the Group had cash reserves of £2.4m. Cash decreased by £1.9m from that reported at 30 September 2024 mainly due to dividend, tax payments and the planned share buyback programme.

The Directors have also prepared a stress case scenario that demonstrates the Group's ability to continue as a going concern even with a significant drop in revenues and limited mitigating cost reduction to re-align with the revenue drop.

Based on the cash flow forecasts prepared including appropriate stress testing, the Directors are confident that any funding needs required by the business will be sufficiently covered by the existing cash reserves. As such these Financial Statements have been prepared on a going concern basis.

2      TAXATION

The tax charge for the half-year ended 31 March 2025 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2025.

3      DIVIDEND

In view of the medium-term prospects for the Group along with the strong balance sheet position, the Board recommends the payment of an interim dividend of 0.75p per share for 2025 (2024: 0.75p per share).

During the period, the Group paid an interim dividend for 2025 of 0.75p per share (2023: 0.75p per share) and approved a final dividend for 2024 of 0.75p per share which was paid in April 2025.

4      POST BALANCE SHEET EVENT

There have been no significant events requiring disclosure since 31 March 2025.

5     SUMMARY SEGMENTAL ANALYSIS REPORTABLE SEGMENTS

For management purposes, the Group is organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). These divisions are the basis on which the Group is structured and managed, based on its geographic structure. The following key service provisions are provided across all three operating divisions: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. Segment information about these reportable segments is presented below.

6 EARNINGS PER SHARE

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