16 sep 25   touchstar plc - interim results touchstar plc | tst | 87.0 0 0.0% | mkt cap: 7.09m    rns number : 4027z touchstar plc 16 september 2025   this announcement contains inside information for the purposes of article 7 of the uk version of regulation (eu) no 596/2014 which is part of uk law by virtue of the european union (withdrawal) act 2018, as amended ("mar"). upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.   16 september 2025   touchstar plc   (the "company", "touchstar" or the "group")   interim results for the six months ended 30 june 2025   "results in line with management expectations. significant transformation of the business in progress under new leadership"     touchstar plc ((aim: tst), a supplier securing the logistics of people and product to a variety of industrial sectors, is pleased to announce its interim results for the six months ended 30 june 2025 ("h1 25" and "period").   key financials   h1 25 h1 24 revenue £3,365,100 £3,377,000 recurring revenue £1,533,500 £1,496,000 gross margins 55% 59.1% operating (loss)/profit before exceptional costs*   £(155,000)   £254,000 adjusted eps** (0.96)p 2.82p adjusted ebitda** £235,000 £589,000 cash net of overdraft £2,002,000 £1,742,000 order book at end h1*** £2,520,865 £2,275,733 pre-tax profit £(176,000) £254,000 basic eps (1.22)p 2.82p proposed interim dividend per share 1.75p 1.50p   * refer to note 3 for definition ** adjusted for £21,000 exceptional costs. refer to note 5 for details *** includes booked recurring revenue   ·      order book at period end up 11% year-on-year to £2,520,865 ·      2025 results are expected to be second half weighted due to timing of major installations ·      recurring revenue accounted for 45% of total revenues ·      gross margins impacted by increases in direct salary costs, ni tax rises and product mix ·      balance sheet remains strong with net cash of £2 million and £260,000 cash generated in the period ·      increased investment in sales, technology and marketing impacted short term profitability ·      dividend increased 17% to 1.75p per share operational highlights   the opportunity for touchstar is to rapidly establish itself as the leading partner in secured logistics for customers, people and products. to achieve this ambition, the group has commenced a comprehensive restructuring of its business designed to drive efficiency, collaboration, focus, ownership and consistency - laying a strong foundation for sustainable growth. these measures reflect the board's ambition and include: ·      lynden jones appointed ceo to lead the transformation and growth of the business ·      production processes streamlined to improve efficiency ·      software development roles migrating from india to manchester ·      sales team restructured to improve customer engagement and enable cross-selling ·      analysis of acquisition targets underway to accelerate growth ·      identifying the next-generation product set that meets our brand promise ·      enhanced website and refreshed marketing materials to reinforce brand presence and deepen local engagement   commenting, ian martin, chair of touchstar, said:   "today, we are not only announcing our interim results but also beginning to unveil a more ambitious strategy, positioning the company as a leading partner in the secured logistics of people and products. under new leadership, there is renewed purpose, energy and determination to deliver on this vision.   "in 2025, our focus is on strengthening the foundations of the business and enhancing its growth prospects. we expect this phase of transformation to be substantially completed by the year end.   "the board expects a stronger second half, with full-year performance anticipated to be  in line with expectations. demand for our products and services continues to be strong. that said, much remains to be done. transformation is rarely linear; there will be challenges along the way. nevertheless, we are making strong progress, and i remain optimistic for the future of the company." for further information, please contact: touchstar plc ian martin lynden jones  www.touchstarplc.com 0161 874 5050 0161 874 5050 zeus - nominated adviser & broker corporate finance - mike coe/darshan patel  www.zeuscapital.co.uk 0203 829 5000 ifc advisory - investor relations graham herring / florence staton www.investor-focus.co.uk 0203 934 6632   information on touchstar plc can be seen at: www.touchstarplc.com       chairman's report overview in february, the strategic review announced by the company in september 2024 was concluded. the board determined that, at that time, the best interests of shareholders would be served by the company remaining a standalone aim-quoted entity. following this, the board set out a plan to build on the group's operational and financial performance, with a series of measures aimed at accelerating its next stage of development, increasing the underlying value of the business, and enhancing returns to shareholders. these measures include:   ·    driving stronger organic growth through further investment in the fuel delivery business in overseas markets and building on the ability of the group's technology platform and solutions to be applied in a wider range of vertical sectors; ·      changes to the management team to facilitate the execution of the plan; ·      increasing the company's marketing and promotional activities; and ·     returning surplus cash to shareholders via dividends and deploying it to enhance underlying value through a recommencement of share buybacks. the board is delighted to report that progress has been made in all these areas, most notably with the appointment of lynden jones to the board in march and his subsequent appointment as ceo in june 2025. it has become clear during the period that to achieve this scale of progress and ambition, the group must embrace transformation that is radical rather than evolutional. that transformation is now firmly underway under lynden's leadership. touchstar is currently best known for its work in the fuel industry. while this is a profitable sector, it represents a relatively small market in terms of that touchstar can service. the group's solutions, however, are highly adaptable and capable of serving a much broader set of industries. accordingly, the company is repositioning how the business is presented and marketed. the goal is to establish touchstar as the partner of choice to all depots, warehouses and retailers, a market opportunity many times greater than our historic roots. the company will build on the trust its customers already have in place, broaden its engagement by offering more of the solutions, and leverage its skills and expertise to deliver a one-stop solution. under the touchstar name, and through its two principal offerings, the company intends to be known as the supplier who can "secure the logistics of people and product". financial results   touchstar has delivered satisfactory results for the period, in line with management's expectation. the company previously highlighted that the fy 25 results would be second half weighted, the order book rising by 11% year on year gives validity to this statement. the comparison to the prior year was expected to show a year in transition and would not reflect the tremendous progress made in improving the organisation.     h1 25 h1 24 variance revenue £3,365,000 £3,377,000 (0.35%) operating profit/(loss) (£176,000) £217,000  interest and finance costs £34,000 £37,000 +£3,000 (loss)/profit before tax (£142,000) £254,000  tax (charge) / credit £43,000 (£23,000) +£13,000 profit after tax (£99,000) £231,000   basic earnings (loss) per share (1.22p) 2.82 p (11.9%) dividend per share 1.75p 1.50p +0.25p   revenue in the period decreased slightly to £3,365,000 (h1 24: £3,377,000). this is due to the larger petrochemical distribution installations being predominately weighted in the second half of 2025 in comparison to last year, thereby reverting to the traditional seasonal pattern.   growth of 2.5% in recurring revenue softened the overall rate of decline in total sales.  for h1 25 recurring revenue was £1,533,500, representing 45% of total sales (h1 24: 44%). the business strategy is still to build the level of recurring revenues in both absolute terms and in relation to total sales. recurring revenue growth in the year to date has been constrained by delays in installations seen in 2024, which in turn postponed go-live dates and in turn the recognition of deferred revenue. these timing impacts have temporarily softened the trajectory, but the underlying progress remains unchanged.   although gross margins remained at a healthy level, they declined by 410 basis points to 55% in h1 25 (h1 24: 59.1%).  this reduction is due to three factors: an increase in direct salaries (a combination of additional resource, salary increases and an increase in employers ni costs), product mix and an increase in the uk r&d head count as the group on shores software development.   these factors resulted in administrative costs rising by £259,000 or 15% to £2,012,000 in h1 25 (h1 24: £1,753,000). although vital for the long-term development this increase, combined with the decrease in revenue, has led the company to record a loss before tax in the h1 25 of £142,000 (h1 24: £254,000 profit).   a tax credit of £43,000 (h1 24: charge (£23,000)) resulted in a more modest loss in h1 25 on a post-tax basis of £99,000 in h1 25 (h1 24: £231,000 profit).   this equates to a basic loss per share of 1.22p per share in h1 25 (h1 24 earnings: 2.82 p).    the company had an exceptional charge of £21,000 in the period relating to a director's severance cost (h1:24 nil), which, if excluded, results in an adjusted loss per share of 0.96p on a post-tax loss of £78,000.   the company bought back 24,161 shares in the period (h1 24: nil) pursuant to its share buyback programme which commenced in may 2025. the total number of shares with voting rights as at the period end was 8,176,116 (h1 24: 8,200,277).   adjusted ebitda* declined in h1 25 to £235,000 (h1 24: £589,000).   the interim ordinary dividend of 1.75p per share will be paid on 20 november 2026 to shareholders on the register on 24 october 2025. the ex-dividend date will be 23 october 2025.   h1 25 h1 24 change operating profit before interest and tax (£176,000) £217,000 (£393,000) amortisation £300,000 £261,000 (£41,000) depreciation £90,000 £111,000 £21,000 ebitda (basic) £213,000 £589,000 (£376,000) exceptional costs £22,000 -   £22,000 ebitda (adjusted) £235,000 £589,000 (£354,000)   spending on r&d increased as further investment was made into our technology and services. in h1 25 we invested £349,000 in r&d (h1 24: £283,000). in fy25 we are budgeted to spend £770,000 in r&d updating and enhancing our existing product portfolio, a 29% increase on the 2024 level of investment.   the balance sheet remains strong. cash and cash per share were higher with the operations generating positive cash flow of £260,000.       h1 25 h1 24 change cash net of overdraft £2,002,000 £1,742,000 £260,000 cash per share 24.5p 21.2p 3.3p    the order book, rose by 11% to £2,520,865 at the period end (h1 24: £2,275,733).   current trading and outlook   the board expects a stronger second half, with full-year performance anticipated to be in line with expectations. that said, much remains to be achieved to deliver that outcome. transformation is not a smooth or linear process; there will inevitably be challenges along the way. we must navigate increased costs, the short-term impact of investing ahead of revenue growth, and a higher burden from taxation all at a time of flatlining in the uk economy.   the key objectives for 2025 are, by the year end, to:   ·      complete the transition to the next-generation management team ·      restructure the internal organisation to support stronger organic growth and the integration of future acquisitions ·      repositioned the business to serve the wider depot, warehouse and retail markets ·      enhanced our market profile through an improved digital presence, communications and marketing ·      finalise improvements in sales capability ·      conducted a detailed review of acquisition opportunities ·      define the next-generation product set aligned with our brand promise ·      clearly articulate our future direction to external stakeholders in relation to share buybacks, the board has decided to bring the formal programme to an end with effect from the end of september. thereafter, buybacks will be considered on an ad hoc basis. success will depend on our ability to win new sales, strengthen our brand and digital presence, expand into new markets and broaden our offering to existing customers. at the same time, the board will consider select acquisitions to bridge any product gaps, strengthen the group's market position, and give it the best platform for long-term success. with the renewed ambition and refreshed strategy, the board is confident of the outlook of the business. i martin executive chairman 15 september 2025      unaudited consolidated income statement for the six months ended 30 june 2025                                                              30 june  2025   30 june 2024   31 december 2024    £'000 £'000 £'000      revenue  3,365 3,377 6,893 cost of sales  (1,515) (1,382) (2,743) gross profit  1,850 1,995 4,150 distribution costs  (14) (25) (43) administrative expenses  (2,012) (1,753) (3,785) operating (loss)/profit before share-based    payment provision and exceptional costs (150) 251 408 exceptional costs (21) - (57) share-based payment provision included in administrative expenses (5) (34) (29) operating (loss)/profit  (176) 217 322 finance income  46 43 79 finance costs  (12) (6) (13) (loss)/profit before income tax  (142) 254 388 income tax credit/(charge)  43 (23) (22)      (loss)/profit for the year attributable to the owners of the parent (99) 231 366     earnings per ordinary share (pence) attributable to owners of the parent during the period:     30 june  2025 30 june 2024   31 december 2024       basic  (1.222)p 2.82p 4.47p adjusted  (0.961)p 2.82p 5.16p diluted  (1.222)p 2.79p 4.43p     unaudited consolidated statement of changes in equity for the six months ended 30 june 2025      share  capital       treasury shares       share based payment reserves retained earnings total   note £'000 £'000 £'000 £'000 £'000 for the six months ended 30 june 2025             balance at 1 january 2025  424 (252) 146 3,118 3,436 purchase of own shares  - (20) - - (20) share based payment charge  - - 5 - 5 transactions with shareholders for the period -        (20) 5 - (15) total comprehensive income (loss for the period)  - - - (99) (99) balance at 30 june 2025   424 (272) 151 3,019 3,322                         for the six months ended 30 june 2024             balance at 1 january 2024  424 (252) 117 2,974 3,263 dividends repatriated  - - - 24 24 share based payment charge  - - 34 - 34 transactions with shareholders -  -  34 24 58 total comprehensive income (profit for the period)  - - - 231 231 balance at 30 june 2024   424 (252) 151 3,229 3,552            unaudited consolidated statement of changes in equity for the six months ended 30 june 2025 (continued)                   share       capital               treasury shares       share based payment reserves retained earnings total   note £'000 £'000 £'000 £'000 £'000 for the year ended 31 december 2024       balance at 1 january 2024  424 (252) 117 2,974 3,263 dividend to shareholders  - - - (246) (246) repatriation of unclaimed dividends  - - - 24 24 share based payment charge  - - 29 - 29 transactions with shareholders -      -     29 (222) (193) total comprehensive income (profit for the year)  - - - 366 366 balance at 31 december 2024   424 (252) 146 3,118 3,436                 unaudited consolidated statements of financial position at 30 june 2025   30 june            2025 30 june                  2024 31 december 2024                  £'000 £'000 £'000 non-current assets     intangible assets  1,337 1,236 1,288 property, plant, and equipment  119 113 108 right of use asset  606 229 180 deferred tax assets  9 20 9 trade and other receivables  116 - 88   2,187 1,598 1,673 current assets     inventories   880 1,364 992 trade and other receivables  1,672 1,974 1,650 current tax receivable  87 18 87 cash and cash equivalents  2,002 1,742 2,918   4,641 5,098 5,647 total assets  6,828 6,696 7,320 current liabilities     trade and other payables  1,165 1,268 1,383 contract liabilities  1,496 1,422 2,018 lease liabilities  157 125 91   2,818 2,815 3,492 non-current liabilities     deferred tax liabilities  127 113 170 contract liabilities  121 133 148 lease liabilities  440 83 74   688 329 392 total liabilities  3,506 3,144 3,884        unaudited consolidated statements of financial position at 30 june 2025 (continued)       30 june            2025 30 june                  2024                  31 december 2024                 £'000 £'000 £'000 capital and reserves attributable to owners of the parent     share capital  424 424 424 treasury shares  (272) (252) (252) share-based payment reserve  151 151 146 profit and loss account  3,019 3,229 3,118 total equity  3,322 3,552 3,436 total equity and liabilities  6,828 6,696 7,320          unaudited consolidated cash flow statement for the six months ended 30 june 2025                            30 june 2025 £'000 30 june 2024 £'000 31 december 2024 £'000 cash flow from operating activities    operating (loss)/profit (177) 217 322 adjustments for:    depreciation 90 111 243 amortisation 300 261 534 share-based payment provision 6 34 29     movement in:    inventories 112 (211) 161 trade and other receivables (52) (774) (539) trade and other payables (766) (436) 290 cash (used in)/ generated from operating activities (487) (798) 1,040 interest received 46 43 79 interest paid (12) (6) (13) net cash (used in)/ generated from operating activities (453) (761) 1,106      cash flows from investing activities    purchase of intangible assets (349) (360) (684) purchase of property, plant, and equipment (32) (70) (89) net cash used in investing activities (381) (430) (773)      cash flows from financing activities    dividend paid to shareholders - - (246) purchase of own shares (20) - - repatriation of unclaimed dividends - 24 24     principal elements of lease payments (62) (96) (198) net cash used from financing activities (82) (72) (420) net (decrease)/ increase in cash and cash equivalents (916) (1,263) (87)     cash and cash equivalents at start of the year 2,918 3,005 3,005 cash and cash equivalents at end of the year 2,002 1,742 2,918        notes to the interim report and accounts for the six months ended 30 june 2025                                                    1.    general information   touchstar plc is a public company limited by share capital incorporated and domiciled in the united kingdom.  the company has its listing on aim.   the address of its registered office is 1 george square, glasgow, g2 1al.    2.    status of interim report and accounts   the financial information comprises the consolidated interim balance sheet as of 30 june 2025, 30 june 2024 and the year ended 31 december 2024 along with related consolidated interim statements of income and cash flows for the six months to 30 june 2025 and 30 june 2024 and year ended 31 december 2024 of touchstar plc (hereinafter referred to as 'financial information').   this financial information for the half year ended 30 june 2025 has neither been audited nor reviewed and does not comprise statutory accounts within the meaning of section 434 of the companies act 2006. this financial information was approved by the board on 15 september 2025.   the figures for the year ended 31 december 2024 have been extracted from the audited annual report and accounts that have been delivered to the registrar of companies. the auditors, haysmac llp, reported on those accounts under section 495 of the companies act 2006. their report was unqualified and did not contain a statement under section 498 of that act.   3.    basis of preparation   the interim report and accounts have been prepared, in accordance with ias 34 interim financial reporting, using accounting policies to be applied in the annual report and accounts for the year ending 31 december 2025. these are consistent with those included in the previously published annual report and accounts for the year ended 31 december 2024, which have been prepared in accordance with ifrs as adopted by the european union.   non - gaap financial measures for the purposes of this interim announcement and annual report and accounts, the group uses alternative non-generally accepted accounting practice ('non-gaap') financial measures which are not defined within ifrs. the directors use the measures in order to assess the underlying operational performance of the group and as such, these measures are important and should be considered alongside the ifrs measures.   the following non-gaap measure referred to in the interim announcement relates to operating profit/(loss) before exceptional costs.   'operating loss' is separately disclosed, being defined as operating profit/(loss) adjusted to exclude directors severance costs (note 5). these exceptional costs related to items which the management believe did not accurately reflect the underlying trading performance of the business in the period. the directors believe that the trading profit/(loss) is an important measure of the underlying performance of the group.   going concern the directors have a reasonable expectation that the group has adequate resources to continue operating for the foreseeable future, and for this reason they have adopted the going concern basis of preparation in the consolidated interim financial statements. the financial statements may be obtained from touchstar plc, 7 commerce way, trafford park, manchester, m17 1hw or online at www.touchstarplc.com.    4.    critical accounting estimates and assumptions                               the group and company makes estimates and assumptions concerning the future. the resulting accounting estimates will, by definition, seldom equal the related actual results. the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) development expenditure the group recognises costs incurred on development projects as an intangible asset which satisfies the requirements of ias 38. the calculation of the costs incurred includes the percentage of time spent by certain employees on the development project.  the decision whether to capitalise and how to determine the period of economic benefit of a development project requires an assessment of the commercial viability of the project and the prospect of selling the project to new or existing customers.   (b) impairment of intangibles judgement is required in determining both the useful economic life of the asset along with any impairment, notably intangible software development costs. useful economic life is based on the life expectancy of software licences and recoverable amounts are based on a calculation of expected future cash flows, which require assumptions and estimates of future performance to be made. cash flows are discounted to their present value using pre-tax discount rates based on the directors market assessment of risks specific to the asset. (c) stock provisions judgement is required in relation to the appropriate provision to be made for the write down of slow moving or obsolete inventory. such provisions are made based on the assessment of the group's prospective sale of inventories and their net realisable value, which are subject to estimation uncertainty.       5      exceptional costs       30 june 2025 £'000   30 june 2024 £'000   31 december 2024 £'000 exceptional costs     cost of the strategic review - - 57  director severance costs 21 - -   director severance costs classified as exceptional costs relate to mr mark hardy, former ceo, who retired on 31st may 2025 and subsequently resigned as a director on 24th june 2025. the total cost incurred on the strategic review was £77,500 reduced by the release of a historical exceptional liability £20,500 no longer required.   6      income tax credit       30 june 2025 £'000   30 june 2024 £'000   31 december 2024 £'000 corporation tax     current tax credit - - (87)  adjustment in respect of prior years - - 18   deferred tax (credit)/charge (43) 23 91 total current tax charge (43) 23 22   the deferred tax charge release for period ended 30 june 2025 and 30 june 2024 relates to brought forward losses surrendered against the current period tax charge. for the year ended 31 december 2024 available tax losses were surrendered through r&d tax credit.   7      earnings per share    30 june 2025 £'000 30 june 2024 £'000 31 december 2024 £'000 (loss)/profit after tax attributable to the owners of touchstar plc - for basic eps    (93)   231   366 exceptional costs  21 - 57 adjusted earnings attributable to owners of the parent - for adjusted eps  (72) 231   423               30 june 2025 £'000 30 june 2024 £'000 31 december 2024 £'000   weighted average number of shares used in calculating basic earnings per share 8,149,577 8,200,077 8,200,077 number of considered dilutive shares 17,639 72,356 64,479 weighted average number of shares used in calculating dilutive earnings per share   8,167,216   8,272,433   8,262,556    earnings per ordinary share (pence) attributable to owners of the parent during the period:   earnings per share   30 june 2025 30 june 2024 31 december 2024 basic  (1.222)p 2.82p 4.47p adjusted  (0.961)p 2.82p 5.16p diluted  (1.222)p 2.79p 4.43p                 basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year.   diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after-tax effect of interest and other financial costs associated with the dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.   during the period 30 june 2025 no options were issued (30 june 2024: nil) (year ended 31 december 2024: nil).   8      purchase of own shares   at the 30 june 2025 the group held 299,161 of its own shares with a fair value of £272,000, these are being held in treasury (30 june 2024: 275,000 with a fair value of £252,000). 24,161 shares were repurchased during the period at a fair value of £20,800 (30 june 2024: 275,000 at a fair value of £252,000). this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir gpumubupagqa return to news summary

Label: Neutral