15 sep 25   ingenta plc - half-year report ingenta plc | ing | 61.0 0 0.0% | mkt cap: 8.85m    rns number : 2328z ingenta plc 15 september 2025   15 september 2025   ingenta plc ("ingenta", the "company" or the "group")   interim results   ingenta plc (aim: ing), a leading provider of software and services to the global publishing industry, announces its unaudited interim results for the six months to 30 june 2025.     financial key points   ·      group revenues of £5.2m (2024: £5.1m) ·      88% of group revenues recurring in nature (2024: 87%) ·      gross profit margin 51% (2024: 48%) ·      adjusted ebitda* up 29% to £0.9m (2024: £0.7m) ·      cash from operations up 75% to £0.7m (2024: £0.4m) ·      cash balances of £3.9m (31 december 2024: £3.0m) ·      adjusted earnings per share** up 38% to 5.86 pence (2024: 4.25 pence) ·      17% increase in interim dividend to 1.75 pence per share (2024: 1.5 pence)   operational key points   ·      commercial revenue increased by 9% to £3.7m (2024: £3.4m) driven by additional managed services revenue from the existing customer base ·      content revenue decreased by 13% to £1.4m (2024: £1.6m) due to lower implementation revenue and previously announced customer exits ·      investment in new sales team now completed and staff in place ·      active upsell opportunities progressing with existing customer base ·      strong pipeline of proposals delivered and awaiting customer decisions in h2 2025   *earnings before interest, tax, depreciation and amortisation is calculated before foreign exchange differences. see statement of comprehensive income for reconciliation ** adjusted earnings per share is calculated before foreign exchange differences. see note 4 for reconciliation dividend timetable   the company is pleased to confirm that an increased interim dividend of 1.75 pence per share will be paid on 31 october 2025. the ex-dividend date is 25 september 2025 and the record date is 26 september 2025.     martyn rose, chairman of ingenta plc, commented:   "the board previously signalled its plans to accelerate new business acquisition through a substantial strengthening of the group's sales and marketing teams. i'm pleased to report that progress has been made on all fronts and that all positions have now been filled. the board remains confident that the new team will be instrumental in the expansion of future sales pipeline opportunities, which should more than offset the expected progressive decline in legacy business in the coming years, as previously reported.   elsewhere, the core of the business continues to run efficiently, generating revenue growth along with improved margins and cash generation, through a focus on expanding services provided to existing customers as well as stimulating a pipeline of new prospects. the board is pragmatic about the lead time between onboarding new sales and marketing positions and the ultimate generation of new business, but remains confident that results for the year will be in line with market expectations.   overall, the group's results at the half year show growth in revenues, gross profit, ebitda and net profit, and a consequent increase in cash balances. as a result, the board is recommending an increased interim dividend of 1.75p per share.   looking beyond the current year, the board anticipates the generation of more substantial new business wins which should enable the group to resume overall growth in revenues and profits."     certain information contained in this announcement would have been deemed inside information as stipulated under the uk version of the eu market abuse regulation (2014/596) which is part of uk law by virtue of the european union (withdrawal) act 2018, as amended and supplemented from time to time, until the release of this announcement.     for further information please contact:   ingenta plc                                           tel: 01865 397 800   scott winner / jon sheffield   cavendish capital markets limited      tel: 0207 220 0500   katy birkin / callum davidson     operational review in january 2025, the group recruited a director of marketing who has taken responsibility for enhancing digital outreach and raising ingenta's profile in key industries. these efforts have already helped increase the quality and breadth of opportunities which the sales teams are actively engaged on. the expansion of the sales team has taken longer than expected, however recruitment in two key sales positions in july 2025 has provided relevant specialism in our content and commercial sectors where we see opportunities to generate revenue growth. whilst these sales and marketing activities have been progressing, we have also been embedding our account management processes to identify opportunities and offer practical solutions to customer requirements. encouragingly, this has developed significant work for the coming year with further recurring revenue anticipated in 2026 and beyond. all group project work remains on track with completion scheduled for the end of 2025.   looking ahead, there are a substantial amount of potential new business proposals awaiting customers' final decisions in the second half and we are confident that the momentum of new business wins will build during this period into next year, particularly as the new sales team begins to become effective.   financial review the group operates as one reporting segment with two core revenue categories being ingenta commercial and ingenta content.   ingenta commercial ingenta commercial provides a variety of modular publishing management systems for both print and digital products. its core area of expertise is intellectual property management, including the associated contracts, rights and royalties. the software has an established publisher client base and is highly adaptable, so it can also be applied to broader media markets including music, television and film.   commercial revenues increased to £3.7m (2024: £3.4m) with the increase driven by the expansion of recurring managed services engagements within the customer base.   ingenta content the ingenta content suite of products enables publishers of any size, discipline or technical proficiency to convert, store, deliver and monetise digital content on the web.   annual revenue decreased to £1.4m (2024: £1.6m), mainly as a result of lower than expected new sales and the associated implementation revenues.   financial performance group revenues increased to £5.2m (2024: £5.1m) with the increases being driven by the ingenta commercial software base as described above.  in addition, gross margins increased from 48% to 51% as the business continues to streamline operational delivery via its cloud based infrastructure.   sales and marketing spend was broadly stable in the first half of the year, however, the group has been actively recruiting additional sales personnel to fill strategic vacancies. as previously announced, the company is prioritising acceleration of new business acquisition to offset the expected larger scale reduction in revenues from legacy platforms in future years and return the company to growth in revenues and profits. two of these key roles have been filled and came on board in july.   administrative expenses decreased to £1.0m (2024: £1.4m) largely as a result of non-cash exchange differences on translation of intercompany balances. in the current year, this amounted to a gain of £0.3m versus a loss of £28k in 2024.   ebitda, adjusted for the effects of foreign exchange, increased to £0.9m (2024: £0.7m) with the gains driven by operational efficiency as the business streamlines its use of cloud infrastructure.   financial position trade and other receivables reduced to £1.1m (2024: £1.8m) largely due to accelerated receipts timing as evidenced in the cashflow statement.   trade and other payables also decreased to £1.0m (2024: £1.4m) primarily due to the release of £0.3m of provisions following successful completion all of group software obligations and writing off its china joint venture payable. the group has no debt or lease obligations.   the group has accumulated tax losses of £12.0m in the uk and $5.7m in the us and has utilised £4.8m of this over a 5 year period to recognise a £1.1m (2024: £1.6m) deferred tax asset. the deferred tax asset has declined over the 5 year assessment period because the group expects that profitability will be initially lower whilst it integrates a new sales and marketing team and manages potential decline of legacy platforms. management anticipate using the remaining tax losses, but do not believe they have adequate information to make an assessment of utilisation beyond 5 years.   cashflow cash inflow from operations improved to £0.7m (2024: £0.4m) driven by improved profitability and timely cash collections, despite the earlier payment of the final 2.6 pence dividend of £0.4m in the period: the final dividend payment in 2024 was made in the second half of the year so did not impact cash generation in the first half of that year. the group has cash deposited in liquidity funds which started to generate interest from june.   outlook results for the year remain on track and the group is pleased to report investment progress made in its sales and marketing teams with key positions filled for the second half of the year. the board believes that there is a substantial market for its commercial and content products which, along with a solid base of referenceable clients, will provide a strong foundation for future success. the group anticipate an initial integration period as the new teams bed in, but look forward with increased optimism that new sales momentum will build over the coming months.       jon sheffield chief financial officer  unaudited condensed consolidated interim statement of comprehensive income       unaudited unaudited audited     six months ended six months ended year ended     30 jun 2025 30 jun 2024 31 dec 2024   note £'000 £'000 £'000           revenue 3 5,160 5,080 10,199 cost of sales   (2,519) (2,655) (5,214) gross profit   2,641 2,425 4,985           sales and marketing expenses   (444) (429) (750) administrative expenses   (996) (1,379) (2,408)        profit from operations   1,201 617 1,827                     finance income   5 - - finance costs   (2) (2) (2)           profit before tax   1,204 615 1,825        tax   (14) (26) (546)        retained profit for the period   1,191 589 1,279           other comprehensive expenses which will be reclassified subsequently to profit or loss:                   exchange differences on translating foreign operations   (454) 28 78        total comprehensive profit for the period   737 617 1,357        basic profit per share - pence 4 8.21 4.05 8.81 diluted profit per share - pence 4 7.96 3.93 8.60 adjusted profit per share - pence 4 5.86 4.25 11.69                       adjusted ebitda reconciliation:           profit from operations   1,201 617 1,827 depreciation   35 29 56 foreign exchange (gain) / loss   (340) 28 52 joint venture payable write off   - - (149) ebitda before foreign exchange gains / losses   896 674 1,786                unaudited condensed consolidated interim statement of financial position       unaudited unaudited audited     30 jun 2025 30 jun 2024 31 dec 2024   note £'000 £'000 £'000          non-current assets           goodwill   2,661 2,661 2,661   other intangible assets   - - -   property, plant & equipment   116 65 121   deferred tax   1,071 1,622 1,108     3,848 4,348 3,890 current assets       trade and other receivables 5 1,616 2,183 2,065   cash and cash equivalents   3,919 3,006 3,619     5,535 5,189 5,684       total assets   9,383 9,537 9,574       equity       share capital   1,510 1,512 1,510   capital redemption reserve   182 180 182   merger reserve   11,055 11,055 11,055   reverse acquisition reserve   (5,228) (5,228) (5,228)   translation reserve   (864) (460) (410)   share option reserve   185 154 172   retained earnings   (43) (921) (856)     6,797 6,292 6,425 non-current liabilities       deferred tax liability   2 - 2     2 - 2 current liabilities       trade and other payables 6 974 1,252 1,159   provisions   - 150 -   contract liabilities   1,610 1,843 1,988     2,584 3,245 3,147       total equity and liabilities   9,383 9,537 9,574                  unaudited condensed consolidated interim statement of changes in equity     share capital capital redemption reserve merger reserve reverse acquisition reserve translation reserve share option reserve retained earnings total   £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000                   balance at 1 jan 2024 1,512 180 11,055 (5,228) (488) 140 (1,510) 5,661                   share based payment expense - - - - - 14 - 14                   transactions with owners - - - - - 14 - 14                   profit for the period - - - - - - 589 589                   other comprehensive income:                   exchange differences on translation of foreign operations   - - - - 28 - - 28 total comprehensive income / (expense) for the period - - - - 28 - 589 617                   balance at 30 jun 2024 1,512 180 11,055 (5,228) (460) 154 (921) 6,292                             share capital capital redemption reserve merger reserve reverse acquisition reserve translation reserve share option reserve retained earnings total   £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000                   balance at 1 jan 2025 1,510 182 11,055 (5,228) (410) 172 (856) 6,425                   dividend paid - - - - - - (378) (378) share based payment expense - - - - - 13 - 13           transactions with owners - - - - - 13 (378) (365)           profit for the period - - - - - - 1,191 1,191           other comprehensive income:           exchange differences on translation of foreign operations   - - - - (454) - - (454) total comprehensive income / (expense) for the period - - - - (454) - 1,191 737                   balance at 30 jun 2025 1,510 182 11,055 (5,228) (864) 185 (43) 6,797                      unaudited condensed consolidated interim statement of cash flows       unaudited unaudited audited     six months ended six months ended year ended       30 jun 2025 30 jun 2024 31 dec 2024     £'000 £'000 £'000           profit before tax   1,204 615 1,825       adjustments for:       depreciation and amortisation   35 29 56   share based payment expense   13 14 32   interest expense   2 2 2   interest income   (5) - -   decrease / (increase) in trade and other receivables   485 3 121   (decrease) in trade and other payables   (562) (147) (44)   (decrease) / increase in provisions   - (157) (307)       cash inflow from operations   718 359 1,684         tax paid   (14) (26) (30) net cash inflow from operating activities   704 333 1,654       cash flows from investing activities       purchase of property, plant and equipment   (29) (1) (84) net cash used in investing activities   (29) (1) (84)       cash flows from financing activities       dividend paid   (378) - (596)   interest paid   (2) (2) (2)   interest received   5 - -   cost of shares repurchased and cancelled in the year   - - (29) net cash used in financing activities   (375) (2) (627)       net increase / (decrease) in cash and cash equivalents   300 330 943       cash and cash equivalents at beginning of period   3,619 2,676 2,676       exchange differences on cash and cash equivalents   - - -       cash & cash equivalents at end of period   3,919 3,006 3,619                      notes to the unaudited interim report for the six months ended 30 june 2025 1.   nature of operations and general information  ingenta plc (the "company") and its subsidiaries (together the "group") is a provider of technology and supporting services to content providers and publishers. the nature of the group's operations and its principal activities are set out in the full annual financial statements.   the company is incorporated in the united kingdom under the companies act 2006. the company's registration number is 00837205 and its registered office is suite 2, whichford house, oxford, ox4 2jy. the condensed consolidated interim financial statements were authorised for issue by the board of directors on 15 september 2025.   the financial information set out in this interim report does not constitute statutory accounts as defined in section 404 of the companies act 2006. the group's statutory financial statements for the year ended 31 december 2024, prepared under ifrs as adopted by the european union, have been filed with the registrar of companies. the auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or section 498 (3) of the companies act 2006. 2.   basis of preparation  these unaudited condensed consolidated interim financial statements are for the six months ended 30 june 2025. they have been prepared following the recognition and measurement principles of uk adopted international accounting standards in conformity with the requirements of the companies act 2006. they do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the group for the year ended 31 december 2024.   these condensed consolidated interim financial statements have been prepared on the going concern basis under the historical cost convention and have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 december 2024.   the accounting policies have been applied consistently throughout the group for the purposes of preparation of these consolidated interim financial statements.   a detailed set of accounting policies can be found in the annual accounts available on our website, www.ingenta.com or by writing to the company secretary at the registered office as above.      3.   revenue   an analysis of the group's revenue by activity is shown below:      six months ended   six months ended   30 jun 2025   30 jun 2024   £'000   £'000      consulting services  593  674 non-recurring revenue  593  674      hosted services  1,814  1,816 managed services  1,502  1,319 support and upgrade  1,068  1,085 pcg  183  186 recurring revenue  4,566  4,406        5,160  5,080        an analysis of the group's revenue by product type is shown below:    six months ended   six months ended   30 jun 2025   30 jun 2024   £'000   £'000      content products  1,418  1,646 commercial products  3,742  3,434   5,160  5,080          4.   profit per share   basic profit per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.   for diluted profit per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.       six months ended   six months ended    30 jun 2025   30 jun 2024      attributable profit (£'000)  1,191  589 foreign exchange loss / (gain) (£'000)  (340)  29 adjusted attributable profit (£'000)  851  618           weighted average number of ordinary basic shares (basic)  14,510,195  14,535,195      weighted average number of ordinary shares (diluted)  14,965,264  14,990,264      profit per share (basic) arising from both total and continuing operations  8.21p  4.05p      profit per share (dilutive) arising from both total and continuing operations  7.96p  3.93p      adjusted profit per share (basic) arising from both total and continuing operations  5.86p  4.25p   5.   trade and other receivables   trade and other receivables comprise the following:    30 jun 2025   30 jun 2024   £'000   £'000      trade receivables - gross  1,120  1,768 less: provision for impairment of trade receivables  (55)  (53) trade receivables - net  1,065  1,715 other receivables  4  4 prepayments and unbilled receivables  548  464   1,617  2,183           6.   trade and other payables   trade payables comprise the following:      30 jun 2025   30 jun 2024   £'000   £'000      trade payables  238  312 social security and other taxes  345  329 other payables  69  239 accruals  322  372            974  1,252        7.   contingencies and commitments   there were no contingencies or commitments at the end of this period or the comparative period. 8.   post balance sheet events   there were no material events subsequent to the end of the interim reporting period that have not been reflected in the interim financial statements.     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 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