We are pleased to announce a trading update ahead of our half year results for the six months ended 31 October 2024 (the “Period” or “H1 25”), which will be announced on 15 January 2025.
The Group’s increasingly diverse business lines combined to deliver a strong performance in the Period. Group revenue grew by c.5.0% and is expected to be not less than £86.0m (FY24: £82.0m).
Underlying profit before tax* is expected to be not less than £10.5m (H1 24: £10.0m), representing growth of c.5.0%.
The Group has strengthened its balance sheet further including net cash at the Period end of £1.2m (H1 24 – net debt £2.2m).
Activity levels increased throughout H1, particularly in transactional services in Q2. Fee earner utilisation remains ahead of the prior year as we head into H2. Taken alongside the benefits now being seen from our organic investments, the outlook for the remainder of the year is encouraging and the Group expects to perform in-line with market expectations1.
In line with all businesses in the UK, the changes to National Insurance contributions announced in the autumn budget will impact the Group’s costs, by c.£1.8m in FY26. The Group is well positioned to mitigate these costs through pricing and efficiencies in its ongoing drive for longer term margin enhancement.
1 Based on current published equity research, the Board understands market consensus for the year ending 30 April 2025 to be for revenue of £184m and underlying profit before tax of £24.1m.
* Underlying profit before tax excludes remuneration for post-combination services, gain on bargain purchase, share-based payment charges, acquisition related amortisation and exceptional items.