Arcontech Group (AIM:ARC), the AIM-listed provider of real-time financial market-data software, reported revenue of £2.75 million for the year ended 30 June, down 11.5% from £3.11 million in the prior year.
Profit before taxation fell to £881,170 from £987,390, though management said the result came in marginally ahead of market expectations, with revenue broadly in line.
The decline stemmed from the loss of a large long-standing customer, compounded by delayed purchasing decisions among prospects, though a new major European bank signed during the year is expected to restore the recurring revenue run rate to prior-year levels.
Adjusted EBITDA fell 19.2% to £705,978 from £874,083, reflecting lower revenue alongside reduced variable costs and consultancy spend.
Recurring revenues, which made up 99% of the total against 94% last year, fell a more modest 4.7% to £2.74 million.
Net cash rose 1.7% to £7.52 million, and the board declared a final dividend of 4.00p per share, unchanged from last year.
Chief executive Matthew Jeffs said the company added a second new European customer since the period end, also on a multi-year agreement, and pointed to growing demand for "vendor-agnostic" data infrastructure that lets customers combine data from multiple sources rather than being locked into a single vendor.
Chairman Geoff Wicks said the group's prospect list "remains strong" and that management is "comfortable that the next financial year will see a return to growth", while continuing to assess accretive bolt-on acquisitions.
News Intelligence what this means for the company
Arcontech reported full-year profit marginally ahead of forecasts despite an 11.5% revenue decline to £2.75 million, driven by the loss of a major long-standing customer and delayed prospect purchasing. The company has already signed two new European bank customers post-period end and expects recurring revenue—which now represents 99% of total revenue—to recover to prior-year levels, anchoring management's guidance for growth in the next financial year.
The company's ability to offset a £360k revenue loss through customer wins and a shift toward higher-margin recurring revenue (up from 94% to 99% of total) suggests underlying demand resilience, though execution risk remains: the recovery depends on the new customers ramping as expected and the prospect pipeline converting. Net cash of £7.52 million and an unchanged dividend signal confidence, but the 19.2% EBITDA decline reflects near-term margin pressure that will need to reverse for the growth narrative to hold.
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