Software Circle (AIM:SFT), the AIM-listed acquirer and operator of software businesses, said in a pre-close trading update it has surpassed its target and expects FY26 revenue of approximately £22.3m and Adjusted EBITDA of £5.8m, an 81% increase year-on-year.
The Group reported FY26 revenue including acquisitions of £22.3m (FY25: £18.3m), a 22% rise, while organic revenue declined 1% due to lower non-recurring income at Nettl Systems, but the ten businesses acquired during the year delivered 7% organic growth.
Group Operating EBITDA is expected to total £7.6m (FY25: £4.8m), with acquisitions contributing c.£1.8m of Operating EBITDA and central administration costs of approximately £1.8m (FY25: £1.6m), producing an improved Adjusted EBITDA margin of 26% (FY25: 17%) that exceeds the previously communicated 25% target.
The Group expects operating cash flow per share of 1.0p (FY25: 0.5p), reports a cash balance of approximately £4.6m and, after refinancing, has an undrawn committed facility of £14.3m and a run-rate of c.£25m revenue at a 27% Adjusted EBITDA margin; the new Facility is a committed £25m revolving credit facility with a £10m uncommitted accordion, £10.7m of which was used to refinance Shawbrook, has a four-year term with a one-year extension option and bears interest at SONIA plus 2.00-3.00% depending on leverage, repayable on 20 May 2030 (or 20 May 2031 if extended).
"The move to this new facility is a reflection of Software Circle's growth and the successful execution of our strategy to date," Gavin Cockerill, Chief Executive Officer, said.
