Touchstar (AIM:TST), the AIM-listed provider of connected technology for managing logistics of people and products, expects revenue of approximately £3.4 million for the six months to 30 June, unchanged from H1 2025.
Earnings (adjusted EBITDA) turned positive at £0.03 million, reversing a £0.24 million loss in the prior-year period, while the pre-tax loss held steady at £0.1 million. Annual recurring revenue rose 4.6% to £1.6 million, the order book grew to £2.63 million from £2.52 million, and order intake increased by £739,000 year-on-year.
Cash net of overdraft stood at £2.0 million, matching the prior year, and gross margin eased to 46% from an adjusted 48%.
The board said it expects second-half revenue to be slightly weaker than the first half, citing customer decision-making delayed by the wider economic environment, but now anticipates the full-year loss will come in below current market expectations.
During the period, Touchstar ceased standalone development of its PODStar product to focus investment on its core logistics capabilities, appointed a Head of Engineering, and redesigned its internal sales model to reduce reliance on individual account managers.
"The transformation has proved more extensive than initially anticipated, with additional legacy issues and organisational change requiring attention," said chief executive Lynden Jones, adding that the group remains on track for a return to profitability in 2027.
