Pulsar Group (AIM:PULS) on Wednesday told investors it is assessing demand for a fundraise of up to £5 million, pausing trading in its shares under AIM's new Capital Access Window while it tests market appetite.
The London-listed audience intelligence company, which provides software-as-a-service tools for marketing and communications clients, paired the fundraise announcement with a trading update for the year ending 30 November showing margin and cash pressure despite continued revenue growth.
Annual recurring revenue (ARR) reached £67.7 million at 30 September, up £1.7 million, or 2.6%, in the year to date on a constant currency basis, with £0.5 million of that added in the four months since 31 May, against £1.2 million added in the first half.
The board estimates full-year revenue of approximately £65 million, up from £61.2 million in FY25, but expects adjusted EBITDA of approximately £10 million, down from £10.4 million, as infrastructure investment to serve large enterprise customers and higher third-party data costs weighed on gross margin.
Net debt rose to £6.4 million at 30 September, from £6 million at 31 May and £5.6 million at 30 November 2025, which Pulsar attributed to one-off restructuring costs, a billing mix shift toward enterprise customers paying fewer contracts annually in advance, and slower customer collections that have increased debtor days.
The company said operating cash performance has improved year on year and investing outflows have reduced, though overall cash generation has fallen short of expectations.
Read more about Pulsar
Pulsar's cost reduction programme has cut headcount 7% this financial year, from 755 full-time employees at 30 November 2025 to 702 at 30 September.
The board said it remains confident in the group's prospects, with the infrastructure investment needed to support large enterprise customers now in place.
The proposed fundraise requires shareholder approval at a general meeting, and the company said there is no certainty it will proceed or as to its eventual size, structure or price; Pulsar expects to announce the outcome as soon as practicable.