Ingenta PLC - Half-year Report

15 September 2025

Ingenta plc

("Ingenta", the "Company" or the "Group")

Interim Results

Ingenta plc (AIM: ING), a leading provider of software and services to the global publishing industry, announces its unaudited interim results for the six months to 30 June 2025.

Financial Key Points

·      Group revenues of £5.2m (2024: £5.1m)

·      88% of Group revenues recurring in nature (2024: 87%)

·      Gross profit margin 51% (2024: 48%)

·      Adjusted EBITDA^* up 29% to £0.9m (2024: £0.7m)

·      Cash from operations up 75% to £0.7m (2024: £0.4m)

·      Cash balances of £3.9m (31 December 2024: £3.0m)

·      Adjusted earnings per share^** up 38% to 5.86 pence (2024: 4.25 pence)

·      17% increase in interim dividend to 1.75 pence per share (2024: 1.5 pence)

Operational Key Points

·      Commercial revenue increased by 9% to £3.7m (2024: £3.4m) driven by additional Managed Services revenue from the existing customer base

·      Content revenue decreased by 13% to £1.4m (2024: £1.6m) due to lower implementation revenue and previously announced customer exits

·      Investment in new sales team now completed and staff in place

·      Active upsell opportunities progressing with existing customer base

·      Strong pipeline of proposals delivered and awaiting customer decisions in H2 2025

^*Earnings before Interest, Tax, Depreciation and Amortisation is calculated before foreign exchange differences. See Statement of Comprehensive Income for reconciliation

^** Adjusted earnings per share is calculated before foreign exchange differences. See note 4 for reconciliation

Dividend Timetable

The Company is pleased to confirm that an increased interim dividend of 1.75 pence per share will be paid on 31 October 2025. The ex-dividend date is 25 September 2025 and the record date is 26 September 2025.

Martyn Rose, Chairman of Ingenta plc, commented:

"The Board previously signalled its plans to accelerate new business acquisition through a substantial strengthening of the Group's sales and marketing teams. I'm pleased to report that progress has been made on all fronts and that all positions have now been filled. The Board remains confident that the new team will be instrumental in the expansion of future sales pipeline opportunities, which should more than offset the expected progressive decline in legacy business in the coming years, as previously reported.

Elsewhere, the core of the business continues to run efficiently, generating revenue growth along with improved margins and cash generation, through a focus on expanding services provided to existing customers as well as stimulating a pipeline of new prospects. The Board is pragmatic about the lead time between onboarding new sales and marketing positions and the ultimate generation of new business, but remains confident that results for the year will be in line with market expectations.

Overall, the Group's results at the half year show growth in revenues, gross profit, EBITDA and net profit, and a consequent increase in cash balances. As a result, the Board is recommending an increased interim dividend of 1.75p per share.

Looking beyond the current year, the Board anticipates the generation of more substantial new business wins which should enable the Group to resume overall growth in revenues and profits."

Certain information contained in this announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this announcement.

For further information please contact:

Ingenta plc                                           Tel: 01865 397 800

Scott Winner / Jon Sheffield

Cavendish Capital Markets Limited      Tel: 0207 220 0500

Katy Birkin / Callum Davidson

Operational Review

In January 2025, the Group recruited a Director of Marketing who has taken responsibility for enhancing digital outreach and raising Ingenta's profile in key industries. These efforts have already helped increase the quality and breadth of opportunities which the sales teams are actively engaged on. The expansion of the sales team has taken longer than expected, however recruitment in two key sales positions in July 2025 has provided relevant specialism in our Content and Commercial sectors where we see opportunities to generate revenue growth. Whilst these sales and marketing activities have been progressing, we have also been embedding our account management processes to identify opportunities and offer practical solutions to customer requirements. Encouragingly, this has developed significant work for the coming year with further recurring revenue anticipated in 2026 and beyond. All Group project work remains on track with completion scheduled for the end of 2025.

Looking ahead, there are a substantial amount of potential new business proposals awaiting customers' final decisions in the second half and we are confident that the momentum of new business wins will build during this period into next year, particularly as the new sales team begins to become effective.

Financial Review

The Group operates as one reporting segment with two core revenue categories being Ingenta Commercial and Ingenta Content.

Ingenta Commercial

Ingenta Commercial provides a variety of modular publishing management systems for both print and digital products. Its core area of expertise is intellectual property management, including the associated contracts, rights and royalties. The software has an established publisher client base and is highly adaptable, so it can also be applied to broader media markets including music, television and film.

Commercial revenues increased to £3.7m (2024: £3.4m) with the increase driven by the expansion of recurring Managed Services engagements within the customer base.

Ingenta Content

The Ingenta Content suite of products enables publishers of any size, discipline or technical proficiency to convert, store, deliver and monetise digital content on the web.

Annual revenue decreased to £1.4m (2024: £1.6m), mainly as a result of lower than expected new sales and the associated implementation revenues.

Financial Performance

Group revenues increased to £5.2m (2024: £5.1m) with the increases being driven by the Ingenta Commercial software base as described above.  In addition, gross margins increased from 48% to 51% as the business continues to streamline operational delivery via its cloud based infrastructure.

Sales and marketing spend was broadly stable in the first half of the year, however, the Group has been actively recruiting additional sales personnel to fill strategic vacancies. As previously announced, the Company is prioritising acceleration of new business acquisition to offset the expected larger scale reduction in revenues from legacy platforms in future years and return the Company to growth in revenues and profits. Two of these key roles have been filled and came on board in July.

Administrative expenses decreased to £1.0m (2024: £1.4m) largely as a result of non-cash exchange differences on translation of intercompany balances. In the current year, this amounted to a gain of £0.3m versus a loss of £28K in 2024.

EBITDA, adjusted for the effects of foreign exchange, increased to £0.9m (2024: £0.7m) with the gains driven by operational efficiency as the business streamlines its use of cloud infrastructure.

Financial Position

Trade and other receivables reduced to £1.1m (2024: £1.8m) largely due to accelerated receipts timing as evidenced in the cashflow statement.

Trade and other payables also decreased to £1.0m (2024: £1.4m) primarily due to the release of £0.3m of provisions following successful completion all of Group software obligations and writing off its China joint venture payable. The Group has no debt or lease obligations.

The Group has accumulated tax losses of £12.0m in the UK and $5.7m in the US and has utilised £4.8m of this over a 5 year period to recognise a £1.1m (2024: £1.6m) deferred tax asset. The deferred tax asset has declined over the 5 year assessment period because the Group expects that profitability will be initially lower whilst it integrates a new sales and marketing team and manages potential decline of legacy platforms. Management anticipate using the remaining tax losses, but do not believe they have adequate information to make an assessment of utilisation beyond 5 years.

Cashflow

Cash inflow from operations improved to £0.7m (2024: £0.4m) driven by improved profitability and timely cash collections, despite the earlier payment of the final 2.6 pence dividend of £0.4m in the period: the final dividend payment in 2024 was made in the second half of the year so did not impact cash generation in the first half of that year. The Group has cash deposited in liquidity funds which started to generate interest from June.

Outlook

Results for the year remain on track and the Group is pleased to report investment progress made in its sales and marketing teams with key positions filled for the second half of the year. The Board believes that there is a substantial market for its Commercial and Content products which, along with a solid base of referenceable clients, will provide a strong foundation for future success. The Group anticipate an initial integration period as the new teams bed in, but look forward with increased optimism that new sales momentum will build over the coming months.

Jon Sheffield

Chief Financial Officer

Unaudited Condensed Consolidated Interim Statement of Comprehensive Income

Unaudited Condensed Consolidated Interim Statement of Financial Position

Unaudited Condensed Consolidated Interim Statement of Changes in Equity

Unaudited Condensed Consolidated Interim Statement of Cash Flows

Notes to the Unaudited Interim Report for the six months ended 30 June 2025

1.   Nature of operations and general information

Ingenta plc (the "Company") and its subsidiaries (together the "Group") is a provider of technology and supporting services to content providers and publishers. The nature of the Group's operations and its principal activities are set out in the full annual financial statements.

The Company is incorporated in the United Kingdom under the Companies Act 2006. The Company's registration number is 00837205 and its registered office is Suite 2, Whichford House, Oxford, OX4 2JY. The condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 15 September 2025.

The financial information set out in this interim report does not constitute statutory accounts as defined in section 404 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2024, prepared under IFRS as adopted by the European Union, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or section 498 (3) of the Companies Act 2006.

2.   Basis of preparation

These unaudited condensed consolidated interim financial statements are for the six months ended 30 June 2025. They have been prepared following the recognition and measurement principles of UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2024.

These condensed consolidated interim financial statements have been prepared on the going concern basis under the historical cost convention and have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2024.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these consolidated interim financial statements.

A detailed set of accounting policies can be found in the annual accounts available on our website, www.ingenta.com or by writing to the Company Secretary at the registered office as above.

3.   Revenue

An analysis of the Group's revenue by activity is shown below:

An analysis of the Group's revenue by product type is shown below:

4.   Profit per share

Basic profit per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted profit per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

5.   Trade and other receivables

Trade and other receivables comprise the following:

6.   Trade and other payables

Trade payables comprise the following:

7.   Contingencies and commitments

There were no contingencies or commitments at the end of this period or the comparative period.

8.   Post balance sheet events

There were no material events subsequent to the end of the interim reporting period that have not been reflected in the interim financial statements.