22nd Jul 2025 13:27
(Alliance News) - Fonix PLC on Tuesday reported increased earnings and gross profit "in line with expectations" for its latest financial year.
However, the stock was down 4.6% at 206.00 pence per share on Tuesday afternoon in London.
The London-based mobile payments and messaging services provider said gross profit, for the year ended June 30, rose 3.9% to GBP18.6 million from GBP17.9 million in financial 2024.
Adjusted earnings before interest, tax, depreciation and amortisation increased 6.6% to GBP14.6 million from GBP13.7 million, and the company said it continues to generate strong underlying cash flows.
Furthermore, Fonix said it intends to pay an increased final dividend in November, in accordance with its policy "to pay out at least 75% of adjusted earnings per share".
"FY25 was a year of strategic execution, with Fonix delivering gross profit and earnings growth in line with expectations while laying firm foundations for future expansion," the company stated. "We maintained our leading position in the UK market, securing new wins with GB News and News UK, whilst experiencing continued growth across both the UK and Ireland.
"Growth was more measured than in recent years, reflecting resilient revenues from our largest clients and evolving competition formats," Fonix continued. "Demand for new products - including PayFlex, CompsPortal, and RCS - has been strong in the latest quarter, with clear traction among existing and prospective customers.
"These offerings are expected to drive meaningful new revenue streams from FY26."
Fonix further said engagement has been high across all international target markets, and that it has "a significant runway for expansion".
The company expects a full commercial launch in Portugal in September, and overseas entities are "being established in two additional European countries". It also plans to enter a third European market.
"FY25 has been a pivotal year for Fonix," commented Chief Executive Officer Rob Weisz. "While headline gross profit growth was steadier than in recent periods, this was a year of exciting progress behind the scenes - laying the foundations for the next phase of scalable growth."
He continued: "As we move into FY26, we're confident that the investments made in FY25 will begin to bear fruit, supporting stronger growth, greater diversification, and sustained value creation for our shareholders."
By Emma Curzon, Alliance News reporter
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