23rd Jul 2025 12:31
(Alliance News) - Software Circle PLC on Wednesday said it expects further growth in the next financial year as its pretax loss narrowed while revenue increased.
The Manchester, England-based vertical market software investor said its pretax loss narrowed to GBP671,000 in the 12 months to the end of March from GBP3.5 million a year ago.
Revenue increased 13% to GBP18.3 million from GBP16.2 million, while direct costs fell 16% to GBP5.0 million from GBP6.0 million.
As a result, gross profit jumped 30% to GBP13.2 million from GBP10.2 million.
Staff costs increased 39% to GBP7.4 million from GBP5.3 million, though other operating charges were down 29% to GBP2.4 million from GBP3.4 million.
Software Circle also made a GBP1.7 million profit on domain disposal, up from none in the prior year.
It swung to an operating profit of GBP704,000 from a GBP3.2 million loss in the prior year.
"The company has completed a fundamental transformation-and done so with remarkable smoothness. That's rare. It has evolved from a capital-intensive print operation into a focused, decentralised group of vertical market software businesses.
"This shift has not only reshaped our revenue profile and operating model but also positioned Software Circle as a long-term, value-driven acquirer," said Chair Matthias Riechert.
No dividend was proposed or paid for the year, unchanged from a year ago.
Looking ahead, the company said trading in the new financial year has continued to align with internal forecasts. Software Circle expects annual revenue to rise to around GBP20 million in financial 2026.
"We have entered the new financial year with a strong pipeline of opportunities, meaningful financial headroom, and growing internal capability to execute transactions effectively and onboard them at pace.
"Alongside acquisitions, we remain committed to operational excellence within our existing businesses-driving organic growth, improving cash conversion, and supporting our teams to scale sustainably," said Chief Executive Officer Gavin Cockerill.
Shares in Software Circle were up 1.4% at 29.00 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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