25th Aug 2026 12:58
(Alliance News) - Tialis Essential IT PLC on Tuesday said losses narrowed in the first half, despite lower revenue due to order delays, and noted that it had formalised its partnership with an advisory company.
Shares in the Edinburgh-based provider of IT support services fell 6.3% to 45.00 pence each on Tuesday afternoon in London.
Tialis posted a pretax loss of GBP394,000 for the six months ended June 30, narrowed from GBP912,000 a year earlier.
Though revenue from consulting services had increased to GBP189,000 from GBP44,000, IT solutions revenue fell to GBP7.4 million from GBP8.8 million, bringing total revenue for the first half down to GBP7.6 million from GBP8.8 million on-year.
Peter Hallett, interim non-executive chair, commented: "Whilst first half revenues were impacted by delayed customer orders and the earlier than expected insourcing of two customer contracts, the group continued to generate positive operating cash flow and further reduced its debt position. We enter the second half of the year with a strong sales pipeline and remain confident in the group's prospects."
On a positive note, Tialis said that the MXLG joint venture contribution had returned to profit of GBP807,000, and that it sees a positive second-half opportunity pipeline for this part of the business.
"New business wins for 2026 are in line with budget, with a number of significant contract opportunities expected to progress during H2 2026. We are maintaining a strong current sales pipeline of GBP8m annual value," Tialis noted on Tuesday.
It added that it has made progress on the capital restructuring plan it had outlined earlier this year, having started the court process to cancel the share premium account and extinguish deferred shares in issue, which it expects to create "significant" distributable reserves.
The company also said it had formalised its strategic advisory relationship with its joint venture company, AI Auxesis Ltd.
The agreement runs for an initial term of one year, and after that, can be ended by either Tialis or AI Auxesis at 3 months' notice.
Under the terms of the partnership, Tialis will pay AI Auxesis an annual cash fee of GBP192,000 in monthly instalments. The fee will raise to the greater of GBP192,000 and an amount that matches 0.7% of Tialis's market capitalisation.
Tialis sees the arrangement providing "continued access to sector-specific, senior strategic and transaction experience" that will support its business.
The arrangement is being treated as a related party transaction, since Andrew Smith, who owns about 13% of Tialis, also has a stake in AI Auxesis.
By Holly Munks, Alliance News reporter
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