Final Results

Chairman's statement

Introduction

An encouraging development we have seen in the last twelve months has been the number of new shareholders investing in the business. I am delighted to welcome them. For their benefit, and to remind longstanding shareholders, in June 2025, I announced the outcome of our internal review of strategic priorities and the decision to focus on our developing 'Defence and Security' division.

This statement, therefore, focuses on that division but also covers the pleasing progress made in the other two divisions, 'Forgings' and the recently merged 'Petrol Station Superstructures and Branding' division.

Operating Environment

In my interim results statement in January, I said that "…I am delighted to tell shareholders that I believe our medium to long term prospects are better than at any time in the Company's history."

I still believe this to be the case despite the unparalleled political turmoil we are witnessing as world economies struggle with growth and the repercussions of the conflict in the Middle East.

We continue to receive substantial international interest for our range of defence and security products, especially our timely combat proven counter-drone capability. This is detailed in the Outlook section of this statement.

Additionally, it's very encouraging that most Governments now regularly state that defence should have a higher priority. However, getting to the point where these objectives translate into firm defence orders is a jump that's taking longer than reasonably anticipated. Anyone with an eye on the political agenda will have seen how Governments are reassessing their defence priorities and objectives against other financial demands. 

2025/6 Results

Against this context, I can report similar Group revenues broadly in line with last year of £115.01m (2025 - £117.50m) with a reduced profit before tax of £15.06m (2025 - £20.05m), which was both anticipated and signalled in earlier shareholder communications. 

Basic earnings per share were 67.4p (2025 - 90.0p).

The balance sheet has strengthened considerably with cash and cash equivalents of £46.53m (2025 - £27.78m).

The Group order book at the April year end was marginally lower than the previous two years mainly owing to delays in the placing of some substantial anticipated defence orders.

a) 'Defence and Security'

This was a year of resilient performance and continued progress for the division, notwithstanding the delays in worldwide defence procurement decisions. The division delivered sales ahead of budget and maintained strong profitability even though order intake was slow. The US business performed particularly well with continuing success with the US Navy.

b) 'Forgings'

'Forgings' had a challenging year in the UK, US and Brazil owing to the many uncertainties with US tariffs. This resulted in a disruption in the market and pricing became challenging.

Nevertheless, new strategic customers were gained, particularly in the US with our appropriately located facility. The outlook for 'Forgings' is most encouraging.

c) 'Petrol Station Superstructures and Branding'

Our decision to merge the 'Petrol Station Superstructures' and 'Corporate Branding' divisions was announced in October 2025. The legal merger of these two businesses completed at the end of January this year. The merger has already produced new opportunities from cross selling and the UK company has gained new business as a consequence.

Despite the negative effects of the war in Ukraine, our business in Poland remains resilient, particularly as a supplier of EV charging infrastructure programmes across Western Europe.

It's also encouraging that our dedicated branding business in the Netherlands has now returned to profit.

Outlook

a) 'Defence and Security'

Despite the worldwide political and economic uncertainty, we have received our first contract for our newly developed MSI-DS Multi Weapon Station for delivery into the Middle East in 2027.

Following on from the successful trials of the MSI-DS Terrahawk VSHORAD, these systems have been providing vital protection within the Middle East. The MSI-DS Terrahawk has been officially recognised as having provided protection against a significant number of drones within the region during the conflict.

Aside from our success with the US Navy, other significant international Navies continue to express interest with defined requirements. There is hardly a conversation or story worldwide about the future of defence that doesn't refer to drones. Our equipment is at the forefront of counter-drone capabilities, which has stimulated a substantial level of international recognition and interest in our combat proven systems. We anticipate that much of this international interest should convert to orders, which we will, of course, report to shareholders appropriately.

We already have the facilities and capacity to meet this demand when it crystalises in the foreseeable future.

In light of this, we recently appointed a new US Vice President of Business Development, who is suitably qualified with a commitment to develop the US land and naval markets in the long term.

In looking at future financial performance, shareholders should be reminded that our revenue from defence contracts is recognised only once obligations are satisfied, which is when control of goods and services has transferred to the customer. The significance is that, whilst we might be busy in our manufacturing and production facilities, the timing of the transfer of control means revenue and profits are not instantly recognised.

b) 'Forgings'

In the US, we have begun supplying a major international fork lift truck manufacturer with fork arms and we are optimistic that orders from their US plants will provide consistent revenues in the future. We have the opportunity and flexibility to supply either from our superb US, UK and Brazilian facilities.

Our manufacturing plants in the UK, US and Brazil provide many strategic options, particularly in a world where tariffs on steel fork arms and low cost Chinese imports remain key issues.

c) 'Petrol Station Superstructures and Branding'

This division has excellent prospects based on the new type of superstructures being designed and built for petrol stations in the UK and Europe. Contemporary sites require an EV facility to complement existing facilities. We are also receiving a growing number of requests for complex structures providing additional road-user facilities such as meeting rooms, car wash facilities and coffee shops.

Our unique database of over 40,000 thousand designs and plans, of both UK and European petrol stations, built up over the last 30 years give us an advantage in terms of immediate access to construction details and gives us a significant competitive advantage in this diverse market.

In the UK Corporate Branding business, we are aware of planned changes by some of the on sites owned and managed by the independent operators, so our pipeline is excellent.

In our corporate branding business in the Netherlands, our customer portfolio has become more widely diversified as we service other markets such as theme parks, hotels, automotive showrooms, and airports as well as petrol stations. This diversification across different sectors has not yet been tested in the UK but our success in Europe will provide a strong impetus when we have the UK capacity to diversify.

We will continue to see the benefits of increasingly being the UK and Eastern Europe market leader in this wide sector.

Progress on Strategic Priorities

Shareholders may recall that early in 2025 we tested the market's appetite for their interest in acquiring our 'Forgings' and 'Petrol Station Superstructures and Branding' businesses. Whilst interest was expressed, mainly from financial buyers, it wasn't at levels that we felt valued the business fairly given their prospects. 

Following a sale process, I am pleased to report that, at the time of this announcement, we have encouraging interest from potential buyers for our recently merged 'Petrol Station Superstructures and Branding' business.

Presently, I am not in a position to give more detail as we are currently negotiating with potential buyers but I am hoping that an announcement can be made before the end of the summer. 

Meanwhile, we have received unsolicited interest in the 'Forgings' business but have not undertaken a formal sale process. We intend to revisit this once the 'Petrol Station Superstructures and Branding' process is approaching a satisfactory conclusion. 

Board Changes

It is with considerable regret and sadness that this will be my last Chairman's statement as I have realised that age brings notable challenges and that I can be of most benefit to the company as an adviser, with substantial experience and knowhow, rather than as an active Board member.

I have been with the Company for over 50 years, the majority of those as Chairman and Chief Executive, and have led the evolution of the Company from an international coal mining equipment business through many changes to its current position as a leading innovative and growing international defence company.

I am honoured that the Board has asked me to assume the title of 'Life President' of the Company and I have signed an agreement which begins immediately so that I am available to help on any issue or initiative.

I will, therefore, be stepping down today from the Board and I am delighted to announce that Anthony Wreford will become the independent Non-Executive Chairman with immediate effect. Anthony first advised our business at the time of the hostile Dobson Park bid for the Company in 1988 and we reengaged with him some two to three years ago as part of our review of strategic priorities. In an independent advisory role, he has played an important part in our recent strategic decisions. His appointment will help a smooth handover given his familiarity with our strategy and our senior management. Further information in accordance with the AIM Rules will be provided in a separate announcement today.

I am also pleased to announce that, with immediate effect, Michael O'Connell has been appointed as Group CEO following his tenure as Group Managing Director. Michael and I have worked together for over 40 years and he is fully aligned with my approach to the business, customer relationships and the principles by which we have grown this business.

This is a brilliant business with tremendous employees and I am so proud of how we have built the Company over the past 40 years. As the largest shareholder in the Company and my strong belief in the Company's prospects, it is my intention to remain a substantial shareholder for the foreseeable future.

I look forward to keeping in touch with employees, customers and shareholders who have supported and contributed to our growth and success. I thank them for the support they have shown me during my tenure as both Chairman and Chief Executive.

Whilst this is, inevitably, a sad day for me, I leave the management of the businesses in very capable hands.

Summary and Final Dividend

As we have previously communicated, these results confirm a year of strategic progress and new opportunities without these being yet reflected in the overall financial performance. I am confident that many of the market barriers that have constrained us last year will ease during the current financial year.

I, therefore, leave the Board confident that our prospects remain excellent.

The Board recommends the payment of a final dividend of 20p per share (2025 - 18p), making a total for the year of 26p per share (2025 - 23p). The dividend is expected to be paid on 18th September 2026 to shareholders on the Register at the close of business on 21st August 2026.

Michael Bell

15th July 2026

Copies of this announcement are available from the Company's registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The Notice of AGM will be posted to shareholders on or before 17th August 2026. The full Annual Report and Accounts will be posted to shareholders no later than 17th August 2026. They will be made available on the Company's website at www.msiplc.com and will be delivered to the Registrar of Companies after it has been laid before the Company's members at the Annual General Meeting to be held on 9th September 2026 at The Holiday Inn, Warmsworth, Doncaster.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30th April 2026 or 30th April 2025 but is derived from those accounts. Statutory accounts for 2025 have been delivered to the Registrar of Companies and those for 2026 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The accounting policies applied in this financial information are aligned with those in the Group's financial statements for the years ended 30th April 2026 and 30th April 2025. Those financial statements were prepared in accordance with UK-adopted international accounting standards and the applicable legal requirements of the Companies Act 2006, except for the revaluation of certain financial instruments and properties, and in accordance with the requirements of the AIM Rules.