Final Results for the year ended 31 August 2025

24 February 2026

RC FORNAX PLC

("RC Fornax" or the "Company")

Final Results for the year ended 31 August 2025

RC Fornax (AIM: RCFX), the UK-based consultancy delivering outcome-based engineering solutions to the defence sector's most critical platforms - accredited, in-demand, and built to scale, announces its final results for the year ended 31 August 2025 (the "Period" or "FY25").

The Company's Annual Report and Accounts is available to view on its website at:

https://www.rcfornax.co.uk/financial-reports

Period Summary

· Admission to the London Stock Exchange's AIM in February 2025, raising £3.4m in net proceeds.

· FY25 financial results were impacted by an industry hiatus caused by the publication of the UK Government's Strategic Defence Review ("SDR") in June 2025:

o  FY25 revenue of £4.1m (FY24: £6.4m).

o  FY25 gross profit of £1.0m (FY24: £1.6m).

o  FY25 adjusted loss before tax of £1.6m (FY24: £0.5m profit).

· The Company is participating across seven procurement frameworks, generating 20+ bid opportunities since April 2025.

· RC Fornax is in advanced discussions on three major agreements, two with defence primes for land and maritime programmes.

· Development within SME Procure continues, consisting of AI-driven tools to generate Scopes of Work, build teams and connect SMEs with defence buyers. This is designed to transform how SMEs engage with defence procurement.

· The Company opened new headquarters in Bristol in April 2025, which meets the Ministry of Defence's secure facility standards. The headquarters provides the opportunity to scale up to 50 staff members.

· At 31 August 2025, the Company's cash position totalled £0.9m reflecting investments in RC Fornax's new headquarters and talent for future growth.

Post Period Highlights and Outlook

· Fundraising in December 2025 raised £2.1m net.

· £4.3m in new orders and extensions booked in the first half of FY26.

· Invoiced sales through the end of January 2026 totalled £1.7m, with additional contracted orders for remainder of FY26 totalling £2.4m.

· Furthermore, orders subject to contract total £0.6m, of which £0.4m is expected to convert to sales during FY26. Therefore, the Company has firm current visibility over £4.5m in sales for FY26 heading into the second half of the year.

· In January 2026, the Company was unconditionally accepted by Aurora Engineering Partnership as a Specialist Provider on Evolve, its Engineering Delivery Partnership Provider Network, a major UK defence engineering framework.

· Demonstrated progress in diversifying beyond the UK defence sector, highlighted by the recent contract award announced on 25 November 2025 from a UK Public Sector Space Client.

· Despite near‑term uncertainty linked to the delayed Defence Investment Plan ("DIP"), positive outlook underpinned by strong long‑term demand expectations as the UK strengthens its war‑fighting readiness.

· Challenges in securing additional investment funding are increasing customer focus on maximising value from existing budgets - precisely where RCFX's capabilities in delivering cost‑effective, outcomes‑driven engineering and procurement support provide a clear competitive advantage.

· Board strengthened through the appointments of Richard Smith in September 2025, and Andrew McInerney and Chris Brooks in January 2026.

Priorities for remainder of FY26

· Convert major framework agreements and accelerate revenue growth.

· Scale SME Procure to unlock margin improvement and operational leverage.

· Deepen partnerships with primes and SMEs to strengthen market position.

· Maintain financial discipline while investing in innovation and talent.

Paul Reeves, Chief Executive Officer of RC Fornax, commented: "FY25 was a challenging year for the defence sector, yet RC Fornax has emerged stronger and more resilient. We entered FY26 with a reinforced capital base, improved liquidity, and advanced discussions across several major defence programmes. Invoiced sales reached £1.7m by the end of January 2026, with a further £2.4m in contracted orders for the remainder of the year. The increased number of orders highlights the exciting trajectory in which we are heading. Combined with a strengthening pipeline, the Board remains confident in the Company's ability to meet market expectations for 2026 and our ability to deliver sustainable shareholder value.

"As the market environment stabilises, our priorities are clear: convert major opportunities, scale SME Procure and deepen partnerships across the defence ecosystem. With disciplined execution and a more robust platform, RC Fornax is positioned not only to return to growth but to help shape the future of defence procurement."

For additional information, please contact:

Notes to Editors

RC Fornax PLC is an AIM-quoted company providing outcome-based engineering solutions to the UK defence industry. It was founded in 2021 by RAF veterans Paul Reeves and Daniel Clark who, having also worked for a number of years as defence contractors, are passionate about improving project efficiencies and driving value for money in the sector.

Chair's Statement

The Strategic Defence Review (SDR), published in June, introduced 62 recommendations and signalled a decisive shift towards war-fighting readiness. While this transition created short-term procurement delays, it reinforces the long-term need for agile, accredited SMEs. UK defence spending is projected to rise to 2.5% of GDP by 2027 - an estimated £13.4 billion uplift - providing a constructive backdrop for RC Fornax's services.

FY25 was a year of strategic investment and resilience. Following our AIM admission and successful capital raise, the Board focused on strengthening governance, enhancing risk management, and ensuring the Company is positioned for sustainable growth. Revenue closed at £4.1m, below expectations due to deferred client expenditure as a result of the uncertainty surrounding the outcomes of the SDR.

ESG and Board Oversight

Whilst the Company is not required to report its greenhouse gas emissions under the Companies Act 2006 or the Streamlined Energy and Carbon Reporting (SECR) framework due to its size and AIM listed status, the Board recognises that strong environmental, social, and governance (ESG) practices are integral to sustainable growth. In FY25, we prepared our first Carbon Reduction Plan and embedded diversity and inclusion principles across our operations. In FY26, we will continue to strengthen ESG reporting and align our practices with evolving stakeholder expectations. The Board maintains rigorous oversight through dedicated committees to ensure compliance, accountability, and alignment with our strategic objectives.

Looking Ahead

The Board anticipates a stabilising defence environment and a return to more predictable procurement cycles in FY26. Our priorities will include:

· Leveraging our strengthened governance and compliance frameworks to support growth and maintain investor confidence.

· Driving commercialisation of innovation platforms to improve margins and scalability.

· Expanding strategic partnerships and frameworks to capture emerging opportunities from increased defence spending.

· Maintaining disciplined capital allocation to balance investment in growth with shareholder returns.

· Advancing ESG commitments to reinforce our role as a responsible and sustainable partner in the defence sector.

The Board remains confident in the Company's trajectory. With a robust innovation pipeline, maturing frameworks, and a constructive market outlook, RC Fornax is well placed to deliver enduring shareholder value. On behalf of the Board, I thank our employees, associates, customers, and shareholders for their continued support.

David Hitchcock

Independent Non-Executive Chair

Chief Executive's Review

FY25 tested our agility and resilience in a year of profound change for the defence sector. Revenue of £4.1m and a £1.6m adjusted loss before tax reflect the impact of SDR-related procurement delays that did not result in the conversion of leads at the rate initially expected by the Board, and our deliberate investment in capability. Despite these headwinds, gross profit held at £1.0m, supported by disciplined delivery and cost control.

Shaping the Future of Defence Procurement

RC Fornax is not simply adapting to change - we are helping to define it. The SDR has accelerated the need for innovation, agility, and trusted partnerships. Our platform, SME Procure, is designed to transform how SMEs engage with defence procurement, driving transparency, efficiency, and compliance across the supply chain. These solutions will underpin a more resilient and responsive defence ecosystem, with commercialisation expected in FY26.

Operational Progress

We strengthened governance, appointed a sales director, and realigned our Sales and Delivery teams to accelerate conversion. Our associate network expanded significantly, enabling rapid deployment across Land, Air, and Maritime domains and reinforcing our ability to meet evolving client needs.

Forward Strategy

Following the release of the Strategic Defence Review in June 2025 and the subsequent publication of the Defence Industrial Strategy in September 2025, the Company continues to monitor the evolving policy landscape. Despite these developments, ongoing uncertainty surrounding the timing of the DIP continues to weigh on expectations for the anticipated uplift in sector activity as the UK accelerates its transition toward a war‑fighting readiness posture. This delay has prolonged decision‑making cycles across several priority programmes and continues to affect the pace at which revenue expansion is expected to materialise.

Notwithstanding this, the governance enhancements implemented during FY25 - including strengthened pipeline management, more rigorous opportunity qualification processes, and improved internal reporting mechanisms - have significantly enhanced the Company's visibility into future workloads. These changes provide greater confidence in both the quality and resilience of the forward opportunity pipeline.

The Company also enters FY26 in a substantially stronger position to navigate prolonged uncertainty within the defence sector. Through:

• the expansion of outreach activities within the defence sector;

• diversification into parallel markets, as illustrated by the announcement on 25 November 2025 regarding the UK Public Sector Space client framework award; and

• disciplined management of discretionary expenditure,

the Company is better equipped to adapt to shifting customer priorities while sustaining operational flexibility. This more robust foundation enables the business to remain focused on capturing long‑term growth opportunities as greater clarity emerges around UK defence investment trajectories.

Our priorities for the remainder of FY26 are clear:

• Convert major framework agreements and accelerate revenue growth.

• Scale SME Procure to unlock margin improvement and operational leverage.

• Deepen partnerships with primes and SMEs to strengthen market position.

• Maintain financial discipline while investing in innovation and talent.

With £0.9m in cash at the end of the Period (subsequently increased as a result of a well-supported net £2.1m fundraising in November 2025) and a robust pipeline that the Company is converting, RC Fornax is positioned not only to return to growth but to lead the transformation of defence procurement. I thank our employees, associates, customers, and investors for their commitment and confidence as we enter the next phase of our journey.

Paul Reeves

Chief Executive Officer

Financial Review

Overview

FY25 was a year of strategic investment and operational transition. While revenue fell short of prior-year levels due to SDR-related delays and deliberate investment decisions, the Company strengthened its balance sheet through AIM admission proceeds and positioned itself for long-term growth.

Financial Performance

Revenue for FY25 was £4.1m compared to £6.4m in FY24, reflecting SDR-related procurement delays and slower conversion of pipeline opportunities. Gross profit was £1.0m (FY24: £1.6m), with margins maintained at approximately 24%. Administrative expenses increased to £2.3m (FY24: £0.8m), driven by headcount expansion, recruitment costs, and professional fees linked to IPO and organisational restructuring. Net loss before tax of £1.6m (FY24: £0.5m profit), primarily due to increased operating costs and depreciation on new assets.

Balance Sheet Strength

Net assets stood at £1.9m (FY24: £48,000), reflecting the IPO and share premium of £3.3m. Fixed assets increased to £1.2m (FY24: £5,600) following investment in Bristol HQ fit-out and IFRS 16 recognition of right-of-use assets for property and vehicles. Cash position at year-end was £0.9m (FY24: £0.6m), supported by £3.4m financing inflow from AIM admission offset by £0.9m capex and £1.8m operating cash outflow.

Cash Flow

Operating activities resulted in a net outflow of £1.6m (FY24: inflow of £0.4m), reflecting working capital movements and tax settlement. Investing activities saw an outflow of £0.9m (FY24: £6,200), driven by HQ fit out and IFRS 16 assets. Financing activities delivered an inflow of £2.8m (FY24: outflow of £0.3m), primarily from the net proceeds of £3.4m from shares issued, partially offset by pre-IPO dividend payments of £164,000 (FY24: £573,000).

Key Drivers and Context

The SDR introduced short-term procurement delays impacting revenue conversion; however, its long-term implications remain positive for SME integrators such as RC Fornax. Investment in capability included opening the Bristol HQ in April 2025, growing headcount from 11 to 17, and funding technology development from AIM proceeds. Increased operating costs reflect strategic decisions to build capacity for future growth.

Outlook

Despite FY25 losses, RC Fornax has entered FY26 with a strengthened capital base and liquidity, advanced discussions on major defence programmes, and a stabilising market environment.

Invoiced sales through the end of January 2026 totalled £1.7m and contracted orders through the remainder of FY26 total £2.4m which, coupled with the sales pipeline means the Board remains confident in the Company's ability in due course to return to profitability and deliver sustainable shareholder value.

Statement of Comprehensive Income

For the Year ended 31 August 2025

The Company had no items of other comprehensive income or expenditure during the current or prior year. Accordingly, a separate Statement of Other Comprehensive Income has not been presented.

Statement of Financial Position

As at 31 August 2025

Statement of Changes in Equity

For the Year ended 31 August 2025

Statement of Cash Flows

For the Year ended 31 August 2025