Interim Results

PULSAR GROUP PLC

("Pulsar Group", the "Company" or the "Group")

INTERIM RESULTS

Pulsar Group Plc (AIM: PULS), the technology innovator delivering Software-as-a-Service ("SaaS") solutions for the global marketing and communications industries, is pleased to announce its unaudited half year results for the six months ended 31 May 2025.

Highlights:

The Group has continued to make good progress against its strategic objectives, delivering further Annual Recurring Revenue ("ARR") growth in both its APAC and EMEA & North America regions:

· The Group's ARR increased by £1.1m1 in the period, with a further £0.5m of ARR growth delivered in the last two months of the period in addition to the £0.6m growth previously reported for the first four months of the period.

· Total revenue for the period was £30.1m, compared to £29.9m1 in H1 2024 (£31.3m reported) with 95% of revenue being recurring (H1 2024: 96%).

· The Group delivered Adjusted EBITDA2 in the period of £3.6m, a year-on-year increase of £0.7m1 (H1 2024 Reported: £3.1m).

· During the first half of the year, annualised cost savings of £1.6m were delivered. Since the period end, significant further savings have already been actioned and will become effective during the third quarter of the current financial year.

· Net debt at the period end of £4.2m and, as a result of the actions taken to optimise the business for profitable growth and free cash flow generation, the Board anticipates much improved cash generation in the second half of the financial year.

· Given the momentum being shown across the regions, the Group continues to trade in line with the Board's expectations.

Joanna Arnold, Global Chief Executive Officer, commented:

"The last 18 months have been pivotal for the Group. We've carefully navigated significant volatility across the media and technology landscapes, responding with agility to deliver essential real-time audience intelligence. This strategic integration has built a robust foundation for scalable, long-term profitability and enhanced client value.

During the first half, we've sustained strong commercial momentum, evidenced by continued ARR growth and significant client wins, including the expansion of a landmark group-wide partnership. Our disciplined focus on operational efficiency and cost reduction is translating into improved trading results, setting us on a clear path for sustainable margin expansion and cash generation.

Looking ahead, the transformative power of generative AI presents exciting opportunities for both new revenue streams and significant operating model enhancements. Pulsar Group remains committed to embedding AI across our suite, reinforcing our market leadership and empowering clients to shape narratives with confidence, while delivering lasting shareholder value.

Overall, the Board remains confident in Pulsar Group's outlook for the second half of the year and beyond."

1. On a constant currency basis. Prior periods recalculated at H1 2025 rates. The movement of the AUD:GBP FX rate from ~A$1.95:£1 in November 2024 to ~A$2.09:£1 in May 2025, and the USD:GBP FX rate from ~US$1.27:£1 in November 2024 to ~US$1.35:£1 in May 2025 has had a significant impact on the reported value of the Group's ARR over the last six months.

2. Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and adjusted for share based payments, share of losses of an associate and non-recurring expenses primarily relating to acquisition, integration and restructuring costs in respect of Isentia.

For further information:

Chairman's statement

I am pleased to announce our unaudited interim results for the six months ended 31 May 2025.

The first half of 2025 has underscored the enduring need for clarity and trust amidst a complex global landscape, marked by geopolitical shifts, economic uncertainty, and the rapid ascent of generative AI. At Pulsar Group, we've continued to embrace this dynamic environment as a significant opportunity, solidifying our position as an indispensable partner for organisations navigating the intricate intersection of media, technology, and public sentiment. Our unwavering focus remains on empowering clients with the real-time audience intelligence and trusted insights crucial for confident, impactful decision-making.

We've diligently executed our three-pillar strategy: streamlining operations for enhanced efficiency, scaling our product-led growth model, and reinventing client expectations through AI-driven innovation. This disciplined approach has enabled us to deliver media and audience intelligence with greater speed and precision, ensuring our robust and agile platform is well-positioned for sustainable, profitable growth.

We've seen continued positive commercial momentum during the first half, evidenced by continued ARR growth and significant client wins. The expansion of our relationships with existing clients, alongside numerous new government and enterprise collaborations, highlights the widespread relevance of our platform. These successes, combined with our ongoing cost-reduction program, reflect the Board's focus on ensuring that the Company can deliver an improved operating performance and sustainable margin expansion, together with cash generation.

Sustained growth in EMEA & North America

In EMEA & North America the Group has continued to grow, delivering an increase in ARR of £0.9m in the period. Overall ARR growth in the region during the first half was underpinned by the expansion of the Group's partnership with one of the world's largest advertising and marketing services holding companies, increasing its annual recurring spend by 150% as reported in April 2025.

EMEA & North America revenue has increased by £0.2m1 compared to the comparative period last year, benefitting from the ongoing ARR growth in the region. Regional adjusted EBITDA has also improved due to the year-on-year revenue growth alongside cost optimisation initiatives undertaken by the Group.

New client wins in the EMEA & North America region during the period include: Amey; Anglo American; Apple; Arts Council England; BT; Cathay Pacific; Department of Health and Social Care; Foreign, Commonwealth and Development Office; Inmarsat; Live Nation; Network Rail; and Papa Johns.

Acceleration of ARR growth in APAC

In APAC we have delivered a return to ARR growth1 after a challenging H2 2024, with £0.2m1 of ARR growth in the first six months of the year.

APAC revenue remained stable1 year on year with the Group continuing to focus its sales team's efforts on the delivery of long-term recurring revenue contracts. Adjusted EBITDA in the region has increased year on year as a result of further cost optimisation initiatives delivered to date, with further savings to be realised during the second half of the year.

The Group has won a number of new clients in the APAC region during the first half, including: Airservices Australia; Australian Football League; Australian Ministry of Investment, Trade and Industry; Australian Olympic Committee; Australian Pharmaceutical Industries; Hyundai; One New Zealand; Petronas; Serco; Singapore Land Authority, SM Group Philippines; Sport Ireland; and UOB Malaysia.

Optimisation of the Group's operations

As part of the Group's strategic objective to streamline operations and optimise the business for profitable growth and free cash flow generation, we have successfully realised annualised cost savings of £1.6 million during the first half of the financial year. These savings include efficiencies achieved across data, infrastructure, and headcount rationalisation.

On May 8, 2025, the Group successfully completed an equity placing, raising gross proceeds of £3.0 million. A proportion of these proceeds has been strategically deployed to accelerate the Group's cost reduction program. In addition to the cost savings delivered in the first half, the Board has already implemented substantial further cost-saving measures and anticipate the full financial benefits of these actions to be realised during the second half.

The Group's net debt position at the end of the period was £4.2m with the Board focused on delivering significantly improved cash generation in the second half as the Group sees the benefits of its saving initiatives. It has in place a £3.0m loan facility and a £3.0m overdraft facility.

Results for the half year

The primary key performance indicator monitored by the Board is the growth in ARR year-on-year. This reflects the annual value of new business won, together with upsell into the Company's existing customer base as it delivers against its land and expand strategy, less churn. It is an important metric for the Group as it is a leading indicator of future revenue.

During the period, the Group's ARR grew by £1.1m1 (H1 2024: £2.2m1). ARR at 31 May 2025 was £60.7m, comprising £31.6m in EMEA and North America and £29.1m in APAC.

Revenue for the period was £30.1m (H1 2024: £29.9m1, £30.8m reported), with recurring revenue comprising 95% of total revenue for the period (H1 2024: 96%).

EMEA & North America revenue increased by £0.2m year on year to £14.5m (H1 2024: £14.3m) as a result of ongoing ARR growth in the region. Recurring revenue comprised 99% of total EMEA & North America revenue in the period (H1 2024: 99%).

APAC revenue remained stable year on year at £15.6m (H1 2024: £15.6, £16.5m reported). Recurring revenue comprised 92% of total APAC revenue in the period (H1 2024: 94%), with the small increase in non-recurring revenue being due to short-term, ad hoc purchases of media intelligence by customers for multiple national elections.

The Group delivered a gross margin of 69% in the period (H1 2024: 72%), with FX rates having a more significant impact on revenue than on cost of sales.

Following the efforts made by the Board to deliver cost savings and improve the operational efficiency within the Group, recurring administrative expenses reduced by c 11% to £17.1m (H1 2024: £19.0m). Non-recurring expenses incurred in the period were £3.7m made up of: non-recurring salary costs, including redundancies of £3.2m; and non-recurring duplicate technology and other costs of £0.5m.

Adjusted earnings before interest, tax, depreciation and amortisation ("EBITDA") were £3.6m (H1 2024: £3.0m1, £3.1m reported). Adjusted EBITDA excludes certain non-recurring expenses totalling £3.7m for the period (H1 2024: £3.6m), in addition to the Group's share of loss of an associate of £Nil (H1 2024: £0.1m) and a share-based payments charge of £0.2m (H1 2024: £0.2m).

The Group's reported EBITDA loss was £0.2m (H1 2024: loss of £0.9m).

The Group has continued to invest in its software platforms with identifiable new product development activity being capitalised. The Group capitalised development costs of £3.0m for the period (H1 2024: £3.4m), with a further £0.7m (H1 2024: £0.5m) of product, research and development costs being expensed through profit and loss.

The Group's operating loss was £4.4m (H1 2024: loss £4.3m). The Group incurred £4.2m of depreciation and amortisation charges (H1 2024: £3.4m).

The basic loss per share was 4.96p (H1 2024: 2.92p).

Outlook

As we look to the second half of 2025 and beyond, Pulsar Group is well-positioned to meet the evolving demands of a complex global landscape. The persistent need for real-time audience intelligence and trusted insights underscores the enduring relevance of our platform. We're intently focused on accelerating global Annual Recurring Revenue (ARR) growth, further refining our operating model for enhanced EBITDA margins and robust free cash flow conversion, and continuing to advance our market-leading products to surpass client expectations.

Our H1 ARR growth and robust pipeline provide significant momentum, setting the stage for higher revenue in H2. This expansion affirms the growing demand for our omnichannel intelligence. Operationally, the efficiencies delivered during H1, with more to be delivered throughout the course of the second half, will continue to improve the company's cash generation with a focus on reducing the Group's indebtedness and underscoring our commitment to financial discipline and sustainable margin expansion.

Crucially, the rise of generative AI presents both significant new revenue opportunities and pathways for substantial enhancements to our operating model. Pulsar is uniquely positioned to help clients navigate this AI-driven world, understanding and influencing evolving narratives. Internally, AI will continue to drive unprecedented efficiency, automating processes and delivering faster, more precise insights, reinforcing our leadership in strategic intelligence for the long term.

Overall, the Board is pleased with the progress being made and remains confident in the outlook for the Group in the second half of the year and beyond.

Christopher Satterthwaite

Non-executive Chairman

Pulsar Group Plc

Consolidated Statement of Comprehensive Income

for the six months ended 31 May 2025

Pulsar Group Plc

Consolidated Statement of Financial Position

at 31 May 2025

Pulsar Group Plc

Consolidated Statement of Changes in Equity

for the six months ended 31 May 2025

Pulsar Group Plc

Consolidated Statement of Cash Flow

for the six months ended 31 May 2025

Notes

1. Unaudited notes

Basis of preparation and accounting policies

The financial information for the six months to 31 May 2025 is unaudited and was approved by the Board of Directors on 11th July 2025.

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 30 November 2024.

The interim financial information for the six months ended 31 May 2025, including comparative financial information has been prepared on the basis of the accounting policies set out in the last annual report and accounts.

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may subsequently differ from those estimates.

In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the consolidated financial statements for the year ended 30 November 2024.

The Group has elected to present comprehensive income in one statement.

Going concern assumption

The Group meets its day to day working capital requirements through its cash balance and during the prior period entered into a £3.0m overdraft facility and a £3.0m loan facility which are both in place at the date of this announcement. The £3.0m debt facility is in place until July 2026 whilst the overdraft is repayable on demand. As at the date of this report, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Information extracted from the Group's 2024 Annual Report

The financial figures for the year ended 30 November 2024, as set out in this report, do not constitute statutory accounts but are derived from the statutory accounts for that financial year.

The statutory accounts for the year ended 30 November 2024 were prepared under IFRS and have been delivered to the Registrar of Companies. The auditors reported on those accounts. Their report was unqualified, did not draw attention to any matters by way of emphasis and did not include a statement under Section 498(2) or 498(3) of the Companies Act 2006.

2. Revenue

The Group's revenue is primarily derived from the rendering of services. The Group's revenue was generated from the following territories:

3. Earnings per share

The calculation of earnings per share is based upon the loss after tax for the respective period. The weighted average number of ordinary shares used in the calculation of basic earnings per share is based upon the number of ordinary shares in issue in each respective period.

The impact of share options granted under the company's share option scheme are anti-dilutive due to the Group being in a loss-making position, so the weighted average number of ordinary shares used in the calculation of diluted earnings per share is the same as for basic earnings per share.

This has been computed as follows:

4. Availability of interim results

The interim results will not be sent to shareholders but will be available at the Company's registered office at Northburgh House, 10 Northburgh Street, London, EC1V 0AT and on the Company's website: www.pulsargroup.com.