Half-year Results

Acuity (AIM: ACRM), the software group focused on cybersecurity risk management, is pleased to announce its interim results for the six months ended 30 June 2026.

Key points

Launch of STREAM® Cloud in March 2026, aimed at the regulated mid-market customer segment and broadening the appeal of Acuity’s products into the wider private sector.

Revenue for the six months of £877,000, down 23% on comparative six-month period due to impact of prior year subscription cancellations and an order pipeline weighted towards second half of 2026.

Operating losses reduced to £10,000, compared to losses of £282,000 in the comparative six-month period, reflecting completion of significant cost cutting programme.

Debt reduced to £79,000 (remaining CBILS and lease liability), down from £129,000 at December 2025.

Equity fund raise completed in July 2026 raising gross proceeds of £458,000.

Significant new contract wins announced in August and September 2026 with annual recurring revenues totalling over £300,000.

Current forward contracted revenues after those new contract wins of £2,265,000, up from £1,968,000 at the start of the financial year.

Development of new AI-native Risk OS software continuing with launch expected in fourth quarter of 2026 to increase Acuity’s market and commercial opportunities.

Commenting, Chief Executive David Rajakovich said,

"These results show the improvement in financial performance we have been working towards. The Group’s operating result is now close to breakeven, with administrative expenses 38% lower than a year ago. Our progress does not yet reflect the full potential of the business.

Closing that gap — and delivering growth at the pace this opportunity supports — remains my central priority. The second half and 2027 are therefore about growth — the planned launch of Risk OS, folding our Vendor Management Hub capability into STREAM® Cloud, and building both an organic and partner-led route to market, each funded against milestones so that we can continue the progress we have made.

We do that in a market where the UK public sector is increasingly clear that cyber resilience requires sustained investment, and where national defence and wider public sector organisations already trust Acuity to help them manage that risk."

Chairman’s statement

Introduction

The directors are pleased to present the interim results for the six months to 30 June 2026.

Performance in the six months saw the improved financial performance achieved in the latter stages of 2025 continue. The Group made a loss before tax of £34,000 (2025 £263,000) a reduction of 87%, whilst the trading company continued to trade profitably.

The main focus of the business in the first half year has been, and continues to be, increasing scale through organic growth and potentially by focused acquisition.

The organic growth is being driven by investment in new products to grow the available market particularly for those companies and organisations which have relatively simple IT infrastructure and are light on IT resources.

The new products are ‘plug and play’ delivered on a SaaS model which requires minimal IT management and still provides excellent cybersecurity risk management.

We believe the market for cybersecurity is set for long term growth as there is increasing awareness of the risks and costs related to cybersecurity failures.

As part of the growth plan additional resources have been invested in marketing, sales and distribution to create demand in the UK and enable growth in overseas territories including continental Europe where we recently won the first order from a leading defence company.

Further details are given in the Chief Executive’s statement below.

Outlook

As referenced in previous statements the objective is to create shareholder value through growth.

Whilst this industry has long lead times the initiatives taken have begun to have an effect:

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New products to grow the market – the first has been launched and another is in development

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Effective marketing to create awareness and drive demand

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Enhanced distribution to increase demand in target markets and territories outside the UK

A feature of software businesses is that once a product has been developed it should generate high gross margins, 90% or more, and be cash generative.

Acuity is at a tipping point currently trading near breakeven and with the focus on growing revenues this should drive profits and cash generation.

I would like to thank all shareholders for their support, particularly those who invested in the recent fund raise.

Angus Forrest

Chairman

Chief Executive’s statement

The first half of 2026 shows real progress on the areas we set out to fix. The Group’s operating result improved from a loss of £282,000 in the first half of 2025 to a loss of £10,000, effectively breakeven, with administrative expenses down 38% to £792,000. The loss before taxation narrowed from £263,000 to £34,000 and the loss per share from 0.16p to 0.01p. Two years ago this was a business with a cost base its revenue could not support. It is not that business any longer.

Whilst greatly improved, there is still work to do. Revenue of £877,000 was below the £1,145,000 reported a year earlier, reflecting the impact of some cancelled subscriptions during 2025. Customers that previously found STREAM® Classic to be over-engineered for their needs and chose not to renew, would now have an easy-to-use option in STREAM® Cloud, which will allow us to retain more clients and attract new ones.

STREAM® Classic remains an excellent fit for large corporates, the public sector and defence sector as evidenced by the new contract wins with annual recurring revenues in excess of £300,000 announced in the past few weeks.

We are working to deliver on a relatively strong second half pipeline supplemented by early returns from our sales and marketing investments funded by the July fundraise. We have already started to see the uptick, with important wins recently announced. We expect more to follow. Cost discipline has delivered the improvement in profitability; growth has not yet contributed to it. Until revenue is growing again the job is only half done. That’s where the rest of this statement starts.

What we do next therefore matters more than what we have just reported, and three priorities will occupy the Group through the remainder of 2026 and into 2027.

The first is product. STREAM® Cloud, launched in March 2026, opens the mid-market that the cost and complexity of enterprise platforms has priced out and we’ve configured it so that consultancy channel partners can adopt it as the foundation of their own compliance with the EU’s Digital Operational Resilience Act (DORA) and third-party risk management offering. Risk OS, our AI-native platform, has moved from research to development on a validated architecture, and we are targeting launch in the fourth quarter. Conventional governance, risk and compliance software records what an organisation is doing. Risk OS is designed to tell it what to do next.

The second is route to market. Selling STREAM® Cloud and Risk OS will involve a lighter touch initial sales process, including a shorter expected sales cycle at a price point that enables higher deal volumes. We will also distribute our software through consultancy partners rather than only relying on direct sales alone. We’ll start by focusing on two use cases: supplier assurance, and operational-resilience compliance, where FCA and PRA requirements compel UK buyers and DORA drives European sales. We will add sales resource as we add to the pipeline, not ahead of it. We intend to grow profitably.

The third is the base. STREAM® Classic remains the platform our public sector and defence customers rely on and will continue to receive targeted investment. Subscription revenue represented 86% of first-half revenue, and that recurring base funds everything else we do.

Beyond organic growth, the Board continues to consider acquisitions. We look for businesses that are worth more inside Acuity than outside it, because they bring a customer base into which STREAM® and the Vendor Management Hub can be sold, because they add capability, recurring revenue or earnings we can build on, or because they bring people and skills the Group needs. Cyber risk software, and cyber consultancy with a third-party risk or supplier assurance specialism, remain natural fits, but we do not confine ourselves to them: adjacent software, technology and services businesses can serve shareholders equally well, and we will assess opportunities of any size where the case is compelling. What does not change is the discipline. We will act only where the acquisition improves cash generation over a sensible horizon, measured on maintainable rather than adjusted earnings, where the price reflects that, and where the consideration can be funded without compromising the financial position we have worked to restore.

The market we serve is also moving. The Government’s Defence Investment Plan, published on 30 June 2026, sets out £298 billion of planned defence investment over the next four years, including £2.5 billion to sustain and grow the new Defence Cyber and Electromagnetic Force. Acuity already supports national defence and wider public sector organisations in managing cyber risk, and we see a public sector markedly more alert than two years ago to the need for sustained investment in this area.

We have made great strides in making this business durable. The task now is to make it grow, and to do so without giving back the ground we have taken. I look forward to reporting on progress.

David Rajakovich

Chief Executive

Condensed interim financial statements for the six months ended 30 June 2026

Group statement of comprehensive income

for the six months ended 30 June 2026

Notes to condensed interim financial statements

for the six months ended 30 June 2026

1

Basis of preparation

These condensed interim financial statements has been prepared in accordance with the recognition and measurement requirements of International Accounting Reporting Standards as adopted in the United Kingdom (“UK adopted IFRS”),

and those parts of the Companies Act 2006 applicable to companies reporting in accordance with UK adopted IFRS, that are expected to be applicable to the financial statements for the year ending 31 December 2026, and on the basis of the accounting policies expected to be used in those financial statements.

These condensed interim financial statements have also been prepared in accordance with IAS 34 Interim Financial Reporting.

2

New accounting standards, amendments and interpretations

Adoption of new accounting standards, amendments and interpretations applicable for the first time to this reporting period have not required any changes to accounting policies or retrospective adjustments. Accordingly, the same accounting policies and methods of computation have been followed in these condensed interim financial statements as in the financial statements for the year ended 31 December 2025.

3

Revenue and segmental analysis

5

Earnings per share

Earnings per share is calculated by dividing the result for the period by the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share is taken as equal to basic earnings per share as the average share price during all three periods was lower than the exercise price of the share options and warrants, and therefore the effect of including them would be anti-dilutive.

6

Intangible assets

In March 2026 the Group issued 2,201,408 shares in lieu of deferred salaries and 2,670,847 shares to settle invoices from two suppliers.

The share warrants issued on 25 April 2023 lapsed on 24 April 2026 without being exercised.

9

Post balance sheet events

In June 2026 the Group announced the placing, subscription and retail offer of 61,052,728 ordinary shares at 0.75 pence per share, which in July 2026 raised aggregate gross proceeds of £458,000.

In July 2026 the Group issued a further 3,193,919 shares to settle invoices from two suppliers.

10

Status of condensed interim financial statements

These condensed interim financial statements cover the six months ended 30 June 2026 and were approved by the Board of Directors on 7 September 2026.

These condensed interim financial statements are unaudited, and are not statutory accounts as defined by Section 434 of the Companies Act 2006.

Comparative figures for the year ended 31 December 2025 have been extracted from the statutory accounts for that period.

The statutory accounts for the year ended 31 December 2025 have been reported on by the company’s auditors and delivered to the Registrar of Companies. The audit report thereon was unqualified, did not include references to matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain a statement under Section 498 of the Companies Act 2006.