Acquisition of HFX Limited

AdvancedAdvT Limited (AIM: ADVT, "AdvT", "the Group"), the international software solutions provider for the business solutions, healthcare compliance, and human capital management sectors has agreed to acquire HFX Limited ("HFX"), the provider of a cloud based workforce management SaaS solution (the "Acquisition"), for a total consideration of £5.3 million net of cash acquired of £0.6 million1, of which £2 million is deferred over two years2. The acquisition will be funded from the Group's existing cash resources.

Acquisition highlights

In the 12 months ended 31 December 2024, HFX recorded pre-exceptional revenue of £3.39 million (73% recurring), with pre-exceptional EBITDA3 of £0.93 million and had net assets of £2.51 million4.

Strategic Rationale for the Acquisition

HFX provides workforce management software to over 450 customers across a wide range of sectors ranging from SMEs to smaller enterprise customers. Combined with WFM the acquisition significantly expands the Groups existing workforce management software offering with a complimentary SaaS product, enabling us to better serve both enterprise and SME customers with tailored solutions. It will also provide an alternative solution for smaller on-premise clients to migrate to and enjoy all the benefits a cloud solution. HFX further expands our addressable market and scale in the UK, aligning with our strategy to enhance long-term growth through recurring SaaS revenues.

Vin Murria OBE, Chairperson of AdvancedAdvT, commented:

"HFX is a recognised leader in workforce management software. It expands our presence in the space and aligns strongly with our strategy to invest in quality software businesses that drive efficiency and long-term value for its customers. We look forward to working closely with the HFX team to unlock value and deliver enhanced integrated solutions to a broader client base.

"We continue to look for complementary acquisitions that further enhance our offering to clients and creates value for shareholders."

• Cash as at 30 April 2025.
• £2m deferred payment is £1m due on 13/05/2026 and £1m due on 13/05/2027. There are no performance conditions.
• "EBITDA" defined as Earnings before Interest, Tax, Depreciation and Amortisation.
• £4.70 million less the ultimate shareholder loan of £2.19 million, which was settled as a non-cash distribution prior to completion.