H1 FY27 Trading Update and Notice of Results

ActiveOps plc (AIM: AOM), a leading provider of Decision Intelligence software for service operations, today provides an update on trading for the six months ended 30 September 2026 ("H1 FY27").

Summary

H1 FY27 trading in line with Board expectations. Revenue rose 21% to £25.3m (H1 FY26: £20.8m). This includes a one-off £1.5m termination receipt; without it, growth was 14%. Organic SaaS revenue grew 19%.

FY27 expectations remain unchanged. While new customer wins and implementations have been lower than in the prior year, the Board continues to expect FY27 results to be in line with current market expectations1.

Major customer unlikely to renew. The customer has shared its intent not to renew its contract when it ends in March 2027. This has no impact on FY27. The contract is worth £3.8m of annual recurring revenue (“ARR”).

FY28 change to expectations. The Board expects FY28 revenue and adjusted EBITDA to be significantly below market expectations1 reflecting both the potential customer loss and lower new business activity in H1 FY27.

Strong balance sheet. Cash at 30 September 2026 of £19.6m with no debt.

Confident medium-term outlook. The Board remains confident in the Group’s strategy and ability to deliver sustained growth over the medium term, supported by the increasing relevance of its offering, expansion opportunities within its existing enterprise customers and increased sales and marketing capabilities.

H1 FY27 Trading Update

Group revenue is expected to have increased 21% to £25.3m (H1 FY26: £20.8m), or 19% at constant currency (“CC”), reflecting expansion sales in the existing account portfolio and successful go lives with several new customers. The period has seen particularly strong growth in Canada, Africa and APAC following strong ARR performance in these regions in the prior year. Within this, organic revenue is expected to have increased by 8%, or 5% at a constant currency basis.

Group SaaS revenues increased by approximately 26% (24% CC) to £21.8m (H1 FY26: £17.3m), including the benefits from three months of additional acquired SaaS revenue. On an organic basis, SaaS revenue increased by 19% to £18.2m (H1 FY26: £15.3m).

While total Training & Implementation (“T&I”) revenues remain in line with the prior year at £3.5m, this includes a £1.5m termination receipt relating to the previously announced loss of an Enlighten customer. The lower underlying T&I performance reflects a reduced level of customer implementations and new wins compared with the prior year.

With this solid revenue performance, the Group expects to deliver double digit adjusted EBITDA growth, an improved adjusted EBITDA margin, and an increase in profit before tax for H1 FY27.

As at 30 September 2026, Group ARR grew 4% (2% CC) to £42.2m (H1 FY26: £40.6m) and Group Net Revenue Retention (“NRR”) was 101%. Excluding the impact of the Enlighten acquisition, ARR grew 14% (12% CC) to £37.2m and organic NRR was 110%, demonstrating the Group’s ability to expand its engagement with existing ActiveOps customers.

ActiveOps remains well capitalised, cash generative and debt free, with cash at the period end of £19.6m (H1 FY26: £13.3m).

Outlook

The Company has been notified by a major customer that it does not intend to renew its contract with ActiveOps when it falls due in March 2027. Whilst notification of this non-renewal has only just been received and details are yet to be formally agreed, the Board has adopted a prudent approach and removed the associated revenue in full from its FY28 expectations. This reduces previously anticipated FY28 revenue by approximately £3.8m.

As a result, the Board expects FY28 revenue and adjusted EBITDA to be significantly below market expectations1 reflecting both the potential customer loss and lower new business activity in H1 FY27.

While some cost action will be taken as a result of the contract non-renewal, the size of the opportunity ahead, the breadth of the extensive customer base and strength of the Group’s balance sheet mean the Board intends to continue with its planned investments in growth initiatives, as it remains confident this will drive increased shareholder value in the medium term.

The business remains strongly cash generative and continues to benefit from an extensive and engaged global customer base, for whom its software delivers measurable returns on investment.

The Board remains confident in the Group’s strategy and ability to deliver sustained growth over the medium term, supported by the increasing relevance of its offering, expansion opportunities within its existing enterprise customers and increased sales and marketing capabilities. The Group continues to invest in its product offering and go-to-market capability while maintaining a strong balance sheet.

Notice of Results

The Company intends to announce its results for the six months ended 30 September 2026 on 24 November 2026.

ActiveOps’ Executive Chair, Richard Jeffery, commented: “While the potential non-renewal by a major customer is a setback to our near term revenue growth, we remain strongly cash generative, with a robust balance sheet and a growing, global opportunity. The need for organisations to measure productivity gains from AI is a compelling driver for our software and one which we are uniquely able to meet, given our deeply embedded position within the heart of the operations of our customers. While cognisant of the disappointment that I and other shareholders feel at today’s news, the outlook for the business remains one of great opportunity, which we have the financial firepower, offering and dedication to exploit.”

Footnote

1In so far as the Board is aware, as at 9 October 2026, market expectation ranges for the full year to 31 March 2027 were: revenue £47.4m to £49.7m, adjusted EBITDA £5.0m to £6.4m and cash £25.2m to £31.6m; and for the full year to 31 March 2028 were: revenue £50.0m to £56.4m, adjusted EBITDA £6.7m to £9.0m and cash £26.0m to £41.4m.