Results reading: Final Results

Results reading

How this is read ⓘ

The headline numbers (NFI £43.2m, underlying profit before tax £6.1m) only confirm the August trading update. The new information is the first number put on FY27, market expectations of £6.5m (about 7% growth), a doubled dividend, a missed sales-hiring promise, and weaker detail in permanent and Statement of Work (SoW) than the update suggested.

What changed against what was known

New

FY27 guidance is now quantified at £6.5m of underlying profit before tax, only about 7% above FY26's £6.1m, after an 85% rise this year.

Then · 17 Aug 2026 · Trading Update“The Board expects to deliver further improvement in Profit before Tax in FY27.”

Now · this report“The Board expects further growth in continuing underlying profit before tax in FY27, in line with current market expectations of £6.5m.”
Worse

Permanent was slightly weaker than the update implied: like-for-like NFI fell 5% (update: down 3%) and the Group total rose 4% (update: up 5%), with InfoSec People supplying the growth.

Then · 17 Aug 2026 · Trading Update“Permanent fees were stable with LFL NFI down (3)% with Group permanent fees up 5% reflecting the contribution of Infosec.”

Now · this report“Permanent NFI was down 5% like-for-like and up 4% overall, following our acquisition of InfoSec People in August 2025.”
Worse

The SoW fall (NFI down 44%) is now explained as the largest defence client delaying or cancelling projects, not just delaying them, so the shortfall may not be purely timing.

Then · 17 Aug 2026 · Trading Update“Statement of Work ("SoW") NFI continued to be subdued as expected, through the second half as major client programmes continued to be delayed.”

Now · this report“Our statement of work (SoW) business, Gattaca Projects saw a 44% reduction in NFI as its largest defence sector client delayed or cancelled projects.”
Worse

Sales headcount fell slightly over the year and the sales-to-support ratio slipped to 70:30, so the 10% sales hiring aim for FY26 was missed. Management now expects headcount to rise in FY27.

Then · 24 Mar 2026 · Half-year Results“We will continue to invest organically, with the aim of 10% sales headcount growth this year in our core markets, and to screen for further bolt-on acquisitions across all our service lines, all supported by rigorous, proactive cost management.”

Now · this report“The average ratio of sales to support staff during the year was 70:30 (FY25: 71:29), reflecting the lower than planned recruitment of consultants in the year.”
New

The full-year dividend doubled to 6.0p, about 47% of the 12.7p basic EPS, with a 4.67p final payable on 30 December 2026. This is new information, as the final dividend had not been declared before.

Then · 17 Aug 2026 · Trading Update“Robust balance sheet, profitability and cash generation will support continued distributions under the Group's dividend policy, final dividend to be declared at the forthcoming results.”

Now · this report“Final dividend of 4.67 pence per share, increasing the full year dividend by 100% to 6.0 pence per share (FY25: 3.0 pence per share).”

1 point only confirm what the company said before

Underlying profit before tax of £6.1m (FY25: £3.3m) matches the August update. The new detail is that it was well ahead of the original £4.0m guidance. “Group continuing underlying profit before tax of £6.1m (FY25: £3.3m) up 85% year on year, due to NFI growth combined with focus on cost and productivity.”

What the notes say – not in the headline numbers

Going concern

Sensitised forecasts show net cash falling 57% to £6.1m by 31 July 2027. A key assumption is that the HSBC invoice financing facility stays available; it has no contractual renewal date and was cut from £50m to £40m.

Liquidity under stress depends on a facility the bank is not contractually committed to renew.

“A key assumption in preparing the cash flow forecasts is the continued availability of the Group’s invoice financing facility from HSBC throughout the forecast period.”

Working capital

Trade receivables and accrued income rose to £61.5m (FY25: £58.0m) with growth in contractor numbers, while net cash was flat at £15.4m. Cash generated from operating activities was £4.5m, below the £6.5m cash generated from operations quoted in the CFO report.

Contractor growth ties up cash in receivables, and the cash conversion headline (93% of EBITDA) is before tax paid of £2.3m.

“Trade receivables and accrued income balances, net of expected credit loss allowances, increased to £61.5m (31 July 2025: £58.0m), reflecting the growth in revenue during the period as we have expanded our contractor base.”

Impairment test

Directors made no impairment reversal despite better trading and market capitalisation. No headroom figures or budget assumptions appear in the passages provided.

Earlier impairments are not being reversed, so profit gets no one-off boost and the carrying values stay conservative.

“Accordingly, no impairment charge or impairment reversal has been recognised in the current year.”

Customer concentration

No single debtor exceeds 6% of receivables, so credit risk is spread. The concentration risk is on the revenue side, where one large defence client's project cancellations cut SoW NFI by 44%.

Receivables are diversified but SoW income depends on a few large programmes.

“There are no significant concentrations of credit risk within the Group, with no single debtor accounting for more than 6% (FY25: 6%) of total receivables balance at 31 July 2026.”

In the notes

The US Department of Justice enquiry remains open and the Group cannot quantify any financial impact; legal fees were nil in the year.

This is an unresolved contingent exposure that is not provided for.

“As shown in Note 29 to the Financial Statements, the Group is not currently in a position to know what the outcome of these enquiries may be and we are therefore unable to quantify the potential financial impact, if any.”

Promises management made Track record →

Not addressed

Achieve 50% gender balance in leadership and management roles by 2026

The 50% gender balance target in leadership is not mentioned in the results text provided.
Kept

Maintain dividend payouts at about 50% of profits after tax

6.0p total dividend against 12.7p basic EPS is about 47%.
“This is in line with our objective for the total dividend to be approximately 50% of profits after tax.”
Kept

Migrate InfoSec operations to Group platforms by end of FY26 H1

Integration reported as done (the interims said it was in Group systems); no explicit statement on platform migration.
“We have been pleased with both the operational and cultural integration of the business and are beginning to introduce its specialist capability across the wider Group.”
Missed

Grow sales headcount by 10% in FY26 in identified core markets

Sales headcount fell instead of rising 10%; the 4% fall was partly reversed in Q4 and management now expects an increase.
“Better tooling, retention and go to the market strategy has enabled us to grow NFI whilst reducing sales head count slightly.”
On track

Further improvement in profit before tax in FY27, with targeted investment in sales consultants

FY27 profit growth guided to £6.5m, with sales hiring planned and a Chief Commercial Officer joining.
“This trend will continue into FY27 and we expect to see our overall sales headcount now increase.”

Watch at the next report

Whether sales headcount actually rises in FY27 and the sales-to-support ratio moves toward the 75% goal from 70:30.
Whether permanent like-for-like NFI (down 5%) and SoW NFI (down 44%) stabilise, and whether the largest defence client's programmes return.
Delivery of the £6.5m profit expectation, and any change to the HSBC invoice facility, which was cut to £40m.

Read 3 Nov 2026 against the last statement, the previous results and the open promises. Quotes are the company's words; the rest is our reading. Not investment advice.

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