Tialis Essential IT runs IT support for other companies' staff, mostly through system integrators that resell its services to large end-customers. Revenue has fallen from £22.4m in 2023 to £17.7m in 2025. Over the same period the company added stakes in other businesses, including a 50% joint venture with Liberty Global. The latest close was 36.0p on 9 October 2026, against 80p at the end of 2025.
IT support for other people's staff
Tialis calls itself a mid-market IT managed services provider. Its main business is Tialis Essential IT Manage. It sells Lifecycle Services (preparing, refreshing and recycling staff laptops and devices), Tech Bars (walk-up help desks), End User Support and Field Engineering.
Much of the work comes through channel partners, meaning larger system integrators that hold the end-customer relationship. A global systems integrator joined the partner network in 2025. Contracts typically run three to five years. Customers named in the announcements include a long-standing enterprise customer, a major UK Government department, UK utilities and nuclear-industry clients. Gross margin has stayed near 29%. Management favours Lifecycle Services because it says they carry less risk of margin erosion than people-based on-site support. 10 May 2024 12 May 2026 9 Sep 2025 25 Aug 2026
Allvotec lifts revenue, then growth stalls
In 2023 Tialis bought the Allvotec business and revenue rose 54% to £22.4m. Adjusted EBITDA (profit before interest, tax, depreciation and one-offs) was £2.0m. In January 2024 the company said it expected further improvement in 2024 across revenue, profit and cash generation.
The year went differently. Revenue fell to £20.8m and EBITDA was flat at £2.0m. Operating cash flow did improve, to £1.9m. Management cited delayed contract awards and a fall in project work from its largest partner. The loss after tax was £3.2m. The shares fell from 62.5p in early 2024 to 31.5p in January 2025. 17 Jan 2024 10 May 2024 10 Sep 2024 12 May 2025
Refinancing and a chairman's exit
In 2024 Tialis agreed a £4m revolving credit facility with Santander, at SONIA plus 3.75%. It used the facility to repay £4.2m of loan notes early. Its largest shareholder, MXC Capital, lent a further £300k as a convertible loan at 15% interest.
The board also changed. Executive Chairman Andy Parker stepped down in September 2024. His successor, Nicolas Bedford, announced his resignation two months later. 10 Sep 2024 6 Nov 2024 6 Jan 2025
From service provider to holder of stakes
From April 2025 Tialis began to build what it called a pool of permanent capital. It set up AI Auxesis, a 50%-owned AI consulting and investment vehicle, with Ian Smith and Andy Mills. AI Auxesis put £250k into QPC, a contact-centre software company. Tialis also bought a Digital Petcare loan, which became a 14% equity stake plus a £700k loan at 12%. It bought about 10.6% of CloudCoCo from MXC.
The largest deal was a 50% stake in MXLG Acquisitions, a joint venture with Liberty Global that serves UK small and medium-sized businesses. Tialis paid £7.15m in 9.5m new shares and completed the purchase on 7 October 2025. MXLG had £28m of revenue in 2024, more than Tialis's own. Alongside this, Tialis won a £50m five-year framework from an existing customer and a £15m five-year UK Government contract. The shares peaked near 80p in April and December 2025. 9 Apr 2025 8 May 2025 1 Jul 2025 2 Jul 2025 12 Sep 2025 7 Oct 2025 2 Sep 2025 5 Sep 2025 12 May 2026
“The ability to manage a pool of permanent capital and assets, while leveraging the cashflow generated into sustainable dividends and further capital growth, was an opportunity simply too good to miss.” 9 Sep 2025
Control changes hands and shares halve
In January 2026 MXC said it would distribute its 67% holding to its own shareholders once its liquidation completed on 2 March. The company expected this to improve free float and liquidity. David (Niall) O'Regan, previously COO, became CEO and Ian Smith left the board. Peter Hallett became interim chairman.
The shares fell from 62.5p at the end of February to 31.5p at the end of March 2026. The material does not say why. By mid-March several holders had reported stakes above 10%, including Ian Smith at 13.0%. 30 Jan 2026 12 May 2026 23 Mar 2026 18 Mar 2026 24 Dec 2025
Contracts that leave, and a dependence on a few customers
The core business shrank for two reasons the company names. Two significant contracts were taken back in-house by end-customers earlier than the channel partners had expected. Customers also delayed orders in an uncertain economy. In January 2026 the largest customer made up 60% of revenue, down from 81% a year earlier, so one customer still carries much of the business.
Forecasts have also missed. The 2024 improvement promised in January 2024 did not arrive in revenue. Revenue has now fallen in each year since 2023, while EBITDA slid from £2.0m to £1.8m in 2025 and to £0.6m in H1 2026. 9 Sep 2025 30 Jan 2026 17 Jan 2024 12 May 2025 12 May 2026 25 Aug 2026
Cost cuts, debt paydown and a reserve reshuffle
Management cut overheads and headcount, with H1 2026 exceptional costs of £0.1m, mostly redundancies. It repaid £0.65m of bank debt in H1 2026. Borrowings stood at £2.36m, against £3.5m a year earlier. Cash was £0.3m.
Shareholders approved a capital reduction at the June 2026 AGM, and the Court of Session confirmed it on 7 October 2026. It cancels the £63.7m share premium account and 497m worthless deferred shares, and creates distributable reserves. The company has said a progressive dividend policy would come in the future. It has not announced a dividend or buy-back.
In August 2026 Tialis signed a 12-month advisory agreement with AI Auxesis at £192,000 a year, plus fees on disposals. AI Auxesis is to help the board with growth, financing and portfolio strategy. Zeus Capital became nominated adviser and broker in June 2026. 25 Aug 2026 12 May 2026 7 Oct 2026 30 Jun 2026
“This would provide the Company with additional flexibility in the future, including in relation to share buy-backs and dividends, should the Board consider it appropriate to do so.” 12 May 2026
Smaller core, profitable joint venture
In H1 2026 revenue fell 14% to £7.6m and EBITDA to £0.6m. Operating cash flow rose to £0.5m from £0.3m. The loss after tax narrowed to £0.4m from £0.9m. The MXLG joint venture contributed £807k, Tialis's 50% share of its EBITDA.
In October 2026 Tialis announced a £7.6m five-year utilities contract and a one-year public-sector extension worth £1.2m a year from 1 October. A permanent chairman has not yet been named. 25 Aug 2026 12 Oct 2026 12 May 2026
A stronger second half, still to be shown
In May 2026 the company said about 77% of 2026 revenue was covered by existing contracts, with the rest to come from new business. It cited a £8m annual-value pipeline and expected a year of strong growth. The H1 report promised a stronger second half and further progress in Lifecycle services. First-half revenue was below the prior year, so the second half has to make up the gap.
Open questions: whether new contracts replace the insourced ones, whether MXLG keeps paying through, and what the board does with its new distributable reserves. The company has not said what it will do with them. 12 May 2026 25 Aug 2026 12 Oct 2026 7 Oct 2026
Written by AI from Tialis Essential IT's own announcements since Oct 2023 · every paragraph links to its sources