Strong top line growth was recorded during H1 26. The uplift reflected rising average fee rates and further improvements in productivity. The incremental increase in revenues fed through to margins, which rose to 4.3%, a level not seen since H2 21.
We note the positive guidance with regards to the outlook for FY26, to at least achieve consensus expectations for revenue of £44.5m and adj. PBT of £1.5m. Delivering EBIT of £1m in H1 suggests that current FY expectations are comfortably manageable. The second half has started positively, reflecting a strong pipeline of orders.
The introduction of a new LTIP scheme with demanding conditions in 2030 - with full vesting above 75p / share - highlights the Board’s expectations and confidence in what it is building.
For now, we leave our financial estimates and 35p/ share fair value unchanged, in view of the ongoing uncertainties in the Middle East. With net cash of £3.9m at the half-year, the operating business is effectively valued on an FY26 EBIT multiple of just 5.7x.
