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Arcontech ( (GB:ARC) ) has provided an update.
Arcontech reported a softer first half for the six months to 31 December 2025, with revenue down 4.7% to £1.44m as the loss of a long-standing client, some customer downsizing and a sharp 69% drop in one-off revenues outweighed its largely sticky, multi-year contract base; recurring revenues now account for 99% of total sales. Profit before tax fell 23.8% to £0.39m and adjusted EBITDA declined 23.6%, reflecting lower revenue and continued investment in staff, but the balance sheet remains strong with net cash up 8.4% to £7.8m, no interim dividend is proposed, and the board is using its cash position to fund product development and explore new business areas, while signalling confidence that a strong pipeline, new client wins and growth at existing customers will help restore recurring revenue momentum and return the group to growth in the next financial year.
The most recent analyst rating on (GB:ARC) stock is a Hold with a £89.00 price target. To see the full list of analyst forecasts on Arcontech stock, see the GB:ARC Stock Forecast page.
Spark’s Take on GB:ARC Stock
According to Spark, TipRanks’ AI Analyst, GB:ARC is a Outperform.
Arcontech’s overall stock score is driven by its strong financial performance and attractive valuation, supported by positive corporate events. However, bearish technical indicators and cash flow challenges present risks. The company’s strategic focus on core markets and dividend increase are positive signs for future growth.
To see Spark’s full report on GB:ARC stock, click here.
More about Arcontech
Arcontech Group PLC, listed on AIM, provides products and services for real-time financial market data processing and trading, serving financial institutions with a focus on recurring, contract-based software and data solutions.
Average Trading Volume: 13,237
Technical Sentiment Signal: Sell
Current Market Cap: £10.97M
Learn more about ARC stock on TipRanks’ Stock Analysis page.