Defence Holdings (ALRT) AI Stock Analysis

• Market Cap: £49.51M
• Dividend Yield: N/A
• Average Volume (3M): 128.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 32
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 2,426,793,000
• 10 Day Avg. Volume: 84,252,294
• 30 Day Avg. Volume: 128,761,386
• PEG Ratio: <0.01
• Price to Book (P/B): -0.62
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -1.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 1.50p ▼(-26.47% Downside)

The overall stock score reflects significant financial challenges, with negative equity and cash flow issues being the most critical factors. While technical analysis indicates bearish momentum, recent corporate events provide a positive outlook, suggesting potential strategic improvements. The lack of traditional valuation metrics adds uncertainty to the stock's market valuation.

Positive Factors

Revenue Growth

The company's rapid revenue growth indicates strong market demand and successful expansion strategies, potentially leading to increased market share and long-term financial stability if profitability challenges are addressed.

Content Creation and Partnerships

Diversified revenue streams through content creation and partnerships enhance brand visibility and engagement, supporting sustainable growth by tapping into the expanding digital entertainment market.

Brand Partnerships

Strategic brand partnerships provide a steady revenue stream and strengthen market position, leveraging the growing interest in esports to attract diverse audiences and sponsors.

Negative Factors

Negative Equity

Negative equity suggests financial instability, posing risks to long-term viability and limiting the company's ability to secure financing or invest in growth opportunities.

Profitability Challenges

Persistent profitability issues hinder the company's ability to reinvest in business operations and achieve sustainable growth, potentially affecting its competitive position in the industry.

Cash Flow Challenges

Ongoing cash flow challenges limit financial flexibility and could impact the company's ability to meet operational needs and invest in strategic initiatives, threatening long-term sustainability.

Defence Holdings Business Overview & Revenue Model

Company Description

Defence Holdings PLC develops and acquires defence technologies, focusing on AI-enabled systems, cyber-defence, secure communications, autonomous drone systems, and critical infrastructure protection. The company's platform model allows rapid development and deployment of solutions across multiple defence domains, including AI agents for defence operations, information and influence warfare, drone warfare and aggregation, and critical infrastructure defence. The company was formerly known as Cassell Capital Plc and changed its name to Defence Holdings PLC in May 2025. The company was incorporated in 2019 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Guild Esports generates revenue through multiple streams. Primarily, the company earns money from sponsorships and partnerships with brands looking to reach the esports audience. This includes deals with gaming hardware companies, beverage brands, and lifestyle products. Additionally, Guild Esports monetizes its competitive gaming teams by participating in tournaments and leagues that offer prize money. The organization also capitalizes on merchandise sales, selling branded apparel and accessories to its fan base. Furthermore, Guild Esports invests in content creation, generating income from streaming platforms and social media through advertising and sponsorship deals. Collaborations with other esports entities and media companies also contribute to their revenue, enhancing their market presence and financial stability.

Defence Holdings Financial Statement Overview

Summary

Guild Esports is experiencing rapid revenue growth, but this is overshadowed by persistent profitability and financial stability issues. The negative equity and cash flow challenges raise concerns about the company's ability to sustain operations without significant restructuring or external financing. While there are signs of improvement in cash flow, the overall financial health remains precarious.

Income Statement

Guild Esports has shown significant revenue growth over the years, with a remarkable increase in the latest period. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins. The gross profit margin is relatively healthy, but the high operating losses indicate challenges in cost management and achieving sustainable profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, highlighting financial instability. The company's asset base has significantly decreased, further emphasizing financial distress.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, although there is a notable improvement in free cash flow growth. The ratios of operating and free cash flow to net income are not meaningful due to negative net income, indicating ongoing cash flow challenges despite some recent improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10M	2.89M	5.53M	4.45M	1.90M	0.00
Gross Profit	962.39K	1.52M	3.99M	2.77M	1.10M	0.00
EBITDA	-1.26M	34.00K	-3.41M	-8.15M	-8.79M	-2.52M
Net Income	-1.80M	-851.34K	-4.50M	-8.75M	-8.82M	-2.52M
Balance Sheet
Total Assets	5.56M	77.00K	5.55M	12.15M	13.70M	4.62M
Cash, Cash Equivalents and Short-Term Investments	17.00K	69.00K	459.00K	2.73M	10.07M	2.52M
Total Debt	2.99M	0.00	3.20M	3.46M	0.00	0.00
Total Liabilities	6.95M	729.00K	5.78M	8.59M	1.62M	2.09M
Stockholders Equity	-1.39M	-652.00K	-231.00K	3.56M	12.07M	2.53M
Cash Flow
Free Cash Flow	-679.68K	-558.00K	-2.27M	-7.20M	-10.75M	-2.25K
Operating Cash Flow	-630.63K	-511.00K	-2.06M	-5.37M	-10.69M	-2.25K
Investing Cash Flow	-147.00K	-47.00K	-205.00K	-1.83M	-58.00K	―
Financing Cash Flow	711.00K	168.00K	-3.00K	-146.00K	18.30M	4.62K

Defence Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALRT, the sentiment is Positive. The current price of 2.04 is above the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.81, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 63.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ALRT.

Defence Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	65 Neutral	£6.06M	25.30	8.62%	4.80%	0.58%	-21.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIN	53 Neutral	£11.71M	-2.98	―	―	-19.68%	-72.15%
EMAN	49 Neutral	£25.07M	-3.25	-20.63%	―	17.43%	-244.31%
ALRT	49 Neutral	£49.51M	―	―	―	―	―
OMIP	48 Neutral	£8.34M	-125.00	6.49%	―	-14.03%	-142.86%
TMO	43 Neutral	£46.25M	-0.50	-9999.00%	―	-28.98%	-1212.50%

Defence Holdings Corporate Events

Defence Holdings Secures New CEO to Lead Next Phase of Sovereign-AI Growth

Defence Holdings has agreed the appointment of a new Chief Executive Officer following a comprehensive and targeted search, concluding the process earlier than previously indicated, with the incoming CEO expected to assume the role in early Q2 once contractual, notice and regulatory requirements are satisfied. The appointee brings extensive senior leadership experience across defence, national security and government-aligned technology sectors, including managing large organisations, driving revenue growth, executing complex capital strategies and overseeing major technology and infrastructure programmes, a combination the board says will materially strengthen Defence Holdings’ executive capability and underpin its transition from capability development to sustained delivery and commercial execution of its sovereign-AI offerings in support of UK and allied defence requirements.

The most recent analyst rating on (GB:ALRT) stock is a Hold with a £1.50 price target. To see the full list of analyst forecasts on Defence Holdings stock, see the GB:ALRT Stock Forecast page.

Defence Holdings PLC Updates on ATM Facility and Proceeds

Defence Holdings PLC has successfully utilized an At-The-Market (ATM) equity issuance facility, raising a total of £437,147.50 in gross proceeds. The funds will provide additional working capital for the company, and the shareholding of Fortified Securities has decreased as a result of the ATM-related sales.

The most recent analyst rating on (GB:ALRT) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Defence Holdings stock, see the GB:ALRT Stock Forecast page.

Defence Holdings and Oracle Partner to Enhance AI Solutions for Defence

Defence Holdings PLC has announced a collaboration with Oracle to enhance AI innovation for global defence and national security customers. By utilizing Oracle Cloud Infrastructure, Defence Technologies will be able to deploy its AI solutions at scale, offering advanced capabilities while maintaining security and performance. This partnership aims to align sovereign AI products with trusted hyperscale platforms, benefiting defence organizations across the UK, NATO, and allied nations.

The most recent analyst rating on (GB:ALRT) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Defence Holdings stock, see the GB:ALRT Stock Forecast page.

Defence Holdings PLC Partners with Google Cloud for Project Ixian

Defence Holdings PLC has announced its selection of Google Cloud as the hyperscale provider for its inaugural sovereign AI product, Project Ixian. This initiative, developed under the Defence Technologies division, aims to enhance information integrity and resilience against information warfare. Project Ixian will be built on Google Distributed Cloud air-gapped, ensuring stringent data residency and security controls. The project aligns with the UK’s Strategic Defence Review 2025, addressing challenges such as disinformation and digital vulnerabilities. The collaboration with Whitespace engineers ensures the embedding of sovereign standards, resilience, and scalability from inception.

The most recent analyst rating on (GB:ALRT) stock is a Hold with a £4.50 price target. To see the full list of analyst forecasts on Guild Esports stock, see the GB:ALRT Stock Forecast page.

Defence Holdings PLC Announces Exercise of Warrants and Share Issuance

Defence Holdings PLC has announced the exercise of warrants, resulting in the issuance of 69,800,000 new ordinary shares. The shares will be admitted to trading on the London Stock Exchange, increasing the company’s total voting share capital to 2,078,666,131 ordinary shares. This move is part of the company’s strategic efforts to enhance its market presence and operational capabilities.

Defence Holdings Unveils Second AI Product for Enhanced Edge Analysis

Defence Holdings PLC has announced its second classified AI product, focusing on edge-based analysis and identification support, aligning with NATO’s urgent priorities. This new product aims to improve identification, reduce misclassification, and support decision-making in contested environments, enhancing the value of existing hardware and aligning with UK Strategic Defence Review 2025 objectives. The initiative demonstrates Defence Holdings’ ability to rapidly convert strategy into commercially viable products, strengthening its position in the global sovereign defence technology ecosystem.