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Defence Holdings (GB:ALRT)
LSE:ALRT
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Defence Holdings (ALRT) AI Stock Analysis

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GB:ALRT

Defence Holdings

(LSE:ALRT)

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Underperform 40 (OpenAI - 5.2)
Rating:40Underperform
Price Target:
1.00 p
▼(-1.96% Downside)
Action:Downgraded
Date:07/31/26
The score is driven primarily by very weak financial performance (revenue collapse, persistent losses, and recurring cash burn), which dominates the risk profile. Technicals add further pressure with the price trading below all major moving averages. Valuation does not offset these issues due to negative earnings and no dividend yield data.
Positive Factors
Low Financial Leverage
Reported zero total debt in the two most recent annual reports materially reduces financial leverage and interest burden over the medium term. This structural de-leveraging improves solvency and gives management flexibility to prioritize operational recovery or restructure without immediate debt servicing pressure.
Negative Factors
Revenue Collapse
A collapse to zero reported revenue is a structural red flag: it implies loss of core contracts or inability to recognize sales. Without sustained revenue, high gross margins are moot and the business cannot cover fixed costs, threatening viability unless new revenue streams are secured.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Financial Leverage
Reported zero total debt in the two most recent annual reports materially reduces financial leverage and interest burden over the medium term. This structural de-leveraging improves solvency and gives management flexibility to prioritize operational recovery or restructure without immediate debt servicing pressure.
Read all positive factors

Defence Holdings (ALRT) vs. iShares MSCI United Kingdom ETF (EWC)

Defence Holdings Business Overview & Revenue Model

Company Description
Defence Holdings PLC specializes in both the creation and acquisition of advanced technologies for the defense industry. Its core technological emphasis lies in artificial intelligence-powered systems, robust cybersecurity measures, confidential c...

Defence Holdings Financial Statement Overview

Summary
Financial quality is very weak: revenue volatility includes a collapse to zero in the latest annual period, profitability is persistently negative with large operating and net losses, and both operating cash flow and free cash flow are negative across all reported years with a renewed deterioration in 2026. While recent reports show zero debt, prior negative/unstable equity and large swings in assets add balance-sheet risk and uncertainty.
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
10
Very Negative
BreakdownSep 2025Mar 2025Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue0.002.89M5.53M4.45M1.90M
Gross Profit-6.00K1.52M3.99M2.77M1.10M
EBITDA-4.56M34.00K-3.41M-8.15M-8.79M
Net Income-4.33M-851.34K-4.50M-8.75M-8.82M
Balance Sheet
Total Assets3.27M77.00K5.55M12.15M13.70M
Cash, Cash Equivalents and Short-Term Investments886.00K69.00K459.00K2.73M10.07M
Total Debt0.000.003.20M3.46M0.00
Total Liabilities535.00K729.00K5.78M8.59M1.62M
Stockholders Equity2.73M-652.00K-231.00K3.56M12.07M
Cash Flow
Free Cash Flow-3.25M-558.00K-2.27M-7.20M-10.75M
Operating Cash Flow-3.24M-511.00K-2.06M-5.37M-10.69M
Investing Cash Flow-17.00K-47.00K-205.00K-1.83M-58.00K
Financing Cash Flow4.07M168.00K-3.00K-146.00K18.30M

Defence Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.02
Price Trends
50DMA
1.22
Negative
100DMA
1.19
Negative
200DMA
1.38
Negative
Market Momentum
MACD
-0.04
Positive
RSI
38.43
Neutral
STOCH
20.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALRT, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.22, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 20.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ALRT.

Defence Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£65.51B32.2617.49%1.99%7.20%8.54%
69
Neutral
£1.21B-254.787.31%1.04%-10.52%-110.02%
66
Neutral
£622.34M28.1213.59%1.79%13.46%13.69%
64
Neutral
£2.87B28.3319.34%2.25%-0.47%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
£1.68B51.319.03%1.34%-3.99%-22.35%
40
Underperform
£29.60M-4.27192.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ALRT
Defence Holdings
1.03
0.62
150.00%
GB:BA
BAE Systems
2,258.00
529.55
30.64%
GB:CHG
Chemring
628.00
100.55
19.06%
GB:CHRT
Cohort plc
1,434.00
188.48
15.13%
GB:SNR
Senior plc
293.00
96.94
49.45%
GB:QQ
QinetiQ
563.00
92.32
19.61%

Defence Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Defence Holdings Lands First Revenue-Generating UK MoD Contract
Positive
Jul 3, 2026
Defence Holdings PLC has secured and commenced its first revenue-generating contract with the UK Ministry of Defence, marking its transition into an income-generating business. The approximately £226,000, three-month engagement was awarded vi...
Business Operations and StrategyPrivate Placements and Financing
Defence Holdings Raises £4m in Oversubscribed Share Placing
Positive
Jun 26, 2026
Defence Holdings PLC, a UK-listed software-led defence technology company focused on advanced sensors, AI analytics, secure communications and autonomous platforms for UK and European defence customers, trades on the London Stock Exchange’s ...
Business Operations and StrategyPrivate Placements and Financing
Defence Holdings to Raise Up to £5m as It Halts ATM Programme
Positive
Jun 25, 2026
Defence Holdings PLC plans to raise up to £4m through a discounted placing of new ordinary shares, with an additional broker option of up to £1m, to support working capital and fund strategic partnerships in the defence sector. The accel...
Business Operations and StrategyProduct-Related Announcements
Defence Holdings Launches Meridian Platform to Accelerate Emerging Defence Technologies
Positive
Jun 18, 2026
Defence Holdings has launched Meridian, the official identity for its capability acceleration programme, alongside a dedicated digital platform to manage applications and engagement. The initiative targets emerging defence and dual-use technology ...
Business Operations and Strategy
Defence Holdings Taps Oracle as Cloud Partner for Defence Tech Accelerator
Positive
Jun 10, 2026
Defence Holdings has entered a partnership with Oracle to support its accelerator programme for early-stage defence and national security technology companies, with Oracle acting as the programme’s hyperscale cloud partner. The tie-up aligns...
Business Operations and Strategy
Defence Holdings Linked to Proposed UK MoD Contract for Advanced Intelligence Platform
Positive
Jun 5, 2026
Defence Holdings PLC has confirmed that the UK Government has published a Transparency Notice for a proposed Ministry of Defence contract involving the company. The prospective engagement covers testing an integrated platform that fuses open-sourc...
Business Operations and Strategy
Defence Holdings Secures First Strategic Delivery Partner for Defence Tech Accelerator
Positive
Jun 4, 2026
Defence Holdings has entered a 24‑month strategic partnership with Intelligence Management Support Services Limited, making IMSL the first formal delivery partner in its accelerator programme for early-stage defence and national security tec...
Business Operations and StrategyPrivate Placements and Financing
Defence Holdings Sets Operating Model, Seals OM Defence Deal and Raises New ATM Funds
Positive
May 28, 2026
Defence Holdings has unveiled a formal Operating Model that knits together customer requirements, emerging defence technologies and private capital, aiming to build a scalable platform for identifying and commercialising strategic digital capabili...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026