Arcontech Group PLC (GB:ARC)
LSE:ARC
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Arcontech
(LSE:ARC)
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Rating:70Outperform
Price Target:
84.00 p
▼(-0.59% Downside)
Action:Upgraded
Date:12/07/25
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.
Positive Factors
Recurring revenue business model
Arcontech's revenue mix—software licensing plus support/maintenance and professional services—creates predictable recurring income and high customer lifetime value. That model supports durable cash flow visibility, higher retention and scalable margins as deployments expand over months to years.
Negative Factors
Sharp drop in free cash flow
A 65.8% fall in free cash flow is a durable concern: it can constrain capital allocation, limit R&D or M&A activity, and pressure dividend sustainability. Even with high FCF-to-net-income conversion historically, such a material decline suggests operational or timing issues that may persist absent corrective action.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue business model
Arcontech's revenue mix—software licensing plus support/maintenance and professional services—creates predictable recurring income and high customer lifetime value. That model supports durable cash flow visibility, higher retention and scalable margins as deployments expand over months to years.
Read all positive factors
Arcontech (ARC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£10.16M
Dividend Yield4.73%
Average Volume (3M)26.00K
Price to Earnings (P/E)7.2
Beta (1Y)>-0.01
Revenue Growth2.09%
EPS Growth-21.71%
CountryUK
Employees17
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.06
Shares Outstanding13,372,811
10 Day Avg. Volume14,417
30 Day Avg. Volume25,997
Financial Highlights & Ratios
PEG Ratio-1.08
Price to Book (P/B)1.35
Price to Sales (P/S)3.81
P/FCF Ratio19.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)£2.70M
Arcontech Business Overview & Revenue Model
Company Description
Arcontech Group Plc, together with its subsidiaries, develops and sells proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australia, and the Asia Pacific. Its products include CityVision, a market data platform for...
How the Company Makes Money
Arcontech primarily makes money by licensing its software products and providing ongoing support and maintenance services to customers.
Key revenue streams:
- Software licensing: Fees paid by customers to use Arcontech’s products (notably Memmas ...
Arcontech Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.04M | 3.11M | 2.91M | 2.73M | 2.76M | 2.99M |
| Gross Profit | 2.98M | 3.11M | 2.91M | 2.58M | 2.76M | 2.99M |
| EBITDA | 852.05K | 785.10K | 1.25M | 1.14M | 925.78K | 1.21M |
| Net Income | 819.89K | 943.43K | 1.07M | 980.11K | 610.57K | 1.05M |
Balance Sheet | ||||||
| Total Assets | 10.77M | 10.82M | 10.56M | 9.03M | 8.78M | 8.57M |
| Cash, Cash Equivalents and Short-Term Investments | 7.77M | 7.40M | 7.16M | 6.41M | 6.03M | 5.40M |
| Total Debt | 368.75K | 427.36K | 537.67K | 40.32K | 195.85K | 344.30K |
| Total Liabilities | 2.17M | 2.09M | 2.30M | 1.42M | 1.80M | 1.99M |
| Stockholders Equity | 8.60M | 8.73M | 8.27M | 7.61M | 6.97M | 6.58M |
Cash Flow | ||||||
| Free Cash Flow | 1.14M | 597.31K | 1.02M | 974.92K | 1.12M | 813.13K |
| Operating Cash Flow | 1.15M | 606.41K | 1.04M | 978.40K | 1.12M | 814.62K |
| Investing Cash Flow | -4.19K | 240.71K | 236.26K | 73.50K | 11.22K | 11.78K |
| Financing Cash Flow | -649.80K | -611.79K | -522.92K | -590.14K | -487.18K | -424.64K |
Arcontech Technical Analysis
Negative
84.50
Price Trends
76.03
Negative
79.55
Negative
85.49
Negative
Market Momentum
-0.22
Positive
20.89
Positive
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARC, the sentiment is Negative. The current price of 84.5 is above the 20-day moving average (MA) of 76.85, above the 50-day MA of 76.03, and below the 200-day MA of 85.49, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 20.89 is Positive, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ARC.
Arcontech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £14.95M | 7.28 | 28.74% | 5.18% | 0.70% | 37.35% | |
70 Outperform | £10.16M | 7.16 | 9.46% | 4.73% | 2.09% | -21.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | £9.83M | -2.98 | -32.23% | ― | -7.72% | 54.13% | |
47 Neutral | £10.98M | -1.52 | ― | ― | -27.27% | -106.30% | |
44 Neutral | £10.72M | -3.87 | -60.27% | ― | -29.86% | 13.84% | |
42 Neutral | £9.13M | -2.50 | -34.87% | ― | -13.88% | -3.28% |
* Technology Sector Average
GB:ARC
Arcontech
74.00
-9.27
-11.13%
GB:BIRD
Blackbird PLC
1.90
-1.70
-47.22%
GB:ING
Ingenta
103.00
41.01
66.16%
GB:PEN
Pennant International
22.50
-6.00
-21.05%
GB:ZOO
Zoo Digital
9.75
0.50
5.41%
GB:ESYS
essensys PLC
16.60
-15.90
-48.92%
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.