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Grafenia PLC (GB:SFT)
LSE:SFT
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Grafenia (SFT) AI Stock Analysis

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GB:SFT

Grafenia

(LSE:SFT)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
26.00p
▲(4.00% Upside)
Grafenia's stock score is primarily influenced by its financial performance, which shows signs of recovery but is hindered by profitability and cash flow challenges. Technical analysis indicates short-term bullish momentum, but overbought conditions may limit further gains. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Grafenia (SFT) vs. iShares MSCI United Kingdom ETF (EWC)

Grafenia Business Overview & Revenue Model

Company DescriptionSoftware Circle plc, together with its subsidiaries, engages in the licensing of various software in the United Kingdom, Ireland, Europe, and internationally. Its brands and solutions include Link Maker, an adoption management software; Be the Brand, a marketing and digital asset management software; Arc technology, an education placement management software; and Nettl systems, a business software that includes a collection of online print platforms and software solutions for business owners to run their graphics. The company also offers Watermark, an online document management system; VERTICAL+, an ecommerce storefront; Topfloor systems provide software services for property management businesses; and CareDocs, a digital care planning and management software. The company was formerly known as Grafenia Plc and changed its name to Software Circle plc in October 2023. Software Circle plc was incorporated in 2000 and is based in Manchester, the United Kingdom.
How the Company Makes MoneyGrafenia generates revenue through multiple streams, primarily by offering subscription-based software services for digital marketing and design. The company charges businesses for access to its online platforms that facilitate graphic design and marketing campaigns. Additionally, Grafenia earns revenue from direct sales of printed materials, catering to the needs of its clients for promotional and branding purposes. Strategic partnerships with other businesses in the marketing and technology sectors further enhance its revenue opportunities, allowing for cross-promotion and access to new customer bases.

Grafenia Financial Statement Overview

Summary
Grafenia is showing signs of recovery with improved revenue growth and operational margins. However, profitability remains a concern with negative net income. The balance sheet shows improved leverage, but returns on equity are still negative. Cash flow management needs attention, as indicated by the decline in free cash flow growth. Overall, while there are positive trends, the company needs to address profitability and cash flow challenges to strengthen its financial position.
Income Statement
65
Positive
Grafenia has shown a positive revenue growth rate of 8.55% in the latest year, indicating a recovery trend. The gross profit margin improved to 72.49%, reflecting strong cost management. However, the net profit margin remains negative at -1.80%, indicating ongoing profitability challenges. The EBIT and EBITDA margins have improved significantly, suggesting operational improvements, but the company is still not profitable at the net level.
Balance Sheet
58
Neutral
The debt-to-equity ratio has improved to 0.50, indicating better leverage management compared to previous years. However, the return on equity remains negative at -1.54%, reflecting continued challenges in generating shareholder returns. The equity ratio stands at 56.15%, indicating a solid equity base relative to total assets.
Cash Flow
60
Neutral
Operating cash flow is positive, with a ratio of 0.45 to net income, indicating some cash generation capability. However, free cash flow growth is negative at -47.58%, highlighting potential cash flow management issues. The free cash flow to net income ratio of 0.53 suggests that while cash flow is improving, it is not yet robust.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.27M18.27M16.16M11.68M8.92M6.94M
Gross Profit1.20M13.25M10.19M5.75M3.54M-559.00K
EBITDA4.88M4.82M1.36M-265.00K172.00K251.00K
Net Income-329.00K-329.00K-2.37M-1.41M-1.15M-2.08M
Balance Sheet
Total Assets38.10M38.10M34.39M23.62M11.76M13.58M
Cash, Cash Equivalents and Short-Term Investments8.57M8.57M15.39M1.99M1.46M2.74M
Total Debt10.80M10.80M9.13M18.72M0.007.08M
Total Liabilities16.70M16.70M12.71M22.69M9.27M9.33M
Stockholders Equity21.39M21.39M21.68M928.00K2.49M4.25M
Cash Flow
Free Cash Flow2.30M1.57M1.42M-142.00K-438.00K-507.00K
Operating Cash Flow2.36M2.94M2.63M308.00K134.00K212.00K
Investing Cash Flow-8.30M-7.97M-5.28M-8.72M-575.00K-842.00K
Financing Cash Flow-877.00K-1.79M16.05M8.94M-708.00K2.27M

Grafenia Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price25.00
Price Trends
50DMA
24.34
Positive
100DMA
26.52
Negative
200DMA
27.42
Negative
Market Momentum
MACD
0.34
Negative
RSI
62.11
Neutral
STOCH
82.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SFT, the sentiment is Neutral. The current price of 25 is above the 20-day moving average (MA) of 23.64, above the 50-day MA of 24.34, and below the 200-day MA of 27.42, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SFT.

Grafenia Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
-5.03%
73
Outperform
£204.26M20.9856.75%5.78%16.29%22.80%
66
Neutral
£185.14M29.297.85%3.82%12.41%331.52%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
£148.46M19.597.40%2.83%8.01%-23.02%
58
Neutral
£280.74M-44.02-40.39%1.07%15.27%-73.02%
52
Neutral
£99.08M-317.50-1.53%13.05%94.59%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SFT
Grafenia
25.00
2.00
8.70%
GB:BEG
Begbies Traynor
112.50
23.74
26.75%
GB:INSE
Inspired Energy
80.00
41.50
107.79%
GB:KEYS
Keystone Law Group Plc
632.00
52.14
8.99%
GB:KGH
Knights Group Holdings Plc
170.00
55.51
48.48%
GB:PPHC
Public Policy Holding Co., Inc.
1,115.00
466.06
71.82%

Grafenia Corporate Events

Business Operations and Strategy
Software Circle Announces Major Shareholding Change
Neutral
Oct 16, 2025

Software Circle plc announced a significant change in its shareholdings, with Chapters Group AG reducing its stake from 83,909,908 to 38,259,908 ordinary shares, now holding 9.81% of the issued share capital. This change in shareholding could impact the company’s market positioning and stakeholder dynamics, as it continues its strategy of acquiring and managing Vertical Market Software businesses.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and Strategy
Software Circle Announces Significant Shareholding Change
Neutral
Oct 16, 2025

Software Circle plc announced a significant change in its shareholdings, with Abacus Value Capital Fund AgmvK acquiring 22,043,428 ordinary shares, now holding 5.65% of the company’s issued share capital. Along with Electa Value Capital Fund AGmvK, both funds collectively hold 6.65% of the company’s shares. This acquisition reflects a strategic move that could impact the company’s market positioning and shareholder dynamics.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and StrategyM&A Transactions
Software Circle Expands with Strategic Acquisition of BIS
Positive
Oct 13, 2025

Software Circle plc has acquired Broker Information Services Limited (BIS), a leading provider of client management and quotation software for financial brokers in Ireland, for €8.25 million. This acquisition, along with the recent purchase of Artificial Intelligence Finance Limited (AIF), forms the company’s first dedicated platform within a single vertical, enhancing its scale and diversification. The move is expected to be cash flow generative and earnings enhancing, providing opportunities for technology modernization and product expansion, ultimately aiming to deliver sustainable returns for shareholders.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Software Circle plc Sees Increased Investment from Sun Mountain Partners
Positive
Oct 6, 2025

Software Circle plc announced a change in its shareholdings, with Sun Mountain Partners, LLC increasing its stake to 10.34% of the issued share capital. This change in shareholding reflects a significant investment in the company, potentially impacting its market positioning and indicating confidence in its strategic direction and growth potential.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and Strategy
Software Circle Announces Significant Shareholding Change
Neutral
Oct 3, 2025

Software Circle plc has announced a significant change in its shareholdings, with YOGRO GmbH acquiring 13,079,627 ordinary shares, representing 3.35% of the issued share capital. This development indicates a strategic investment in Software Circle, potentially impacting its market positioning and offering diversified exposure to stakeholders.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Software Circle plc Successfully Passes AGM Resolutions
Positive
Sep 3, 2025

Software Circle plc announced the successful passing of all resolutions at its recent annual general meeting. Key resolutions included the re-election and election of directors, approval of the remuneration policy, and authorization for share allotment and market purchases. This outcome reinforces the company’s strategic direction and governance, ensuring continued focus on growth and value creation for stakeholders.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and Strategy
Software Circle Announces Significant Change in Shareholdings
Neutral
Sep 1, 2025

Software Circle plc announced a change in shareholdings, with Chapters Group AG reducing its stake from 103,634,908 to 83,909,908 ordinary shares, now holding 21.51% of the issued share capital. This change in shareholding could impact the company’s operations and market positioning, as it reflects a significant adjustment in the ownership structure, potentially influencing strategic decisions and stakeholder interests.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and Strategy
Software Circle Announces Change in Shareholdings
Positive
Aug 27, 2025

Software Circle plc announced a change in shareholdings, with P&R Real Value increasing its stake to 11.26% of the issued share capital. This change reflects ongoing investor interest and confidence in Software Circle’s strategy of acquiring and growing Vertical Market Software businesses, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (GB:SFT) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Grafenia stock, see the GB:SFT Stock Forecast page.

Business Operations and Strategy
Software Circle Enhances Employee Engagement with Share Option Scheme
Positive
Aug 20, 2025

Software Circle plc has announced the granting of 1,611,547 share options under its Save as You Earn scheme to 58 employees, including key managerial personnel. This initiative, part of the company’s strategy to align employee and shareholder interests, reflects its commitment to fostering employee engagement and supporting long-term growth. The scheme allows employees to purchase shares at a set price after a three-year savings period, enhancing their stake in the company’s future success.

Shareholder Meetings
Software Circle Announces AGM Details and Venue Change
Neutral
Aug 8, 2025

Software Circle plc has announced the availability of its 2025 Annual Report and Notice of Annual General Meeting (AGM), encouraging shareholders to participate and vote on proposed resolutions. The AGM venue has been changed to King Street Townhouse Hotel in Manchester, scheduled for 3 September 2025. This meeting offers shareholders a chance to engage directly with the Board, reflecting the company’s commitment to transparency and stakeholder engagement.

Business Operations and StrategyM&A Transactions
Software Circle Acquires Leading Irish Software Firm AIF
Positive
Aug 5, 2025

Software Circle plc has acquired a 95% stake in Artificial Intelligence Finance Limited (AIF), a leading software provider for mortgage and insurance brokers and lenders in Ireland. The acquisition, valued at up to €9.0 million, is expected to enhance earnings and generate cash flow within the first year. This strategic move aligns with Software Circle’s acquisition strategy, aiming to expand AIF’s market presence and solidify its position as a top platform in the financial services software sector. The acquisition is anticipated to strengthen Software Circle’s portfolio, drive sustainable growth, and maximize operating cash flow per share.

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: Nov 05, 2025