IDE Group Holdings Plc (TIA) AI Stock Analysis

• Market Cap: £26.94M
• Dividend Yield: N/A
• Average Volume (3M): 3.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -12.11%
• EPS Growth: -106.04%
• Country: UK
• Employees: 290
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.04
• Shares Outstanding: 39,909,832
• 10 Day Avg. Volume: 2,057
• 30 Day Avg. Volume: 3,223
• PEG Ratio: -0.02
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.24
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: 62.00p ▼(-0.80% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company faces significant financial challenges, including high leverage and profitability issues, which are reflected in its low financial performance score. Technical indicators suggest bearish momentum, further impacting the score. While the strategic acquisition is a positive development, its impact is not yet reflected in the financials or technical indicators.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better financial management and provides more flexibility for investments and debt servicing, crucial for long-term stability.

Cost Management

Enhanced cost management reflects operational efficiency, which can lead to improved profitability and competitive positioning over time.

Service Offering Diversification

Diverse service offerings in high-demand areas like cloud and cybersecurity position the company well for future growth and resilience against market shifts.

Negative Factors

Revenue Decline

Declining revenue over the years indicates challenges in market penetration and customer retention, which could hinder long-term growth prospects.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues undermine financial health and could restrict the company's ability to reinvest in business development and innovation.

IDE Group Holdings Plc Business Overview & Revenue Model

Company Description

Tialis Essential IT PLC, through its subsidiaries, provides network, cloud, and IT managed services to public and private companies in the United Kingdom. Its cloud and hosting services include co-location, private, public, and hybrid cloud, DR and business continuity, and cloud migration; network and connectivity service includes cloud connectivity, multi-protocol label switching, local and wide area network, and distributed denial of service protection services; collaboration services comprise hosted telephony and unified communication; managed services include remote infrastructure management, tech bars and on-site resources, field and smart hands, threat protection, and professional services; and device management services comprise procurement, configuration and integration, deployment, management, and retirement services. The company was formerly known as IDE Group Holdings plc and changed its name to Tialis Essential IT PLC in November 2022. Tialis Essential IT PLC was founded in 2005 and is based in Edinburgh, the United Kingdom.

How the Company Makes Money

IDE Group generates revenue primarily through its diverse service offerings, which include managed IT services, cloud computing solutions, and high-speed connectivity services. The company charges clients on a subscription basis for ongoing services and support, while also earning revenue from one-time project fees for specific IT implementations. Significant partnerships with leading technology providers enhance its service capabilities and contribute to its earnings, providing access to cutting-edge technology and expertise. Additionally, IDE Group may benefit from recurring revenue streams through long-term contracts with clients, ensuring a stable income flow.

IDE Group Holdings Plc Financial Statement Overview

Summary

IDE Group Holdings Plc is showing some progress in managing costs and improving cash flow, yet it continues to struggle with revenue growth and achieving profitability. High leverage and past negative equity positions underscore financial instability. The company must focus on sustaining cash flow improvements and achieving positive net income to ensure long-term viability.

Income Statement

The company has faced declining revenue in recent years, from $28.16M in 2019 to $20.84M in 2024. Gross profit margin decreased from 22.8% in 2019 to 28.8% in 2024, indicating some improvement in cost management. However, consistent net losses and negative EBIT margins highlight ongoing profitability challenges.

Balance Sheet

The company is heavily leveraged with a debt-to-equity ratio of 1.23 in 2024, compared to negative equity in 2020 and 2021. The equity position has improved slightly, but overall financial stability remains a concern due to high liabilities relative to assets.

Cash Flow

Operating cash flow improved significantly in 2024 to $1.89M from $658K in 2023, leading to stronger free cash flow growth. However, cash flow is not yet sufficient to cover net income losses consistently, though there is positive momentum in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.95M	20.84M	22.41M	14.46M	14.46M	11.53M
Gross Profit	3.36M	6.01M	6.65M	5.05M	6.27M	2.55M
EBITDA	-660.00K	-204.00K	1.39M	2.43M	956.00K	956.00K
Net Income	-3.15M	-3.19M	-1.54M	-587.00K	-1.98M	-18.48M
Balance Sheet
Total Assets	14.74M	14.29M	16.77M	15.42M	15.94M	22.31M
Cash, Cash Equivalents and Short-Term Investments	537.00K	854.00K	274.00K	414.00K	349.00K	693.00K
Total Debt	4.38M	5.01M	4.82M	4.61M	18.11M	17.36M
Total Liabilities	11.21M	10.22M	10.19M	9.45M	24.57M	30.91M
Stockholders Equity	3.40M	4.06M	6.58M	5.97M	-8.63M	-8.60M
Cash Flow
Free Cash Flow	-1.52M	1.86M	583.00K	1.27M	560.00K	2.03M
Operating Cash Flow	-1.50M	1.89M	658.00K	1.48M	588.00K	2.11M
Investing Cash Flow	98.00K	-28.00K	-75.00K	-208.00K	-614.00K	-154.00K
Financing Cash Flow	1.32M	-1.28M	-723.00K	-1.20M	-318.00K	-1.95M

IDE Group Holdings Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TIA, the sentiment is Negative. The current price of 62.5 is below the 20-day moving average (MA) of 67.50, below the 50-day MA of 68.60, and below the 200-day MA of 65.94, indicating a bearish trend. The MACD of -2.24 indicates Positive momentum. The RSI at 23.08 is Positive, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TIA.

IDE Group Holdings Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRD	72 Outperform	£47.91M	25.16	44.27%	2.64%	30.01%	138.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TPX	53 Neutral	£12.62M	-1.38	-17.47%	―	-5.84%	55.30%
MTEC	52 Neutral	£48.15M	34.68	10.36%	―	20.40%	―
TIA	42 Neutral	£26.94M	―	-67.57%	―	-12.11%	-106.04%
GST	42 Neutral	£19.76M	-10.63	-29.86%	―	88.59%	-60.00%

IDE Group Holdings Plc Corporate Events

Director Ian Smith Increases Stake in Tialis Essential IT Plc

Ian Smith, a director at Tialis Essential IT Plc, has acquired 31,000 ordinary shares of the company, increasing his beneficial interest to 1.70% of the company’s issued share capital. Smith, who is also the CEO and major shareholder of MXC Capital Limited, along with MXC, now holds a combined 68.7% of Tialis’s issued ordinary share capital, indicating a strong control over the company.

Tialis Essential IT Completes Strategic Acquisition of MXLG Stake

Tialis Essential IT Plc has successfully completed the acquisition of a 50% stake in MXLG Acquisitions Limited, following the receipt of consent from Santander UK plc. This strategic move is expected to positively impact the company’s assets over the medium term and enhance shareholder value, aligning with Tialis’s growth objectives.

Tialis Essential IT Plc Secures Shareholder Approval for New Share Allotment

Tialis Essential IT Plc announced the successful passing of all resolutions at its recent General Meeting, facilitating the allotment of new shares and the dis-application of pre-emption rights. This move will see the new shares admitted to trading on AIM, increasing the company’s total voting rights to 39,909,832. The announcement also highlighted significant shareholdings by key stakeholders, including Ian Smith and Matthew Riley, which could influence the company’s strategic direction.

Tialis Essential IT Plc Expands Through Strategic Acquisition and Share Issuance

Tialis Essential IT Plc has announced its intention to acquire a 50% stake in MXLG Acquisitions Limited, a joint venture with Liberty Global Europe 2 Limited, for £7.15 million. This acquisition aligns with Tialis’s strategy to expand its service capabilities and improve profitability by leveraging operational synergies. The company is also converting unsecured convertible loan notes and settling deferred consideration related to a previous acquisition, which will result in the issuance of new ordinary shares. These strategic moves are expected to strengthen Tialis’s market position and enhance its ability to meet the evolving needs of the UK SME IT services market.

Tialis Essential IT Secures Major Contracts Amid Revenue Challenges

Tialis Essential IT plc reported a decrease in revenue for the first half of 2025, attributed to delayed customer orders and the early in-sourcing of contracts by clients. Despite these challenges, the company has secured significant contracts, including a £50 million framework agreement with a long-standing customer and a £15 million contract with a UK Government department. These contracts are expected to enhance Tialis’s order book and revenue visibility. The company is also expanding through strategic acquisitions and investments, such as AI Auxesis Limited and CloudCoCo Group Plc, to deepen its service offerings and drive future growth.