Software Circle hits growth targets

Serial acquirers of vertical software businesses, Software Circle plc exited FY25 with an annualised revenue run rate of £20m and expects the adjusted EBITDA margin for the period will have reached 17% (FY24: 10%). The latest trading update from the company  anticipates that its financial performance for the twelve months ended 31st March  will have met the guidance provided last December (see here).

Turnover for FY25, including that from three businesses bought during the year (Bethebrand, LinkMaker and Total Drive), was up 13% yoy to approximately £18.3m. Underlying like-for-like top line growth across Software Circle’s portfolio of businesses was, however, down 7% yoy as a results of a reduction in non-recurring revenue at its Graphics Industry focused Nettl Systems unit. Despite this decline, Software Circle’s focus on operational efficiency is expected to have driven a 22% yoy organic improvement in Operating EBITDA. Overall Adjusted EBITDA is anticipated to have increased by approximately 88% to £3.2m (FY24: £1.7m).

Looking ahead, the company is confident that its upward revenue and profitability trajectories will continue. Software Circle reports that its M&A pipeline remains healthy and the company has sufficient funds at its disposal to support its acquisitive business model. The Group currently has a cash balance of approximately £8.2m and an available debt facility of £10m. News of Software Circle’s next vertical sector platform provider purchase is unlikely to be too long in coming.

Posted by: Duncan Aitchison at 09:19

Tags: results   software