27th Apr 2026 12:19
(Sharecast News) - Ingenta reported a rise in annual revenue and profit for 2025 on Monday, as the software and services provider to the publishing and media industries said recurring revenues increased and new customer wins helped offset the loss of legacy platform income.
The AIM-traded company said revenue for the year ended 31 December rose to £10.3m from £10.2m in 2024.
Annual recurring revenue increased to £9.1m from £8.9m, representing 89% of total revenue, compared with 87% a year earlier, reflecting reduced reliance on non-recurring consultancy revenues.
Adjusted EBITDA fell to £1.6m from £1.8m, which the company said reflected anticipated additional expenditure in sales and marketing.
Operating cash inflows were unchanged at £1.7m, while net profit increased to £1.7m from £1.3m.
Adjusted earnings per share declined to 10.2p from 11.7p, while reported earnings per share rose to 12.0p from 8.8p.
Ingenta said it ended the year with a debt-free balance sheet and cash of £4.7m, up from £3.6m at the end of 2024.
The board proposed a final dividend of 2.75p per share, up from 2.6p a year earlier, taking the full-year dividend to 4.5p, 10% higher than the 4.1p paid for 2024.
Subject to shareholder approval at the annual general meeting, the final dividend will be paid on 30 June, with an ex-dividend date of 28 May and a record date of 29 May.
Operationally, Ingenta said it had made significant investment in sales and marketing to build a larger and longer-term pipeline of higher-quality new business.
It said it had improved the quality and effectiveness of outreach campaigns and recorded two customer go-lives, adding to recurring revenues in its Content division.
"The results posted here are an encouraging sign of the operational efficiency of the business and why the investment in sales should help accelerate growth and profitability in future years," said chief executive Scott Winner.
"Revenue growth in the year has been achieved mainly from the existing customer base, in many cases representing new contracts entered into with new divisions or geographical units of large international publishers.
"I am pleased to report another Edify customer has successfully gone live adding further depth to our recurring revenue base as well as an important win with a major US educational establishment which will add to revenues in the current year and beyond."
He added that the mix had resulted in the company producing a robust set of results for the year, with new revenues offsetting the loss of legacy platform income at a higher rate than expected, and costs still "firmly under control".
Ingenta said new sales and expansions of existing customer relationships in its content and commercial divisions were expected to deliver significant additional revenue opportunities over the next three years.
It also said its sales pipeline was growing across all products, with deals expected to be awarded in early 2026 and sales recruitment continuing to support revenue growth targets.
For 2026, the company said revenue was expected to be at least broadly in line with 2025, as revenue from new customer wins offsets anticipated attrition in legacy platform revenues, with further guidance expected after the AGM.
Winner said teams continued to work on sales proposals, several of which were submitted in the first quarter of 2026, adding: "we hope to report on these in due course".
At 1103 BST, shares in Ingenta were down 7.91% at 99p.
Reporting by Josh White for Sharecast.com.
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