This announcement contains inside information for the purposes of Article 7 of the
(“Acuity” or the “Company” or the “Group”)
Interim Results for six months ended
Highlights for the
-- Revenues: up 10% to £1.1m (30 June 2024 : £1.0m)
-- Operating loss – reduced to £282,000 (30 June 2024 : £586,000) a
reduction of 52%
-- Strategy: target market has been refocused on Cyber GRC, the business’s
core strength
-- New product: Vendor Management Hub, an entry level product to manage
cyber security risks related to suppliers
-- NextGen STREAM® – redeveloped incorporating features and functions to
make it more attractive for users with benefits for Acuity
-- New marketing initiatives incorporating AI have been implemented to more
accurately target prospective customers
In recent times with the economic uncertainty and the new Strategic Defence Review, we have seen companies and Government agencies act cautiously. Looking ahead, we're seeing encouraging signs in our pipeline development, particularly in the defence segment where decision-making appears poised to accelerate. While we remain cautious about the broader market conditions, there are significant sales opportunities for the Company, both measured by number and value, and I look forward to announcing new order wins as we begin to properly exploit our commercial opportunities.”
For further information please contact:Acuity RM Group plc https://www.acuityrmgroup.comAngus Forrest /David Rajakovich +44 (0) 20 3582 0566Zeus Capital Limited (NOMAD & Broker) https://www.zeuscapital.co.ukMike Coe /James Bavister +44 (0) 20 3829 5000Peterhouse Capital (Joint broker)Lucy Williams /Duncan Vasey +44 (0) 20 7469 0936Clear Capital (Joint broker)Bob Roberts +44 (0) 20 3869 6080
Note to Editors
The Company is focused on delivering long term, sustainable growth in shareholder value from organic growth and complementary acquisitions.
Chairman’s statement
Introduction
The directors are pleased to present the interim results for the six months ended
Acuity’s performance in the Period shows improvement compared with the previous year, with revenue up to £1.1m (
In the period, Acuity’s new Chief Executive,
Outlook
The objective to create shareholder value will be delivered from a combination of:
-- strong revenue growth through a new focus on the business’s strengths in
the cyber security GRC market;
-- the introduction of new products; and
-- improving the financial performance, moving to positive cash generation
and profitable trading.
I would like to thank all shareholders for their patience over the Period, when significant changes have been made to strengthen the business for the long term.
Chairman
Chief Executive’s statement
This is the first full reporting period since I became Chief Executive. In the Period there has been significant change in every area of the business in order to focus, strengthen and build the foundations for strong business growth. I identify the major and most important changes in the business review below.
Business review
Strategy – as previously reported, we made the strategic decision to focus exclusively on cyber Governance, Risk and Compliance ("GRC") management rather than attempting to address the enterprise risk management market as a whole. Cyber is the area where the directors believe Acuity has the greatest advantage over the competition while also offering major growth opportunities. This more focused approach allows us to deliver specialised solutions that address the challenges our clients face in identifying, assessing, and mitigating cyber risks.
In recent months several high profile cyber security breaches with costly disruption to business have increased awareness and highlighted the importance of addressing cyber security risks. This should drive demand for our products and services. Demand will also be driven by regulation such as (i) new ISO type standards (ii) the new EU AI Act and (iii) requirements of risk committees and corporate governance reports.
Sales and marketing - We have fundamentally transformed our go-to-market approach to better align with market opportunities and customer needs:
o Direct sales efforts have been repositioned to focus primarily on mid-market clients where we see the highest conversion rates and fastest adoption. The team has been upgraded in capability as a result of training through H1 and we are negotiating several material deals. o The partner network has been rationalised and refocused on those partners which fit with our strategy and really want to work with us bringing an advanced offering to blue-chip enterprise clients, leveraging our partners' established relationships and implementation capabilities with Acuity’s advanced software. Partners remain an important channel for us and we are committed to working with the selected strategic partners to increase the pace of growth. o Sales processes have been optimised to reduce cycle times and improve conversion at every stage of the process.
Following a period of development we have launched a new AI led marketing programme which is designed to identify active buyers with demand suited to Acuity’s STREAM® product. It has begun to produce results, we expect shorter lead times and better conversion rates. As a side effect it has begun to identify new well qualified partners so improving our distribution channels. We have recently been mentioned in Gartner’s Market Guide to GRC Tools for Assurance Leaders, thus providing the recognition of our arrival as a top provider of Cyber GRC https://www.gartner.com/reviews/market/grc-tools-for-assurance-leaders .
We have reviewed and cleaned the sales pipeline and are now applying much stricter criteria for inclusion resulting in a reduction in number and value of opportunities. The pipeline is now realistically valued at £3.8 million with over 145 high quality opportunities where a decision from the customer is expected in the next 12 months and where we believe our offering should be very competitive.
Organisational transformation - to support our new direction, we have made several key changes to our organisational structure and leadership team. The focus has been on building a highly motivated and united team to deliver services of highest quality, in some cases this has meant outsourcing some specialist activities. These changes have been necessary to better align our resources with our strategic priorities, improve operational efficiency, and reduce costs. The changes have created a more agile, focused team that is better positioned to execute on our vision and deliver value to our customers and shareholders.
Product – There have been significant product developments in the Period which demonstrate our capability to modify existing products rapidly in respect of NextGen STREAM® and develop new ones such as Vendor Management Hub (“VMH”).
-- NextGenSTREAM®
In the Period our flagship product, NextGen STREAM® , was redeveloped and its relaunch was announced at the end of the Period. Following delivery from the software house a number of bugs have been identified. These are being resolved but it has delayed full scale implementation which will go ahead as soon as the product completes testing. This next-generation platform represents a significant investment in our product capabilities and user experience. Key improvements will include:
o A revamped user interface with intuitive workflows based on extensive user research to give an easier and friendlier experience. By improving the customer experience it should ensure Acuity improves sales conversion and experiences better retention rates. o Simplified integration capabilities with popular security and business tools such as AI, interoperability – allows easier, faster interactions with a wider range of other software. o Enhanced dashboards and reporting features for greater visibility and insights. o It should make upgrades easier and faster and reduce Acuity’s running costs.
-- Vendor Management Hub (“VMH”)
In June a new entry level product, VMH was launched and the first order for it was received in August. VMH is available as stand-alone product or it can be incorporated in
STREAM®
.
VMH provides a strong foundation for cyber risk oversight, without the complexity of a full GRC program.
It enables users to better manage their cyber security risks relating to their suppliers' systems. VHM addresses the same market as Rizikon, the product acquired by the Group in
The benefits of VMH include:
o It is easy to understand, deploy and use o It accelerates and standardises vendor onboarding - streamlines the process with automated workflows, standardised assessments and digital document management, also providing compliance records, automated monitoring and audit-ready documentation for better regulatory compliance o It automates prioritisation of third party risks based on the criticality of the supplier and potential impact of the vulnerability and risk visibility - real time monitoring of critical measures with automated risk scoring and alerts
The improvements directly support our strategic shift toward Product Led Growth (PLG) by making onboarding seamless and intuitive. The new platform has also been designed to dramatically reduce time-to-value for new customers, allowing them to experience the benefits of our solution faster and with minimal friction
Acuity is implementing optimised distribution channels to accelerate its uptake. If clients mandate their suppliers to use it, their own cyber security is better managed and it will drive the market opportunity for Acuity.
Financial overview
For the Period the Group reported revenue of £1.1m (
New orders won in the period were below that of the previous year because the business was refocussing onto Cyber GRC and other changes were made in order to achieve the future growth strategy. A key focus has been on reducing the cost base, improving efficiency and flexibility.
In
Outlook
I believe we have now put in place the foundations of a leaner, more efficient and focused business. There is still much to do to achieve Acuity’s potential but we have started, the impact is beginning to show positively in the financials and I believe we are now much better placed to deliver in H2 and beyond. Our focus on operational efficiency and product innovation positions us well to capitalise on opportunities as they emerge.
In recent times with the economic uncertainty and the new Strategic Defence Review, we have seen companies and Government agencies act cautiously. Looking ahead, we're seeing encouraging signs in our pipeline development, particularly in the defence segment where decision-making appears poised to accelerate. While we remain cautious about the broader market conditions, there are significant sales opportunities for the Company, both measured by number and value, and I look forward to announcing new order wins as we begin to properly exploit our commercial opportunities.
Chief Executive
Condensed consolidated statement of comprehensive income
For the 6 months ended
Notes Unaudited 6 months Unaudited 6 months Audited 12 months
to 30 June 2025 to 30 June 2024 to December 2024
£’000 £’000 £’000
Revenue 5 1,145 1,049 2,132
Cost of sales (143) (103) (201)
Gross profit 1,002 946 1,931
Administrative (1,284) (1,533) (3,007)
expenses
Operating loss (282) (586) (1,076)
Finance - net (16) (11) (38)
expense
Gain/(Loss) on 73 (36) (43)
investments
Share based (14) - (27)
payments expense
Exceptional costs (24) - (141)
Loss for the
period before (263) (634) (1,325)
taxation
Tax - 44 58
Loss for the
period after (263) (590) (1,267)
taxation
Basic and diluted
(loss) per share 4 (0.16)p (0.48)p (0.92)p
from loss for the
period
Condensed consolidated statement of financial position
For the 6 months ended
Notes Unaudited 6 months Unaudited 6 months Audited 12 months
to 30 June 2025 to 30 June 2024 to December 2024
£’000 £’000 £’000
Non current assets
Intangible assets 6 5,680 5,315 5,473
Tangible assets 7 10 9
Investments at
fair value through 8 280 207 207
profit or loss
Total non current 5,967 5,532 5,689
assets
Current assets
Trade and other 193 324 672
receivables
Cash and cash 418 1,855 606
equivalents
Total current 611 2,179 1,278
assets
Total assets 6,578 7,711 6,967
Current and long
term liabilities
Trade, other 729 858 714
payables and loans
Deferred income 1,895 2,403 2,453
Total liabilities 2,624 3,261 3,167
Net assets 3,954 4,450 3,800
Equity
Share capital 7 2,840 2,796 2,796
Share premium 13,729 13,370 13,370
Share based 153 112 139
payment reserve
Merger reserve 1,012 1,012 1,012
Retained earnings (13,780) (12,840) (13,517)
Total equity 3,954 4,450 3,800
Condensed consolidated statement of changes in equity
For the 6 months ended
Share Share based Merger Retained
capital Share premium payments reserve earnings Total equity
reserve
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 2,767 12,447 112 1,012 (12,250) 4,088
January 2024
Loss for the - - - - (1,267) (1,267)
year
Total
comprehensive - - - - (1,267) (1,267)
expense for
the year
Contributions
by and
distributions
to owners
Issue of
shares net of 29 923 - - - 952
transaction
costs
Issue of - - 27 - - 27
share options
Total
contributions
by and 29 923 27 - - 979
distributions
to owners
Balance at 31 2,796 13,370 139 1,012 (13,517) 3,800
December 2024
Loss for the - - - - (263) (263)
year
Issue of
shares net of 44 359 - - - 403
transaction
costs
Issue of - - 14 - - 14
share options
Balance at 30 2,840 13,729 153 1,012 (13,780) 3,954
June 2025
Condensed consolidated statement of cash flows
For the 6 months ended
Unaudited 6 months Unaudited 6 months Audited 12 months to
to 30 June 2025 to 30 June 2024 December 2024
£’000 £’000 £’000
Cashflows from
operating activities
(Loss) before (263) (634) (1,267)
taxation
Adjustments for:
Depreciation and 86 81 163
amortisation
Fair value
adjustments for (73) 37 37
listed investments
Share based payments 14 - 27
R&D tax rebate - 44
received
Settlement of loan
note and supplier 21
invoice in shares
not cash
Decrease in trade
and other 479 932 582
receivables
(Decrease)/Increase
in trade and other (543) 355 262
payables
Net cash (used
in)/generated from (279) 815 (196)
operating activities
Cashflows from
investing activities
Purchase of tangible - (5) (7)
fixed assets
Additions to
intangible fixed (291) (6) (243)
assets
Net cash flows from (291) (11) (250)
investing activity
Cash flows from
financing activities
Cash raised through
issue of shares (net 382 951 952
of transaction
costs)
Net cash flow from 382 951 952
financing activity
Net
(decrease)/increase (188) 1,755 506
in cash and cash
equivalents
Cash and cash
equivalents at 606 100 100
beginning of
financial year
Cash and cash
equivalents at the 418 1,855 606
end of financial
year
1. General information
The principal activity of the Group is the provision of risk management software, STREAM® and related services.
The financial information set out in this interim financial report does not constitute statutory accounts as defined in Sections 434(3) and 435(3) of the Companies Act 2006. The Company’s statutory financial statements for the year ended
2. Basis of preparation
The condensed consolidated interim financial report has been prepared in accordance with the requirements of the AIM Rules for Companies using accounting polices expected to be adopted for the year ending
As permitted, the Company has chosen not to adopt IAS 34 “Interim Financial Statements” in preparing this interim financial information. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended
The comparative figures for the financial year ended
Going concern
The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company and Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s medium-term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company’s 2024 Annual Report and Financial Statements, a copy of which is available on the Company’s website: www.acuityrmgroup.com .
Critical accounting estimates
The preparation of condensed consolidated interim financial report requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in the Company’s 2024 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
3. Accounting policies
Except as described below, the same accounting policies, presentation and methods of computation have been followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group’s annual financial statements for the year ended
3.1 Changes in accounting policy and disclosures
Accounting developments during 2025 and new standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted
The
4. Loss per ordinary share
The loss per ordinary share is based on the weighted average number of ordinary shares in issue during the period of 159,516,908 ordinary shares of 0.1p (
Unaudited 6 months Unaudited 6 months to Audited year to 31
to 30 June 2025 30 June 2024 December 2024
Loss attributable to
equity shareholders (263) (590) (1,267)
£’000
Loss per ordinary (0.16)p (0.48)p (0.92)p
share
Diluted loss per share is taken as equal to basic loss per share as the Company’s average share price during the period is lower than the exercise price and therefore the effect of including share options is anti-dilutive.
5. Revenue and segmental analysis
The following is an analysis of the Group’s revenue for the period from continuing operations:
Unaudited 6 months to Unaudited 6 months to Audited year to 31
30 June 2025 30 June 2024 December 2024
£’000 £’000 £’000
Provision of
software licences 1,145 1,049 2,132
and services
consisting of:
Revenue from 959 900 1,804
subscriptions
Revenue from 186 149 328
services
6. Intangible assets
Software development Goodwill Acquired on Total
acquisition
£’000 £’000 £’000
Cost or valuation
B/F 1 January 2025 913 5,154 6,067
Additions 290 - 290
C/F 30 June 2025 1,203 5,154 6,357
Accumulated amortisation
B/F 1 January 2025 594 - 594
Charge for period 83 - 83
C/F 30 June 2025 677 - 677
Net book value as 30 June 2025 526 5,154 5,680
Net book value as 30 June 2024 161 5,154 5,315
Net book value as 31 December 319 5,154 5,473
2024
7. Share capital
At the
Value
Allotted, issued and fully paid Number
£’000
Ordinary shares of 0.1p each 193,701,583 194
Deferred shares of 0.1p each 2,645,954,765 2,646
Total 2,840
As at
In addition, on
The value of the deferred shares shown in note 7 is nominal, they are effectively valueless following the approval by Ordinary and Deferred shareholders of resolutions to adopt new articles of association in
8. Investment
The Company acquired its legacy investment in KCR Residential REIT plc (“KCR”) at a price of £0.70 per share in 2018. KCR is an AIM listed real estate investment trust focused on the residential property market. The investment was classed as fair value through profit and loss in accordance with IFRS 9. The share price at
As KCR is an AIM listed company, it is measured under level 1 of the fair value hierarchy in accordance with IFRS 13:
-
Level 1: quoted prices in an active market for identical assets or liabilities. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. The quoted market price used for financial assets held by the Group is the closing price on the last day of the financial year of the Group. These instruments are included in level 1 and comprise
All assets held at fair value through profit or loss were designated as such upon initial recognition.
9. Post balance sheet event
On 4 July the Company announced the directors and one other had invested £105,000 for 10,500,000 new ordinary shares.
This subscription is on the same terms as the subscription on
