Aferian results look a lot healthier but group sweats on refinancing talks
Revenue for the first six months of 2025 increased 36 per cent to $16.6 million ($12.2m) and adjusted EBITDA for the six months to end-May 2025 saw a profit of $1.7m following a loss of £2.4m in the first half of 2024.
Revenue growth was driven by a 94 per cent year-on-year rise in subsidiary Amino's revenue to $9.3m as strong sales execution led to higher order volumes from existing Pay TV customers and new deployments in Enterprise Video and Digital Signage.
Subsidiary 24i’s revenue remained stable at $7.4m. ARR at the half year for 24i was in line with FY24 levels, with new contract wins being delivered in the half offsetting customer churn. Product innovation, including enhancements to the 24i Video Cloud, supported new customer wins and strengthened the pipeline.
Adjusted EBITDA profit of $1.7m marked a significant turnaround from the $2.4m loss in H1 2024, reflecting increased revenues and the benefits of the FY24 restructuring programme.
The group had net debt at May 31 of $14.6m (30 November 2024 $12.7m). The year-end figure included $1.7m of advance cash receipts relating to FY 2025 revenues. On a like-for-like basis, net debt at 30 November 2024 was $14.4m.
The group is in the process of renegotiating a refinancing of its existing bank facilities, which are due for repayment at the end of September. Whilst discussions with potential finance providers are ongoing, as no agreements have yet been signed there remains uncertainty that a refinancing will be successfully completed.
Subject to agreeing the refinancing, the group says is well positioned to deliver against its strong H2 2025 order book. Supported by this improved revenue visibility and solid operational performance in H1 2025, the Board now expects FY25 full-year revenues to be approximately 20 per cent ahead of FY24 and FY25 results overall to be in line with the Board's expectations.
Mark Carlisle, CEO of Aferian plc, commented: “The momentum we established in the second half of last year has continued into H1 2025. We've delivered a significant improvement in financial performance, grown revenue by over a third compared to H1 2024 which, combined with the benefits of the previous cost action results in a return to profitability. The Group's strong and visible commercial orderbook underpins expectations for H2 2025 stable.
“As we look ahead, our priorities remain clear: scaling recurring software revenues, convert our strong pipeline, and complete the refinancing of our lending facilities ahead of their maturity in September 2025. Refinancing discussions are ongoing, and we remain confident in reaching a resolution that will support our growth strategy and provide a stronger platform for the future.
“Given the performance in H1 and our current visibility, we now expect full year revenues to be approximately 20 per cent ahead of FY24 and FY25 results overall to be in line with the Board's expectations showing the strong turnaround compared to last year."
