UK's Ingenta H1 revenue edges down on FX and legacy work impact

By Reuters News


Overview

  • UK publishing software provider's H1 26 revenue declined slightly yr/yr due to FX and legacy work

  • Adjusted EPS and EBITDA for H1 26 fell compared to prior year

  • Company acquired FirstAida Limited post period-end, expanding AI capabilities in legal sector


Outlook

  • Ingenta says it is on track to meet FY26 company-compiled adjusted EBITDA expectations of £1.4m

  • Company expects FirstAida acquisition to help drive future growth

  • Ingenta prioritising investment in sales team to enhance future performance


Result Drivers

  • CURRENCY AND LEGACY WORK - Co said revenue decline was mainly due to FX movements and wind-down of legacy work

  • COMMERCIAL REVENUE GROWTH - Commercial revenue rose 5% driven by managed services from existing customers

  • CONTENT REVENUE DECLINE - Content revenue fell 7% due to lower implementation and consultancy activity


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 5.12 mln

H1 Adjusted EPS

GBP 0.05

H1 Adjusted EBITDA

GBP 710,000

H1 Gross Margin

48.00%

H1 EBIT

GBP 629,000

H1 Gross Profit

GBP 2.46 mln

H1 Pretax Profit

GBP 688,000


Analyst Coverage

  • The one available analyst rating on the shares is "strong buy"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Ingenta PLC is GBp130.00, about 58.5% above its September 22 closing price of GBp82.00


Reuters Recommended Reads

  • Sept 21 - UK's Elixirr H1 revenue rises 25%, aided by AI demand

  • Sept 21 - UK's Craneware FY26 revenue stable as 340B headwinds persist

  • Sept 22 - WPP opens London hub in bid to produce faster, AI-assisted ads


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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