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  • Created on the 27 February, 2023.


(“Arcontech” or the “Group”)


Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, reports its unaudited results for the six months ended 31 December 2022.


  • Turnover decreased by 6.6% to £1,357,041 (H1 2021: £1,452,498) due to the effect of contract losses announced during the previous financial year
  • Profit before tax decreased by 13.2% to £372,414 (H1 2021: £428,924) reflecting the lower turnover
  • Our preferred measure of adjusted profit before tax, which excludes the release of accruals unrelated to the underlying business, declined by 13.3% to £367,914 (H1 2021: £424,425)
  • Recurring revenues represented 100% of total revenues for the period (H1 2021: 98%)
  • Net cash of £5,908,814 at 31 December 2022, up 5.13% (H1 2021: £5,620,352) after a record dividend payment of £434,616  paid on 24 October 2022
  • Revenue and profit before tax for the year to 30 June 2023 are expected to be in line with current expectations

Geoff Wicks, Chairman of Arcontech, said:

“Our strategy to support our existing customers to maximise opportunities while building our sales capability to grow our customer base globally, ensures we focus on growth in our core market. We are starting to see small amounts of growth and are confident that this will continue, although this must be balanced against continuing difficult markets for our customers.”


Arcontech Group plc020 7256 2300
Geoff Wicks, Chairman and Non-Executive Director 
Matthew Jeffs, Chief Executive 
finnCap Ltd (Nomad & Broker)020 7220 0500
Carl Holmes/George Dollemore Harriet Ward (ECM) 

To access more information on the Group please visit:

The interim report will only be available to view online enabling the Group to communicate in a more environmentally friendly and cost-effective manner.

Chairman’s Statement

While our results for the first half of this year show a decline in both revenue and profit compared to the same period last year, this is the result of the loss of business in the second half of last year. This impact will continue in the second half of the year given the recurring nature of our revenue. However, we are starting to see some growth with new and existing clients although the market remains difficult with customers seeking to reduce spend and prospects continuing to take time to commit.

We have worked hard at retaining customers and now have a significant proportion of our customer base on longer term contracts. At the same time, we are building a prospect list that gives us confidence of sustainable growth in the future. We have also managed our costs appropriately to ensure continued strong profitability and excellent cash generation.

Revenue was £1,357,041, down 6.6% on the same period last year, due to the loss of two contracts in the second half of 2021/22. Profit before tax (“PBT”) was £372,414, 13.2% lower than the same period last year, reflecting the loss of revenue. Adjusted profit before tax, which is PBT before the release of accruals for administrative costs in respect of prior years, was down 13.3% to £367,914.​

We continue to invest in our sales, marketing and support teams which has helped us to retain our excellent customer list and to start to build back some of the business lost in the previous financial year.


Our balance sheet remains robust with net cash of £5.9 million, £0.3 million higher than at 31 December 2022, and £0.1 million lower than the level at 30 June 2022 after payment to shareholders of a record dividend of £0.4 million. This cash position provides resources for continued investment in sales and products and for small complementary acquisitions.


No interim dividend is proposed to be paid in respect of the half year. The Board expects to continue its policy of paying a dividend following the announcement of its full year results.


Our strategy to support our existing customers to maximise opportunities while building our sales capability to grow our customer base globally, ensures we focus on growth in our core market. We are starting to see small amounts of growth and are confident that this will continue although this must be balanced against continuing difficult markets for our customers.

Geoff Wicks

Chairman and Non-Executive Director


  NoteSix months ended 31  December Six months ended 31  December   Year ended 30 June
   2022 2021 2022
   (unaudited) £ (unaudited) £ (audited) £
Revenue  1,357,041 1,452,498 2,757,795
Administrative costs  (995,636) (1,021,879) (1,999,523)
Operating profit 4361,405 430,619 758,272
Finance income  15,840 6,521 13,911
Finance costs  (4,831) (8,216) (13,610)
Profit before taxation  372,414 428,924 758,573
Taxation 6  (148,007)
  Profit for the period after tax  372,414 428,924   610,566
Total comprehensive income  372,414 428,924 610,566
Profit per share (basic)  2.78p 3.21p 4.57p
Adjusted* Profit per share (basic)  2.75p 3.18p 4.50p
Profit per share (diluted)  2.77p 3.20p 4.56p
Adjusted* Profit per share (diluted)  2.74p 3.16p 4.49p

All of the results relate to continuing operations and there was no other comprehensive income in the period.

* Before release of accruals for administrative costs in respect of prior years.


     Note  31 December 2022   31 December 2021   30 June 2022
  (unaudited) £ (unaudited) £ (audited) £
Non-current assets      
Goodwill 1,715,153 1,715,153 1,715,153
Property, plant and equipment 4,420 7,489 6,545
Right of use asset12146,303 292,606 219,455
Deferred tax asset 318,000 471,000 318,000
Trade and other receivables 141,750 141,750 141,750
Total non-current assets 2,325,626 2,627,998 2,400,903
Current assets      
Trade and other receivables91,584,539 322,885 348,686
Cash and cash equivalents 5,908,814 5,620,352 6,026,468
Total current assets 7,493,353 5,943,237 6,375,154
Current liabilities      
Trade and other payables10(891,203) (553,435) (630,644)
Deferred income (1,854,240) (1,017,829) (978,236)
Lease liabilities12(118,994) (151,948) (148,450)
Total current liabilities (2,864,437) (1,723,212) (1,757,330)
Non-current liabilities      
Lease liabilities12 (118,994) (47,403)
Total non-current liabilities  (118,994) (47,403)
Net current assets  4,628,916  4,220,025 4,617,824
Net assets 6,954,542 6,729,029 6,971,324
Share capital 1,671,601 1,671,601 1,671,601
Share premium account 115,761 115,761 115,761
Share option reserve 306,440 290,713 270,825
Retained earnings 4,860,740 4,650,954 4,913,137
  6,954,542 6,729,029 6,971,324


  NoteSix months ended 31 December Six months ended 31 December Year ended 30 June
   2022 2021 2022
   (unaudited) £ (unaudited) £ (audited) £
Cash generated from operating activities 11383,087 630,439   1,109,608
Tax paid 6(4,993)  (2,642)
Net cash generated from operating activities  378,094 630,439   1,106,966
Investing activities       
Interest received  15,840 6,521 13,911
  Purchases of plant and equipment    (114)   (527)    (2,688)
Net cash generated from investing activities    15,726   5,994               11,223
Financing activities       
Proceeds from the exercise of options   29,024 29,025
Dividends paid  (434,616) (367,202) (367,752)
Payment of lease liabilities  (76,859) (73,360) (148,450)
Net cash used in financing activities  (511,475) (411,538) (487,177)
    Net (decrease) / increase in cash and cash equivalents      (117,655)     224,895              631,012
Cash and cash equivalents at beginning of period    6,026,469   5,395,457          5,395,457
Cash and cash equivalents at end of period  5,908,814 5,620,352       6,026,469


 Share capitalShare premiumShare-based payments reserveRetained earnings Total  
                £                £               £              £               £
At 1 July 20211,665,97792,360271,2074,553,3296,582,873
Profit for the period428,924428,924
Total comprehensive income for the period428,924428,924
Exercise of options[1]5,62423,40129,025
Transfer between reserves(35,904)35,904
Dividends paid(367,202)(367,202)
Share-based payments55,40955,409
Total transactions with owners5,62423,40119,505(331,298)(282,768)
At 31 December 20211,671,601115,761290,7124,650,9556,729,029
Profit for the period181,642181,642
Total comprehensive income for the period  181,642181,642
Transfer between reserves(81,090)81,090
Dividends paid(550)(550)
Share-based payments61,20361,203
Total transactions with owners(19,887)80,54060,653
At 30 June 20221,671,601115,761270,8254,913,1376,971,324
Profit for the period372,414372,414
Total comprehensive income for the period  372,414372,414
Transfer between reserves(9,805)9,805
Dividends paid(434,616)(434,616)
Share-based payments45,42045,420
Total transactions with owners35,615(424,811)(389,196)
At 31 December 20221,671,601115,761306,4404,860,7406,954,542


  1. The figures for the six months ended 31 December 2022, and 31 December 2021, are unaudited and do not constitute statutory accounts. The accounting policies adopted are consistent with those applied by the Group in the preparation of the annual consolidated financial statements for the year ended 30 June 2022. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2022, but these do not have a material impact on the interim condensed consolidated financial statements of the Group.   
  2. The financial information for the year ended 30 June 2022 set out in this interim report does not comprise the Group’s statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 30 June 2022, which were prepared in accordance with UK-adopted international accounting standards, have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.
  3. Copies of this statement are available from the Company Secretary at the Company’s registered office at 1st Floor 11-21 Paul Street, London, EC2A 4JU or from the Company’s website at
  4. Operating profit is stated after release of accruals for administrative expenses in respect of prior years of £4,500 (31 December 2021: £4,500; 30 June 2022: £9,000).
  5. Earnings per share have been calculated based on the profit after tax and the weighted average number of shares in issue during the half year ended 31 December 2022 of 13,372,811 (31 December 2021: 13,355,719 30 June 2022: 13,364,195).

The number of dilutive shares under option at 31 December 2022 was 18,612 (31 December 2021: 62,727; 30 June 2022: 25,145). The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is done to determine the number of shares that could have been acquired at the average market price during the period, based upon the issue price of the outstanding share options including future charges to be recognised under the share-based payment arrangements.

  • Taxation is based on the unaudited results and provision has been estimated at the rate applicable to the Company at the time of this statement and expected to be applied to the total annual earnings. No corporation tax has been charged in the period as any liability has been offset against tax losses brought forward from prior years. The tax paid represents the cash payment of tax liability from the preceding income tax year.
  • A final dividend in respect of the year ended 30 June 2022 of 3.25 pence per share (2021: 2.75 pence per share) was paid on 24 October 2022.
  • The Directors have elected not to apply IAS 34 Interim financial reporting.
  • Trade and other receivables
 31 December
 31 December
2021 £ (unaudited)
 30 June
£ (audited)
Due within one year:     
Trade and other receivables1,468,165 209,800 196,541
Prepayments and accrued income116,374 113,085 152,145
 1,584,539 322,885 348,686
  1. Trade and other payables
 31 December
 31 December
2021 £ (unaudited)
 30 June
£ (audited)
Trade payables33,078 45,063 77,772
Other tax and social security payable319,265 64,548 62,148
Other payables and accruals538,860 443,824 490,724
 891,203 553,435 630,644
  1. Cash generated from operations
  Six months ended 31 December Six months ended 31 December Year ended 30 June   
  2022 2021 2022   
  (unaudited) £ (unaudited) £ (audited) £   
Operating profit 361,405 430,619 758,272   
Depreciation charge 75,390 77,337 153,594   
Non-cash share option charges 45,420 55,410 116,612   
Lease interest paid (4,141) (7,640) (13,550)   
Other interest paid (690) (576) (60)   
  (Increase)/decrease in trade and other receivables (1,240,846) 147,432     126,624   
Increase/(decrease) in trade and other payables 1,146,549 (72,143)   (31,884)   
Cash generated from operations 383,087 630,439 1,109,608   

12. Leases

As a lessee, under IFRS 16 the Group recognises right-of-use assets and lease liabilities for all leases on its balance sheet. The only lease applicable under IFRS 16 is the Group’s office.

The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position are as follows:

 Right of use asset £ Lease liability £ Income statement £
As at 1 July 2022219,455 (195,853) 
Depreciation(73,152)  (73,152)
Interest (4,141) (4,141)
Lease payments 81,000 
Carrying value at 31 December 2022146,303 (118,994) (77,293)
 Right of use asset £ Lease liability £ Income statement £
As at 1 July 2021365,758 (344,303) 
Depreciation(73,152)  (73,152)
Interest (7,640) (7,640)
Lease payments 81,000 
Carrying value at 31 December 2021292,606 (270,943) (80,792)