Cordel Group PLC

Latest Results (22.12.2025):

Cordel Group PLC — summary of results for the year ended 30 June 2024 (FY2024, covering the quarter ending 30 June 2024). Cordel reported FY24 revenue of £4.44m (up 46% year-on‑year), but recorded a net loss after tax of £1.299m (FY23: £0.598m). Gross margin narrowed to 64% (from 74%) driven by a higher proportion of hardware sales. The Group had cash of approximately £1.02m and trade receivables of £0.51m at 30 June 2024, and completed a £1.0m placing in October 2024 post period-end to strengthen liquidity and fund product development (notably 3D object recognition capabilities).

Key financials

Revenue: £4.439m (46% growth vs FY23). Cost of sales: £1.616m (up 104%). Other operating expenses: £4.557m (up 46%). Grant income: £519k. Loss before tax: £1.196m (vs £0.466m). Loss after tax: £1.299m (vs £0.598m). No dividend proposed.

Profitability and margin drivers

Gross margin fell to 64% from 74% in FY23, primarily because new contracts contained a larger hardware component (lower margin than recurring software/services). The business remains loss-making while investing in product development, sales and delivery capacity.

Cash, receivables and liquidity

Reported cash at year end £1.022m and trade receivables £0.511m. Management completed a £1.0m equity placing in October 2024 (post period end) to support growth and R&D, which the Board says improves near-term liquidity.

Revenue mix, customers and geography

Almost 50% of FY24 income came from the Americas. Cordel grew its customer base (aiming to double key contracts) and lists anchor customers including Amtrak, Genesee & Wyoming, Network Rail, Angel Trains, Tren Maya and ARTC.

Strategy and outlook

The company is focused on scaling recurring revenues, expanding US/AMERICAS presence and deepening partnerships. Management targets building toward a £10m revenue business over the medium term and expects FY25 growth, while limiting headcount-driven operating cost increases to under 10%.

Risks and governance

Principal risks cited include customer concentration, competition, technological change, data security, reliance on key personnel and margin pressure from hardware-heavy contracts. The Board affirms QCA Code compliance and states it has a reasonable expectation of going concern given available resources and the post-period financing.