LONDON - Celebrus Technologies plc (AIM:CLBS), a data solutions provider, has issued a trading update indicating that its full year revenues for the fiscal year ending March 31, 2025 (FY2025), are expected to fall short of market expectations, while adjusted profit before tax is projected to exceed prior figures. The company anticipates revenues to be approximately $38.6 million, down from $40.9 million in FY2024, and adjusted profit before tax to reach around $8.7 million, an increase from $7.6 million in the previous year.
The lower revenue forecast is attributed to a deceleration in customer decision-making in the latter half of FY2025, influenced by a challenging global geopolitical climate. Despite this, Celebrus reports an improved profit margin, credited to the growth in higher-margin software revenues and effective cost management.
The company also announced a cash balance of about $31 million at year-end, bolstered by the sale of its Sunbury-on-Thames property, and confirmed that it remains debt-free.
In conjunction with the trading update, Celebrus disclosed a review of its accounting policies. The review, driven by a shift in business focus towards Celebrus software revenues over the past three years, will lead to a change in how the company defines Annual Recurring Revenue (ARR) and recognizes software license revenue.
ARR will now exclude third-party software license income and focus solely on recurring revenues from Celebrus software licenses and managed services. This refined definition aims to provide a clearer metric that aligns with the company’s strategic emphasis on its proprietary products.
The company will also transition to a monthly recognition of software license revenue under IFRS 15, moving away from the annual lump-sum recognition previously applied to term contracts. This change is expected to eliminate the seasonal pattern in the company’s financial results and align with the revised contractual terms for Celebrus software, which increasingly includes cloud hosting and services.
Looking ahead to FY2026, Celebrus is concentrating on growing revenues associated with its proprietary products, including Celebrus licenses, cloud services, and support revenues. The company anticipates that the accounting changes and a restructuring of a significant on-premises customer agreement will impact FY2026 revenues, with further details to be provided in the full year results scheduled for release on July 8, 2025.
CEO Bill Bruno expressed confidence in the strategic refocusing, emphasizing the importance of the Celebrus Cloud and the company’s commitment to enhancing shareholder value through a clearer business model and operational focus.
This trading performance update is based on unaudited management accounts, and the information is derived from a press release statement by Celebrus Technologies.
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