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Ingenta PLC on Monday reported a decline in profit during 2024, as earnings are set to fall further during 2025 as a result of new investments in sales and marketing. The Oxford, England-based provider of software and services to the publishing industry said pretax profit declined 10% during 2024 to £1.8 million from £2.0 million in 2023. Revenue fell 5.6% to £10.2 million from £10.8 million, as ‘non-recurring constancy revenue slowed down in 2024’, Ingenta said, while cost of sales was reduced by 3.7% to £5.2 million from £5.4 million. Ingenta delivered annual recurring revenue of £8.9 million for the year, which represented 87% of the group’s total revenue, against £8.7 million in ARR, which was 80% of total revenue in 2023. Ingenta proposed a total dividend of 4.1 pence per share for 2024, unchanged from the year before. ‘The group produced a steady financial performance in 2024, as we continue to transition the business to our Software as a Service product suites. Our products are flexible and adaptable, making them suitable for a wide range of media businesses of all sizes and giving us a broad target market,’ said Chief Executive Officer Scott Winner. ‘We also benefit from more than 80% of our revenue coming from recurring fees, giving us good visibility of our near-term performance. With our increased investment in sales and marketing planned for 2025, we are confident of developing a larger pipeline of new business and returning to revenue growth in the year ahead.’ Looking ahead, Ingenta expects profitability in 2025 to be lower than in 2024, as ‘the investments made take time to bed in’. In addition, ‘the rebalancing of revenue in favour of new generation software will impact margins, as they attract a higher level of cloud infrastructure cost than legacy on-premise deployments,’ noted Chair Martyn Rose. Ingenta shares were up 7.3% at 54.70 pence in London on Monday afternoon. The stock remains down 64% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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