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Software Circle PLC on Wednesday said it expects further growth in the next financial year as its pretax loss narrowed while revenue increased. The Manchester, England-based vertical market software investor said its pretax loss narrowed to £671,000 in the 12 months to the end of March from £3.5 million a year ago. Revenue increased 13% to £18.3 million from £16.2 million, while direct costs fell 16% to £5.0 million from £6.0 million. As a result, gross profit jumped 30% to £13.2 million from £10.2 million. Staff costs increased 39% to £7.4 million from £5.3 million, though other operating charges were down 29% to £2.4 million from £3.4 million. Software Circle also made a £1.7 million profit on domain disposal, up from none in the prior year. It swung to an operating profit of £704,000 from a £3.2 million loss in the prior year. ‘The company has completed a fundamental transformation-and done so with remarkable smoothness. That’s rare. It has evolved from a capital-intensive print operation into a focused, decentralised group of vertical market software businesses. ‘This shift has not only reshaped our revenue profile and operating model but also positioned Software Circle as a long-term, value-driven acquirer,’ said Chair Matthias Riechert. No dividend was proposed or paid for the year, unchanged from a year ago. Looking ahead, the company said trading in the new financial year has continued to align with internal forecasts. Software Circle expects annual revenue to rise to around £20 million in financial 2026. ‘We have entered the new financial year with a strong pipeline of opportunities, meaningful financial headroom, and growing internal capability to execute transactions effectively and onboard them at pace. ‘Alongside acquisitions, we remain committed to operational excellence within our existing businesses-driving organic growth, improving cash conversion, and supporting our teams to scale sustainably,’ said Chief Executive Officer Gavin Cockerill. Shares in Software Circle were up 1.4% at 29.00 pence in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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