Writtle half year report and dividend announcement
CHAIRMAN’S STATEMENT
I am pleased to report on our performance for the first half of 2025.
The momentum seen in the second half of 2024 continued into this year contributing to a near 20% growth in turnover and 90% increase in headline profit over the prior period. Arken again led the way, but all our businesses performed satisfactorily in a challenging and fast changing economic landscape.
RESULTS AND DIVIDENDS
Turnover for the six months to 30 June 2025 was £44.54m (2024: £37.31m) and headline profit before tax was £2.68m (2024: £1.41m). There were negligible exceptional costs but the usual non-cash deductions for goodwill amortisation and share-based payments, totalling £0.41m, resulted in profit before tax of £2.24m (2024: £0.57m).
Net cash at 30 June 2025 was £7.44m (2024: £4.95m).
An increased interim dividend of 9p (2024: 8p) per share will be paid on 31 October 2025 to shareholders on the register at 3 September 2025.
REVIEW OF TRADING
The performance of our three business groups is shown on page 8 of this report.
Our Innovation businesses all performed well with turnover collectively up by 11% and profit up by 59%. All four businesses are embracing advancements in AI but continue to put creativity at the heart of their new business drive. There was some slowing of activity towards the end of the half as the threat of US tariffs caused uncertainty which in turn led to some clients pausing their budgets. This has continued into the third quarter for some, but there is a wide portfolio of clients and we expect any lost ground to be made up elsewhere.
Our Implementation business, BRANDED, saw turnover rise by 4% but profits reduce by 14% as we continued to invest in our US cost base in anticipation of increasing volumes which are now coming through. Our creative team was further strengthened in the UK and US in response to client demand and we continue to develop our automation of artworking both in the UK and India. The business enters the second half with confidence.
Our Instore businesses had an excellent first half with turnover up 32% and a more than trebling of profits. Fero bounced back to profitability from a poor comparative period in the prior year and is now well set to benefit from its capital expenditure programme of previous years. Capacity has been increased, and margins are also benefitting. Arken continues to go from strength to strength. Arken’s reputation is such that it continues to win work across Continental Europe and now supplies units to new clients in Australia. This reputation has been hard won through years of award-winning design and cost-effective point of purchase engineering solutions for its growing client base, particularly in cosmetics. Arken had an excellent first half performance which is continuing unabated into the second.
CORPORATE ACTIVITY
After terminating discussions with two prospective vendors at the end of last year, we paused any further outreach in the first half to focus on our own businesses. Despite a successful first half we realise that more rapid growth requires acquisition, and we are open to opportunities that present themselves, but we maintain demanding criteria.
CURRENT TRADING
Our second half has started well, and I look forward to another satisfactory year.
Robert Essex
Chairman
3 September 2025