**Summary of Earnz PLCs Half-Year/Interim Report (H1 FY25):**
**Financial Performance**
**Revenue** £4.7 million (H1 2024: NIL), primarily driven by Cosgrove and Drew Ltd (£4.0 million).
**Adjusted EBITDA** £0.1 million, ahead of management forecasts (H1 2024: -£0.2 million loss).
**Operating Loss** -£0.2 million (H1 2024: -£0.9 million).
**Loss Before Tax** -£0.4 million (H1 2024: -£0.9 million).
**Basic Loss per Share** -0.3p (H1 2024: -3.2p).
**Net Cash** £0.9 million (30 June 2024: £3.1 million).
**Operational Highlights**
**Acquisition of A&D Carbon Solutions Limited (A&D):** Completed on 1 July 2025 for a maximum consideration of £2.8 million. A&D specializes in decarbonization services, particularly for residential properties.
**Integration of Acquisitions** Successful integration of Cosgrove and Drew Ltd (C&D) and South West Heating Services Ltd (SWH) following their acquisition in August 2024.
**Contract Wins and Extensions** Driving revenue and adjusted EBITDA performance ahead of internal targets.
**Board Strengthening** Appointment of Peter Smith as CEO.
**Strategic Outlook**
**Growth Opportunities** Positioned to capitalize on clear growth opportunities in market-leading businesses, with significant organic growth potential.
**Acquisition Pipeline** Strong pipeline of target acquisitions to support the buy-and-build strategy.
**Revenue Visibility** High revenue visibility from long-term projects and contracts, ensuring continued momentum into the full year.
**Financial Reporting and Compliance**
**Inside Information** The announcement contains inside information under the UK version of Regulation (EU) No 596/2014 (MAR).
**Discontinued Operations** Results from Verditek Solar Italy srl are classified as discontinued operations in accordance with IFRS 5.
**Chairmans Report**
**Performance** Positive adjusted EBITDA ahead of target, with acquired companies performing better than anticipated.
**Acquisition of A&D** Integrating well, with ambitious performance targets.
**Net Zero Strategy** UK Governments commitment provides growth opportunities for decarbonization and regeneration service providers.
**Board Changes** Peter Smith appointed as CEO, with Bob Holt moving to non-executive chair.
**Finance Report**
**Revenue and Profit** Revenue of £4.7 million, with a blended Group margin of 27%. Adjusted EBITDA of £0.1 million, ahead of forecasts.
**Cash Position** Net cash outflow from operating activities of £0.6 million, with a net cash inflow from financing activities of £0.6 million.
**Loan Agreement** £0.5 million loan secured from HSBC to support acquisitions.
**Post-Reporting Period Events**
**Acquisition of A&D** Completed on 1 July 2025 for £2.6 million, with contingent consideration based on performance targets.
**Conclusion**
Earnz PLC has demonstrated strong financial and operational performance in H1 FY25, with strategic acquisitions and integrations driving growth. The company is well-positioned to capitalize on the global decarbonization trend, with a robust pipeline of acquisitions and high revenue visibility from long-term contracts.