**Summary of Touchstar PLC Interim Results for H1 2025**
Touchstar PLC, a supplier securing logistics for various industrial sectors, released its interim results for the six months ended 30 June 2025, highlighting a significant transformation under new leadership. Despite a slight revenue decline to £3.365 million (from £3.377 million in H1 2024), the company reported key developments and strategic shifts
1. **Financial Performance**
Revenue£3.365 million (H1 2024: £3.377 million).
Recurring revenue grew 2.5% to £1.533 million, accounting for 45% of total revenue.
Gross margins decreased to 55% (H1 202459.1%) due to higher direct salary costs, NI tax rises, and product mix changes.
Operating loss before exceptional costs£155,000 (H1 2024: £254,000 profit).
Adjusted EBITDA: £235000 (H1 2024: £589000).
Cash position remains strong at £2.002 million, with £260,000 cash generated in the period.
Order book increased 11% year-on-year to £2.520 million.
2. **Strategic Transformation**
Appointed Lynden Jones as CEO to lead the transformation and growth.
Streamlined production processes and relocated software development roles from India to Manchester.
Restructured the sales team to enhance customer engagement and cross-selling.
Analyzing acquisition targets to accelerate growth.
Repositioning the business to serve a broader market beyond the fuel industry, targeting depots, warehouses, and retailers.
3. **Operational Highlights**
Focus on becoming a leading partner in secured logistics for people and products.
Enhanced website and marketing materials to strengthen brand presence.
Increased investment in salestechnologyand marketingimpacting short-term profitability.
4. **Dividend and Outlook**
Dividend increased 17% to 1.75p per share.
Full-year performance expected to be in line with management expectations, with a stronger second half anticipated due to major installations.
5. **Chairman’s Remarks**
Ian Martin emphasized the company’s ambitious strategy and renewed purpose under new leadership.
Transformation efforts are expected to be substantially completed by year-end, with a focus on organic growth, acquisitions, and market expansion.
**Key Challenges**
Navigating increased costs, short-term investment impacts, and a higher tax burden in a flatlining UK economy.
**Conclusion**
Touchstar PLC is undergoing a radical transformation to reposition itself as a leader in secured logistics, with a focus on efficiency, growth, and market expansion. Despite short-term financial challenges, the company remains optimistic about its long-term prospects.