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Arcontech Holds Dividend Flat as Annual Revenue and Profit Fall

Arcontech Group held its dividend steady despite a double-digit fall in annual revenue and profit, with management pointing to new European bank contracts as the route back to growth in the year ahead.

Arcontech Group (LON: ARC), which supplies real-time market data infrastructure to financial institutions, reported an 11.5% fall in revenue to £2.75m and a 10.7% drop in pre-tax profit to £881,170 for the year to 30 June, after losing a long-standing customer to a rival. The board held the dividend flat.

Shares traded at 80.75p in early dealings today, down marginally from Friday’s close of 81p. The stock has fallen from a 52-week high of nearly 111p to a low of about 70p over the past year, as the market priced in the growth setback.

Arcontech released its final results for the year to 30 June before today’s market open, with revenue in line with expectations and profit marginally ahead. The company blamed the decline on losing a long-standing customer to a rival, compounded by delayed purchasing decisions from other prospective clients. Chief executive Matthew Jeffs said: “The 2025/26 financial year saw revenue decline by 11.5%, with recurring revenues declining by 4.7%, primarily from the loss of a customer following competitive action which was further compounded by the delays in purchasing decisions by a number of prospective customers.”

Recurring revenue, income from ongoing subscription contracts rather than one-off projects, made up 99% of the total, up from 94% a year earlier, even though it fell 4.7% to £2.74m. The board held the final dividend at 4.00p, covered by net cash that rose 1.7% to £7.52m. That confidence rests on new business: a major European bank signed after a formal procurement process, with revenue due to begin next year, plus a second European customer signed after the year-end.

Both the chairman and Jeffs have guided explicitly to a return to growth in the coming financial year, making pipeline conversion from the new contracts the next test for the shares, rather than this year’s decline.

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