Pulsar reports 'encouraging' full-year trading results

The AIM-traded company said it achieved constant currency annual recurring revenue (ARR) growth to £61.7m, reflecting an increase of £2m during the period.

It said the growth was driven by a four-percentage point improvement in renewal rates, underscoring the positive impact of the group's ongoing investments in its products and services.

All regions contributed to the ARR increase, with EMEA and North America accelerating growth, while the APAC region experienced competitive pressure in the second half of the year, particularly within the public sector.

Total revenue for the year was expected to be £62m, reflecting modest growth on a constant currency basis compared to £62.4m reported in 2023.

Recurring revenue accounted for 96% of the total, up from 95% in the prior year.

The group reported a 27% year-on-year increase in adjusted EBITDA to about £9m, with the EBITDA margin improving to 14.5% from 11.9% in 2023, in line with market expectations.

Net debt at year-end stood at £4.9m, reflecting additional non-recurring restructuring costs aimed at accelerating cost base optimisation.

The company said it had since received significant payments from customers, and anticipated an improved cash flow profile in the first half of 2025 due to the renewal of contracts and upfront invoicing terms.

Looking ahead, Pulsar said it was aiming to enhance profitability and cash generation by further optimising its operating model.

Key strategic initiatives for 2025 included the expanded use of generative AI to automate processes, improve productivity, and the finalisation of global systems integration to enhance operational efficiency.

The board said it was confident that the measures would support long-term growth and shareholder value creation.

“As the communication landscape becomes increasingly complex, there is a clear and growing demand for audience intelligence,” said chief executive officer Joanna Arnold.

“Pulsar Group's cutting-edge platform continues to lead innovation in communications, providing organisations with the critical insights and engagement strategies they need to navigate these challenges.

“This need has been amplified by the growing influence of Artificial Intelligence across media and social channels, and our technology is uniquely positioned to help clients stay ahead of reputation risk, information overload and misinformation in this evolving environment.”

Arnold said the company’s board was “pleased” with the progress achieved in 2024, including enhancements to the group's product offerings and continued year-on-year growth in annual recurring revenue and adjusted EBITDA margins, despite ongoing headwinds from a “challenging” macroeconomic environment.

“The group is committed to enhancing profitability and cash generation, having already achieved substantial cost reductions and with additional cost optimisation initiatives set for execution in 2025.”

At 1522 GMT, shares in Pulsar Group were down 8.44% at 49.9p.

Reporting by Josh White for Sharecast.com.