Fonix reports solid first-half growth

(Sharecast News) - Fonix reported solid first-half growth on Tuesday, with gross profit rising 6.5% to £9.8m and adjusted EBITDA increasing 6.8% to £7.8m. The AIM-traded firm said adjusted profit before tax grew 5.4% to £7.8m, while adjusted earnings per share rose 8.8% to 6.2p.

It said it maintained a strong financial position, with underlying cash of £11m at period end.

International expansion was a key focus, with Fonix securing contracts with major mobile network operators in Portugal, including a strategic partnership with NOS.

That agreement strengthened the company's position in the market, the board said, and supported the rollout of its 'Campaign Manager' product to NOS' network of broadcast customers.

In the UK, Fonix launched interactive services with News UK across the talkSPORT and Virgin Radio brands and secured a two-year agreement with Bauer to remain its exclusive provider of premium SMS services.

The company also announced two new products set to launch in summer 2025 - PayFlex, a tool designed to recover failed mobile payments by integrating digital wallets, and DonationPortal, a solution for charities to enhance donor engagement.

Fonix said it maintained strong client retention, with over 99% of revenue recurring in nature, and delivered 100% platform uptime during the period.

The board declared an interim dividend of 2.9p per share, up 11.5% year-on-year, in addition to a special dividend of 3.0p per share paid in February 2025.

With a growing client base and international expansion accelerating, Fonix said it expected a stronger second half of the financial year.

The board said it remained confident in meeting full-year market expectations, adding that it saw long-term growth potential as the company expanded its product portfolio and presence in key European markets.

"We have delivered another period of strong performance, driven by our continued focus on driving revenue growth for our largest customers through cutting-edge technology," said chief executive officer Rob Weisz.

"New partnerships with major clients like News UK, alongside innovative product launches such as PayFlex and DonationPortal, highlight the increasing strength of our offering."

Weisz said the company had made "significant progress" internationally, with its expansion into Portugal marking a key milestone in continental Europe.

"With a solid financial foundation, disciplined investment strategy, and relentless focus on innovation, we are well-positioned to capitalise on new opportunities and deliver sustained value for our shareholders."

Reporting by Josh White for Sharecast.com.