Last close As at 05/08/2026
GBP0.59
— 0.00 (0.00%)
Market capitalisation
GBP43m
Research: TMT
Alongside its year-end trading update, PCI-PAL announced that it has put in place a new strategic plan to drive the growth of the business. FY25 revenue grew 25% y-o-y and both revenue and adjusted PBT were in line with consensus. Annual recurring revenue (ARR) was 25% higher y-o-y and to support growth at 18–20% per year over the next three years, the company intends to increase investment in marketing and product development as well as continuing to expand and support its partner ecosystem.
PCI-PAL expects to report FY25 revenue of £22.5m (consensus prior to today £22.4m) and adjusted PBT in line with the consensus forecast of £0.8m. Contracted annual recurring revenue grew 16% y-o-y to £22.2m and ARR increased 25% y-o-y to £19.3m (the difference is contracts signed but not yet implemented). Net revenue retention (NRR) increased to 104% from 102% in H125 and gross revenue retention was unchanged from H125 at 95%, with 100% retention of strategic partners. Cash at year-end was £3.9m. The RingCentral deal signed earlier in FY25 has already resulted in several new customer wins and a new agreement has just been signed with an unnamed business communications partner.
After the long-running patent litigation concluded and a new CFO was appointed last year, PCI-PAL reviewed its rolling three-year plan. It remains focused on driving organic revenues, targeting ARR growth of 18–20% per year through FY27 and beyond. The company plans to invest an additional £1.5m, mostly in FY26, across marketing, product marketing and engineering. Launches of adjacent new products in FY26 should expand the addressable market and help grow NRR through cross-selling. For more detail on the trading update and strategic plan, see our recent management interview.
PCI-PAL currently trades on an EV/sales multiple of 1.3x FY25e and 1.2x FY26e. As the company has moved through break-even into profitability, EV/EBITDA multiples have reduced to more normalised levels. With the new plan aiming to maximising PCI-PAL’s opportunity in a fast-growing market, we view sustained ARR growth and the shift into positive cash flow as the likely main drivers of share price upside.
|
Consensus estimates |
|||||||
|---|---|---|---|---|---|---|---|
| Year end | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | DPS (p) | EV/EBITDA (x) | P/E (x) |
| 6/24 | 18.0 | 0.9 | (0.6) | (0.11) | 0.00 | 32.2 | N/A |
| 6/25e | 22.5 | 2.5 | 0.8 | 0.96 | 0.00 | 11.2 | 45.8 |
| 6/26e | 23.5 | 0.9 | (1.0) | (1.40) | 0.00 | 31.1 | N/A |
| 6/27e | 27.0 | 2.2 | 0.0 | 0.01 | 0.00 | 12.7 | N/A |
General disclaimer and copyright
This report has been commissioned by PCI-PAL and prepared and issued by Edison, in consideration of a fee payable by PCI-PAL. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.
Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.
Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.
No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.
Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.
Copyright 2025 Edison Investment Research Limited (Edison).
Australia
Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.
New Zealand
The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.
United Kingdom
This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.
This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States
Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.
London │ New York │ Frankfurt
20 Red Lion Street
London, WC1R 4PS
United Kingdom
Research: Investment Companies
International Public Partnerships (INPP) has been selected as a preferred bidder on the Sizewell C nuclear power station, a landmark infrastructure project critical to strengthening the UK’s energy security and to meeting the government’s net zero targets. INPP will take a c 3% equity stake in the Sizewell C regulated company and has committed to invest c £250m over the next five years. It expects to fund this through capital recycling, with the share repurchase programme remaining in place. The investment is structured under a regulated model and is expected generate predictable, long-term, inflation-linked cash flows, protected against construction and nuclear-specific risks, and provide capital upside. We expect the ability to recycle capital into attractive, new, long-term investment opportunities, in addition to its immediately accretive share repurchases, to support a continued re-rating of INPP shares.