Sparks - Cordel Group

Cordel’s FY25 trading update confirms that financial performance is in line with revised guidance, with revenue of £4.8m (+8% YoY) in line with June guidance and gross margin expanding to 70% (FY24: 64%) on the back of a growing mix of recurring software revenue. Net cash closed at £1.5m, 36% ahead of prior expectations, supported by earlier-than-anticipated receivables collection.

Commercial and strategic progress looks positive. While protracted sales cycles, —particularly in the US freight market—have impacted this year, management has maintained FY26 guidance, underpinned by customer wins in FY25 and healthy backlog. The company secured five new customers in FY25, including two major US Class 1 railroads, bringing the total to 13.

Notably, the PTC initiative has progressed ahead of schedule, with the first commercial contract signed and launch expected imminently, months earlier than we had anticipated. Management highlights that it is also seeing interest in the company’s PTC solution and multi-modal AI capabilities from outside of the US.

With a growing customer base, scalable technology, and a clear path to profitability, Cordel remains well-positioned to deliver long-term shareholder value.