Pulsar Group interim loss narrows following "reset" of cost structure

Pulsar Group PLC on Monday reported a narrower loss amid record first-half revenue, driven by demand from enterprise clients, giving the company confidence in its outlook.

London-based Pulsar is a software-as-a-service provider for the marketing and communications industries.

Its pretax loss narrowed to £3.0 million in the six months ended May 31 from £4.9 million a year earlier.

Revenue rose 10% to £33.0 million from £30.1 million, while cost of sales increased to £11.5 million from £9.4 million.

Annual recurring revenue, or ARR, increased to £67.2 million at May 31 from £60.7 million a year prior. On a reported basis, ARR grew by £2.7 million, helped by a £1.5 million foreign exchange tailwind.

Adjusted earnings before interest, tax, depreciation and amortisation climbed 39% to £5.1 million from £3.6 million, with the margin improving to 15% from 12%, reflecting revenue growth and lower operating costs following restructuring measures implemented in 2025.

Recurring administrative expenses fell to £16.4 million from £17.1 million, while net cash generated from operations improved to £3.3 million from £1.8 million.

Net debt edged up to £6.0 million at the end of May from £5.6 million at the end of November, reflecting one-off refinancing costs and working capital timing.

During the first half, Pulsar secured new three-year banking facilities totalling £8.0 million with HSBC Innovation Banking, comprising a £6.0 million term loan and a £2.0 million revolving credit facility.

Chief Executive Officer Joanna Arnold said: "The structural changes we have made to our global operating model continue to deliver, with margins expanding as revenue growth meets a lower cost base. Having reset our cost structure during 2025, we are building further on that transformation and expect our overall cost base to reduce further by the end of the financial year, further improving operating leverage and cash generation."

Looking ahead, Pulsar said it continues to trade in line with the board's expectations. While it expects the macroeconomic environment to remain uncertain, the board said it remains confident in the group's prospects, supported by its leaner operating model, improved profitability and AI-led product portfolio.

Pulsar shares were up 7.3% to 37.00 pence in London on Monday afternoon.

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