Stock reaction: Shares fell more than 8% on Tuesday after the company announced an additional £6 million investment for fiscal 2027, raising concerns over near‑term earnings.
FY2026 performance: Revenue £285 million, up 3.2% on a constant‑currency basis; adjusted EBIT £67.5 million (23.7% margin); adjusted EPS increased ~9% YoY; cash conversion 87%.
Investment plan: £6 million incremental spend in FY2027 aimed at accelerating growth, expected to lift revenue growth by 1‑2 percentage points while compressing profitability short‑term.
Guidance: FY2027 revenue growth projected at mid‑single‑digit levels; adjusted EBIT margin forecast at 21‑22%, below market expectation of ~24%.
Analyst view: Jefferies maintained Buy rating with a 320p price target, noting the investment is customer‑led and may deliver higher growth; expects margins to recover to 23‑24% by FY2028.
Business outlook: Core growth accelerating to 5.7% in H2; Americas Identity segment returned to growth in Q4; strong exit rate into new fiscal year.
