GiG Software PLC

Hi, and welcome to Rada and today's presentation of GIG Software's Q2 results, which will be presented by CEO Richard Carter and CFO Phil Research. After the presentation, we will have a Q&A session. And if you have any questions, please send them through on the web. With that, I will leave it over to you, please.

Thank you very much. Good morning and welcome to our 2025 quarter two results presentation. And it's been another strong period of execution, both in terms of results and strategic developments. And we're really looking forward this morning to updating you on the positive progress we are making across our business verticals, as well as the slight shift in strategic developments, which is going to, we believe, position GIG to accelerate our medium term growth. So like our previous presentations, I'll first start by taking you through the key highlights. I'll then hand over to our CFO, Phil Richards, who will take you through the financials before coming back and updating you on our strategic progress and on also the outlook. So now turning to key operational highlights, and it's been another strong period for the company with revenue increasing 27% year on year to 9.3 million and adjusted EBITDA increasing by 2.1 million year on year to 1 million. And this performance has been driven by a combination of further focus on operational improvements, on new partner launches and also on an increasing contribution from our existing partners and a continuing razor-sharp focus on costs. Q2 also saw further pipeline conversion momentum with seven new commercial agreements signed. And I'm really pleased to announce that post-period end, we agreed to supply our technology to a European lottery. And this is a significant milestone for GIG as it not only adds a significant new market for future growth, It also validates that our technology is ideally suited to tier one partners. In addition, we successfully launched three new clients and our first client in the Philippines market And we also ended the quarter with a very healthy cash position of 4.3 million. And that excludes the 4.7 million we raised in July. Now, subsequent to that, we've added an additional 22 million to the balance sheet, which further strengthens our balance sheet and will allow us to act on strategic investment and business opportunities, as well as accelerate the execution of our business strategy. And I'll touch on this in more detail later on in the presentation. Now I'll hand over to Phil, who will take you through the financials.

Thanks, Richard. Through to the cash flow and then finish up with where we looked at for the half year. And then I'll pass back over to Richard again. So I'm delighted to present these results because we saw a really significant increase, 27% revenue increase quarter on quarter, year on year even, and 2.1 million EBITDA increase year on year also from Q2 2024 to Q2 2025. Our cost base decreased in the meantime by 0.2 million. This shows a significant increase in profitability and therefore demonstrating the scalability of our business model. And I'll talk through that a little bit later on in my presentations. So what drove the revenue increase year on year? What added our 27% increase year on year? I'm delighted that this predominantly delivered by new launches and customer growth, which is exceptional. That added 1.5 million to our revenue year on year as well. And we also had the additional setup fees from partners we are going to launch in the future, which is extremely exciting revenue growth for us going forwards as well. If I go now to our OPEX, and again, our focus on cost control has been absolutely key in this quarter as every other one. And I'm delighted that our costs are going down even more by 0.2 year on year. That's adding to the 0.2 we had in Q1 as well. Predominantly, our costs are going down because we're focusing on the cost control. We're maximizing our profitability, ensuring that we're realizing the scalable business model. So where does this all leave us when it comes to profitability in adjusted EBITDA? And bear in mind, we only adjust EBITDA for our share-based options charges. So our adjusted EBITDA turned around from a negative 1.1 in Q2 2024 to positive 1 million in Q2 2025. And therefore, you're seeing revenue dropping directly through down into the bottom line, which is really exciting. So that, as I said, again, is demonstrating our business model and the scalability of it. and really this you know our focus on cost reduction combined with our revenue and combined with our growth strategy going forwards is going to deliver yet more scalable margins in the future so how does this end up on our cash flow then so we started the quarter with 4.9 million we finished the quarter with 4.3 million and that's without the 4.7 million as richard alluded to from the directed share issue that came through in july In addition to that, as Richard alluded to as well, we're going to be strengthening our balance sheet further with an additional 22 million approximately from a second directed share issue. So we are leaving this quarter with an extremely healthy balance sheet that's going to position us really, really well for growth and underpinning our expectations going forwards as well. So where does this leave us for the half year? So how is it looking for the half year up to 30th of June, 2025? Revenue is up 18% year on year. EBITDA has transformed dramatically by 3.5 million to a positive 1.4 million. Our cost base has dropped by 0.4 million. And we have sequential growth in revenue, costs remaining constant, EBITDA growing. So all of our key metrics we're delivering upon across the half year from last year. I'm delighted with that for Richard to come and talk to you more about our growth strategy guidance for 25-26 onwards. Thank you. Thank you, Phil.