Touchstar Provides Trading Update, Concludes Strategic Review
Why we think this is neutral
The trading update from Touchstar plc indicates a better than expected performance in 2024, with revenue, EBITDA, and pre-tax profit all reported. The company also has a strong order book for 2025 and plans to take measures to accelerate its development and enhance shareholder returns. However, the decrease in pre-tax profit compared to 2023 is a potential concern that requires further investigation. Overall, the news appears to be neutral, with no major red flags identified.
Key Points
- Better than expected 2024 performance
- Strong order book for 2025
- Decision to remain a stand-alone AIM-quoted entity
- Plans to accelerate development and enhance shareholder returns
Summary
Touchstar plc (AIM:TST), a technology company, has provided a trading update for 2024 and announced the conclusion of its strategic review process. The company reported revenue of £6.9m, EBITDA of £1.2m, and pre-tax profit (before exceptionals) of £450,000 for the year ended 31 December 2024, which was better than management had expected. The company also has a strong order book for 2025, with the order book at the start of the year being £987,000, more than 130% higher than the same time last year. The board has decided that it is in the best interests of shareholders for the company to remain a stand-alone AIM-quoted entity and is preparing a plan to build beyond the operational and financial performance of the group.