Amcomri Group Posts Record FY25 Results with Profit Surge and Strategic Acquisitions

Acquisition engine: earnings-accretive deals and new geographies

Amcomri completed two acquisitions in FY25:

• EMC Elite Engineering Services (March) – now a key contributor, including a significant UK renewable energy installation project extending into 2026 and rising demand in thermal power maintenance.
• Randor Technologies (trading as Electronix) in Ireland (July) – Amcomri’s first deal outside the UK, expanding electronics refurbishment capability and creating potential leverage with eTrac and TP Matrix.

Both deals were immediately earnings-accretive and have performed well since acquisition. Post year end, the Group agreed a conditional acquisition for £1 of Enerveo’s National Compliance and Testing division via GridCore Electrical Services, adding a UK-wide electrical test and compliance platform and exposure to the ‘private network’ electrical-infrastructure market. Completion is expected by 31 May 2026.

Cash, debt and capital allocation: investing for growth while keeping discipline

Operating cash flow was £6.6 million (2024: £6.8 million). The Group invested £4.2 million in acquisitions and paid £2.3 million of deferred consideration, alongside £2.0 million of capex aimed at capacity and efficiency. That spend explains the reduction in year-end cash to £8.6 million and the increase in net debt to £11.2 million, which includes deferred and contingent consideration.

Management says leverage is within covenant limits and remains largely long term. The Group is exploring refinancing or additional facilities to support strategic growth and is keeping a conservative stance on borrowings. Working capital expanded in line with revenue, mainly receivables; inventories stayed stable.

FY26 trading and outlook: solid start with supportive end markets

Trading in FY26 has started well and is in line with expectations. The Group is seeing:

• Increasing activity in UK rail electrification maintenance and upgrade work.
• Strong demand across defence and civilian aerospace, power generation and wider energy sectors.

Management is keeping a close eye on global energy and supply chain challenges, including the situation in the Middle East, which could influence costs and timings. Even so, the acquisition pipeline remains strong and the platform looks set for further profitable growth.

Why this update matters for shareholders

• Execution track record – Another year of record revenue and earnings, with adjusted EBITDA margin around 13% and stable Group gross margin at 36.6%.
• Diverse earnings base – Two divisions, multiple niches and a spread of industrial end markets help smooth macro noise.
• Accretive M&A – EMC and Electronix are performing well; the Enerveo deal could be strategically powerful in electrical test and compliance.
• Cash generation intact – Operating cash flow remained strong while the Group invested heavily in growth.

Balanced view: positives and watch points

Positives

• Profit before tax up 145% to £4.1 million and basic EPS up to 4.20p.
• EE and B2B both contributed to profit growth, with B2B margins moving up nicely.
• Clear synergy potential from cross-selling valves, engineering and electronics services across the estate.

Watch points

• Net debt rose to £11.2 million and cash reduced to £8.6 million due to acquisitions and capex – manageable, but worth tracking alongside any refinancing.
• EE divisional margin dipped to 39.5% on mix; recovery depends on rail normalising and a more balanced project profile.
• Adjusted EPS came in at 5.42p versus 9.35p in 2024, with the RNS noting the impact of a much lower weighted average share count in 2024.
• Customer concentration – 11% of FY25 revenue related to a single EE customer.
• No dividend yet, as cash is being reinvested to scale the platform.

What I’ll be watching next

• Completion and integration of the Enerveo National Compliance and Testing acquisition and early revenue synergies in the ‘private network’ space.
• EE margin trajectory back towards prior levels as rail work and mix improve.
• Cash conversion, receivables discipline and any movement in invoice discounting as growth accelerates.
• Further bolt-ons in specialist niches where Amcomri has a proven playbook for improvement.

Overall, this is a confident update. Amcomri is scaling sensibly, picking the right niches and backing it with operational discipline. Provided margins in EE recover as management expects and leverage stays tightly managed, FY26 has the makings of another step up.