FY25: Revenue up 22% and profits surge as Amcomri delivers another record year
Amcomri Group plc has posted a strong set of FY25 numbers, showing its ‘Buy, Improve, Build’ model still has plenty of fuel in the tank. Revenue rose 22% to £70.9 million, adjusted EBITDA climbed 19.3% to £9.2 million, and profit before tax jumped 145% to £4.1 million. Margins held firm despite some softer end markets, and both divisions contributed to the advance.
The story is classic Amcomri: a mix of organic growth, tight operational execution and well-judged bolt-ons, with diversification providing a welcome buffer against wider macro bumps.
Key FY25 numbers at a glance
| Metric | FY25 | FY24 | Comment |
|---|---|---|---|
| Revenue | £70.9m | £58.1m | +22% |
| Adjusted EBITDA | £9.2m | £7.7m | +19.3% |
| Operating profit | £6.1m | £3.9m | Scale and efficiency |
| Profit before tax | £4.1m | £1.7m | +145% |
| Gross margin | 36.6% | 36.4% | Stable |
| Basic EPS | 4.20p | 3.50p | Higher statutory earnings |
| Adjusted EPS | 5.42p | 9.35p | Lower due to share count effect (see RNS) |
| Net assets | £23.7m | £20.4m | Stronger equity base |
| Net debt | £11.2m | £6.1m | Includes deferred/contingent consideration |
| Year-end cash | £8.6m | £12.1m | After acquisitions and capex |
| Operating cash inflow | £6.6m | £6.8m | Consistent cash generation |
What drove the performance: Embedded Engineering and B2B both delivered
Embedded Engineering – strong growth despite rail delays
Embedded Engineering (EE) revenue hit £37.2 million (2024: £25.7 million) with operating profit of £6.2 million (2024: £4.4 million). The division benefited from contract wins, higher utilisation and the first-time contributions from EMC Elite Engineering and Electronix. Gross margin in EE eased to 39.5% (2024: 43.6%) due to mix – more project-heavy work from EMC and a lower contribution from WJ Projects while UK rail electrification projects were delayed. Management expects margins to trend back up as mix normalises.
Operationally, momentum is clear in power generation, energy and compliance services. Highlights include:
- Notable wins in the growing Energy from Waste market benefiting Kestrel, EMC and Spiral Weld.
- IVS secured a long-term contract to deliver all safety valve services to the UK’s largest refinery – a potential cross-sell catalyst for other EE businesses.
- Electronics refurbishment units eTrac, TP Matrix and Electronix saw strong demand from rail and wider industrial customers, with rising overseas enquiries.
B2B Manufacturing – aviation and defence offset softer commodity niches
B2B Manufacturing posted revenue of £33.8 million (2024: £32.4 million) and operating profit of £3.1 million (2024: £2.4 million). Gross margins improved to 33.3% (2024: 30.8%) thanks to mix and internal efficiency programmes. Defence and civilian aerospace were bright spots; Drurys won several long-term contracts in defence aviation and surveillance with an order book extending well into 2027.
Two more cyclical units – Premier Limpet (tapes) and JA Harrison (gaskets and seals) – faced softer demand in 2025, but are already seeing better activity in 2026, helped by the cost-down work done last year.
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.
