FY2025 trading update: revenue up year-on-year, but H2 slips to a small loss
Built Cybernetics (AIM:BUC) has given an early look at performance for the year ended 30 September 2025. Headline point: total revenue is expected to exceed last year, which is a relief in a choppy market.
That said, the Group expects a small loss in the second half. Management flags that the full-year outcome will be sensitive to audit adjustments, especially revenue recognition in the Architecture division, as well as provisions and other clean-up items that typically take months to finalise.
Key figures and facts from the RNS
| Group revenue | Expected to exceed FY2024 (exact figure not disclosed) |
| H2 result | Expected small loss (not quantified) |
| Smart Buildings H2 | Weaker than H1 due to a quiet August at Vanti, not recovered in September |
| Architecture H2 | Stronger second half; Aukett Swanke projects commenced in Q4 |
| Veretec headcount | Increased by over a third |
| Convertible Loan Note | £1.115 million subscribed |
| A+K subsidiary | Planned disposal following continued losses |
Smart Buildings: Vanti slowdown, ecoDriver steady, orders building
The Smart Buildings division stumbled in the second half. Vanti saw an unexpectedly quiet August, particularly in Stage Technology, and that softness did not bounce back in September. That is the core reason H2 will trail H1.
There is a silver lining. Order intake in September was strong with projects set to start in the new financial year, and ecoDriver performed in line with expectations. In simple terms, near-term revenue dipped but the pipeline looks healthier going into FY2026.
Why this matters
- Short-term softness is clearly visible in H2, but orders landing late in the period can support a better start to the new year.
- ecoDriver doing what it says on the tin helps keep divisional performance from sagging further.
Architecture: momentum in H2 with Aukett Swanke and Veretec hiring
The Architecture division had a stronger second half. Aukett Swanke saw a number of previously delayed projects finally commence in Q4, and Veretec ramped capacity by increasing its architects by over a third to support further growth.
That mix is encouraging. This side of the Group appears to be turning pent-up demand into live revenue, which can help balance the Smart Buildings blip.
Revenue recognition sensitivity explained
Management highlights that full-year results are highly sensitive to revenue recognition in architecture. That is common in long-duration design projects, where revenue is recognised over milestones. Changes in estimates or timing at audit can swing reported profit, so expect some movement between today’s update and the audited numbers.
Disposal of Anders + Kern (A+K): cutting a repeat loss-maker
Built Cybernetics impaired goodwill in A+K in the prior year due to significant losses. Unfortunately, further cost cutting has not been enough. A+K will again be a sizeable component of the Group’s loss for FY2025.
The board has resolved to dispose of A+K and has begun discussions. No timing, buyer, or proceeds are disclosed. If executed sensibly, the exit could remove a structural drag on profitability.
Why the divestment could be positive
- Reduces recurring losses and management bandwidth spent on turnaround efforts.
- Refocuses the Group on Smart Buildings and Architecture, where cross-selling is central to strategy.
- Unknowns remain: price, any residual liabilities, and the timeline are not disclosed.
Convertible Loan Note: £1.115 million provides welcome liquidity
Take-up for the Convertible Loan Note has reached £1.115 million from existing and new investors. Management says this has provided valuable liquidity and a stronger basis to develop the businesses.
The exact terms of the note – interest, conversion price, maturity – are not disclosed in this RNS. In general, convertibles boost cash today but can create dilution on conversion. The trade-off tends to be worthwhile if the capital accelerates growth or funds a clean-up like the A+K disposal.
Positives and pressure points for investors
What looks positive
- Revenue expected to rise year-on-year, despite a tough H2.
- Architecture momentum: Aukett Swanke projects underway, Veretec hiring to meet demand.
- Healthy September order intake in Smart Buildings sets up the new financial year.
- Proactive portfolio action: planned sale of A+K targets a repeat loss-maker.
- £1.115 million liquidity injection offers breathing room.
What needs watching
- H2 small loss underlines execution risk if Smart Buildings orders slip or start dates move.
- Audit sensitivities around architecture revenue recognition and provisions could shift the reported FY outcome.
- A+K disposal terms are unknown. A clean exit would be bullish, a messy one less so.
My take: a reset in progress, with the pipeline doing the heavy lifting
This is a mixed but constructive update. A softer H2 is never ideal, yet the combination of stronger Architecture, solid ecoDriver performance, and a bulking Smart Buildings order book suggests the wobble may be short-lived.
The planned disposal of A+K is, in my view, the right call. It acknowledges reality and refocuses capital and management time. Layer on the £1.115 million from the loan note, and the Group has a bit more firepower for delivery in FY2026.
The caveat is the audit. Revenue recognition and provisions could push reported numbers up or down, and we do not have full visibility on the A+K exit or loan terms. For now, I would frame this as a measured step towards a cleaner, more focused business, with near-term earnings still sensitive to timing.
Next steps and where to engage
The company says further announcements will be made in due course, including on the A+K disposal. If you have questions, the board is inviting investors to pitch them via the investor hub.
- Investor hub: https://builtcybernetics.com/link/egaNBP
- News alerts sign-up: https://builtcybernetics.com/auth/signup
For now, keep an eye on audited results and any detail on the disposal. Delivery against the order book will be the key swing factor into the new financial year.
