Catenai PLC Reports Widened H1 Loss as It Pivots to AI and Bitcoin Investments

Balance sheet and cash: stronger net assets, but reliant on funding

Despite the loss, net assets improved to £1,016,661 (H1 2024: £566,764; FY 2024: £404,568). The biggest change on the balance sheet is the new £500,000 non-current investment, reflecting the initial investment into Alludium Ltd.

Cash at 30 June 2025 was £94,092 (FY 2024: £477), helped by £786,000 of share issuance during the half, partly offset by £41,000 of share issue costs and a £500,000 investment outflow. There was also a £40,000 loan raised and £253,686 of current liabilities outstanding at period end, including £40,000 of loans and borrowings.

Crucially, after the period closed, the Company raised £1.6 million gross in July 2025. That’s a meaningful strengthening of liquidity, though the RNS does not disclose the net proceeds after costs or any intended split between working capital and investments.

Strategic pivot: AI investment and a Bitcoin-focused treasury

On 11 April 2025, Catenai identified and then funded an initial £500,000 investment into Alludium Ltd, described as a cutting-edge AI company. A second £450,000 investment completed on 17 July 2025, taking the total invested to £950,000. This is a significant capital allocation relative to the Company’s size, and it’s now a core part of the story.

Separately, on 26 June 2025 Catenai announced a fundraising and the launch of a Bitcoin-focused treasury policy. In short, that means the Company intends to hold and manage part of its treasury in Bitcoin. The “foundations” for this were announced on 28 July 2025, with a second institutional custodian being onboarded. Catenai says market and regulatory conditions are being monitored, which is important given the volatility and compliance considerations around crypto assets.

My take: Both moves increase potential upside but also increase risk. AI and Bitcoin are high-beta exposures. Success will depend on execution discipline, risk controls and clear disclosure as the policies are enacted.

Alludium: product milestones and an October public release

Alludium is positioning itself in the “no-code AI agent workforce” space – software agents that can work together and alongside humans to carry out tasks autonomously, rather than just generating chat responses. Since May 2025, Alludium has hit key product milestones and is targeting a transition from alpha to a public release in October 2025, with a public waitlist expected to gain access next month.

Alludium also plans a presence at major tech events in Q4 2025, including SAASstock, WebSummit Lisbon and Slush. That visibility could be useful for early customer acquisition. The RNS does not disclose Alludium’s revenues, valuation, or ownership percentages, so investors should watch for future updates from Catenai on commercial traction and how success might translate into value.

Klarian loan: revised terms and expected fee income

On 30 June 2025, Catenai announced Klarian Ltd had extended its loan repayment with new terms depending on when repayment is made. Post period end, Klarian has advised that it expects to repay the loan in full before 31 December 2025 in line with the revised terms. If that happens, Catenai will recognise an extension fee of £56,750 in the annual results to 31 December 2025.

That fee would provide helpful non-dilutive income, but it remains contingent on Klarian repaying as expected.

Positives, negatives, and how I see it

What looks positive

• Balance sheet strengthened: net assets up to £1,016,661 and cash improved to £94,092 at period end, with an additional £1.6 million gross raised in July.
• Clear strategic direction: two staged investments into Alludium totalling £950,000, with a near-term product release and event schedule that could drive momentum.
• Potential fee income: £56,750 extension fee expected from Klarian if repaid by year end.

What needs watching

• Revenue cliff: H1 revenue of £7,600 is extremely low versus £124,500 in H1 2024. The Company says it continues to service its sports customer, but top-line visibility is not disclosed.
• Cost discipline: Admin expenses rose to £228,994, and services of £88,400 were paid in shares, implying some dilution to conserve cash.
• Execution risk: AI product launches and a Bitcoin treasury both carry operational and market risks. The RNS notes market and regulatory monitoring, which is essential.

What to watch next

• Alludium’s October 2025 public release and any early adoption metrics or commercial partnerships.
• Further clarity on the Bitcoin treasury policy – size, custody arrangements, governance, and risk limits.
• Cash updates post the £1.6 million raise, including net proceeds and allocation.
• Klarian repayment by 31 December 2025 and recognition of the £56,750 extension fee.
• Any sign of revenue recovery or new customer wins to complement the investment-led strategy.

Bottom line

This is a pivot story. The financials show a challenging H1 with minimal revenue and a widened loss, but the balance sheet was bolstered and the Company is leaning hard into AI via Alludium while laying the groundwork for a Bitcoin-focused treasury. If Alludium’s rollout lands well and the treasury policy is implemented prudently, there’s potential for a step-change narrative. For now, investors should recognise the higher risk profile and keep a close eye on execution and disclosures over the coming quarter.