CEPS final results: the big story is the ICA sale and a much stronger cash position
CEPS PLC’s 2025 final results are one of those updates where the headline numbers only tell part of the story. On the face of it, the group reported a loss of £750,000 for 2025, compared with a profit of £1.30 million in 2024. But the real event here is what happened after the year end: the sale of ICA Group in March 2026, which has transformed the balance sheet.
That matters because CEPS has gone from being a small listed holding company with meaningful debt to one sitting on a sizeable cash pile. At the end of April 2026, CEPS said company cash was £9.2 million, equal to 43.66p per share. With the share price at 43.00p on 7 May 2026, that is the sort of figure investors will immediately latch onto.
CEPS key numbers from the 2025 results and post-year-end ICA disposal
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | £32.84 million | £31.56 million |
| Gross profit | £14.13 million | £13.29 million |
| Underlying operating profit | £2.37 million | £2.42 million |
| Reported operating profit | £589,000 | £2.42 million |
| Underlying earnings per share | 2.00p | 2.94p |
| Reported basic EPS | (3.51)p | 2.76p |
| Group cash at year end | £1.11 million | £677,000 |
| External debt at year end | £4.95 million | Not stated in this form |
| Post-year-end cash received from ICA sale | £14.01 million | Not applicable |
| Company cash at end of April 2026 | £9.2 million | Not applicable |
Why CEPS reported a loss even though trading was broadly steady
The main reason the statutory numbers look messy is that ICA is treated as a discontinued operation, meaning it is separated from the ongoing businesses because it was being sold. CEPS also took £1.78 million of exceptional costs, including a £1.42 million goodwill impairment in Signature Fabrics and £360,000 of ICA sale-related costs.
Strip those out, and the underlying picture is more stable than the headline loss suggests. Revenue rose, gross profit rose, and underlying operating profit only slipped slightly to £2.37 million. That is hardly exciting, but it is a long way from a collapse.
ICA sale changes the CEPS investment case completely
Let’s be blunt: ICA was the jewel in the crown. In 2025 it generated £23.00 million of revenue and £2.51 million of EBITDA, which means earnings before interest, tax, depreciation and amortisation – a common way to measure operating cash performance.
CEPS sold ICA in March 2026 to Certania Holdings GmbH for an enterprise value of around £30.45 million, with CEPS receiving £14.01 million for its equity and outstanding loan stocks. Post balance sheet, the company says it received £12.40 million net of transaction costs for its investment in the shares, while £1.25 million of loans owed by ICA to CEPS were repaid as well. The deal generated an approximate £11.00 million profit in the group accounts.
This is massively positive for the balance sheet. CEPS had £4.95 million of external debt at 31 December 2025, and that was repaid in full on 10 March 2026. Debt going out and cash coming in is exactly what small-cap investors like to see.
Aford Awards steady, Signature Fabrics wobbly, Milano the main weak spot
With ICA gone, investors now need to focus on what is left. Aford Awards had a decent enough year in a tough market, with sales up to £3.85 million from £3.66 million, while EBITDA slipped to £442,000 from £556,000. Not spectacular, but respectable.
Signature Fabrics was more troublesome. Combined sales for Friedman’s and Milano International fell to £6.03 million from £6.51 million. Reported EBITDA was a loss of £1.02 million after the goodwill write-off, although the underlying EBITDA was still £395,000.
The real issue is Milano. CEPS says increased labour costs have left it uncompetitive against Chinese imports, despite having better quality. That is management-speak for this business needs fixing, because the current cost base is too high.
Shareholder return potential looks real – but not guaranteed yet
This is where things get interesting. The board has already repaid debt, and it is now considering whether to return capital to shareholders. It has not given a figure, a method, or a timetable, so investors should not count their cash just yet.
Still, the fact it is being openly discussed matters. CEPS also says it is exploring acquisitions, either to add to Aford Awards or to find a stand-alone business that could in effect replace ICA. That gives management a choice: hand some cash back, reinvest for growth, or try a bit of both.
My view is that a capital return would make sense unless an obviously attractive acquisition appears. Why? Because ICA represented around two thirds of group sales, so CEPS is now a much smaller operating group sitting on a lot of cash. In that situation, investors usually want either disciplined deal-making or money back. Preferably not empire building.
CEPS shares, cash per share and what retail investors should watch next
The market has already noticed something changed. The share price moved from 21.00p on 12 May 2025 to 43.00p on 7 May 2026. That is a sharp rerating, and it lines up with the value crystallised from the ICA sale.
The eye-catching figure is the 43.66p per share cash balance at the end of April 2026. But investors need to be careful here. Cash is not the same as distributable value, and CEPS still owns operating businesses that are no longer carrying ICA’s earnings. So the company is financially stronger, yes, but the earnings base is now thinner.
- Positive: debt repaid in full, strong cash position, large value realised from ICA.
- Positive: board openly considering a return of capital.
- Negative: CEPS has sold its strongest asset and must now rebuild.
- Negative: Signature Fabrics, especially Milano, needs improvement.
- Watch: any capital return plan, acquisition news, and how the remaining businesses trade in 2026.
My verdict on the CEPS PLC final results
This is a positive update overall, but for an unusual reason. The 2025 profit and loss account is not the main event – the real story is that CEPS has successfully sold ICA, repaid all external debt, and ended up with a very healthy cash position.
The catch is obvious enough. CEPS has monetised its best business, and what remains is smaller and a bit less convincing. So the next move from the board matters a lot. If management allocates this cash sensibly, shareholders could do well. If not, the shine will come off quickly.
For now, retail investors will probably see this as a balance-sheet upgrade first and an operating company second. On the numbers disclosed here, that feels fair.
