Power Probe PLC Posts Strong 2025 Results as It Accelerates Post-IPO Growth

That matters because new products often tell you whether a specialist tools company is still relevant or starting to go stale. Here, the signs look healthy. Customers are adopting newer tools, and that is usually a much better signal than squeezing a bit more life out of older kit.

Power Probe margins and profit: strong sales, weaker quality of earnings

This is the bit investors need to read twice. Gross margin fell from 44.5% to 40.0%, while adjusted EBITDA margin dropped from 26.9% to 22.9%.

Management blamed product mix and lower margin private brands work. In plain English, the company sold a higher proportion of products that make less money per sale.

General and administrative costs also surged to $6.7 million from $2.8 million, largely due to $3.3 million of IPO-related expenses and extra hiring. Research and development expense rose to $0.5 million from $0.1 million. Those costs may support future growth, but in 2025 they hit reported profit hard.

That is why operating profit fell 41.3% to $4.7 million and profit after tax fell 46.9% to $3.1 million, even though revenue was up strongly. Adjusted EBITDA strips out IPO costs, one-off litigation costs and share-based payments, which is why that measure still rose to $9.0 million.

My take: the margin drop is the main negative in this update. IPO costs are one-off, fair enough, but product mix pressure is more important because that can linger if the business does not improve its sales blend.

Power Probe IPO cash and balance sheet: why the $15.3 million cash pile matters

The AIM listing in December 2025 brought in gross proceeds of around $15 million, with $13.0 million of net IPO proceeds included in year-end cash. That pushed cash to $15.3 million from $2.1 million a year earlier.

That gives Power Probe options. It can fund its new manufacturing facility in Charlotte, North Carolina, invest in product development, and support expansion in the UK and Europe through the Nuneaton distribution centre.

Better still, the group ended the year with no drawn borrowings and still has access to an $8.0 million revolving credit facility. For a small growth company, that is a decent financial position.

Operating cash flow was solid too, with net cash from operations up 19.7% to $5.1 million. So this is not just an IPO cash shell game – the underlying business is still generating cash.

Power Probe UK and Europe expansion plus dealership wins could unlock the next leg of growth

One of the more interesting parts of the RNS is the shift beyond its core US market. The US still generated 95.4% of 2025 revenue, so this remains a heavily America-focused business, but the Nuneaton facility is now fully operational and is intended to support UK and European growth.

Power Probe also says its products were adopted into dealership programmes at Ford, Hyundai, Honda and Toyota in 2025. In early 2026, it added GM and Stellantis. That looks important.

Why? Because dealership programmes can create sticky, repeat demand and strengthen brand credibility. If Power Probe becomes a recognised diagnostic tools supplier inside major manufacturer networks, that could open a much larger and more dependable customer base over time.

One small caution: the RNS contains two different 2024 geographic splits in different sections, so the exact prior-year Rest of World comparator is not fully clear from the announcement. The broader point still stands – international revenue is currently small, but management sees it as a growth opportunity.

Power Probe dividend details: what income investors are getting

The board plans an initial dividend of 2.16 cents, equivalent to 1.60 pence, per ordinary share. It will be declared and announced separately.

• Ex-dividend date: 7 May
• Payment date: no later than 29 May

The company also says it will follow a progressive dividend policy. That sounds encouraging, but investors should remember this is still a growth company fresh from an IPO, with expansion plans in the US and Europe. In other words, do not buy this expecting a giant yield story just yet.

Power Probe 2026 outlook: encouraging start, but supply chain and concentration risks remain

Management says first-quarter 2026 trading has been encouraging and in line with expectations. Four new products have already been launched year-to-date, and the company says it has not seen any material operational impact from Middle East-related disruption to shipping routes so far.

That is reassuring, but there are still risks. The business relies on imported products from Asia, uses sea and air freight, and remains heavily concentrated in the US market. It also noted that a significant proportion of purchases are made from related party entities, which creates counterparty dependence risk.

There is also customer concentration. In 2025, Customer 1 contributed $6.3 million and Customer 2 contributed $5.6 million. When a couple of customers matter that much, losing one can sting.

My verdict on Power Probe PLC’s 2025 preliminary results

Overall, this is a positive update with an asterisk next to it. Power Probe is clearly growing, innovating, winning customers, and using its IPO proceeds to build a platform for expansion. The cash position looks strong, and early 2026 trading sounds steady.

However, the margin pressure is real, and the drop in statutory profit shows that growth is coming with some cost. For me, the bull case is simple: if the new product pipeline, US manufacturing push and dealership wins translate into higher-margin growth, these results could mark the start of a bigger business.

The bear case is just as simple: if revenue keeps rising but margins keep sliding, investors may start asking whether scale is buying quality or just busier turnover. Right now, I would say the story is promising, but the next set of results will need to show that growth can become more profitable growth.

One final point worth remembering – these are unaudited preliminary results, although the company says the annual report and accounts are expected to be finalised shortly and no changes are expected as part of the audit finalisation.