Annual financial statement
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22 September 2026 Fonix plc (“Fonix”, the “Group”, or the “Company”) Final Results for the year ended 30 June 2026 (the “Year”) Return to double-digit growth, with international expansion and productinnovation accelerating into FY27 Financial Highlights 2026 2025 Change Gross profit £21.0m £18.6m +12.9% Adjusted EBITDA1 £16.2m £14.6m +11.0% Adjusted PBT2 £15.5m £14.3m +8.4% Adjusted EPS3 12.1p 11.3p +7.1% Proposed Final DPS 6.20p 5.90p +5.1% Highlights ● Strategic execution in FY26: Delivered a return to double-digit growth in gross profit and adjusted EBITDA, slightly ahead of market expectations. ● International progress: Overseas markets now represent c.13% of gross profit. Portugal has moved beyond launch to become an established third market. In Switzerland, our fourth market, one broadcast customerwent live ahead of the year end, with a second following in August 2026. In France, our fifth market, a legalentity has been established and senior local expertise added, with the Board seeing long-term potential for the market to reach UK-comparable scale. Mobile network connectivity has also been completed in a sixthEuropean market, targeting launch towards the end of FY27. ● Product innovation advancing: PayFlex now live with several major customers including its first outsidethe UK; CompsPortal launched with Channel 5, winning Best Payment Solution of the Year at the UK Business Tech Awards 2026; RichMessaging (RCS5) trials across a wide range of formats delivering encouraging results. ● Growing and scalable platform: 100% uptime and platform proven to scale reliably with increasingdemand. ● Solid client base: Key contract extensions secured with Global (Heart, Capital, Radio X) for a further threeyears, and ITV for a tenth year covering flagship formats including Love Island, Britain's Got Talent, GoodMorning Britain and ITV Sport. ● Shareholder returns: Final dividend of 6.20p per share recommended (FY25: 5.90p), taking the totalordinary dividend for the year to 9.30p (FY25: 8.80p), in line with expectations and the progressive dividend policy of distributing at least 75% of adjusted earnings; £2.4m returned via two share buyback programmesduring the year. The Board expects to publish its Annual Report for the year ending 30 June 2026 on the group’s website on Friday 16 October 2026. The Annual General Meeting is scheduled to take place on Wednesday 18 November 2026. Outlook Fonix enters FY27 with real momentum, building on a return to double-digit growth in FY26 gross profit andadjusted EBITDA, ahead of expectations. With Portugal now established, Switzerland live, France advancing, and asixth market on the horizon, international expansion is fast becoming a genuine growth engine alongside the UK and Ireland. PayFlex, CompsPortal and RichMessaging are all gaining real traction, and increased dividends andbuybacks reflect the Board's confidence in sustained, profitable growth ahead.
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Notes 1 Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, R&D tax credits and tax from themeasure of profit. 2 Adjusted PBT is profit before tax excluding share-based payment charges and R&D tax credits. 3 Adjusted EPS is earnings per share excluding share-based payment charges. 4 Underlying cash is actual cash excluding cash held on behalf of customers. 5 RCS means Rich Communication Services and is the next generation of native mobile messaging, supporting rich media, interactivity, and branded business communication. Rob Weisz, CEO, commented:“We enter FY27 with building momentum and a clear line of sight to what comes next. The UK and Ireland continue to perform strongly, and we expect new markets and products to be important contributors to growth this year. On PayFlex, we are targeting a significant increase in transaction volumes through an expanded rollout andoptimised conversion rates. On RichMessaging, we intend to move decisively beyond point trials into repeating campaigns, turning early promise into a genuine new revenue line. Internationally, we expect Portugal, Switzerland and France to contribute to growth this year. Portugal representsone of our biggest opportunities and we are actively working to unlock the market constraints that have held back faster progress. Both of our Swiss broadcast customers want to scale, and in France we expect to move beyond thisyear's connectivity work and into direct commercial engagement with broadcasters. We have also completed mobilenetwork connectivity in a sixth market, laying the groundwork for a further international launch as we move through FY27. Six markets, multiple products, one platform: I have never been more confident in Fonix's ability to deliver its nextphase of growth..” Enquiries Fonix plc Tel: +44 20 8114 7007 Robert Weisz, CEOMichael Foulkes, CFO & COO Cavendish Capital Markets Limited (Nomad and Broker) Tel: +44 20 7220 0500 Jonny Franklin-Adams / Seamus Fricker (Corporate Finance)Sunila de Silva/ Harriet Ward (ECM) About Fonix Founded in 2006, Fonix is a leading provider of mobile payments and messaging solutions, enabling businesses toconnect, engage, and transact seamlessly through mobile technology. Fonix helps organisations across media, charity, entertainment, and enterprise sectors drive revenue and enhance audience engagement. Headquartered in London, Fonix is a fast-growing, innovation-driven group, trusted by industry leaders such as ITV,Bauer Media, RTÉ, Global, Comic Relief, and BBC Children in Need. With a strong focus on technology and consumer experience, Fonix continues to shape the future of mobile payments and interactivity. Chair’s Review I am pleased to present my review of the year ended 30 June 2026, a year in which Fonix moved decisively fromplanning international and product expansion to beginning to deliver it. Income is now being generated from three overseas territories, alongside a growing range of payment and messaging solutions beyond our core SMS billingoffering, while the group has continued to deliver strong growth from its existing customer base in the UK. Financial resultsGross profit grew 12.9% to £21.0m (FY25: £18.6m) and adjusted EBITDA grew 11.0% to £16.2m (FY25: £14.6m), areturn to double-digit growth in both measures. Adjusted earnings per share rose 7.1% to 12.1p, and adjusted return on capital employed improved further to 128% (FY25: 125%)[1], reflecting the continued efficiency of our operating model even as we invested in new markets and products. The group maintained a strong underlying cash position of £9.4m at year end, despite making additional distributions to shareholders during the year, including a £2.4m share buyback. The Board is recommending a final dividend of6.20p per share, taking the total dividend for the year to 9.30p (FY25: 11.80p per share including the 3.00p specialdividend), in line with our progressive policy of distributing at least 75% of adjusted earnings. Strategy and international expansion
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The clearest evidence of this year's progress is the breadth of markets now contributing to the business. Portugal hasmoved beyond launch to become an established third market. In Switzerland, our fourth territory, since the year end we are now live with two major broadcast customers, both of whom have completed successful trials and separatelysignalled ambitions to scale. In France, our fifth market, the group made a significant investment during the year,building out a legal entity and senior local expertise in a territory the Board believes has the potential, over time, to reach a scale comparable to the UK. Mobile network connectivity has also been completed in a sixth Europeanmarket, targeted to launch towards the end of FY27. ProductOur product suite also moved from development to delivery this year. PayFlex is now live with several majorcustomers, including our first outside the UK, and its contribution has the potential to grow significantly as we move into FY27. CompsPortal launched with Channel 5, still a modest financial contributor but a prominent brandrelationship, and one that helped the product win Best Payment Solution of the Year at the UK Business Tech Awards2026. RichMessaging (RCS) trials across a wide range of formats have delivered encouraging results, and the group is now considering its application both as a standalone product and as a lever across other areas of growth. Governance and people The group continues to deliver its growth strategy with minimal capital investment, a testament to the efficiency ofFonix's asset-light model. The Board believes it maintains the right balance of skills and experience to overseedelivery of the group's strategy, and continues to consider non-executive candidates who could help accelerate that strategy further, particularly as we deepen our presence in international markets. Delivering across four new territories and a broadening product suite in a single year is no small undertaking, and the Board's confidence in the management team to execute against such an ambitious agenda has been well rewarded bythis year's progress. StakeholdersFonix's culture continues to be built on close engagement with our people, our customers and our shareholders, andthe Board remains mindful of its wider stakeholder responsibilities in every decision it takes. I would like to thank our employees for their hard work and commitment this year, my fellow Board members fortheir continued guidance, and our shareholders for their ongoing support. OutlookFonix has consistently delivered against and ahead of the objectives set at its IPO in October 2020, and this year'sprogress — a return to double-digit growth, four territories contributing to income, and a broadened product suite starting to gain traction — gives the Board confidence that the group is entering FY27 from the strongest position inits history. We look ahead with real confidence in the group's strategy and its ability to continue deliveringsustainable, long-term value for shareholders. Edward Spurrier, Non-executive Chair CEO’s Statement FY26 has been a year of delivery across established markets and new ones simultaneously, without losing sight ofdiscipline or profitability. Growth in gross profit and adjusted EBITDA was driven principally by continued momentum across our core markets and the introduction of Portugal, now a genuinely established third market. Our strategy remains built around three core pillars that guide how we deliver growth and scale the business: 1. Driving revenue growth through technological innovationMuch of what we build isn't developed in isolation. Our biggest product innovations this year were shaped in close partnership with our largest customers, reflecting the way we increasingly work with clients: as a partner embedded intheir business, not simply a supplier of billing infrastructure. That distinction matters, and it's visible in the results. PayFlex, our online payment product that lets broadcasters recover failed SMS transactions and take payments viaApple Pay, Google Pay and card, is a clear example of this. Fonix's business model means we and our clients aredirectly aligned, since the more transactions we process, the more the services succeed, so recovering failed payments and working continuously on improvements that other providers simply don't consider has become a defining part ofhow we compete. RichMessaging (RCS), the next generation of native mobile messaging that embeds payments and rich, brandedcontent directly within a conversation, is a technology many have talked about for years. Our approach has been tofocus deliberately on a very specific use case we understand better than anyone, treating it as a complement to our existing products rather than a standalone replacement for them, and building for real broadcaster and audiencebehaviour rather than the technology's theoretical potential. CompsPortal, our online competitions portal for broadcasters, sits differently again. Rather than speculating on newtechnology, it's a deliberate move to give our customers a complete, multi-channel solution rather than point productsbolted together. It's this partnership model that underpins how we’ve been able to secure further contract extensions with two of ourkey clients. Global, the group behind Heart, Capital and Radio X, extended its relationship with us for a further threeyears, and ITV extended for a tenth year, continuing to cover flagship formats including Love Island, Britain's Got Talent, Good Morning Britain and ITV Sport. Both extensions reflect years of building products alongside these
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clients rather than simply for them, and both give us confidence in the durability of our core UK earnings as we investelsewhere. 2. Client- and sector-led international expansionPortugal, our third market, is now contributing materially to the business, proof that our client-led, partnership-first model travels well beyond the UK and Ireland. Whilst it's fair to say the market progress has taken longer than we'danticipated, the underlying opportunity remains clear and, we believe, entirely obtainable, and we see significantfurther upside from Portugal in the years ahead. In Switzerland, our fourth market, we went live with one major broadcast customer during the year, with a secondfollowing shortly after the year end. Both have completed successful trials, and both have separately indicated ambitions to scale, an encouraging signal at this early stage of the market's development. In France, our fifth market, we made a significant investment during the year, establishing a legal entity and adding senior local expertise. Research published by the French industry body af2m found the market for InteractivitéAntenne, the French equivalent of our offering, to be worth in the region of €100m in consumer spend per year. Bycomparison, we estimate the UK's broadcaster-led prize draw competitions market at some £250-£300m per year, within a wider UK online prize draws and competitions market recently estimated by UK Government-commissionedresearch at £1.3bn per year. Given the similarity in population size between the two countries, we see this gap asopportunity rather than ceiling, and believe France has the potential, over time, to grow substantially from its current base. We also completed mobile network connectivity in a sixth European market during the year, with launch targeted towards the end of FY27. 3. Sustaining long-term profitability for shareholders Growth this year has come without compromising the discipline that underpins our model: we continue to invest innew international markets and our product roadmap while maintaining the operating leverage that lets profitabilityscale faster than costs. That discipline is what allows us to keep investing in innovation alongside our biggest clients, rather than treating product development and shareholder returns as competing priorities. People Average headcount grew to 58 (FY25: 52), with senior hires concentrated in France, product development and legal,reflecting the operational complexity of running an established UK business alongside newer markets and products inparallel. Michael Foulkes' expanded CFO & COO role continues to give us the structure to manage that complexitywithout losing grip on execution. OutlookWe enter FY27 with building momentum and a clear line of sight to what comes next. The UK and Ireland continue to perform strongly, and we expect new markets and products to be important contributors to growth this year. On PayFlex, we are targeting a significant increase in transaction volumes through an expanded rollout and optimised conversion rates. On RichMessaging, we intend to move decisively beyond point trials into repeating campaigns,turning early promise into a genuine new revenue line. Internationally, we expect Portugal, Switzerland and France to contribute to growth this year. Portugal represents oneof our biggest opportunities and we are actively working to unlock the market constraints that have held back fasterprogress. Both of our Swiss broadcast customers want to scale, and in France we expect to move beyond this year's connectivity work and into direct commercial engagement with broadcasters. We have also completed mobilenetwork connectivity in a sixth market, laying the groundwork for a further international launch as we move throughFY27. Six markets, multiple products, one platform: I have never been more confident in Fonix's ability to deliver its nextphase of growth. Robert Weisz, Chief Executive Officer Financial Review
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Key performance indicators Financial 2026 2025 Change Gross profit £21.0m £18.6m 12.9% Adjusted EBITDA1 £16.2m £14.6m 11.0% Adjusted PBT2 £15.5m £14.3m 8.4% Underlying cash3 £9.4m £9.9m -5.1% Adjusted EPS4 12.1p 11.3p 7.1% Adjusted ROCE5 128% 125% Non-financial 2026 2025 Change Total payments volume (TPV)6 £303.3m £280.9m 8.0% 1 Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, R&D tax credits and tax from the measure of profit. 2 Adjusted PBT is profit before tax excluding share-based payment charges and R&D tax credits. 3 Underlying cash is actual cash excluding cash held on behalf of customers. 4 Adjusted EPS is earnings per share excluding share-based payment charges. 5 Adjusted ROCE is return on capital employed calculated as adjusted EBIT (being earnings before interest, R&D tax credits and tax excluding share-based payment charges) divided by capital employed (total assets less total current liabilities). 6 Total payments volume is consumer spend inclusive of VAT processed via carrier billing, SMS billing and voice, along with the total value of payments facilitated through third-party payment service providers via Google Pay, Apple Pay, PayPal and bank card.
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Financial Review Total payments volume (TPV)Total Payment Volume (TPV) represents the cash payments processed or facilitated by the group on behalf of customers. TPV grew to £303.3m (2025: £280.9m), an increase of 8.0%. Growth was principally driven by the increase in mobile payments, reflecting continued growth from mediacustomers in the UK together with contributions from new markets, namely Portugal and, to a lesser extent, Switzerland. This growth was partly offset by a decline in lower-margin voice services following the closure ofBT Agile and the cessation of paid TV voting in the UK, together with a reduction in lower-margin gamingservices, as a number of gambling providers have exited the UK market entirely in response to changes in UK gambling taxation. Revenue and other income Gross profit remains the group's key indicator of growth and is regarded as the most meaningful measure ofperformance. Reported revenue is a different, broader number: it also includes the share of each paymenttransaction retained by mobile network operators (MNOs), and that MNO share can vary significantly by product, operator, price point and geography. Revenue for the year grew 14.4% to £83.3m (2025: £72.8m), slightly ahead of gross profit growth of 12.9%. This was mainly due to mobile messaging, which carries a lower margin than mobile payments, so its strong growthboosted revenue more than gross profit. A small margin decline in managed services had a similar effect, holdingrevenue up even as gross profit fell slightly, as explained in the Gross Profit section below. Within mobile payments, the reverse was true: revenue grew more slowly than gross profit, reflecting a shift inthe mix of services within the segment, also explained further below. Gross profitGross profit is the business's most important financial indicator, representing the group's share of revenue for processing mobile payments and messages. Gross profit for the year increased to £21.0m (2025: £18.6m), growing 12.9% on the previous year, with mobile payments growing 11% (2025: 1%), mobile messaging growing 28% (2025: 26%) and managed servicesdeclining 6% (2025: growth of 6%). The strong growth in mobile payments and mobile messaging was drivenprincipally by continued strength in the media sector, including a growing contribution from Portugal, which is becoming an increasingly significant market for the group. The decline in managed services gross profit wasmodest, and reflects additional mobile operator fixed fees reflected in this business line. The blended gross profit margin decreased slightly to 25.2% (2025: 25.6%), reflecting a shift in revenue mixtowards mobile messaging, which carries a lower gross margin than mobile payments. Within mobile payments,gross margin improved during the year, driven by a decline in lower-margin voice and gaming-related services (see TPV section above). MNOs retain a much larger share of revenue from these services than the group does, soas they declined, most of the lost revenue came from the MNOs' share rather than the group's own gross profit.Overall, the change in blended margin was driven by mobile messaging growing faster than mobile payments, not by any decline in underlying profitability within either service line. Adjusted operating expenses Staff and contractor-related costs and incentives rose to £5.3m (2025: £4.5m), reflecting several new senior hiresacross France, development, and Legal representation, in support of the group's international expansion andgrowing operational complexity. This figure includes the cost of overseas contractors engaged directly by the group, which are not included within the employee benefit expenses disclosed in note 6, as these individuals arenot classified as employees. Average headcount including employees and overseas contractors increased to 58(2025: 52). Data centre hosting costs rose to £260k (2025: £200k), reflecting infrastructure upgrades to support additionalmarkets and increased mobile network operator connections. Software development costs of £1,547k (2025: £1,285k) were capitalised, representing 66% of development teamcosts (2025: 67%). The increase reflects expansion of the development team and further investment in the Fonix platform. Capitalised spend was offset by an amortisation charge of £1,112k (2025: £875k), with developmentcosts amortised on a straight-line basis over three years. Adjusted EBITDAGrowth in gross profit, combined with continued investment to support international and product expansion,drove an 11.0% increase in adjusted EBITDA to £16.2m (2025: £14.6m). Finance income and expensesFinance expense, relating to the unwinding of the discounted lease liability, decreased to £10k (2025: £21k). Finance income decreased to £0.6m (2025: £0.8m), reflecting lower base interest rates. Corporation tax
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The company’s effective corporate tax rate increased to 23.3% (2025: 22.7%) reflecting strong growth in the UKwhere the headline rate of corporation tax is 25%. The group's Irish branch is taxed at the Irish trading rate of 12.5%, and its Portuguese branch at the Portuguese standard rate of 20%. The group's French subsidiary (FonixSAS), currently loss-making as it establishes operations in that market, is subject to the French standard corporatetax rate of 25%, and did not contribute to the group's effective tax rate in the period. The group's Swiss subsidiary (Fonix GmbH) is also currently loss-making and does not constitute a taxable permanent establishment inSwitzerland; its results are expected to remain subject to UK corporation tax rather than a separate Swiss taxbasis. EPS and DividendsAdjusted EPS grew to 12.1p (2025: 11.3p), an increase of 7.1%. Given the group's performance and cash resources, the board recommends a final dividend of 6.20p per share (2025: 5.90p), giving a total dividend for theyear of 9.30p per share (2025: 11.80p per share including the 3.00p special dividend), in line with the group'sprogressive policy to distribute at least 75% of adjusted earnings per share each year. Statement of Financial PositionThe group had net assets of £11.3m (2025: £10.5m) at the year-end, including capitalised software development costs with a carrying value of £2.5m (2025: £2.0m). Current assets increased to £63.8m (2025: £55.8m), primarily reflecting higher cash balances at year end, partly due to slightly earlier settlement from mobile network operators than in the prior year, which correspondinglydampened the year-on-year growth in trade receivables. Current liabilities increased to £54.7m (2025: £47.1m),with trade payables growing broadly in line with the increase in trading volumes during the year. Cash and underlying cashThe board distinguishes between actual cash, which includes cash held on behalf of customers, and underlying cash, which excludes cash held on behalf of customers. Underlying cash is considered a better reflection of the cash flow available to the business. It decreased to £9.4m (2025: £9.9m), primarily due to a £2.4m share buy-back in the period. Actual cash, which includes cash held on behalf of customers, can vary substantially from period to period and is particularly sensitive to the timing of mobile network operator outpayments. Actual cash held increased to£28.6m (2025: £22.0m) in the year. The increase was purely timing-related and reflects the settlement of certainmobile network operator receivables around the year end. Michael Foulkes, Chief Finance Officer Audited results for the year ended 30 June 2026 Consolidated Statement of Comprehensive IncomeFor the year ended 30 June 2026 2026 2025 Note £'000 £'000 Continuing operations Revenue 4 83,346 72,780 Cost of sales (62,317) (54,152) Gross profit 3 21,029 18,628 Other income - - Adjusted operating expenses1 (4,872) (4,074) Profit before interest, tax, depreciation, amortisation, share-based payment charge and exceptional costs 16,157 14,554 R&D tax credit 156 131 Share-based payment charge (85) (86) Depreciation and amortisation (1,253) (1,014) Operating profit 14,975 13,585 Finance income 637 826 Finance expense (10) (21) Profit before taxation 15,602 14,390 Taxation (3,712) (3,245) Total comprehensive profit for the financial year 11,890 11,145
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1 Adjusted operating expenses excludes R&D tax credits, share-based payment charge, depreciation and amortisation Earnings per share 2026 2025 Basic earnings per share 12.0p 11.3p Diluted earnings per share 12.0p 11.2p Adjusted basic earnings per share 12.1p 11.3p Consolidated Statement of Financial PositionAs at 30 June 2026 2026 2025 £'000 £'000 Non-current assets Intangible asset 2,452 2,017 Right of use asset 45 166 Tangible assets 38 31 2,535 2,214 Current assets Trade and other receivables 35,215 33,766 Cash and cash equivalent 28,579 21,998 63,794 55,764 Total assets 66,329 57,978 Equity and liabilities Equity Share capital 100 100 Share premium account 679 679 Treasury shares (4,349) (2,051) Share option reserves 497 422 Foreign exchange reserve (0) - Retained earnings 14,333 11,380 11,260 10,530 Liabilities Non-current liabilities Deferred tax liabilities 368 287 Lease liabilities - 19 368 306 Current liabilities Trade and other payables 54,682 47,015 Lease liabilities 19 127 54,701 47,142 Total liabilities 55,069 47,448 Total equity and liabilities 66,329 57,978 Consolidated Statement of Changes in Equity For the year ended 30 June 2026 Share capital Share premium Shareoption reserve Treasury shares Foreignexchange reserve Retained earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 July 2024 100 679 362 (2,273) - 11,834 10,702 Profit for the financial year - - - - - 11,145 11,145 - - - - - 11,145 11,145 Transactions with shareholders Dividends - - - - - (11,493)(11,493)
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Share-based payment charge - - 86 - - - 86 Purchase of own shares - - - 0 - - 0 Exercise of share options issued from treasury shares - - - 222 - (132) 90Fair value of options exercised in the period - - (26) - - 26 - - - 60 222 - (11,599)(11,317) Balance at 30 June 2025 100 679 422 (2,051) - 11,380 10,530 Profit for the financial year - - - - - 11,890 11,890 - - - - - 11,890 11,890 Transactions with shareholders Dividends - - - - - (8,916) (8,916) Share-based payment charge - - 85 - - - 85 Purchase of own shares - - - (2,360) - - (2,360) Exercise of share options issued from treasury shares - - - 62 - (31) 31Fair value of options exercised in the period - - (10) - - 10 - - - 75 (2,298) - (8,937)(11,160) Balance at 30 June 2026 100 679 497 (4,349) - 14,333 11,260 Consolidated Statement of Cash FlowsFor the year ended 30 June 2026 2026 2025 £'000 £'000 Cash flows from operating activities Profit before taxation 15,602 14,390 Adjustments for Depreciation 20 20 Amortisation 1,233 994 Share-based payment charge 85 86 Finance income (637) (826) Finance expense 10 21 (Increase)/decrease in trade and other receivables (1,448) 2,180 Increase/(decrease) in trade and other payables 8,917 (5,758) Income tax paid (4,882) (3,570) Net cash flows from operating activities 18,900 7,537 Cash flows from investing activities Interest received 637 826 Payments to acquire tangible assets (27) (20) Payments to acquire intangible assets (1,547) (1,285) Net cash flows from investing activities (937) (479) Cash flows from financing activities Net proceeds from issue of equity 31 90 Dividends paid (8,916) (11,493) Purchase of own shares (2,360) - Capital payments in respect of leases (127) (116) Interest paid in respect of leases (10) (21) Net cash flows from financing activities (11,382) (11,540) Net increase in cash and cash equivalents for the period 6,581 (4,482)Effect of exchange rate changes (0) - Cash and cash equivalents at beginning of period 21,998 26,480
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Cash and cash equivalents at end of period 28,579 21,998 Consolidated Statement of Underlying Cash FlowsFor the year ended 30 June 2026 The group's mobile payments segment involves collecting cash on behalf of clients which is then paid to clients net of the group's share of revenues or fees associated with collecting the cash. The group's cash balance thereforefluctuates depending on the timing of "pass through" cash received and paid. The analysis below shows themovements in the group’s underlying cash flow excluding the monies held on behalf of customers. The underlying cash is derived from actual cash by adjusting for customer related trade and other receivables lesscustomer related trade and other payables and customer related VAT liabilities. 2026 2025 £'000 £'000 Underlying cash flows from operating activities Profit before taxation 15,602 14,390 Adjustments for Depreciation 20 20 Amortisation 1,233 994 Share-based payment charge 85 86 Finance income (637) (826) Finance expense 10 21 (Increase)/decrease in trade and other receivables 83 (410) Increase/(decrease) in trade and other payables 331 (133) Income tax paid (4,882) (3,570) Net underlying cash flows from operating activities 11,845 10,572 Underlying cash flows from investing activities Interest received 637 826 Payments to acquire tangible assets (27) (20) Payments to acquire intangible assets (1,547) (1,285) Net underlying cash flows from investing activities (937) (479) Underlying cash flows from financing activities Net proceeds from issue of equity 31 90 Dividends paid (8,916) (11,493) Purchase of own shares (2,360) -Capital payments in respect of leases (127) (116) Interest paid in respect of leases (10) (21) Net underlying cash flows from financing activities (11,382) (11,540) Net increase in underlying cash for the period (474) (1,447) Effect of exchange rate changes (0) - Underlying cash at beginning of period 9,877 11,324 Underlying cash equivalents at end of period 9,403 9,877 Notes to the preliminary financial information 1. Basis of preparationThe financial information set out herein does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the Year ended 30 June 2026 has been extracted from thegroup's audited financial statements which were approved by the board of directors on 21 September 2026 andwhich, if adopted by the members at the annual general meeting, will be delivered to the Registrar of Companies for England and Wales. The group's subsidiary undertakings in France and Switzerland were incorporated during the year and are consolidated from the date on which control was obtained. As the group had no subsidiaries at 30 June 2025,these are the first financial statements prepared on a consolidated basis; accordingly, the comparative financialinformation for the Year ended 30 June 2025 relates to the company only. The financial information for the Year ended 30 June 2025 has been extracted from the company’s auditedfinancial statements which were approved by the Board of Directors on 22 September 2025 and which have been delivered to the Registrar of Companies for England and Wales. The reports of the auditor on both these financial statements were unqualified, did not include any references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did notcontain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006. The information included in this preliminary announcement has been prepared on a going concern basis under thehistorical cost convention, and in accordance with International Accounting Standards in conformity with therequirements of the Companies Act 2006 and the International Financial Reporting Interpretations Committee (IFRIC) interpretations issued by the International Accounting Standards Board ("IASB") that are effective as atthe date of these financial statements.
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The company is a public limited company incorporated and domiciled in England & Wales and whose shares arequoted on AIM, a market operated by The London Stock Exchange. 2. Going concern At the time of approving the financial statements, the directors have a reasonable expectation that the group hasadequate resources to continue in operational existence for the foreseeable future. Fonix is not externally fundedand accordingly is not affected by borrowing covenants. In addition, the cost of capital represents dividend distributions or share buy-backs – which are discretionary. At 30 June 2026 the group had cash and cash equivalents of £28.6 million (2025: £22.0 million) and net current assets of £9.1 million (2025: £8.6 million). The business model of Fonix is cash generative – with increased salesgenerally impacting positively on the working capital cycle and profits from trading activities being rapidlyreflected in cash at bank. The directors maintain sufficient net assets in the group by moderating or increasing dividend distributions orshare buy-backs as necessary. The directors have prepared detailed cash flow forecasts for the next 18 months that indicate the existingactivities of the group do not require additional funding during that period. The forecasts are challenged by various downside scenarios to stress test the estimated future cash and net current asset position. The directors arepleased to note that the stress tests did not have a significant impact on the funding requirement. In addition,current trading is in line with the forecast for the year. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing these financialstatements. 3. Segmental reporting Management currently identifies one operating segment in the group under IFRS 8 – being the facilitating ofmobile payments and messaging. However, the directors monitor results and performance based upon the grossprofit generated from the service lines as follows: 2026 2025 Gross profit £'000 £'000 Mobile payments 16,509 14,871 Mobile messaging 3,746 2,937 Managed services 774 820 21,029 18,628 Differences between the way in which the single operating segment is reported in the financial statements and theinternal reporting to the Board for monitoring and strategic decisions, relates to the recording of revenue in line with IFRS 15. The IFRS adjustments do not impact on the calculation or reporting of gross profit. Gross profits can be attributed to the following geographical locations, based on the end user and the associated mobile network operators’ location: 2026 2025 Gross profit by geography £'000 £'000 United Kingdom 18,295 16,268 Rest of Europe 2,734 2,360 21,029 18,628 4. RevenueThe group disaggregates revenue between the different streams outlined as this is intended to show its nature and amount. The total revenue of the group has been derived from its principal activity undertaken wholly in the United Kingdom and EU. Revenue is recognised at the point in time of each transaction when the economic benefit is received. The total revenue of the group by service line is as follows: 2026 2025 Revenue by service line £'000 £'000 Mobile payments 52,874 48,784
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Mobile messaging 28,322 21,831 Managed services 2,150 2,165 83,346 72,780 Revenues can be attributed to the following geographical locations, based on the end user and the associatedmobile network operators’ location: 2026 2025 Revenue by geography £'000 £'000 United Kingdom 68,884 60,209 Rest of Europe 14,462 12,571 83,346 72,780 The number of customers representing more than 10% of gross profit in the year was 3 (2025: 3). 5. Earnings per share The calculations of earnings per share are based on the following profits and number of shares: 2026 2025 £'000 £'000 Retained profit for the financial year 11,890 11,145 2026 2025 Number of shares Number Number Weighted average number of shares outstanding 98,898,757 99,036,308 Share options 476,697 695,763 99,375,454 99,732,071 Earnings per ordinary share Basic 12.0p 11.3p Diluted 12.0p 11.2p The calculations of adjusted earnings per share are based on the following adjusted profits and number of shares listed above: 2026 2025 Adjusted earnings per share £'000 £'000 Retained profit for the financial year 11,890 11,145 Adjustments Share-based payment charge 85 86 Net adjustments 85 86 Adjusted earnings 11,975 11,231 Adjusted basic earnings per ordinary share 12.1p 11.3p At 30 June 2026, the total number of ordinary shares of 0.1 pence each in the capital of the company, in issue was100,000,000. The company held 2,376,335 shares in treasury, and therefore the total number of ordinary shares outstanding in the company was 97,623,665.
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