LONDON (ShareCast) - (Sharecast News) - Fonix said in an update on Tuesday that it delivered a year of steady financial performance and significant strategic progress in the 12 months ended 30 June, laying the groundwork for broader product adoption and international expansion.
Gross profit for the year rose 3.9% to £18.6m, while adjusted EBITDA increased 6.6% to £14.6m.

The AIM-traded firm said the figures included £0.2m in legal and consultancy costs linked to the company's expansion into overseas markets.

Fonix said it continued to generate strong cash flows and intends to raise its final dividend in November in line with its policy of paying out at least 75% of adjusted earnings.

Transaction volumes declined to £281m from £303m, reflecting reduced charity campaigns and a planned withdrawal from lower-margin services.

However, the impact on gross profit was limited, with the company emphasising its focus on higher-margin, sustainable revenues.

"2025 has been a pivotal year for Fonix," said chief executive Rob Weisz.

"While headline gross profit growth was steadier than in recent periods, this was a year of exciting progress behind the scenes - laying the foundations for the next phase of scalable growth."

Fonix reported continued growth in the UK and Ireland and added major customers including GB News and News UK.

Demand had been strong for new offerings such as PayFlex, CompsPortal, and RCS, with all three expected to generate meaningful revenue contributions from FY26.

International expansion was a key focus for the 2026 financial year, the board said.

A full commercial launch in Portugal was set for September following a successful pilot, while entities had been established in two other European markets, with a fourth market entry also planned.

The company said it saw strong engagement in the regions, which featured less mature broadcast ecosystems than the UK, providing scope for growth and pricing power.

New product launches were also central to the group's growth strategy.

PayFlex, which enables frictionless payments within SMS and RCS environments, was already live with two major UK broadcasters.

CompsPortal, a self-serve competition platform, said it would launch with its first customer in September.

Fonix said it also planned to launch RCS messaging capabilities in 2026, combining interactive, branded messaging with integrated payments.

The company said it would report its audited final results on 23 September.

Its board said it remained confident in the company's long-term prospects, citing the scalability of its platform, expanded product suite, and growing international presence as key drivers of future profitable growth.

At 1249 BST, shares in Fonix were down 4.63% at 206p.

Reporting by Josh White for Sharecast.com.

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