Diales Group Share Price (DIAL)

"Transformation is now complete" - new research note freely accessible from Equity Development - summary bullets below:

Diales’ strong H1 26 results confirm that the transformation of the Group is complete.

Organic revenue growth has returned, and the operationally geared nature of the Group’s operating model has resulted in an impressive uplift to margins.

Positive cash generation resulted in net cash levels rising to £3.9m, representing 7p/share or 26% of the market capitalisation.

Stripping out the cash, the Group is trading on a FY26 EBIT of 7.3x, 20% below our current fair value estimate of 35p/ share.

Diales Group plc (AIM: DIAL), the leading global professional services consultancy to the construction and engineering industries, providing multi-disciplinary consultancy services including expert witness, claims and dispute resolution services, will be conducting a presentation covering its Interim Results for the six-month period ended 31 March 2026.

The online event will be hosted by Mark Wheeler, CEO and Charlotte Parsons, CFO and will take place at 1.30pm on Wednesday 10th June.

Questions can be submitted during the presentation to be addressed at the end.

The presentation is open to all existing and potential shareholders - you can sign up to register here:

https://www.equitydevelopment.co.uk/news-and-events/diales-group-investor-presentation-hy-results-10th-june-2026

"Positive update on H1 trading and FY outlook" - new research freely accessible here: https://www.equitydevelopment.co.uk/research/positive-update-on-h1-trading-and-fy-outlook

Strong top line growth was recorded during H1 26. The uplift reflected rising average fee rates and further improvements in productivity. The incremental increase in revenues fed through to margins, which rose to 4.3%, a level not seen since H2 21.

We note the positive guidance with regards to the outlook for FY26, to at least achieve consensus expectations for revenue of £44.5m and adj. PBT of £1.5m. Delivering EBIT of £1m in H1 suggests that current FY expectations are comfortably manageable. The second half has started positively, reflecting a strong pipeline of orders.

The introduction of a new LTIP scheme with demanding conditions in 2030 - with full vesting above 75p / share - highlights the Board’s expectations and confidence in what it is building.

For now, we leave our financial estimates and 35p/ share fair value unchanged, in view of the ongoing uncertainties in the Middle East. With net cash of £3.9m at the half-year, the operating business is effectively valued on an FY26 EBIT multiple of just 5.7x.

FY2025 Trading Update - "continuing to deliver progress" - new research note freely accessible from Equity Development here: https://www.equitydevelopment.co.uk/research/continuing-to-deliver-progress

Diales has confirmed that it has achieved continuing adj. PBT estimates of at least £1.3m, representing an uplift of 8% on FY24. Notwithstanding external cost pressures within Driver Project Services, affecting gross margins, Group EBIT margins rose to 3.0% (FY24: 2.8%). Utilisation rates were broadly unchanged H2/H1 as demonstrated by the margins, with the Group’s real-time management information system rolled out beyond Europe.

Revenues declined modestly (-0.9% to £42.6m), attributed to a slow Q1 and a challenging environment. However, momentum recovered in Q2, continuing into Q3 with a notable yoy recovery in the Middle East and a robust performance in EuAm. The APAC region remains weak, led by challenging planning environment in Australia. Several new experts were hired during the year, with their full-year contribution to benefit FY26.

Net cash improved by 15% in H2, ending the year at £3.0m, with the final payments from creditors of the closed US business received following the period end. The cash represents a significant proportion of the market cap, and offers management flexibility in the areas of capital allocation and investment in future growth.

The outlook remains optimistic, underpinned by the full-year impact of expert hires, a strong business pipeline and ongoing efficiency improvements via the new digital systems and following the rightsizing of the APAC business in H2 25.

Our FY26 estimates suggest that the Group is trading on 4.2x EBIT multiple, ex-cash. Additionally, our fair value / share of 35p which is based on peer group comparison models, stands at more than twice the current share price. The dividend of 1.5p / share, that is backed by the £3m of net cash, represents a yield of 8.8%.

Mark Wheeler (CEO) and Charlotte Parsons (CFO) of Diales Group hosted an Investor Presentation following the release of Interim Results for the six-months ended 31 March 2025.

Management took viewers through highlights of the period, which included ongoing progress on the transformation strategy, with the Middle East delivering a significant improvement in operating profit. The team also discussed how Q2 revenue, utilisation and pipeline improvements bolster confidence in H2. There followed a wide-ranging Questions & Answer session where management responded to investor queries.

The full video presentation has been divided into chapters, as below:

0:00:03 Introduction & agenda

0:00:40 Service Offerings

0:03:36 Operational Highlights

0:05:41 Financial and Regional Updates

0:10:00 Cash flow Bridge

0:11:12 Summary and Outlook

0:16:14 Questions & Answers

Link to full video: https://www.equitydevelopment.co.uk/research/diales-hy-results-investor-presentation-video-10-june-2025