Acuity RM reports year of improvement

(Sharecast News) - Acuity RM said in an update on Tuesday that it delivered a year of operational improvement in 2025, returning the business to profitability in the final quarter as management actions reduced costs and stabilised revenues.

The AIM-traded cyber-security software group said revenue for the year ended 31 December was expected to be about £2.1m, broadly unchanged from the prior year.

Administrative costs fell materially to around £2.2m from £3.0m in 2024, a reduction of 27%, with overheads continuing to decline through the year and fourth-quarter annualised costs of £1.8m.

The company said it traded profitably in the final quarter of the year, following a 52% reduction in operating loss at the half-year stage.

Acuity said contract momentum improved during the second half, with regular new customer wins that were generally too small to warrant individual announcements.

Forward contracted revenue at year end stood at £1.9m, compared with £2.5m a year earlier, and the board said it saw significant opportunities for additional contract wins in 2026 as market demand for cyber-risk management continues to grow.

The group said its operational progress followed a strategic refocus led by chief executive David Rajakovich at the start of 2025, concentrating the business on cyber security risk management, delivery effectiveness and financial performance.

Cyber security remained a prominent issue during the year, with several high-profile breaches of commercial organisations highlighting the associated disruption and costs.

On the product side, Acuity said the launch of its NextGen Stream platform was delayed beyond July to allow further development and optimisation, with release now expected in the first quarter of 2026.

The company said the new version would improve user experience, accelerate customer return on investment and provide a future-proof architecture to support ongoing innovation.

During 2025, Acuity also launched its Vendor Management Hub, a SaaS product designed to support third-party risk management, which the company said had already recovered its development costs through early sales and has seen many existing Rizikon customers migrate to the new platform.

In addition, Acuity is developing a new cyber GRC product incorporating AI automation, aimed at broadening the addressable market, particularly among mid-market customers without dedicated cyber-security teams.

The firm said it also completed the disposal of its KCR Residential REIT shareholding during the year, with proceeds reinvested into the business.

Looking ahead, the board said its focus in 2026 is to grow shareholder value by increasing revenues and financial returns while ensuring that new product initiatives are deployed effectively.

"We are pleased to report that 2025 was a year in which the new management succeeded in their mission to change and improve the business through focus, leadership and measurement of performance," said executive chairman Angus Forrest.

"Whilst there is much to do to achieve the company's full market potential this is a strong start and ahead of management's expectations.

"A platform has been created for future expansion and exploitation of the global opportunity to manage cyber risks."

At 1240 GMT, shares in Acuity RM Group were up 28.57% at 0.9p.

Reporting by Josh White for Sharecast.com.

Acuity RM Group plc