Interim Report

DIALES GROUP PLC

("Diales" or the "Company" or the "Group")

Interim Report

For the six months ended 31 March 2026

Financial Highlights - for the six months ended 31 March 2026

*Underlying figures are stated before share-based payment costs

Financial Summary

• Revenue from continuing operations increased 10% to £23.7m (H1FY25: £21.6m)

• Gross profit margin increased to 28.6% (H1FY25: 26.4%), gross profit increased by 19% to £6.8m (H1FY25: £5.7m), improved margin achieved despite ongoing market pressures, higher payroll taxes and continued investment in people, systems and technology

• Underlying* operating profit before tax increased by 43% to £1.0m (H1FY25: £0.7m) resulting in an underlying* operating profit before tax margin of 4.4% (H1FY25: 3.2%)

• Profit before tax at £1.0m (H1FY25: £0.6m)

• Net cash increase year on year of £1.5m to £3.9m (H1FY25: £2.4m)

• Dividend maintained in the period at 0.75p per share (H1FY25: 0.75p)

Operational Highlights

• Utilisation rate of 70.2% (H1FY25: 71.4%)

• Europe & Americas (EuAm) reported underlying* profit before tax for the period of £3.9m (H1FY25: £2.3m)

• Middle East (ME) reported underlying* profit before tax for the period of £0.1m (H1FY25: £0.5m)

• Asia Pacific (APAC) reported underlying* profit before tax for the period of £0.02m (H1FY25: Loss £0.1m)

Capital Allocation

• The Board continues to demonstrate a disciplined approach to capital allocation and remains committed to balancing shareholder returns with investment in organic growth, working capital, and potential acquisitions

• A final dividend of 0.75p per share for FY25 was paid in April 2026

• Reflecting continued confidence in the Group's outlook and financial position, the Board has declared an interim dividend of 0.75p per share to be paid on 23 October 2026

Outlook

• Strong momentum and balance sheet with robust pipeline heading into H2

• Full contribution from new service line in H2

• Continued investment in people, technology and services

• The Board remains confident in delivering full-year results at least in line with market expectations

Nicholas Stagg, Chair of Diales, said:

"The Group has delivered a strong performance in the first half, reflecting the resilience of our model and disciplined execution of our strategy. We have continued to make progress against our priorities despite a challenging macroeconomic backdrop. The Board is confident in the Group's positioning and prospects for the remainder of the year and in its ability to deliver sustainable long-term value. I would like to thank our clients, our people and our shareholders for their continued support."

Mark Wheeler, Chief Executive Officer of Diales, said:

"We delivered a strong and resilient performance in H1 FY26, with revenue growth supported by sustained demand, a strengthened pipeline and expanding capabilities. Profitability improved significantly, with both operating profit and gross margins increasing, reflecting operational leverage and disciplined execution. Strong cash generation and a healthy balance sheet support continued investment in talent, technology and new service lines. Despite regional uncertainties, particularly in the Middle East, the business has remained resilient. With good momentum, a scalable model and clear strategic focus, the Group is well positioned to deliver sustained growth and long-term shareholder value."

Results presentation

Management will host a presentation for analysts at 10:00am on 10 June 2026, at Diales' offices at Dawson House, Jewry Street, London, EC3N 2EX, and virtually. Analysts who would like to attend the presentation should register their interest with Acuitas Communications at diales@acuitascomms.com or on 020 3745 0293.

The Group will also host a presentation for investors on 10 June, at 1:30pm. Questions can be submitted before and during the online event.

To register for the webinar, please visit this link:

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

 A recording of the presentation will be available shortly afterwards here:

 https://www.equitydevelopment.co.uk/research/tag/diales-group

ENDS

Enquiries:

BUSINESS REVIEW

Overview

The Group performed well during the period, supported by steady organic growth, broader capabilities and disciplined execution of its strategy. Revenue grew by 10% to £23.7m in H1FY26 (H1FY25: £21.6m). This reflects increased activity levels, a strengthened pipeline, and sustained demand across the core service lines - expert witness, advisory, and project services. Overall underlying utilisation improved but is reported as stable at 70.2% due to a small number of staff particularly affected by timing of some large projects ending in the Middle East (H1FY25: 71.4%). Geographic performance was particularly strong in the UK and Europe, where revenue increased by 22%, although some uncertainty impacted trading conditions in the Middle East given the escalation of the regional geopolitical conflict.

Financial and Trading Performance

Profitability improved significantly across the Group, with *underlying operating profit increasing by 49% to £1.0m (H1FY25: £0.7m), supported by operational leverage, pockets of improved utilisation, new service line and margin expansion, with gross margin increasing to 29% (FY25: 27%). These gains were achieved despite ongoing cost pressures, including higher payroll taxes and continued investment in people, systems, and technology.

The Group maintained a strong financial position, with cash generated from operating activities increasing to £1.9m (FY25: £1.2m) and net cash of £3.9m (FY25: £3.0m), alongside access to a £1m undrawn overdraft facility.

Operational performance remained strong, supported by increased activity levels and a growing pipeline. The UK and Europe delivered particularly strong results, while some disruption and uncertainty affected performance in the Middle East. Despite this, the Group demonstrated resilience due to its diversified service offering and global reach.

Strategy and Growth

Strategic expansion remains focused on scaling through organic growth, the recruitment of key talent, selective acquisitions, and geographic expansion where there is a strong business case.

The launch of the new Building Safety and Fire Engineering expertise in October 2025 has enhanced the Group's service offering and strengthened its market position. This also expands the multi-disciplinary team of experts providing a complete expert service with the benefit of collaboration and enhanced understanding of the issues between the instructed experts.

People and Culture

People remain central to the Group's success. The business continued to invest in talent acquisition, learning and development, and employee engagement. Initiatives focusing on mental, social, environmental and physical wellbeing, have strengthened employee experience.

Headcount growth supported operational delivery, with a 3% increase in headcount including 2 new experts. Continued investment in senior hires ensures the Group is well positioned to meet future strategic plans.

Voluntary attrition rate reduced significantly to 3% (FY25: 12%), reflecting improved engagement, collaboration, and culture. Promotions across the business demonstrate the strength of the internal talent pipeline and commitment to career progression with the Diales development pathway.

Technology and Innovation

Investment in technology continues to be a core strategic priority. The Group is exploring AI applications, including bespoke solutions, to enhance user experience and operational performance.

The Group plans to deploy AI-enabled tools and enhanced document management systems to improve efficiency and scalability. This is an ongoing investment, with a focus on four key pillars:

• Using AI tools to improve operational support efficiency.

• Using AI tools to support delivery of our services more effectively through use of new tools.

• Staff training acceleration through technology.

• The use of new and advanced tools to allow us to offer new services to clients, allowing problems of projects to be identified and managed before the issues cause undue effect.

During the period, generative AI tools were implemented to support automation, knowledge access, and productivity, including solutions for document analysis and internal knowledge retrieval.

Leadership and Governance

During the period the Group strengthened its leadership and governance framework with the appointment of a new Non-Executive Director, Jane Dumeresque. The leadership team remains focused on delivering growth ambitions through clear strategic priorities: achieving growth through scale, investing in talent and capability and continuing to unify the business.

Capital Allocation and Dividend

The Board continues to demonstrate a disciplined approach to capital allocation and remains committed to balancing shareholder returns with investment in organic growth, working capital, and potential acquisitions.

A final dividend of 0.75p per share for FY25 was paid in April 2026. Reflecting continued confidence in the Group's outlook and financial position, the Board has declared an interim dividend of 0.75p per share. The interim dividend will be paid on 23 October 2026 to shareholders who are on the register of members at the close of business on 18 September 2026, with an ex-dividend date of 17 September 2026. ISIN: GB00B0L9C092 and TIDM: DIAL.

Outlook

The Group has entered the second half of the financial year with strong momentum, supported by a strong balance sheet, a robust pipeline, recent key hires, and the full contribution from the new service line. While macroeconomic uncertainty persists, the diversified business model of the Group post turnaround, provides resilience.

The Board remains confident in delivering full-year results at least in line with market expectations. With a strong financial position, scalable model, and continued investment across people, technology, and services, the Group is well positioned to deliver sustained and consistent organic growth and long-term shareholder value.

CONSOLIDATED INTERIM FINANCIAL INFORMATION OF DIALES GROUP PLC

Consolidated Income Statement

Interim report for the six months ended 31 March 2026

*Underlying figures are stated before the share-based payment costs and non-recurring operational costs (this is not a GAAP measure)

Consolidated Statement of Financial Position

Interim report for the six months ended 31 March 2026

Consolidated Cash flow Statement

Interim report for the six months ended 31 March 2026

Consolidated Statement of Changes in Equity

For the six months ended 31 March 2026 (Unaudited):

Consolidated Statement of Changes in Equity

For the six months ended 31 March 2025 (Unaudited):

Consolidated Statement of Changes in Equity

For the year ended 30 September 2025 (Audited):

1 BASIS OF PREPARATION

The consolidated interim financial information has been prepared using accounting policies which are consistent with those applied at the prior year end 30 September 2025 and that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2026. The financial information in this interim report is in compliance with the recognition and measurement principles of international accounting standards but does not include all disclosures that would be required under IFRSs and are not IAS 34 compliant. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2026 and 31 March 2025 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.

The comparative financial information for the year ended 30 September 2025 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2025 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2025 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The Financial Statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least twelve months from the date of approval of this financial report.

The Directors have prepared cash flow forecasts covering a period of more than 12 months from the date of releasing these financial statements. This assessment has included consideration of the forecast performance of the business for the foreseeable future and the cash and financing facilities available to the Group.

At 31 March 2026 the Group had cash reserves of £3.9m. Cash increased by £0.9m from that reported at 30 September 2025.

The Directors have also prepared a stress case scenario that demonstrates the Group's ability to continue as a going concern even with a significant drop in revenues and limited mitigating cost reduction to re-align with the revenue drop.

Based on the cash flow forecasts prepared including appropriate stress testing, the Directors are confident that any funding needs required by the business will be sufficiently covered by the existing cash reserves. As such these Financial Statements have been prepared on a going concern basis.

2 TAXATION

The tax charge for the half-year ended 31 March 2026 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2026.

3 DIVIDEND

In view of the medium-term prospects for the Group along with the strong balance sheet position, the Board recommends the payment of an interim dividend of 0.75p per share for 2026 (2025: 0.75p per share). The interim dividend will be paid on 23 October 2026 to shareholders who are on the register of members at the close of business on 18 September 2026, with an ex-dividend date of 17 September 2026. ISIN: GB00B0L9C092 and TIDM: DIAL.

During the period, the Group paid an interim dividend for 2026 of 0.75p per share (2025: 0.75p per share) and approved a final dividend for 2025 of 0.75p per share which was paid in April 2026.

4 POST BALANCE SHEET EVENT

There have been no significant events requiring disclosure since 31 March 2026.

5 SUMMARY SEGMENTAL ANALYSIS REPORTABLE SEGMENTS

For management purposes, the Group is organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). These divisions are the basis on which the Group is structured and managed, based on its geographic structure. The following key service provisions are provided across all three operating divisions: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. Segment information about these reportable segments is presented below.

6 EARNINGS PER SHARE

END