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Highlights

  • RC Fornax shares fell 11.86% on 24 February 2026 following release of FY25 final results.
  • FY25 revenue declined to GBP 4.1 million from GBP 6.4 million in FY24.
  • Gross profit decreased to GBP 1.0 million in FY25 versus GBP 1.6 million a year earlier.
  • Adjusted loss before tax widened to GBP 1.6 million in FY25 compared to a GBP 0.5 million profit in FY24.
  • RC Fornax has secured GBP 4.3 million in new orders and contract extensions in the first half of FY26
  • Industry slowdown linked to the UK Strategic Defence Review impacted trading during the year.
  • Management reports current visibility over approximately GBP 4.5 million in sales for the remainder of FY26, backed by a growing bid pipeline

RC Fornax PLC (LSE:RCFX) shares fell 11.86% to GBX 9.48 during the morning session on 24 February 2026, following the release of its final results for the year ended 31 August 2025 (FY25). The stock remains down 71.80% over the past year, reflecting continued investor caution amid earnings pressure.

Today’s decline came after the company reported lower revenue, reduced profitability, and a swing to a loss during FY25, primarily due to disruption across the UK defence sector.

FY25 Performance Hit by Defence Sector Pause

For the year ended 31 August 2025 (FY25), revenue came in at GBP 4.1 million, marking a 35.9% decrease compared with GBP 6.4 million in FY24. The Company attributed the decline to an industry-wide slowdown following the publication of the UK Government’s Strategic Defence Review (SDR) in June 2025, which created a hiatus in procurement activity.

Gross profit for FY25 was GBP 1.0 million, down 37.5% from GBP 1.6 million in FY24, reflecting the reduced revenue base during the period.

At the bottom line, RC Fornax reported an adjusted loss before tax of GBP 1.6 million in FY25, compared with an adjusted profit before tax of GBP 0.5 million in FY24 — representing a year-on-year deterioration as sector delays weighed on trading momentum.

As of 31 August 2025, the Company held GBP 0.9 million in cash, reflecting investment into its new Bristol headquarters and recruitment aimed at supporting future expansion.

Strategic Milestones Despite Revenue Pressure

While financial performance softened, FY25 included several strategic developments. The Company was admitted to the London Stock Exchange’s AIM market in February 2025, raising GBP 3.4 million in net proceeds.

RC Fornax also secured participation across seven procurement frameworks and generated more than 20 bid opportunities since April 2025. The business confirmed it is in advanced discussions on three significant agreements, including two with defence prime contractors covering land and maritime programmes.

In April 2025, the Company opened a new Ministry of Defence-compliant secure headquarters in Bristol, designed to support expansion of up to 50 staff.

Post-Period Momentum Builds Into FY26

Following year-end, the Company completed a fundraising in December 2025, raising GBP 2.1 million in net proceeds to reinforce liquidity.

Operationally, RC Fornax reported GBP 4.3 million in new orders and contract extensions during the first half of FY26. By the end of January 2026, invoiced sales totalled GBP 1.7 million, with an additional GBP 2.4 million in contracted orders for the remainder of FY26.

Orders subject to contract stood at GBP 0.6 million, of which GBP 0.4 million is expected to convert into FY26 revenue. This provides current visibility over approximately GBP 4.5 million in sales heading into the second half of FY26.

In January 2026, the Company was unconditionally accepted by Aurora Engineering Partnership as a Specialist Provider on its Evolve Engineering Delivery Partnership Provider Network, a major UK defence engineering framework. It also highlighted progress in diversifying beyond core UK defence work, including a contract award from a UK public sector space client announced in November 2025.

Outlook: Focused on Conversion and Scalable Growth

Although near-term uncertainty persists due to delays surrounding the Defence Investment Plan (DIP), the Board pointed to favourable long-term demand expectations as the UK enhances defence readiness.

Management identified four priorities for the remainder of FY26: converting major framework opportunities, scaling its SME Procure platform to improve margins and operational leverage, strengthening partnerships across the defence ecosystem, and maintaining financial discipline while investing in talent and innovation.

The Board was also strengthened with the appointments of Richard Smith in September 2025, followed by Andrew McInerney and Chris Brooks in January 2026.

What This Means for Investors?

RC Fornax’s FY25 results reflect a challenging trading backdrop, with revenue and profitability declining amid a sector-wide pause linked to the Strategic Defence Review. This deterioration appears to have driven today’s double-digit share price fall.

However, management highlighted improved order visibility entering FY26, fresh capital raised post period, and participation in multiple procurement frameworks. Investors will likely monitor the Company’s ability to convert its growing pipeline into sustained revenue growth through the remainder of FY26.

Frequently Asked Questions (FAQs)

  1. Why did RC Fornax shares fall on 24 February 2026?

Shares of RC Fornax (LSE:RCFX) declined 11.86% to GBX 9.48 after the Company reported weaker FY25 results, including lower revenue and a shift from profit to loss compared with FY24.

  1. How did RC Fornax perform in FY25 compared to FY24?

For FY25, revenue fell 35.9% to GBP 4.1 million from GBP 6.4 million in FY24. Gross profit declined 37.5% to GBP 1.0 million, while adjusted loss before tax widened to GBP 1.6 million versus a GBP 0.5 million profit in FY24.

  1. What is the Company’s outlook for FY26?

RC Fornax reported GBP 4.3 million in new orders in H1 FY26 and has visibility over approximately GBP 4.5 million in sales heading into the second half, alongside continued focus on converting framework opportunities and scaling its SME Procure platform.