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Arcontech
(LSE:ARC)
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Rating:74Outperform
Price Target:
88.00 p
▲(12.10% Upside)
Action:Reiterated
Date:09/17/26
The score is primarily driven by strong financial fundamentals (high margins, strong cash conversion, and very low leverage), supported by a reasonable P/E and a high dividend yield. Offsetting factors are weaker recent operating trends (latest-year revenue and free-cash-flow declines) and soft technical momentum (negative MACD and sub-50 RSI).
Positive Factors
Exceptional Profitability
Exceptionally high gross margins and consistently strong net margins indicate a profitable software model with substantial economic value retained from revenue. This profitability provides resilience and supports ongoing investment even while near-term growth remains uneven.
Negative Factors
Revenue Contraction
The latest revenue contraction shows that the company is currently experiencing weaker demand or customer activity, reducing operating momentum. If the decline persists, it could constrain scale benefits, slow reinvestment, and make future margin performance more difficult to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Exceptionally high gross margins and consistently strong net margins indicate a profitable software model with substantial economic value retained from revenue. This profitability provides resilience and supports ongoing investment even while near-term growth remains uneven.
Read all positive factors
Arcontech (ARC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.03M
Dividend Yield4.76%
Average Volume (3M)19.47K
Price to Earnings (P/E)13.4
Beta (1Y)0.13
Revenue Growth-11.46%
EPS Growth-11.47%
CountryUK
Employees18
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.06
Shares Outstanding13,372,811
10 Day Avg. Volume38,297
30 Day Avg. Volume19,469
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.24
Price to Sales (P/S)4.06
P/FCF Ratio14.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)£2.80M
Arcontech Business Overview & Revenue Model
Company Description
Arcontech Group plc, a company based in London, United Kingdom, has been developing and marketing its proprietary software solutions since its founding in 1979. Its operations and sales extend across a wide geographical area, including the UK, the...
How the Company Makes Money
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Arcontech Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
77
Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.75M | 3.11M | 2.91M | 2.73M | 2.76M |
| Gross Profit | 2.63M | 3.11M | 2.91M | 2.58M | 2.76M |
| EBITDA | 629.74K | 785.10K | 1.25M | 1.14M | 925.78K |
| Net Income | 835.99K | 943.43K | 1.07M | 980.11K | 610.57K |
Balance Sheet | |||||
| Total Assets | 10.63M | 10.82M | 10.56M | 9.03M | 8.78M |
| Cash, Cash Equivalents and Short-Term Investments | 7.52M | 7.40M | 7.16M | 6.41M | 6.03M |
| Total Debt | 307.70K | 427.36K | 537.67K | 40.32K | 195.85K |
| Total Liabilities | 1.59M | 2.09M | 2.30M | 1.42M | 1.80M |
| Stockholders Equity | 9.04M | 8.73M | 8.27M | 7.61M | 6.97M |
Cash Flow | |||||
| Free Cash Flow | 778.86K | 597.31K | 1.02M | 974.92K | 1.12M |
| Operating Cash Flow | 784.63K | 606.41K | 1.04M | 978.40K | 1.12M |
| Investing Cash Flow | -5.77K | 240.71K | 236.26K | 73.50K | 11.22K |
| Financing Cash Flow | -654.58K | -611.79K | -522.92K | -590.14K | -487.18K |
Arcontech Technical Analysis
Positive
78.50
Price Trends
79.69
Positive
78.87
Positive
79.61
Positive
Market Momentum
1.02
Negative
72.24
Negative
61.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARC, the sentiment is Positive. The current price of 78.5 is below the 20-day moving average (MA) of 80.42, below the 50-day MA of 79.69, and below the 200-day MA of 79.61, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 72.24 is Negative, neither overbought nor oversold. The STOCH value of 61.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ARC.
Arcontech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £10.87M | 8.18 | 16.63% | 6.62% | -0.48% | -34.98% | |
74 Outperform | £11.03M | 13.44 | 9.48% | 4.76% | -11.46% | -11.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £15.73M | -5.67 | -21.37% | ― | -18.66% | 56.03% | |
52 Neutral | £14.29M | -15.87 | -13.64% | 5.13% | 0.91% | 81.47% | |
49 Neutral | £8.16M | -2.62 | -40.32% | ― | -13.88% | -3.28% |
* Technology Sector Average
GB:ARC
Arcontech
84.00
-19.48
-18.83%
GB:BIRD
Blackbird PLC
1.65
-0.20
-10.81%
GB:ING
Ingenta
68.00
-7.31
-9.71%
GB:PEN
Pennant International
30.00
8.80
41.51%
GB:ZOO
Zoo Digital
16.00
3.75
30.61%
Arcontech Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Arcontech cushions revenue fall with strong cash, new European wins
Neutral
Sep 14, 2026
Arcontech reported an 11.5% decline in annual revenue to £2.75 million and a 10.7% drop in pre-tax profit to £881,170, as the loss of a long-standing customer and weaker one-off sales outweighed new business wins. Recurring revenue now a...
Business Operations and StrategyFinancial Disclosures
Arcontech Secures £800k Market Data Platform Deal with Major European Bank
Positive
Jun 29, 2026
Arcontech Group PLC has secured a three-year contract worth approximately £800,000 with a major European bank for its CityVision real-time market data platform, following a competitive bidding process. The deployment will span various parts o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.