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Verditek Plc (EARN) AI Stock Analysis

GB:EARN

Verditek Plc

(LSE:EARN)

Select Model
Rating:44Neutral
Price Target:GBX 5.50â–¼(-1.26% Downside)
Action:reiterated
Date:10/02/26

The score is held down primarily by weak financial quality: despite strong revenue growth and improving gross profitability, the business remains unprofitable with ongoing cash burn and continued funding needs. Technicals are supportive but look overextended (very high RSI), while valuation is constrained by negative earnings and no provided dividend yield.

Positive Factors
Strong Revenue GrowthRapid sales expansion indicates materially increasing commercial activity and market adoption. If the company can sustain this trajectory, greater scale should improve operating leverage, support investment in its photovoltaic offering, and strengthen its ability to convert growth into durable earnings.
Negative Factors
Persistent LossesOngoing net losses show that revenue growth and gross-margin improvement have not yet translated into sustainable profitability. The company’s cost base remains too high relative to current scale, limiting internally funded investment and leaving earnings vulnerable if growth slows.

Verditek Plc (EARN) vs. iShares MSCI United Kingdom ETF (EWC)

-40%-30%-20%-10%0%10%20%30%GB:EARN+10.00%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 12.93M
Dividend Yield
―
Average Volume (3M)
567.93K
Price to Earnings (P/E)
-2.5
Beta (1Y)
0.07
Revenue Growth
109.68%
EPS Growth
-6.73%
Country
UK
Employees
96
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Verditek Plc Business Overview & Revenue Model

Company Description

Established in London, UK, in 2016 and previously known as Verditek PLC until its renaming in March 2024, EARNZ plc functions as a clean technology enterprise. Its operations span the United Kingdom, Italy, and the broader European market. The compan...

How the Company Makes Money

Verditek’s intended revenue model has historically centered on monetizing photovoltaic technology through (1) the sale of its solar modules/products to customers and (2) potential licensing, distribution, or commercialization arrangements tied to its...

Verditek Plc Financial Statement Overview

Summary

Strong revenue acceleration and improving gross margin (positive and expanding to ~23.6% in 2025) are clear positives, but the company remains loss-making (2025 net margin ~-14.8%) and cash flow is persistently negative (2025 operating cash flow ~-2.3m; free cash flow ~-2.4m), indicating ongoing funding dependence.

Income Statement

32Negative

Balance Sheet

50Neutral

Cash Flow

24Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Jun 2022
Income Statement
Total Revenue15.46M11.79M2.64M606.26K417.46K107.63K
Gross Profit3.57M2.79M348.00K-257.81K-191.61K-561.12K
EBITDA-2.53M-1.08M-2.70M-1.80M-1.57M-729.92K
Net Income-3.34M-1.75M-2.82M-2.09M-1.82M-988.48K
Balance Sheet
Total Assets15.43M9.02M8.94M1.05M2.33M2.72M
Cash, Cash Equivalents and Short-Term Investments1.58M1.08M1.38M53.92K842.63K237.61K
Total Debt2.14M2.27M1.62M830.81K339.99K437.50K
Total Liabilities8.82M5.26M4.96M1.14M629.98K848.72K
Stockholders Equity6.61M3.75M3.98M-97.77K1.70M1.98M
Cash Flow
Free Cash Flow-3.02M-2.38M-3.15M-1.26M-1.12M-1.69M
Operating Cash Flow-2.94M-2.31M-3.08M-1.26M-1.10M-1.68M
Investing Cash Flow-1.64M-398.00K-976.00K-2,039288.19K-4,954
Financing Cash Flow4.20M1.81M5.93M465.42K1.39M231.30K

Verditek Plc Technical Analysis

Technical Analysis SentimentPositive
Last Price5.57

Price Trends

50DMA4.32Positive
100DMA3.82Positive
200DMA4.39Positive

Market Momentum

MACD0.31Negative
RSI85.48Negative
STOCH71.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EARN, the sentiment is Positive. The current price of 5.57 is above the 20-day moving average (MA) of 4.82, above the 50-day MA of 4.32, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 85.48 is Negative, neither overbought nor oversold. The STOCH value of 71.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EARN.

Verditek Plc Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

GB:EARN against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
GB:GSFGB:GSF50NeutralGBP 252.55M-2.08-28.75%17.88%102.27%-2044.26%
GB:EGTGB:EGT44NeutralGBP 28.31M-9.05-30.47%――-34.88%
GB:EARNGB:EARN44NeutralGBP 24.92M-2.48-64.46%―109.68%-6.73%
GB:TANGB:TAN40UnderperformGBP 6.92M-3.83-8.84%―-12.50%-150.00%

* Industrials Sector Average

Performance Comparison

0%50%100%GB:EARNGB:TANGB:GSFGB:EGTDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:EARN and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:EARNVerditek Plc5.500.5010.00%
GB:TANTanfield Group plc4.25-1.20-22.02%
GB:GSFGore Street Energy Storage Fund PLC50.00-2.48-4.72%
GB:EGTEuropean Green Transition Plc10.504.2568.00%

Verditek Plc Corporate Events

Business Operations and StrategyDelistings and Listing ChangesM&A Transactions

EARNZ to Complete GEM Newco Acquisition and Admit New Shares

Positive
Oct 20, 2026

EARNZ plc has confirmed that completion of its acquisition of GEM Newco Limited is scheduled to occur on 21 October 2026, alongside the admission of 218,146,725 new ordinary shares to trading. The transaction is expected to expand the Group’s p...

Business Operations and StrategyDelistings and Listing ChangesM&A Transactions

EARNZ delays completion of GEM Newco acquisition due to administrative issue

Negative
Oct 20, 2026

EARNZ plc has announced an administrative delay to completing its acquisition of GEM Newco Limited, postponing both the transaction and the admission of 218,146,725 new ordinary shares to trading. The company now expects the acquisition and share adm...

Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingShareholder Meetings

EARNZ Clears Shareholder Hurdles to Complete GEM Newco Acquisition

Positive
Oct 19, 2026

EARNZ plc has confirmed that all resolutions at its general meeting were passed, enabling the allotment of 218,146,725 new ordinary shares comprising placing, consideration, fee and retail offer shares. Admission of these shares is expected imminentl...

Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing

Earnz Raises £4.94m as Retail Offer Closes and New Shares Head to AIM

Positive
Oct 6, 2026

Earnz plc has closed a retail offer launched on 1 October 2026, raising £143,494 through the issuance of 3,587,350 new shares at 4 pence each. Together with previously announced placings and related share issues, the company has conditionally ra...

Business Operations and Strategy

EARNZ to Host Live Online Investor Presentation for Shareholders

Positive
Oct 6, 2026

EARNZ plc has announced that Chairman Bob Holt and Chief Financial Officer Elizabeth Lake will host a live online investor presentation on 8 October 2026 at 11:00 BST through the Investor Meet Company platform, open to both existing and potential sha...

Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingShareholder Meetings

EARNZ Calls General Meeting to Advance Fundraising and Acquisition Plan

Positive
Oct 1, 2026

EARNZ plc has begun distributing a circular to shareholders convening a general meeting later this month to approve matters related to its recently announced fundraising and acquisition. The meeting will be held on 19 October 2026 in London, with the...

Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingShareholder Meetings

Earnz Launches £1m Retail Share Offer to Back Acquisition and Growth

Positive
Oct 1, 2026

Earnz plc has launched a retail offer via the BookBuild platform to raise up to £1.0 million through the issue of up to 25 million new ordinary shares at 4 pence, matching the price of a recently announced placing. The fundraising, which comes a...

Delistings and Listing ChangesM&A TransactionsPrivate Placements and Financing

Earnz Raises £4.8m to Fund Gem New Co Acquisition and Expansion

Positive
Oct 1, 2026

Earnz plc has completed a placing that conditionally raises £4.1 million through the issue of 102,437,500 new shares at 4 pence each, alongside a £700,000 convertible loan note, bringing total gross proceeds to about £4.8 million to he...

Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions

EARNZ Plc boosts revenue 78% as acquisitions drive growth amid public-sector delays

Positive
Sep 30, 2026

EARNZ plc reported unaudited interim revenue of £8.4m for the six months to 30 June 2026, a 78% increase year on year, though the group moved to an adjusted EBITDA loss of £0.4m and a wider pre-tax loss. Performance was affected by delays i...

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing

Earnz plc to acquire GEM assets in £23.55m deal backed by equity raise and new credit line

Positive
Sep 30, 2026

Earnz plc has agreed a conditional deal to acquire GEM Newco Limited, which will hold selected assets of GEM Environmental Building Services, for a maximum consideration of £23.55 million. The structure combines £10 million of initial consi...

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.

Date of analysis: Oct 02, 2026