Touchstar PLC (LSE:TST) issued a trading update for the financial year ending December 2025, indicating that revenue is likely to come in below market expectations. The shortfall reflects ongoing economic uncertainty and more cautious customer spending, which has delayed purchasing decisions across several end markets.
Despite the near-term revenue pressure, the group has made meaningful progress on a comprehensive restructuring programme under its new Chief Executive Officer. The changes are intended to reinforce the business’s operational foundations and support a return to sustainable growth. Reported profitability has been affected by exceptional items, including costs linked to management reorganisation and a revised approach to capitalising software development expenditure.
Looking ahead, Touchstar plans to reposition its operations, strengthen its sales and marketing capabilities, and assess potential acquisition opportunities that could enhance scale and market reach. Management expects modest revenue growth in 2026, with a more pronounced improvement anticipated in the following years as strategic initiatives gain traction.
From an investment perspective, Touchstar’s solid balance sheet and positive corporate actions, such as its share buyback programme, provide some support to the outlook. However, a relatively high price-to-earnings multiple and mixed technical indicators suggest a degree of caution, underscoring the importance of improved profitability and revenue momentum.
More about Touchstar
Touchstar PLC is a technology company delivering software solutions to logistics, depot, warehouse, and retail markets. The group focuses on developing and deploying digital systems to improve operational efficiency, while pursuing strategic initiatives to strengthen its market position and long-term growth profile.
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