Acuity RM Group (LSE:ACRM) has secured a new software contract with a prime defence contractor for its STREAM Classic cybersecurity risk management platform, adding more than £100,000 in annual recurring revenue.
Under the agreement, Acuity will deploy two on-premises instances of STREAM Classic to support the contractor’s involvement in a high-profile international defence programme. The installation model has been selected to meet the stringent security requirements associated with the project.
The software agreement is expected to be supplemented by a separate contract covering implementation and configuration services, potentially adding further revenue from the deployment.
Defence is already Acuity’s largest market, and the latest contract strengthens its presence in a sector where cybersecurity, data control and configurable risk management systems are particularly important.
Management also said discussions are underway with other prime contractors participating in the same international defence programme. Additional agreements could expand Acuity’s involvement while increasing recurring software revenue and associated services income.
The contract highlights the flexibility of the STREAM platform, particularly its ability to operate through on-premises installations in security-sensitive environments rather than relying exclusively on externally hosted infrastructure.
Despite the commercial progress, Acuity’s broader financial position remains challenging. Persistent losses and negative cash flow continue to weigh on the outlook, with cash generation showing signs of further deterioration.
The balance sheet provides some support through relatively low debt and equity funding, but valuation measures remain difficult to assess positively while earnings are negative and there is no dividend contribution.
Technical indicators also remain cautious, with the shares trading below major moving averages and the MACD in negative territory. Future contract wins and improvements in recurring revenue and cash generation could therefore become important indicators of whether commercial momentum is translating into stronger financial performance.
More about Acuity RM Group
Acuity RM Group is a UK AIM-listed software company specialising in cybersecurity and wider risk management solutions.
Its STREAM platform collects, analyses and manages risk information to help organisations make more informed decisions. Customers operate across sectors including government, defence, broadcasting, utilities, manufacturing and healthcare.
Acuity’s strategy centres on generating long-term organic growth from its risk management technology while also considering complementary acquisition opportunities. Its shares trade on AIM under the symbol ACRM.
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