Chief Executive Officer's review

We are in the key stages of transforming our business from what was a fuel card company only a few years ago to fulfill our ambition of being a data-centric and AI driven company, changing Europe's CRT industry for good and supporting it to become clean, fair and efficient. We have remained focused on our strategic priorities, with significant progress made in each area in the first half of the year:

Attract: Total active trucks +5% to around 313,000, connected to one or more of our products.

Engage: Net promoter score +2pts to 43pts, continuing to develop our products to ensure we keep adding value to our customers.

Monetise: Average number of products per truck +0.2 to 2.8, highlighting our ability to cross sell the multiple solutions we can offer our customers to improve and streamline their operations.

Retain: Subscription revenues +1.0% to 24.3% of total net revenues, relating to data-centric products accounted for in our mobility revenues. As we start to reassess our revenues, and move towards more of a recurring revenue metric, Energy and Toll revenue will naturally form part of this as they are predictable and highly recurring in nature.   

Progress on our industry-first integrated platform, Eurowag Office

As part of our continued commitment to customers, we conducted a customer survey at the start of the year to ensure we are prioritising the integration of solutions into the Eurowag Office correctly. This survey reiterated that the most important services to customers remain as follows;

1.    Real-time cost estimation for loads and fuel management are key for managing the truck company's cash flow;

2.    Driver's worktime management is key to keeping up with regulatory changes and avoiding heavy fines; and

3.    Digital transport orders that can be integrated into the planning and delivery of the loads until the final invoice is created, helping to make their operational processes seamless and more efficient.  

In response to this customer feedback, we prioritised the integration of our energy payment solution within the Eurowag Office application in the first half of the year, alongside the introduction of our e-wallet product, which allows customers to view their energy transactions and credit limit within the application. The next step in further developing the platform is the introduction of digital onboarding for new energy customers. This will streamline and accelerate customer onboarding, including the issuance of a digital or physical fuel card within days rather than weeks, as well as enabling the scaling of both the direct and indirect channels, which has historically been reliant on salespeople and manual processes. As part of the digital onboarding launch within our direct channels, we have also piloted digital fuel card sales within OEM dealerships in Spain and Italy, with the ambition that once this sales process has been tested, we can further expand our indirect reach through more dealerships across Europe. We have started to pilot the Toll solution through the Eurowag office application, and will start the migration of both energy and toll solution customers to the platform by the end of the year, allowing us to commence the cross-selling of solutions within the Eurowag Office.

Eurowag Office would not be possible without our current suite of products, where we are constantly investing into both the technologies and hardware to support our customer offering. During the first half of the year we extended our EETS Toll Solution to two new licensed countries, Switzerland and Bulgaria, taking our total EETS licensed countries to 13. We now cover 24 countries with our Toll Solution, allowing our customers to benefit from fewer onboard units and technologies with the efficiencies that brings to them when crossing Europe. Our EVA onboard unit, which also includes our FMS solution, grew 141% in the year to around 32,300 units, with active toll domains growing 146% to around 62,000. Within our energy business we also expanded our fuel card acceptance points to over 15,500 (H1 2024: 13,900) in 24 countries, of which mobile acceptance points increased to around 2,450 stations (H1 2024: 1,500).

Operational excellence journey

Across the organisation, transformation is taking place, which also includes streamlining our operating model.  Each of our acquisitions has brought new internal processes, systems and customer experiences. We are driving standardisation and optimisation across the whole organisation, which will bring efficiencies and more importantly drive value creation. With the integration of people, processes, technology and product hardware, we have already seen some benefits across our opex, capex and working capital base. Some examples include rebranding our acquired businesses to Eurowag, integration of HR systems and centralising the procurement of hardware for our onboard units. Alongside the changes made to centralise our procurement processes across the Group, we are standardising the onboard unit across all our data solutions (FMS, WTM and Toll) with all the relevant components already pre-installed within the unit to enable easier digital cross-selling once the onboard unit is fitted in the truck. Other areas of focus have been about improving our customer experience through centralisation of our tech and support team as well as the standardisation of processes and systems, allowing for future implementation of AI and chatbots. We have also enabled 24/7 customer support across most of our markets, which has significantly improved our customer experience. As we cross-sell our solutions to customers, it's important that our customer care teams can help them with all their needs, not just one single product. These improvements across our back office are not only necessary for short-term value creation but will enable us to scale at pace once the Eurowag Office is fully integrated with all our solutions.

Sustainability

We continue to focus on our sustainability action plan with a focus on climate action, customer success and wellbeing, community impact and responsible business.

In June, Eurowag was ranked as the leading company in the Czech Republic by CZECH TOP 100 and Climate & Sustainable Leaders. The recognition follows an assessment of the 150 largest Czech companies, focusing on year-on-year reductions in core Scope 1 & 2 greenhouse gas emissions, the quality of sustainability data reporting, and the strength of broader ESG strategies.

We continue to reduce emissions not only within our operations but also for our customers, and our decarbonisation-as-a-service offering is gaining increasing recognition. Alternative fuels such as hydrogeneration of vegetable oil ("HVO") have played a key role, with sales increasing 3.5x compared to H1 2024. Our acceptance network for HVO has grown to over 500 locations, with more than 50% of volumes sold at our Truck Parks in the Czech Republic. We have also seen a substantial increase in HVO sales in Spain, further expanding our impact across key European corridors.

Similarly, liquefied natural gas ("LNG") and bioLNG sales continue to contribute to emissions reduction, with overall gas volumes remaining consistent with H1 2024 levels. Notably, bioLNG now accounts for 15% of the total gas volume sold. Eurowag's gas acceptance network remains stable at approximately 450 locations, with over 30% offering bioLNG - signaling a significant shift away from fossil LNG and underscoring our commitment to cleaner fuel alternatives.

Eurowag is making strong progress in eMobility as well. One of the key milestones in the first half of the year was the announcement of our partnership with Milence, the leading provider of electric truck charging infrastructure.

Board changes

As previously announced and as part of our secession planning, on 21 February 2025, Sharon Baylay-Bell stepped down from the Board and has been succeeded by Sophie Krishnan, as Chair of the Remuneration Committee. On 22 May 2025, Paul Manduca stepped down as Chairman at the AGM, and has been succeeded by Steve Dryden, who previously served as the Chair of our Audit and Risk Committee since joining the Board in June 2023.

Financial review

Another strong financial performance from the Group driven by increased net revenue and focus on improving Adjusted cash EBITDA through cost efficiencies. Net revenue performance was supported by payment solutions growth of 22.7% and mobility solutions growth of 4.9%. Our Adjusted EBITDA increased by 7.7% to €63.9m (H1 2024: €59.4m) and the Adjusted EBITDA margin decreased  to 39.4% (H1 2024: 42.1%), driven by higher employee expenses. Adjusted cash EBITDA increased by 14.1% to €49.2m (H1 2024: €43.2m) despite higher capitalised R&D spend.

On a statutory basis, the Group reported a profit before tax of €15.7m (H1 2024: €4.2m), an increase of 273.8% year-on-year. Basic EPS increased by 337.1% to 1.53 cents per share (H1 2024: 0.35 cents per share). Adjusted basic EPS increased 16.3% year-on-year to 2.92 cents per share (H1 2024: 2.51 cents) driven by higher Adjusted net profit attributable to equity holders.

The above trading performance contributed to a positive Net debt reduction to €244.6m (FY 2024:

€275.5m) and an improved Net leverage ratio of 2.0x (FY 2024: 2.3x).

Performance review

As in prior years, adjusted and other performance measures are used in this announcement to describe the Group's results. Adjustments are items included within our statutory results that are deemed by the Board to be one-off by virtue of their size and/or nature. Our adjusted measures are calculated by removing such adjustments from our statutory results. Note 2 of the accompanying financial statements includes reconciliations.

Revenue (€m)

The Group's revenue increased by 1.1% year-on-year to €1,162.2m (H1 2024: €1,149.7m), driven mainly by higher volumes partially offset by lower fuel prices (a corresponding increase was reported for costs of energy sold). Revenue is reported net of Toll volumes charged to customers on behalf of Toll Operators. Revenue, including Toll charges and net of customer discounts, was €1,994.2m (H1 2024: 1,894.5m) and grew by 5.3%, as a result of further expansion of our EETS Toll solution.

The Group delivered double-digit net revenue growth of 15.0% to €162.2m, supported by strong growth in Payment solutions net revenue which grew 22.7% year-on-year. As mentioned above, this increase reflects strong growth in toll net revenues of 50.3%, primarily as a result of CO2 charges in Germany and Austria, as well as strong EVA sales due to geographical expansion of our EETS solution. Mobility solutions net revenue grew by 4.9% year-on-year, as a result of growth across our tax refund and scaling transport management solutions. That growth was partially offset by a slow-down in fleet management solutions growth and navigation, as a result of our strategic focus on large vehicle contracts rather than smaller light vehicles. If we exclude non-truck related revenue, which includes LGVs, buses, passenger cars and not core to our strategy, mobility revenue grew 7.8%. We anticipate these non-truck revenues to decline overtime as we focus on the CRT industry and heavy vehicles and fleets.

Corporate expenses

Statutory operating expenses increased by €14.0m to €135.7m (H1 2024: €121.7m). There was an increase in statutory operating expenses as a result of increased employee expenses driven by investment in people to support the business, salary inflation and change in senior incentive programmes. Further details are provided below.

Adjusted total operating expenses increased by €19.4m to €123.7m, of which €10.4m of the increase related to adjusted employee expenses which grew 23.6% to €54.4m. This increase was driven by inflationary salary increases of 5.4%, hiring the right people to support the business through the next phase of our transformation, and changes to incentive programmes for senior colleagues. Impairment losses of financial assets, which are mainly as a result of insolvency of our customer's businesses, decreased to €7.2m (H1 2024: €7.8m). Company insolvencies were higher than expected in H1, particularly in markets such as Poland, Romania and Austria. The credit loss ratio as a percent of gross energy and toll revenues, remained stable at 0.4%, with robust credit risk management and cash collection processes in place. Adjusted technology expenses increased by 15.1% or €1.1m year-on-year to €8.4m (H1 2024: €7.3m) reflecting the Group's continued focus around technology and cloud transformation. Other operating expenses grew 14.5% to €29.3m (H1 2024: €25.6m) and relate mainly to professional services, travel, marketing, facilities etc. Other operating income decreased to €1.0m (H1 2024: €3.1m); with last year's income benefiting from a €3.0m legal settlement relating to an acquisition. Adjusted depreciation and amortisation grew by 11.9% to €25.4m (H1 2024: €22.7m), primarily due to the amortisation of intangible assets relating to the increased capex spend in the prior years.

Adjusting items

In H1 2025, the Group incurred costs of €12.0m (H1 2024: €17.4m), which were considered Adjusting items and have been excluded when calculating Adjusted EBITDA and Adjusted profit before tax. These are summarised below:

M&A-related expenses are primarily professional fees in relation to exploring opportunities for future growth. This year we released a provision relating to the acquisition of Inelo. ERP implementation expenses were €2.9m (H1 2024: €2.8m). We still anticipate a further €13m of expenses relating to this implementation until the end of 2026. There were no integration expenses accounted for in H1 2025 (H1 2024: €0.2m). Share-based compensation awarded prior to the IPO concluded in FY 2024 and therefore no longer accounted for in Adjusting items. Amortisation of acquired intangibles was lower at €9.3m in H1 2025 (H1 2024: €10.0m); and mainly relates to the acquisition of Inelo. The lower amount is due to the trademarks of Inelo and CVS being fully amortised.  

Adjusted cash EBITDA

Adjusted cash EBITDA increased 14.1% to €49.2m, (H1 2024: €43.2m) with a margin of 30.4% (H1 2024: 30.6%)

Net finance expense

Net finance expense in H1 2025 amounted to €10.0m (H1 2024: €14.8m). Finance costs decreased mainly as a result of lower interest rates compared to prior year together with lower factoring fees. Finance income increased due to higher foreign exchange gains.

Taxation

The Group's Adjusted effective tax rate increased to 27.1% (H1 2024: 19.6%) primarily due to higher statutory profitability and lower Adjusting items affecting profit before tax. Corporate income tax rate in the key tax jurisdictions for the Group remained unchanged in 2025 compared to prior year - 21% in the Czech Republic, 25% in the UK, 19% in Poland, 22% in Slovenia, and 24% in Spain. Further details can be found in Note 8 of the accompanying financial statements.

EPS

Adjusted basic EPS increased by 16.3% to 2.92 cents per share (H1 2024: 2.51 cents per share) as a result of increased Adjusted profit before tax offset by increased number of shares (due to exercised option plan schemes). Basic EPS for the first half of 2025 was 1.53 cents per share, up 337.1% year-on-year.

Pay-out of deferred consideration and acquisition of non-controlling interests

There were no acquisition related payments made in H1 2025. On 1 July 2025, the Group paid contingent acquisition consideration of €2.0m related to acquisition of Inelo Group. Refer to Note 18 of the financial statements.

Cash performance

During the period, the Group reported a net debt inflow of €30.9m (H1 2024: inflow of €13.3m). The basis of deriving this net debt movement is set out below:

Note:

1.     Includes proceeds from sale of assets.

2.     Other includes finance costs relating to factoring and bank guarantees, FX movements, and other non-cash adjusting items.

3.     Please refer to Note 2 Alternative Performance Measures (APM's) of the accompanying financial statements.

As at 30 June 2025, the Group's net debt position stood at €244.6m, compared with €302.4m as at 30 June 2024.

Tax paid amounted to €6.3m in H1 2025, representing a decrease compared to the same period last year (H1 2024: €6.8m) despite improved profitability. This reduction primarily reflects the impact of timing differences (Czech Republic) and enhanced monitoring across key jurisdictions (Poland, Slovakia, Hungary).

Interest paid decreased to €9.2m (H1 2024: €11.4m), as expected with a reduction of the Group's net debt position.

Non-cash items in Adjusted EBITDA predominantly relate to adding back the share awards issued post-

IPO and provision movements relating to credit losses of €7.2m (H1 2024: €7.8m).

Net working capital ended the half year almost neutral with an inflow of €0.9m (H1 2024: outflow of €0.1m). The Group has worked hard to implement numerous cash flow and liquidity initiatives which are reflected in a strong collection of receivables, improved collections of tax refund due to increase in factoring lines and improved payment terms with suppliers.

Adjusting items relates to ERP implementation expenses together with M&A-related expenses as outlined in Note 2 of the accompanying financial statements.

Capital expenditure

Capital expenditure in the first half of FY 2025 amounted to €24.7m (H1 2024: €20.5m), with continued investment in developing and maintaining our products as well as the development and integration of Eurowag Office. Capitalised R&D spend was €17.9m (H1 2024: €17.0m), of which €12.8m was spent on products and the Eurowag Office and €5.1m on development of our technology and data systems which are the foundation of the integrated platform and will enable us to scale. The remaining capital expenditure included €5.4m on OBUs which are a large driver of revenue growth and €1.4m on infrastructure which mainly relates to our legacy truck parks, buildings and IT hardware.

Capital allocation

The Group's capital allocation priorities, in order of importance, are to focus on investment in the business to deliver strong organic growth and operational efficiencies, as well as deleveraging. The Group has guided capitalised R&D below the cap level of €50m per year going forward, and this will be invested in delivery of the platform, which includes maintenance and development of the various products, as well as streamlining technologies and systems across the various acquired businesses. With large acquisitions behind us, the Group will consider bolt-on opportunities that add new products to the platform or accelerate the number of trucks added to the platform.

Our target for net leverage will remain at 1.5x-2.5x. Net leverage is expected to be around 2.0x at the end of FY 2025, after the payment of the special dividend of €24.3m on 3 July 2025. The Board will continue to focus on and evaluate the cash generation of the business and ensure flexibility of investment in the business is maintained, before considering the return of any further cash to shareholders.

Financing facility and covenants

The Group reduced its net debt position to €244.6m (FY 2024: €275.5m) delivering an improved net leverage ratio of 2.0x (H1 2024: 2.6x) which is now within the Board's target range of 1.5x-2.5x. As at 30 June 2025 the Group was compliant with all its financial covenants as shown in the table below.

1.       The Group agreed a lower interest cover from 4.0 to 3.5x in December 2024.

2.       The covenant shall not exceed 3.75 prior to 1 January 2025.

The Group also manages its working capital needs through the use of uncommitted factoring facilities, with average financing limits of €150m and average utilisation of 78% (H1 2024: €138.7m and 74.0% respectively), together with the use of uncommitted reverse factoring facilities in Spain with year-end financing limits of €45.0m and year end utilisation of €34.2m. The Group has a proactive approach to maintaining a strong financial position and has demonstrated its ability to optimise working capital.

Risk management  

Risk identification, assessment and management are central to the Group's internal control environment. A risk management framework enables the Group to identify, evaluate, address, monitor, and report effectively the risks faced and achieve a balance between risks and opportunities. A detailed description of each of the principal risks, together with details on trends, exposure and the mitigation measures implemented is disclosed on pages 35 to 40 of the 2024 Annual Report.

Consolidated income statement

For the period ended 30 June

*Prior year has been re-presented. See Note 1 for further information.

**Adjusting items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance. See Note 2.