Operational Update: Continued Delivery Momentum and Strengthened Position Across Allied Defence Programmes and Unaudited Interim Results to 30 September 2025
Defence Holdings PLC (LON: ALRT), the UK-listed defence technology group, today provides an operational update outlining continued progress across its sovereign-AI product suite, expanding engagement with allied defence stakeholders, and strengthened organisational readiness as the Company enters its next phase of delivery and commercialisation.
The Company also announces its unaudited interim financial results for the six-month period ended 30 September 2025, which include the previously reported audited results for the eighteen-month period ended 31 March 2025.
Highlights
· Project Ixian has advanced into a pre-contract pathway with its first customer
· The Company has progressed to the advanced stages of a Chief Executive Officer appointment process and expects to provide a further update in Q1 2026.
· Deepened delivery integration with major technology partners and allied programmes.
· Strong cash position maintained through disciplined, delivery-aligned capital strategy.
· Delivery momentum is accelerating, underpinned by increasing maturity in development activity and growing stakeholder engagement.
· Defence Holdings is about to enter a busy Q1, with planned updates across existing Defence Technologies products and the initiation of further strategic workstreams – with announcements expected in the very near term.
Financial & Corporate Overview
During the reporting period, the Company’s financial position strengthened materially following the successful execution of its capital strategy and transition to a defence-focused operating model.
Total assets increased from £77,000 to £2.72 million, reflecting capital raised during the period and the establishment of the strategic partnership with Whitespace. Total liabilities reduced from £729,000 to £78,000, materially improving balance sheet resilience.
The Company raised £3.45 million in gross proceeds during the period, including £350,000 subscribed by certain members of the Board, demonstrating strong internal alignment and confidence in the Company’s strategy. Cash reserves increased from £69,000 to £2.21 million by period end.
In July 2025, Defence Holdings completed its transition to a defence-focused business, with the Company’s shares readmitted to trading on the Main Market of the London Stock Exchange. The Company also completed a cross-listing on the US OTC Market under ticker symbol ALRDF, expanding access to North American investors and supporting its ambition to scale sovereign-AI capabilities across allied markets.
Programme & Delivery Update
Project Ixian: Transitioning Into Operational Integration
Defence Holdings is pleased to confirm that Project Ixian has entered the process required ahead of formalising commercial activity and is now in the final stages of contract finalisation with its first customer. This progress reflects the maturity of the capability and its strong alignment with current operational priorities.
Project Ixian has progressed from development into contract finalisation at a pace not typically seen within traditional UK defence development and procurement processes, aligning closely with the accelerated delivery objectives set out in the Strategic Defence Review. This traction provides early validation of the delivery model required to deliver that capability.
The product has progressed through a further iteration of technical development, delivering additional refinement and increased maturity, informed by ongoing operational engagement.
The confidentiality and procurement controls governing programmes of this nature temporarily limit the level of detail that can be disclosed. These restrictions are expected to lift in the near term, following which the Company intends to provide a further formal update.
Partnerships & Ecosystem Integration
During the period, the Company formalised a strategic partnership with Whitespace, a UK-based AI infrastructure specialist serving defence and national-security customers. Operating jointly through the Defence Technologies platform, the partnership establishes a sovereign-ready delivery framework combining infrastructure capability, domain expertise and execution capacity, creating a platform for the accelerated development and deployment of sovereign-AI systems aligned to UK and allied operational requirements.
Since formation, the collaboration has progressed into active delivery. Multiple co-development workstreams have commenced across intelligence fusion, autonomous decision-support, multi-domain situational awareness, cyber resilience and information-domain operations. Initial builds for UK Ministry of Defence stakeholders began during the period, marking a clear transition from partnership establishment into execution. As part of this progress, the Company committed £1.0 million to AI co-development programmes under the partnership, with £0.5 million paid prior to the interim reporting date and the remaining £0.5 million settled shortly after period end.
Alongside this, Defence Holdings continues to deepen its collaboration with major global hyperscale partners, reflecting the Company’s strategy to build sovereign-AI capability on top of trusted defence-grade cloud and compute platforms. These partnerships provide the secure infrastructure, interoperability pathways and global reach required for deployment across UK and allied mission environments. Technical workstreams have expanded across multiple hyperscaler environments, covering secure model deployment, edge inference architectures and integration into classified and air-gapped operational zones. This ecosystem approach ensures Defence Holdings’ sovereign products can be delivered at scale, with the resilience, performance and compliance expected across defence programmes.
Organisational & Strategic Update
Leadership: Securing the Capability Required for 2026 Commercial Delivery
Defence Holdings is in the final stages of selecting a Chief Executive Officer to lead the Company through its next phase of scale and delivery. The Company has interviewed a shortlist of candidates with distinguished backgrounds in global defence and defence-technology leadership, including major government programmes and mission-critical software delivery. An appointment update is expected in January 2026.
This represents an important step in strengthening dedicated executive leadership across programme delivery, customer engagement and long-term value creation.
During and following the reporting period, the Company strengthened its governance and leadership base through key appointments. Field Marshal Lord Houghton of Richmond was appointed Non-Executive Chairman, bringing extensive military leadership experience, defence-policy insight and senior strategic oversight. Andrew McCartney was appointed Chief Technology Officer, contributing deep expertise in AI infrastructure and sovereign system delivery. James Norwood, our Vice Chair, was appointed to the NATO NIAG Coalition of the Willing, further strengthening the Company’s engagement across NATO-aligned industrial and capability development forums.
Financial Position and Capital Strategy
The Company maintains a strong cash position, supported by disciplined cost management and targeted capital deployment into validated delivery programmes. This ensures growth remains driven by operational demand rather than speculative expansion.
Selective use of the Company’s At-The-Market (“ATM”) equity facility has further supported the balance sheet, enabling continued delivery progress while protecting long-term shareholder value.
The ATM facility, arranged with Fortified Securities following the period end, provides the Company with flexibility to raise capital efficiently in alignment with operational milestones, without the pricing pressure associated with traditional equity placings. As at 18 December 2025, total gross proceeds of £620,317.49 had been raised via the facility in line with parameters previously communicated to shareholders.
Summary
Defence Holdings’ execution continues to gather momentum, supported by increasing engagement from the organisations shaping the United Kingdom’s and allies’ digital defence architectures.
With two sovereign-AI programmes progressing toward deployment, deepening integration with global technology partners, a strengthened balance sheet, and senior leadership capacity being reinforced, the Company remains well positioned to convert capability into sustained operational and commercial value across mission-critical defence programmes.
Responsibility Statement
The following statement is given by each of the Directors.
We confirm that, to the best of our knowledge:
· the interim report has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting , as contained in UK-adopted IFRS;
· the interim report gives a true and fair view of the assets, liabilities, financial position and loss of the Company;
· the interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first fifteen months of the financial period and their impact on the set of interim financial statements, together with a description of the principal risks and uncertainties for the remaining three months of the eighteen-month period; and
· the interim report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.
The interim report was approved by the Board of Directors, and the above responsibility statement was signed on its behalf by:
Nick Houghton
Non-Executive Chairman
Defence Holdings PLC
