MS International reports flat headline earnings
By Josh White
Date: Wednesday 14 Jan 2026
(Sharecast News) - MS International reported largely flat headline earnings for the first half of its financial year on Wednesday, but increased its interim dividend, as strong performance across its divisions was offset by timing effects on defence contracts.
For the six months ended 31 October, the AIM-traded engineering group reported revenue of £55.8m, up slightly from £54.7m a year earlier, while profit before tax edged down to £8.47m from £8.77m.
Basic earnings per share slipped to 38.5p from 39.8p.
Excluding derivative gains and losses, however, like-for-like profit before tax rose to £9.28m from £7.98m.
Cash and cash equivalents increased to £35.7m from £32m at the same point last year.
Executive chairman Michael Bell said overall performance had been "relatively flat" as previously guided, reflecting the timing of defence orders, which are recognised only when performance obligations are met.
He added that 2025 had been "arguably the most significant year for the business since its formation," following a strategic decision to focus on the Defence and Security division and explore disposals of non-core operations.
The defence and security division continued to perform well against a backdrop of rising global defence spending expectations.
Bell confirmed that the group had secured a further one-year contract from the US Navy for its MSI-DS 30mm naval weapon system, following a request for purchase received last year.
He said investment in facilities and teams in the UK, the US and Europe, including Poland, was strengthening the group's ability to serve customers and pursue opportunities in both naval and land defence markets.
The forgings division saw mixed trading conditions, with subdued demand in the UK and US amid uncertainty over US trade policy, although operations remained cash-generative.
MSI highlighted the start of deliveries in the US to Mitsubishi Logisnext America, with management citing a strong pipeline of further opportunities with major lift-truck and material-handling manufacturers.
Brazil continued to perform well, contributing steady sales and margins.
In petrol station superstructures and branding, the recently-merged division delivered another solid performance, supported by large-scale service station modernisation projects and growing demand for multi-purpose fuel hubs incorporating EV charging, retail and food-to-go offerings.
The group said the integration had been positively received by major forecourt operators and positioned the business for further growth, with plans underway to expand manufacturing capacity.
Looking ahead, Bell said the board believed the group's "medium to long term prospects are better than at any time in the company's history," citing heightened interest in its defence products despite economic and political uncertainty.
He added that while the pace of growth was difficult to predict, MSI was well placed to benefit as defence spending intentions translate into firm commitments over coming years.
The board declared an increased interim dividend of 6p per share, up from 5p a year earlier, payable on 20 February to shareholders on the register on 23 January.
At 1154 GMT, shares in MS International were down 2.85% at 1,365p.
Reporting by Josh White for Sharecast.com.
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