Tyler Group's third-quarter performance meets expectations

Investing.com - TATE Group (LON:TATE) released a nine-month trading statement for the period ending December 31, 2025, on Thursday, reporting that third-quarter operational performance met expectations and was consistent with the first half of the year.

As of December 31, 2025, the group’s revenue for the three months increased by 15% on a reported basis and at constant exchange rates, reflecting the merger with CP Kelco on November 15, 2024.

On a comparable basis and at constant exchange rates, revenue decreased by 2%, due to continued weak market demand. Performance across all regions was largely in line with the first half.

For the nine months, revenue in the Americas decreased by 2% on a comparable basis compared to the same period last year, with slight price increases offset by lower sales volume.

In Europe, the Middle East, and Africa, price declines led to a 5% decrease in revenue, while Asia-Pacific revenue grew by 1%, driven by higher sales volume.

CEO Nick Hampton stated that the company made good progress this quarter on initiatives outlined in November to drive revenue growth and improve performance.

The company continues to make targeted investments in capabilities and technology to enhance customer service and has seen further increases in customer engagement within its merged product portfolio.

The value of cross-selling opportunities in the new business pipeline for the third quarter increased significantly.

The integration of CP Kelco continues to advance, with cost synergies and revenue synergies meeting expectations. The company’s five-year, $200 million productivity plan remains on track, with further savings achieved this quarter.

Progress on renewing customer framework agreements for the 2026 fiscal year is smooth. Hampton said the company is selectively investing to drive sales and revenue growth, which he believes is the right approach for the business.

For the nine months ending December 31, 2025, the group’s revenue reached £1.506 billion, a 29% increase on a reported basis. Revenue in the Americas totaled £749 million, up 18% on a reported basis.

Revenue in Europe, the Middle East, and Africa was £475 million, up 27% on a reported basis, while Asia-Pacific revenue reached £282 million, up 79% on a reported basis.

The company maintains its outlook for fiscal year 2026, unchanged from the mid-term results announced on November 6, 2025.

For the fiscal year ending March 31, 2026, on a fixed exchange rate basis and compared to the comparable period, the company expects revenue and EBITDA to decline by low single-digit percentages compared to the previous year.

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