Silver Bullet Data Services (LON:SBDS) Chief Executive Officer Ian James caught up with DirectorsTalk to discuss their strong trading update and achieving EBITDA profitability in early 2026 following cost restructuring.
Q1: A strong trading update today for Silverbullet. Can you just take us through the key highlights?
A1: Yes, it was a very strong update today. We are reflecting on ‘25 as well as looking forward in ‘26.
So on ‘25, we saw a year on year flat, which actually was a consequence predominantly of a slowdown in growth in the second half, which was driven pretty much by the macros that everyone’s been facing, especially in the US, which affected our US clients, just less client decision making. Also, significantly for us, the U.S. government shutdown hit our second half based on the inability for a number of our US government based clients to spend.
So, broadly speaking, we’re comfortable and happy with that because we were able to really focus on streamlining the business and really getting a lean cost base at the same time, which we stated in our interims. So, we were really comfortable with streamlining that, which is really driving our forward looking view of the business, which is, we’re pleased to say, is trading EBITDA positive in the first part of this year. So, in the months to date since the start of the year so we’re really pleased with that.
That’s really a consequence of focusing on what clients really want and we’ve really looked at our cost base and the way that we organise ourselves and we’re aligned into what clients want. We’re seeing that trading reflect that a lot of the indecision around the Q4, especially last year, is playing through into this year, and we’re seeing a strong Q1.
We’re really focused on delivering those efficiencies, both internally, but also just changing the way that we look at the way that we work with our clients so that we can be lean, deliver into their AI transformation, which is happening more and more. It really requires a robust data infrastructure, which is the stock and trade of our business and new data tools in tools like 4D, but also in our human expertise. That’s really guiding clients to unlock new value ROI, if you like, from the data they have and that plays into their AI transformation ambitions in ‘26/27. So, we’re really pleased with that.
We’ve got efficiencies that are coming in, playing into the EBITDA positive. We’ve also won new clients, and that will play through into the ‘26. Winning new clients in ‘25 gives us a full year view on that, new European airline, for example, and also a big new client for our data products in the US. So, both of those will play through into ‘26, which we didn’t see in ‘25, and also growth from our current clients.
So, we’re really bullish on the future and looking back to growth, but also, most importantly, for Silverbullet, which is EBITDA positive, which will soon play into cash.
Q2: Those cost reductions that you introduced in late ‘25, how did they help deliver positive EBITDA this year?
A2: Well, really, it’s all about adapting. Every year, our market changes in terms of what clients need. As I said, the clients that we work with, which are global clients, as well as local ones here in the UK, and a lot of our global clients are already pushing into the AI transformation area, and that requires robust data capabilities, but also new skills and new data products. So, we’re always adapting our offering in line with client requirements, but we’re always laser focused on what clients need.
What we really did was look at our efficiencies in terms of our client focus on our ability to grow with our current clients and with new clients. So, that was some leaning up on that and consolidating some of our skills and our capability, our people into focus areas around geographical markets, as well as capabilities of specific needs of clients.
That gave us the ability to become more efficient and also efficiency in our delivery of what we do for our clients and clearly, AI plays a role in that. So, we can apply our own AI tools, if you like, or AI tools available to make our delivery for clients more efficient.
Those two things combined leads us to a leaner, more efficient operating model and this is all about driving EBITDA. So, client satisfaction, number one, which naturally leads to growth, which naturally leads to the EBITDA that I’m pleased to say that we can report today.
Q3: You hinted at earlier that you’re already at 73% of expected revenue for the year. How does this shape your outlook for growth in ‘26?
A3: Again, what we’re really focused on is long term relationships with clients, recurring revenues and so we’ve been really specific about working with certain clients that we know can grow both in terms of the scope of work that they need from our human expertise and our products, but also in terms of geographical reach. So, more markets opening up, for example, geographical markets, which enables us to grow with our current clients, which we’ve consistently done over the years and also enables us to tie up our offering for new clients.
Again, we’re winning new clients. We have a strong pipeline looking forward. The 73% is great because we go into the year with a strong, robust view of our budget and our EBITDA opportunity. We’re able to manage our cost base coming into the year, as I said, much leaner so it gives us real confidence that we’ve got the opportunity to move properly now into this EBITDA positive era for our business.
Wrapped around that is, of course, growth. We expect to go back to growth this year and also it flows into cash as we go through that year and through ‘26. So, it gives us a really strong, positive, confident outlook as a board to see that this business is reaching a much more mature stage.
Q4: Just before we finish, can you just give us an idea of what investors can expect from Silverbullet in the coming months?
A4: It’s a super laser focus on delivering client solutions, right? So, that’s what we think about every morning, and we deliver for our clients. So, that’s the first thing.
The second thing is growing that client base. We’re always looking to win new clients, and we are winning new clients across our portfolio of both expertise, human expertise services, and our own proprietary products. So, that’s growing.
So we expect growth for this year, and we expect this EBITDA profile to continue and that really gives us the opportunity to invest in the business and continue on that growth curve. So, we’re excited and confident about the year ahead.
