• Total revenue of $27.0m, slightly ahead of prior corresponding period
• Underlying EBITDA of $2.4m, impacted by additional costs to support global growth
• Strongest half on record with $5.9m in new annual recurring revenue

Comms Group Ltd, a specialised cloud communications and managed IT services provider, has reported its 1H FY25 results. Total revenue was $27.0m, a slight increase compared to the prior corresponding period, with the company's global division recording increased revenue. Underlying EBITDA was $2.4m, down 19.5% on the prior corresponding period, predominantly due to additional costs to support key growth opportunities in the global business. The company invested in additional staff, leading to a $0.8m increase in core business operating expenses to $10.7m. Gross margin increased to 48.3%, with a continued focus on managing supplier costs. Comms Group reported its strongest half on record, signing $5.9m in new annual recurring revenue, with revenue from these new contracts expected to start flowing in 2H FY25. The company maintained a strong cash flow position, although this was impacted by a delayed debtor payment of approximately $0.6m which will be rectified in 2H FY25. Comms Group also completed key security certifications, including ISO27001:2022, SOC 2, and UK Cyber Essentials, to unlock further opportunities in the UK, Europe, and North America. An interim dividend of 0.125 cents per share (fully franked) has been declared.

Comms Group is targeting FY25 revenue of $55m to $57m and underlying EBITDA of $5m to $6m.

The company is focused on expanding its partner program, strategic alliances, and channels to market in Australia and the Asia-Pacific region. It also plans to leverage its significant Asia-Pacific footprint to provide unified communications, collaboration, and secure modern workplace solutions to multinational corporations operating across the region. Comms Group is pursuing strategic growth opportunities to increase scale and add additional capabilities.