SOC.ASX: 1H FY24 Results Announcement

1H FY24 Results Announcement

Stock	Soco Corporation Ltd (SOC.ASX)
Release Time	28 Feb 2025, 9:14 a.m.
Price Sensitive	Yes

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SOCO Corporation Ltd Reports 1H FY25 Results

Key Points

Consolidated revenue of $11.0m, up 17.8% on 1H24
Operating EBITDA of $0.6m, up $0.5m on pcp
NPATA of $0.09m compared to NPATA loss of $0.79m in pcp

Full Summary

SOCO Corporation Ltd ('Company' or 'SOCO'), a leading Australian information technology services consultancy, announced its financial results for the half-year ending 31 December 2024. The Company reported consolidated revenue of $11.0m, up 17.8% on the prior corresponding period (1H24), including a $5.1m contribution from the Axsym acquisition. Operating EBITDA increased by $0.5m to $0.6m, and NPATA improved to $0.09m compared to a loss of $0.79m in the prior period. The Company signed $18m worth of contracts by October 2024 and delivered work for 27 new clients during the period, representing 14% of 1H25 revenue. However, some project commencements experienced unforeseen delays, particularly on two large Queensland projects, resulting in lower than forecast revenue and utilisation for Q2. Demand from Federal Government clients also declined in November and December 2024 due to cost-cutting, the election cycle, and a shift to reduce reliance on external consultants. The Company continued to focus on diversifying its client base, increasing the share of revenue from the corporate, State and Local Government sectors from 40% in FY24 to 44% in 1H25. Axsym operations and management systems are now fully integrated, delivering synergies, and the Company is making progress diversifying its client base, with 21 of the 27 new clients being non-government organisations.

Guidance

Based on current in-flight project and contract pipelines, management forecast full year FY2025 revenue to be in the range of $22m to $24m.

Outlook

In the case of the Federal Government, the upcoming election is expected to see a higher level of uncertainty in demand during 2H25 than originally anticipated. The Company is investing in additional sales and marketing activities to drive revenue and further client diversification, which is expected to continue delivering new client acquisition returns in subsequent periods and underpin resilient revenue growth.