• Profit after tax up 347.5% to $1.43 million
• Gross profit margin improved to 44.6% from 22.4%
• Acquisition of 25% stake in Vietnam fintech firm LIT Technology

Victor Group Holdings Limited reported a strong turnaround in profitability for the half-year ended 31 December 2024, with profit after tax surging 347.5% to $1.43 million despite a 5.5% decline in revenue to $4.98 million. The company's strategic focus on higher-margin services, such as Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions, drove a significant improvement in gross profit margin to 44.6% from 22.4% in the prior-year period. This was primarily due to the absence of pre-customer expense write-offs that had impacted the prior-year margin. During the reporting period, the company resumed inventory purchases of online course packages amounting to $2.73 million, responding to market demand for inventory sales and customisation services, while maintaining its strategic shift towards SaaS, IaaS and PaaS solutions. The company also disposed of a portion of its intangible assets, realising a $223,989 gain on the sale. Additionally, Victor Group completed the acquisition of a 25% stake in LIT Technology Pty Ltd, a Vietnam-based digital payment solutions provider, for A$4.32 million through the issuance of 80 million shares. This strategic investment is expected to contribute positively over time, given the high-growth digital payments landscape in Vietnam. The company is reviewing its Australian market expansion strategy and exploring new opportunities in adjacent technology and financial services sectors to drive sustainable growth.

The company expects to build on the momentum from software development and operational service contracts, shifting further away from traditional inventory-based revenue streams. The LIT investment is expected to contribute positively over time, given the high-growth digital payments landscape in Vietnam.

Victor Group Holdings Limited is well-positioned to capitalise on emerging technology trends, digital financial services, and cloud-based solutions, ensuring sustainable growth in the upcoming financial periods. Management remains focused on improving operational efficiencies, strengthening financial performance, and leveraging strategic investments to maximise shareholder value.