FLX.ASX: Felix signs 3 year renewal with CIMIC Group

Felix signs 3 year renewal with CIMIC Group

Stock	FELIX Group Holdings Ltd (FLX.ASX)
Release Time	24 Mar 2025, 8:43 a.m.
Price Sensitive	Yes

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Felix signs 3-year renewal with CIMIC Group

Key Points

3-year contract renewal with CIMIC Group
$2.02m revenue over contract term
29% uplift in first year contract value

Full Summary

Felix Group Holdings Ltd (ASX:FLX) has announced the renewal of its contract with CIMIC Group Limited, Australia's largest construction company. The new contract is for a further 3 years and is expected to generate $2.02m in revenue over the term of the contract. The value of the licence fee in the first year is $637k, $672k in the second year, and $708k in the third year. This represents a 29% increase in the first year's licence fee compared to the previous contract, which was $494k. The initial payment of the contract will be $1.44m (inc. GST) to be received in Q3 FY25, which will help smooth historical cashflow fluctuations associated with contract anniversaries across the customer base. The CIMIC renewal will result in Felix continuing to be operating cash flow positive for the third consecutive quarter. Felix remains focused on maximizing Contractor ARR growth while maintaining a positive operating cashflow position.