2025 Chairman's Address & Market Update
| Stock | Hitech Group Australia Ltd (HIT.ASX) |
|---|---|
| Release Time | 21 Nov 2025, 4:10 p.m. |
| Price Sensitive | Yes |
HiTech Group Australia Announces FY2025 Results and Market Update
- Record financial results, best ever in company history
- Strong balance sheet with zero debt and positive cash balance
- Challenging trading conditions in H1FY26 due to macroeconomic headwinds
HiTech Group Australia Limited held its 26th Annual General Meeting, celebrating 32 years of business. For the financial year ended 30 June 2025, the company reported an operating revenue of $68,151,746, an underlying EBITDA of $8,998,295 (up 1.3%), and an underlying NPAT of $6,636,843 (up 10.04%). The company has a strong balance sheet with zero debt and a positive cash balance of $9,652,671. The directors have declared a fully franked dividend of 5 cents per share, with total dividends for the past 12 months at 10 cents per share fully franked. The company's proven and adaptable business model has enabled it to achieve record financial results, maintaining a high-performing work culture. The company's ICT projects in government and cybersecurity capabilities continue to be a strong source of business. However, trading conditions during the first half of FY26 have proven challenging, driven by macroeconomic headwinds primarily linked to government spending patterns. The company has acted swiftly to mitigate margin erosion and is now positioned to benefit from economies of scale, supporting margin improvement and profitability. The company's underlying business and annuity revenue streams remain positive, supported by a substantial cash balance and zero debt.
For H1FY26, revenue remains positive year on year, but operating margins have declined on a select number of engagements under a new supplier panel arrangement, reducing earnings to date compared to the previous corresponding period. The company expects the benefit of its investment in staff and systems to materialize in H2FY26.
While the company's ability to improve earnings will remain influenced by prevailing macroeconomic conditions, it is firmly committed to restoring performance and returning to the high growth trajectory and industry-leading margins that has defined the past 11 years.