• Revenue of $33.6M, down 3.3% on pcp
• EBITDA of $3.04M, down 29% on pcp
• Interim dividend of 4.5 cents per share
• Challenging trading conditions due to macroeconomic headwinds

HiTech Group Australia Ltd has released its half yearly FY2026 results, reporting revenue of $33.64 million, down 3.3% on the previous corresponding period (pcp). Gross Profit was $4.92 million, down 29% on pcp. EBITDA was $3.03 million and EBIT was $2.99 million. The company has declared an interim dividend of 4.5 cents per share, with an ex-dividend date of 10 March 2026, record date of 11 March 2026, and payment date of 25 March 2026. The company's NTA per share is $0.27 and it has a cash balance of $10.5 million with zero debt. The first half results were impacted by challenging trading conditions, driven by macroeconomic headwinds primarily linked to government spending patterns. While revenue remained in line with expectations, operating margins declined on select engagements under a new supplier panel arrangement, reducing H1FY26 earnings compared to the previous corresponding period. Profitability has been pressured by increased investment in staff and systems, made in anticipation of higher demand from deferred projects and reduced government spending. The company expects the benefit of this investment to materialise in H2FY26. HiTech has taken decisive action to protect margins by securing new agreements with major clients, reducing both fixed and variable costs, and increasing its focus on departments and agencies where margins and revenue quality remain strong. These initiatives are expected to take effect in H2FY26. The company's core business and annuity-style revenue streams remain robust, underpinned by a strong cash position and no debt. HiTech remains committed to delivering long-term value for shareholders and will continue to explore avenues for sustainable growth in alignment with market demand as H2FY26 progresses.

While macroeconomic conditions will continue to influence the pace of recovery, HiTech remains firmly committed to restoring performance and returning to the high growth trajectory and industry leading performance that have defined the company for the past 11 years. The results for FY26 will be dependent on the economic conditions faced and the budgets the government will allocate for ICT services.