Daily Roundup

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Dicker Data Delivers Solid FY24 Results, Declares Dividend

Dicker Data (ASX: DDR) has reported its financial results for the full year ended 31 December 2024 (FY24), showcasing a resilient performance amidst challenging market conditions. The company's statutory revenue increased 0.7% to $2.28 billion, while gross sales grew 2.9% to $3.37 billion.

Despite the revenue growth, Dicker Data's net profit after tax declined 4.2% to $78.7 million. The company attributed this to higher operating expenses, including increased salary-related costs and bad debts. However, the company's gross profit margin improved to 14.2%, up from 13.9% in the previous year.

Dicker Data declared a total dividend of 44 cents per share for FY24, maintaining its commitment to a 100% payout ratio. The company's balance sheet remained strong, with a total investment in net working capital of $397.4 million.

Looking ahead, Dicker Data expects to return to solid growth in both sales and profits in FY25, buoyed by a positive outlook as macroeconomic conditions improve and the company's market initiatives, such as the uptake of Artificial Intelligence and the Windows 10 end of support opportunity, gain traction.

Ai-Media Pivots to Technology, Launches New LEXI Products

Ai-Media Technologies Ltd (ASX: AIM), a global provider of technology-driven captioning, transcription and translation services, has reported its financial results for the half-year ended 31 December 2024 (1H25). The company's revenue declined 2.9% to $31.8 million, while EBITDA dropped 64.6% to $664,000. The loss after tax increased 120.1% to $2.66 million.

The decline in financial performance was primarily driven by an acceleration in the decline of Ai-Media's labour-intensive legacy services business and one-off restructuring costs. However, the company's technology-based Software as a Service (SaaS) revenue continued to grow, and it launched two new LEXI products - LEXI Voice and LEXI Brew - as part of its strategic shift towards a technology-driven business model.

Looking ahead, Ai-Media expects its FY25 EBITDA to be similar to FY24, as it continues to invest in product development, go-to-market resources, and its expansion into the European Broadcast market and other underpenetrated sectors like Government and Enterprise.

Objective Corporation Delivers Consistent Growth, Targets 15% ARR Expansion

Objective Corporation Ltd (ASX: OCL) has reported a strong set of financial results for the first half of FY2025. The company's revenue grew 6% to $61.3 million, while adjusted EBITDA increased by 6% to $23.3 million. Net profit after tax rose 4% to $17.0 million, and the company's annualised recurring revenue (ARR) balance grew 10% to $107.0 million.

Objective's performance was driven by growth across all three of its business lines - Content Solutions, Planning and Building, and Regulatory Solutions. The company continued to invest heavily in research and development, spending $15.1 million, or 30% of software revenue, on product development.

Looking ahead, Objective has set a targeted ARR growth of 15% for the full financial year 2025. The company remains focused on executing its strategic plan, which includes efficiently scaling the business, delighting customers, and investing in its people to maintain its position as a leading provider of GovTech solutions.

Austco Healthcare Delivers Record Results, Targets Profitability

Austco Healthcare Limited (ASX: AHC), a global leader in clinical communications solutions, has reported a strong financial performance for the six months to 31 December 2024. Revenue from customers increased by 62% to $36.9 million, driven by the successful integration of two recent acquisitions and continued organic growth in Asia and North America.

The company's software and recurring revenue also grew by 15% to $4.6 million, now comprising 19.4% of the Unfilled Contracted Revenue book. EBITDA surged 150% to $5.2 million, exceeding the company's guidance, while Net Profit After Tax increased by 150.1% to $2.9 million.

Austco Healthcare remains focused on driving organic growth, particularly in its software and recurring revenue streams, while continuing to pursue strategic acquisitions to further expand its market presence and capabilities. The company is targeting revenue and EBITDA for the full 2025 financial year to be at the top end of its guidance range.

Change Financial Exits US Market, Targets Profitability in FY25

Change Financial Limited (ASX: CCA), a global fintech, reported a 61% increase in revenue to US$7.19 million for the half year ended 31 December 2024. However, the company's loss from ordinary activities increased 13% to US$1.73 million.

During the period, Change announced it was exiting the US market, with final transactions processed in late January 2025. Exiting the US will have an insignificant impact on Group revenue but will result in a significant reduction in operating expenses.

Looking ahead, Change Financial is targeting to deliver 30%+ revenue growth and a maiden positive EBITDA in financial year 2025. The company's growth is expected to be driven by its longstanding client base with contracted revenue, contracted Payments as a Service (PaaS) clients generating transaction and volume-based revenue, and new client and partner wins.