Accordant Group (AGL) H1 2025 earnings summary

Executive summary

• Group revenue declined 21% year-over-year for H1 FY25, mainly due to reduced demand in the white-collar segment and government austerity measures.

• Operating expenditure decreased significantly, with net cash from operating activities remaining positive at $1.3m.

• The Group reduced FTE by 15% compared to the prior year, aligning costs with subdued market demand.

• No interim dividend declared, with focus on returning to profitability and reducing debt.

• Economic conditions remain challenging, but signs of recovery are emerging as inflation falls and business sentiment improves.

Financial highlights

• Revenue for H1 FY25 was $88.9m, down from $112.1m in H1 FY24.

• Net loss after tax was $1.44m, compared to a net profit of $1.16m in the prior year.

• Basic and diluted EPS were both (4.2) cents, down from 3.4 cents year-over-year.

• Net cash provided by operating activities was $1.3m, down from $2.9m in H1 FY24.

• Total assets at 30 September 2024 were $74.2m, with net assets of $21.3m.

Outlook and guidance

• Anticipates further operating expenditure reductions in H2 while maintaining delivery capability.

• Expects a gradual return of demand, especially in the private sector and infrastructure projects.

• Rising unemployment may persist for several months, but business and consumer confidence are expected to improve.

• Strategic investments in health recruitment and mid-senior specialist hiring aim to lift future placement fees.