HighCom (HCL) H2 2024 earnings summary

Executive summary

• FY24 revenue was $45.3m, down 49% year-over-year, with a net operating loss of $12.0m and EBITDA loss of $9.6m, including $5.9m in impairments for inventory and equipment.

• H2 FY24 showed improvement, with revenue of $30.4m and positive EBITDA of $2.5m, attributed to a comprehensive cost-out program and operational restructuring.

• Cash at 30 June 2024 was $6.2m, with no debt and $3.8m in available credit facilities; inventories reduced to $17.8m from $25.7m year-over-year.

• No dividends declared; focus remains on reinvestment to drive future growth and profitability.

Financial highlights

• Revenue: $45.3m (down 49% year-over-year).

• Gross profit: $13.4m (down from $33.7m year-over-year); gross margin declined to 30% from 38%.

• EBITDA: $(9.6)m (including $5.9m impairments); normalised EBITDA: $(3.7)m.

• Net operating loss after tax: $(12.0)m (prior year profit: $6.1m).

• Cash balance: $6.2m; no debt at period end.

Outlook and guidance

• FY25 expected to continue profitability improvements, leveraging operational changes and diversified sales strategies.

• Ongoing geopolitical tensions expected to support demand for defence products and services.

• Focus on developing long-term opportunities in both Technology and Armor divisions, with steady growth anticipated.