SSC Security Services (SECU) Q4 2024 earnings summary

Executive summary

• Revenue increased to $120.6M for the year ended September 30, 2024, up from $109.1M year-over-year, driven by growth in both physical and cyber security services.

• Net income rose to $595,666 from $87,141 year-over-year, reflecting improved operational performance and gains from legacy business activities.

• The company completed a horizontal amalgamation of its subsidiaries, Logixx and SRG, into Logixx Security Inc. after year-end.

Financial highlights

• Gross profit increased to $17.6M from $16.3M year-over-year, with gross margin stable at 14.6%.

• Operating loss narrowed to $504,040 from $1.88M year-over-year.

• Cash and cash equivalents at year-end were $13.3M, down from $14.8M, reflecting share buybacks and dividend payments.

• Dividends of $2.27M were paid during the year, and 647,400 shares were cancelled under the normal course issuer bid.

Outlook and guidance

• Management expects no significant impact from upcoming IFRS accounting standard changes.

• No major customer concentration risk, as no single customer accounts for more than 10% of revenue.