Nothing really new in these half year results, as the company had already disclosed a lot in their quarterly results.
Reminder of the main element (for me) : despite a 22 % revenue decrease, the company was able to improve its adjusted EBITDA (from 0.6 m NZD in H1 23 to 1.7 m NZD in H1 24). Thanks to an increase of its gross margin (by 530 bp) and a decrease of its operating costs (by 11 %). The company was able to generate 1.8 m NZD of free cash flow (after lease) thanks to the EBITDA improvement and a large decrease of its working capital (which had a positive impact of 1.6 m on their cash flow from operation).
New elements disclosed in these presentations : - profit improvement in North America with a loss of 0.2 m vs a loss of 1.4 m pcp, - subscription revenues* (= 11 % of total revenues) decreased by 11 % (vs - 22 % for total revenues) which may also explain the improvement of gross margin, - impairment of 1.4 m NZD on the acquisition of IDEST.
* from North America only
STG Price at posting:
58.0¢ Sentiment: None Disclosure: Held
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