- Revenue $18.7 million, up 185% on H1 2016 ($6.5 million)
- Net profit after tax of $724k for H1
- Strong H1 cash from operations
27th February 2017 – Cirrus Networks Holdings Limited (“Cirrus” or the “Company”) (ASX: CNW) is pleased to announce strong FY17 H1 results highlighting the Company’s ongoing successful execution of its growth focused strategic plan.
The first half of FY17 delivered revenue of $18.7 million (growth of 185% on the first half of FY16) while also delivering $724k Net Profit After Tax ($190k Underlying Profit) and a strong $619k of positive cash from operations. The increase in revenue was primarily driven by the acquisition of L7 and organic sales growth through continued focus on client outcomes.
Commenting on the results, Cirrus Managing Director, Matt Sullivan, said:
“This is a very pleasing result, with our cash-positive first half delivering strong growth in revenue and profitability. This is testament to the quality of our people, our leading service offering and our ongoing strategy of investing in future growth. With an energised executive team and continued focus on our strategic objectives, Cirrus is well placed to continue to capitalise on opportunities to drive shareholder value.”
The statutory net profit for the consolidated entity after providing for income tax amounted to $724k (31 December 2015: $6,783k loss). This result included expenses related to the ongoing development of the Managed Services Division and related cloud infrastructure. It also included a one-off R&D tax offset refund of $1,189k. During the half the consolidated entity also incurred a number of one-off and non-cash expenses including:
- costs associated with establishing the new Canberra office of $513k; and
- non cash expensing of share based options $96k.
After adjusting for these one-off transactions and non-cash expenses the entity had an underlying net profit of $190k. (31 December 2015: $952k Loss).
The entity continues to be debt free and generated a positive operating cash flow of $619k for the half leaving $3.5m in Net Assets at 31 December including $4.5m in cash.
For further comment and information
Mr Matt Sullivan Mr Matt Green
Chief Executive Officer Chief Financial Officer
Cirrus Networks Holdings Limited (ASX: CNW) is an IT solutions provider that helps businesses understand their technology needs to implement solutions that are world leading, best of breed, cost effective and efficient for long term operational gain. Cirrus’ innovative approach has resulted in the swift establishment of a blue-chip customer base and its success was recently recognised at the Deloitte Australia’s Technology Fast 50 Awards, where it was named in second place for 2015. This followed the second placing received in the fastest growing “Rising Star” technology company category in Australia in 2014.