- Australian IT company Cirrus (CNW) has reported its sixth straight year of revenue growth since listing on the ASX
- The ASX-lister collected $53.8 million in revenue during the first half of FY21, marking a 13 per cent improvement on the prior corresponding period
- The performance was backed by a number of key commercial and government contracts as well as growth across services and product sales revenue
- A $1.6 million JobKeeper boost also came in handy over the period, although CWN affirms growth in services margins and its flat cost base contributed to earnings prior to the federal government incentive
- Investors appear to be at odds with the announcement, with Cirrus shares off 11.4 per cent trading at 3.1 cents each
Australian IT company Cirrus (CNW) has reported its straight sixth year of revenue growth since listing on the ASX.
The $53.8 million the company collected in revenue during the first half of the 2021 financial year represents a 13 per cent increase on the prior corresponding period, and was backed by a five per cent spurt in services revenue and a 15 per cent jump in product sales revenue.
The ASX-lister also owed the performance to a number of key commercial and government contracts, which included Western Australian resource companies Services Australia, the Department of Home Affairs and Austrade.
Adjusted earnings before interest, taxes, depreciation and amortisation for the period was $1.1 million, marking a 29 per cent improvement the prior period’s performance of $863,000.
Net profits came in at just over the million mark and were floated by a $1.6 million JobKeeper boost. However, CNW asserts growth in services margins and its flat cost base contributed to earnings before the impact of the federal government incentive.
Cirrus also managed to clear the remainder of its acquisition funding facility and has declared itself debt-free, chalking up a cash balance of $7.1 million for the end of the December quarter.
Despite operating within the uncertainty of a global pandemic, Cirrus remains optimistic and expects continued revenue growth to be underpinned by a “strong orderbook”, as well as opportunities from Federal Government departments and the WA resources sector.
Investors appear to be at odds with the announcement, with Cirrus shares off 11.4 per cent trading at 3.1 cents each at 3:32 pm AEDT.