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Spirit Technology (ASX:ST1) reports full-year profit amid company expansion

Technology
ASX:ST1      MCAP $66.96M
25 August 2021 12:20 (AEST)
Spirit Technology (ASX:ST1) - Managing Director, Sol Lukatsky

Source: Spirit Technology via Facebook

ST1 Technology (ST1) has booked a $1.3 million after-tax profit for the full 2021 financial year after recording a $1.5 million loss the year prior.

The Australian ICT and telecommunications company said it had moved from “consecutive years of losses to profitability in FY21”, which was underpinned by a 200 per cent revenue increase from $34.8 million to $104.5 million.

Spirit Managing Director Sol Lukatsky said the company’s growth strategy had paid off over the period.

“The past 12 months has seen Spirit move from being a small internet service provider to a national fully integrated technology provider for businesses across Australia,” he said.

“Spirit trebled both revenue and underlying earnings before interest, taxes, Depreciation and amortisation, and we are increasingly seeing this momentum carry us into larger contract success in the mid and corporate markets.”

The stronger performance was aided by several acquisitions completed by Spirit over the year as the company sought to expand its service offerings.

This included the purchase of Australian telecom business Nexgen, which was tipped to bring on 5000 new clients for Sprit.

The financial year was also marked by the company’s decision to divest from its consumer infrastructure assets and shift to business markets.

Spirit said it had received “multiple bids” for the assets and due diligence was said to be well-advanced.

Spirit Technology shares were up 0.89 per cent to trade at 28.3 cents at 28.3 cents.

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