- Spirit Technology Solutions (ST1) reported a slow start to FY22, bringing in $30.9 million in revenue compared to $34.2 million during the previous quarter
- The IT and telco business explains the September quarter revenue result still represents a 98 per cent increase when compared to Q1 FY21
- The business also ended the first quarter with $2 million in underlying earnings before interest taxes, depreciation and amortisation (EBITDA)
- Spirit isn’t releasing a guidance for FY22, saying the impact of COVID-19 related lockdowns makes it difficult to measure
- Shares in ST1 are up 6.25 per cent at 25.5 cents each
Spirit Technology Solutions (ST1) reported a slow start to FY22, bringing in $30.9 million in revenue, compared to $34.2 million during the previous quarter.
The telecommunication and IT solutions business said the first quarter was often a slow period for the company and noted the impact of ongoing COVID-19 lockdowns.
Compared to the Q1 FY21, September’s revenue results represents a 98 per cent increase year-on-year.
Spirit ended the first quarter with $2 million in underlying earnings before interest taxes, depreciation and amortisation (EBITDA).
It received roughly $700,000 worth of COVID-19 lockdown payments from the NSW Government throughout the three-month period.
As of October 20, ST1 had $12.3 million in cash in the bank and $7 million still available in its CBA debt facility.
The company is also pushing ahead with plans to return $5.1 million in capital to its balance sheet from consumer asset divestments.
Spirit Technology Solutions Managing Director Sol Lukatsky said the quarterly result shows the strength of the business.
“In one of the most difficult markets we have seen in generations and with lockdowns across Sydney and Melbourne, the Q1 result shows the strength and health of the business,” Mr Lukatsky said.
“We are more confident in the strategy than ever having experienced such a drastic closing of two large markets and still being able to generate revenues of $30.9 million in the quarter coupled with a very strong balance sheet.”
Spirit isn’t releasing a guidance for FY22, stating the impact of COVID-19 related lockdowns makes it difficult to measure.
Spirit technology Solutions is trading up 6.25 per cent at 25.5 cents per share at 1:54 pm AEDT.