COSOL (COS) H2 2024 earnings summary

Executive summary

• Achieved record group revenue of $101.9m for FY24, up 35.7% year-over-year, with underlying EBITDA of $15.7m, up 33.0% year-over-year and a 15.4% margin.

• Underlying NPATA reached $9.6m (+27.8% year-over-year), and underlying EPS was 5.24c (+2.9% year-over-year).

• Statutory NPAT increased 6.7% to $8.5m; strong H2 performance with revenue up 30.8% and underlying EBITDA up 20.6% sequentially.

• Secured major managed services contracts and completed integration of AssetOn and Core Asset Co, enhancing service offerings and client uptake.

• Positioned as a leader in asset management digital transformation, with a growing blue-chip client base and expanding global footprint.

Financial highlights

• Revenue increased to $101.9m (+35.7% year-over-year), driven by growth in product-led and professional services.

• Underlying EBITDA rose to $15.7m (+33.0% year-over-year), with a margin of 15.4%.

• NPATA was $9.6m (+27.8% year-over-year); NPAT was $9.0m (+19.7% year-over-year); Net Profit Before Tax rose 18.3% to $12.0m.

• EPS increased to 5.24c (+2.9% year-over-year); final dividend of 1.39c, full year 2.39c, maintaining a 50% payout ratio.

• Gross margin was 33.6%, down 2.1 points year-over-year due to service mix and acquisitions.

Outlook and guidance

• Strong H2 momentum and margin expansion set up for continued growth in FY25, leveraging full-year operation of AMaaS solution.

• Expect double-digit revenue and EBITDA growth for FY25 and FY26, supported by new managed services contracts and ARR software growth.

• Record-level opportunities pipeline, with most revenue not tied to economic or commodity cycles.

• Strategic focus on expanding managed services, recurring software revenue, and further acquisitions.

• Strategic acquisitions and next-generation productivity tools to drive further growth.