CSC Holdings (C06) H1 2024 earnings summary

Executive summary

• H1 FY24 revenue rose 24.1% YoY to $146.4m as construction activity increased; net loss narrowed to $3.7m from $16.9m.

• Gross profit recovered to $13.0m and EBITDA to $10.5m; operating cash flow was positive at $6.7m.

• Order book reached $270m at 31 Oct 2023, up from $240m at 30 Apr 2023.

Financial highlights

• Revenue was $146.426m, up 24.1% YoY; construction-contract revenue rose to $131.5m from $90.3m.

• Gross profit was $12.959m versus a $0.523m gross loss; gross margin improved to 8.9% from -0.4%.

• Operating loss narrowed to $0.955m from $14.814m; loss before tax was $3.952m versus $16.754m.

• Net loss was $3.740m versus $16.863m; EBITDA improved to $10.512m from negative $1.331m.

• Net finance expenses increased 49.2% YoY to $3.131m, reflecting greater use of floating-rate facilities and higher rates.

Outlook and guidance

• At 31 Oct 2023, the order book was $270m, compared with $240m at 30 Apr 2023.

• Tendering will prioritize project profitability while maintaining competitiveness and healthy cash flow.

• Cost control, manpower and resource deployment, cash-flow management, and financing opportunities remain priorities amid cost and liquidity pressures.