Info-Tech Systems (ITS) H1 2025 earnings summary

Executive summary

• 1H FY2025 revenue was S$22.397m, up 4.7% YoY; adjusted PAT was S$7.258m, up 9.4% YoY.

• Reported profit for the period fell 23% to S$5.134m, partly reflecting one-off listing and Malaysia office relocation costs.

• Subscription revenue increased S$1.3m, supporting growth in cloud-based HRMS and Accounting Software.

Financial highlights

• Revenue was S$22.397m, up 4.7% YoY; gross profit was S$19.082m, up 2.9%, with gross margin of 85.2% versus 86.7%.

• Operating profit fell 24% to S$6.277m, PBT fell 24% to S$6.205m and reported profit for the period fell 23% to S$5.134m.

• Adjusted operating profit was S$8.401m, up 1.6% YoY and 26.5% HoH; adjusted EBITDA was S$9.475m, up 2.2% YoY and 22.3% HoH.

• Adjusted PAT was S$7.258m, up 9.4% YoY and 27.2% HoH; adjusted PBT was S$8.329m, up 1.7% YoY.

• Adjusted OPEX was S$10.810m, up 2.0% YoY and down 10.1% HoH; selling and distribution fell to 17.8% of revenue from 21.5%.

Outlook and guidance

• S$26.8m orderbook, primarily advance subscription billings over the next 12 months, supports 2H FY2025 revenue visibility; sequential revenue and orderbook momentum is expected through year-end and into FY2026.

• Intensified HRMS and accounting software marketing is expected to support growth; cost discipline and high-ROI marketing remain priorities.

• Seven Academy courses launched in late 1H FY2025 are expected to contribute in 2H; corporate sign-ups and training capacity are being expanded.

• CRM development is underway, with a soft launch planned for 1H FY2026; plans also include expanding HRMS tools and the broader SME product range.

• Plans include strengthening sales and marketing, entering new markets, and exploring acquisitions and partnerships.