Kelly Partners Group (KPG) H1 2026 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $76.99 million for the half-year, driven by both organic and acquired growth, with 4.2% organic and 12.8% from acquisitions.

• Underlying NPATA attributable to members rose 12.8% to $5.6 million; EPS up 11.9% to 12.3c.

• Statutory net profit after tax was $8.26 million, down 4.6% year-over-year due to higher amortisation and acquisition costs.

• Six acquisitions completed in the half-year, expanding presence in Australia, USA, and the Philippines.

• Dividend payments ceased in February 2024 to prioritize capital allocation for growth.

Financial highlights

• Group revenue increased 17% to $76.99 million; underlying EBITDA up 10.8% to $22.29 million; EBITDA margin for operating businesses at 27.6%.

• Underlying NPATA for the parent rose 12.8% to $5.6 million; free cash flow per share up 10%, cash conversion at 101.1%.

• Net debt increased to $77.1 million, mainly to fund acquisitions; net debt/EBITDA at 1.79x.

• Return on equity: 38.1% for the group, 32.6% for the parent; book value compounded at 34.9% per annum since inception.

• Net cash from operating activities was $18.57 million, up from $17.64 million year-over-year.

Outlook and guidance

• Focus on programmatic acquisitions and organic growth, with ongoing investment in technology and people.

• Annual revenue run rate estimated at $164.2 million, with a CAGR of 30.3% since inception.

• Plans to pursue a listing on a market other than the ASX once debt structuring is resolved.

• Buyback program renewed post-blackout to support share price.

• Targeting 35% EBITDA margin and 5% annual growth in accounting and complementary businesses.