Servcorp (SRV) H1 2025 earnings summary

Executive summary

• Achieved record underlying free cash, statutory net profit after tax up 76% to $34.6 million, and underlying NPBIT up 19% to $34.4 million for 1H25, reflecting strong operational and financial performance.

• Maintained robust cash reserves, with unencumbered cash at $131.4 million and cash/investment balances exceeding $120 million.

• Interim dividend of 14.0 cps (10% franked) declared, with total FY25 dividend expected to be at least 28.0 cps, marking a record payout and consistent dividend history.

• Continued global expansion with investment in new locations, technology, and AI initiatives, increasing office capacity and operational reach.

• Focus remains on organic growth, disciplined capital allocation, and maintaining stability in a competitive market.

Financial highlights

• Statutory revenue rose 7% year-over-year to $168.1 million; underlying operating revenue up 7% to $158.8 million.

• Statutory NPBT increased 70% to $38.3 million; statutory NPAT up 76% to $34.6 million.

• Underlying NPBIT grew 19% to $34.4 million; underlying operating profit up 22% to $32.8 million.

• Underlying free cash reached $40.5 million, up 13% year-over-year; free cash flow up 18% to $38.7 million.

• Basic EPS increased 74% to 35.1 cps; underlying EPS up 21% to 31.5 cps.

Outlook and guidance

• FY25 guidance reaffirmed: underlying NPBIT expected between $61.0 million and $65.0 million, tracking toward the higher end; underlying free cash projected above $75.0 million.

• Dividend guidance for FY25 is at least 28.0 cps, subject to market and currency stability.

• Focus remains on sustainable growth, revenue efficiency, and service conversion amid macroeconomic uncertainties.