Servcorp (SRV) H2 2024 earnings summary

Executive summary

• Achieved record underlying NPBIT of $56.6m for FY2024, up 18% year-over-year, exceeding revised guidance.

• Statutory NPAT rose 253% to $39.0m, with statutory net profit before tax up 153% to $42.9m.

• Underlying free cash reached $72.5m, up 18%, supporting continued global expansion.

• Revenue and other income totaled $317.0m, up 7% year-over-year.

• Operated 132 floors in 40 cities across 20 countries at year end.

Financial highlights

• Underlying operating revenue grew 9% to $295.7m, driven by improved pricing and new business.

• Statutory operating profit increased 43% to $48.8m; underlying operating profit up 25% to $54.3m.

• Basic EPS rose 249% to 39.9 cps; underlying EPS up 21% to 53.3 cps.

• Cash and investment balances exceeded $120.0m at year end; unencumbered cash at $115.1m as of June 2024.

• Final FY24 dividend of 13.0 cps (20% franked), total FY24 dividend 25.0 cps, up 14%.

Outlook and guidance

• FY25 guidance: underlying NPBIT of $61.0m–$65.0m and underlying free cash above $75.0m.

• Dividend for FY25 expected to be at least 26.0 cps, with formal guidance at AGM in November.

• Cautiously optimistic outlook, with strong momentum and no geographic constraints.

• Middle East reorganisation completed; potential listing targeted for 2025.