Stealth Group (SGI) H2 2024 earnings summary

Executive summary

• Achieved record revenue, profit, and cash holding in FY24, marking the most profitable year in company history with a 68% increase in share price and 10 consecutive years of revenue growth.

• Diversified and strengthened business through acquisition of Force Technology, expanding into consumer technology and adding 3,310 retail reseller stores.

• Paid inaugural fully franked dividend and managed inflation and interest rate pressures effectively.

Financial highlights

• FY24 revenue grew 2.4% to $113.7m; gross profit up 3.4% to $33.7m; EBITDA up 15.5% to $6.1m; NPAT up 50.2% to $1.4m year-over-year.

• Cash holdings increased 31.2% to $10.1m; free cash flow of $4.7m; net debt reduced by 32.9% to $4.9m (pre-Force acquisition).

• Gross margin improved to 29.6% of sales; cost of doing business ratio reduced to 24.3%.

• Maiden dividend of 0.84 cents per share, 4% yield, 71.5% payout ratio.

Outlook and guidance

• FY25 revenue expected to reach $159m+, a 39% increase, with full-year contribution from Force Technology.

• Gross profit margin guidance of 29–35%; NPAT as % of sales targeted at 1.5–3.0%.

• Capital expenditure planned at $1.8–2.2m for store development, technology, and automation.

• Targeting $300m revenue by FY28, with 8% EBITDA margin.