Sol Lukatsky (Spirit)
Spirit Technology Solutions has wrapped up its 2021 financial year, ending June 30, with “record sales results”, which saw revenue grow by 200 per cent year-on-year to $104.5 million.
In the telco-turned-IT services provider’s unaudited financial results for FY21, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) reached $11.5 million, an increase of 208 per cent from the financial year prior, which it labelled as a record.
Additionally, sales total contract value (TCV) hit $31.8 million, which the provider also considered to be a new record.
Its audited results are slated to be released in August.
“We continue to execute to strategy with these very strong results,” said managing director Sol Lukatsky in a statement released to the Australian Securities Exchange (ASX).
“Organic demand for the product set across data, cyber, managed services, voice and importantly Spirit’s bundled offering continues to be very positive. We continue growth momentum with larger contracts in the mid and corporate markets in Q4 FY21 and have also seen strong demand from the SMB [small- to medium-sized business] segment for our voice and data products with record sales results.
“In terms of underlying EBITDA margins, May-June saw healthy margins across the portfolio. At the same time, we continue to take a conservative view on margins into FY22 as labour costs, IT hardware supply chain challenges and availability of IT&T skills potentially impact supply side deployments across the entire industry,” he added.
The company's FY22 guidance also saw a change in rates, with revenue now expected to be between $150 million to $155 million, which would be an increase between 44 per cent to 48 per cent.
Underlying EBITDA, meanwhile, is expected to increase from 12.5 per cent to 13 percent, which the company said reflected its full year FY22 expectations.
“This guidance reflects the organic demand that Spirit is seeing in its product set capability balanced by the cost pressures being experienced in the current tight labour market combined with our intention to accelerate investment in brand, sales people and systems,” the company added.
“Importantly, the earnings guidance is also provided in a volatile context given the continuing lockdowns being experienced across Australia.”
Spirit's unaudited results for FY21 follow a bumper first half of the financial year, which saw it bring in $44 million in revenue and bounce back from a loss in the half-year prior to a profit of $508,000.
It also comes nearly a year after it saw its net profit absorb a $1.5 million loss during FY20.
