Austco Healthcare – 2025 Interim Results Summary
Overall Report Tone
Austco Healthcare (ASX: AHC) has reported strong revenue and EBITDA growth for 1H FY25, reflecting the successful integration of Teknocorp and Amentco acquisitions, as well as solid organic growth across Asia and North America. The company exceeded the upper end of its previously provided revenue and EBITDA guidance, highlighting strong operational leverage and unfilled contracted revenue of $50.2 million.
Financial Performance Summary
| Metric | 1H FY25 (Dec 2024) | 1H FY24 (Dec 2023) | Change (%) |
|---|---|---|---|
| Revenue | $36.9m | $22.8m | +61.6% |
| Adjusted EBITDA | $5.2m | $2.1m | +149.9% |
| Operating Cash Flow | $2.2m | $1.9m | +20.2% |
| Adjusted EBT | $3.9m | $1.0m | +269.9% |
| Normalised EPS (Basic) | 0.808c | 0.402c | +101.0% |
| Dividend Declared | None | None | – |
Key Highlights
📈 Record Revenue Growth:
- Revenue increased 61.6% YoY, reaching $36.9 million, at the upper end of the previously forecast $35.8m – $36.9m range.
- Acquisitions Teknocorp & Amentco contributed $11.9 million, validating Austco’s growth-through-acquisition strategy.
🚀 Strong EBITDA Performance:
- EBITDA surged 150% to $5.2m, exceeding the upper guidance of $4.5m – $5.1m.
- Increased revenue contributed significantly, despite a small decline in gross margins (51.1% vs. 51.9%) due to lower-margin acquisitions.
💰 Cash & Balance Sheet Strength:
- Cash balance of $14.9m (including $4.7m in term deposits).
- Debt-free status supports future expansion initiatives.
🛠 Software & SMA Growth:
- Software & Subscription revenue grew 15% YoY to $4.6m, now making up 12.5% of total revenue.
- Software & SMA revenues account for 19.4% ($9.7m) of the Unfilled Contracted Revenue (UCR), positioning it as a future growth driver.
Positive Surprises / Potential Concerns
✅ Exceeding Market Guidance: Revenue and EBITDA exceeded previous ASX guidance.
✅ Organic Growth Momentum: 19% organic revenue growth, particularly in Asia and North America.
⚠️ Gross Margin Pressure: Margins slightly decreased due to acquired businesses having lower gross margins.
⚠️ No Dividend Declared: The company chose not to pay a dividend to fund further organic and inorganic growth.
Results vs. Market Expectations
📊 Revenue & EBITDA at the Upper End:
- Both revenue and EBITDA exceeded the top end of prior market guidance, demonstrating operational efficiency.
📈 Strong Unfilled Contracted Revenue (UCR):
- UCR remained steady at $50.2 million, showing continuing sales momentum.
📉 Tax Expense Impact:
- Compared to previous periods where tax credits were received, the company recorded a $0.9m tax expense, reducing net profit growth.
Outlook & Guidance
🔮 Continued Growth Expected:
- Historically, 2H performance has been stronger than 1H, indicating further upside potential.
💾 Software Expansion Strategy:
- Software & SMA growth remains a priority, especially as the acquired businesses integrate higher-margin services.
📌 Acquisition Strategy to Continue:
- Management remains open to further acquisitions, reinforcing its buy-and-build model.
💡 Focus on Cash Generation:
- Despite investment in growth, cash flow generation remains positive, supporting long-term sustainability.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:AHC