Stealth Group Holdings - Record Financial Performance in FY2024
STEALTH GROUP HOLDINGS LTD (SGI) Share Update November 2024 Friday 15th
Stealth Group Holdings Celebrates Record Financial Year Amid Economic Challenges
Stealth Group Holdings Limited (ASX: SGI) has announced a remarkable financial performance for the year ending 30 June 2024, achieving record revenue and profit despite economic challenges.
Instant Summary:
- Revenue increased to a record $113.7 million, a 2.4% rise.
- Net Profit After Tax grew by 50.2%, reaching $1.36 million.
- Earnings per Share hit a record 1.34 cents.
- Declared a maiden fully franked dividend of 0.84 cents per share.
- Share price increased by 68% over the year and 62% since July 2024.
- Acquired Force Technology International, contributing $1.9 million in revenue.
Financial Achievements
Stealth Group Holdings has reported a record-breaking financial year for FY2024, with revenue reaching an all-time high of $113.7 million, marking a 2.4% increase from the previous year. This growth was driven by both organic expansion and strategic initiatives aimed at enhancing operational efficiency.
The company's Gross Profit also saw a significant rise, reaching $33.7 million, a 3.4% increase. This was complemented by a 15.5% growth in EBITDA, which climbed to $6.1 million. The Net Profit After Tax surged by 50.2%, totaling $1.36 million, up from $0.90 million in FY2023.
Strategic Developments
In a strategic move, Stealth acquired Force Technology International in June 2024. This acquisition added $1.9 million in revenue in its first month and is expected to have a significant impact in FY2025. Force Technology is a leading distributor of mobile accessories, holding a 5% market share in Australia.
Stealth's acquisition strategy aligns with its long-term vision of providing essential products for everyday use. The acquisition expands Stealth's consumer division, offering a range of world-leading brands and private label products.
Operational Efficiency and Investments
Stealth has invested $1.5 million in technology, systems automation, and supply chain optimization, which has contributed to a 50.2% boost in profitability. The company also closed underperforming branches to streamline operations.
The company's balance sheet reflects its strong financial health, with operating cash inflow of $6.3 million and free cash inflow of $4.7 million. Net debt was reduced by 32.9% to $4.9 million, and cash holdings reached a record $10.1 million.
Stealth's record financial performance is likely to boost investor confidence, as evidenced by the significant share price increase. The strategic acquisition of Force Technology is expected to enhance Stealth's market position and drive future growth.
Investor Reaction:
Analysts are likely to view Stealth's financial results positively, given the company's ability to deliver strong performance amid economic challenges. The acquisition of Force Technology is seen as a strategic move that could provide long-term benefits.
Conclusion:
Investors should consider the positive trajectory of Stealth Group Holdings and its strategic initiatives aimed at sustaining growth. The company's robust financial health and strategic acquisitions position it well for future success.