ST1, Spirit Technology Solutions Ltd

[nipper]

Record growth in H1 21 across all key financial indicators:

• Total revenue and other income for the half was $44.0M, up 253% year on year
• Total Recurring & S&P revenue for the half was $43.1M, up 246% YoY
• Recurring revenue up 99% YoY to $21.1M and S&P revenue up 1,089% YoY to $22.1M
• H1 21 Underlying EBITDA to $4.4M, up 176% YoY
• NPAT to $0.5M, up 169% YoY
• Positive Operating Cashflow for H1 FY21 of $4.3M.
• Healthy balance sheet with $23.3M of cash and available debt as of 31 December 2020
• Acquisition integrations ahead of schedule

[nipper]

Spirit Technology Solutions Ltd (ST1), formerly Spirit Telecom Limited, is a telecommunications company which provides Internet, cloud solutions, telephony services and Phone Names in Sydney, Melbourne and Brisbane and the Gold Coast.

In the modern shift away from pure telco service provider to a more integrated tech model, the company changed name. At least the code doesn't change, as it is a shift of emphasis, rather than a totally new direction (and the underlying assumption that previous attempt had failed). It is all about Voice, Data and Cloud (not necessarily in that order), and sectioning the market: Domestic, Small to Medium Business, Corporate, and Government.

It is a small player, growing like many by acquisition, buying up/ out even smaller resellers and local outfits (ITC Managed Services providers)
May '19 : Link One Group
May '19 : Building Connect
July '19 : Arinda IT
July '19 : Phoenix Austec Group
The in Sept, there were management changes.
Feb '20 : Cloud Business Technology
Feb '20 : Trident & Neptune Group
Sept 20 : Reliance IT
Sept 20 : Beachhead Group
Sept 20 : Altitude IT
Dec 20 : Intalock

Of course with this growth and geographical expansion, there is a thirst for capital, with Raisings and SPPs along the way. You would hope the balance sheet is reflecting the expanding business, and the update today shows impressive growth, turning the corner to throw off cash rather than absorb it.

Record growth in Q2 21 & H1 21 across all key financial indicators (unaudited):
• Total revenue for the half was $42.7M, up 243% year on year (YoY).
• Total revenue for the quarter was $27.1M, up 338% year on year (YoY) and 73% on Q1 21.
• Q2 21 recurring revenue up 116% YoY to $11.5M and S&P** revenue up 1,768% YoY to $15.6M.
• H1 21 Underlying EBITDA* in the range of $4.1M $4.4M (H1 20 was $1.6M).
• Positive Operating Cashflow for H1 FY21 of $4.3M.
• Healthy balance sheet with $23.3M of cash and available debt as of 31 December 2020.
• Acquisition integrations ahead of schedule.

Market has rewarded ST1 with a 10% lift, to a new high