CommsChoice Group Limited (ASX:CCG) (‘CommsChoice’) has today released its financial results for the half year ended 31 December 2019 (1H FY20).
Key highlights from CommsChoice’s 1H FY20 result include:
- Strong return to profitability with Underlying EBITDA of $1.3m and NPAT of $1.5m;
- Revenue of $9.7m which is $1m lower than pcp. One off revenue declined by $1.2m due to higher one-off items from key customer projects in FY19, whilst recurring and usage revenue actually increased by $0.2m.
- Gross margin increased 2% to 47% due to strong cost management;
- New sales contracts signed adding >$100k of monthly recurring revenue (MMR);
- Operating cashflow of $0.4m which includes $1.0m of restructuring cost payments;
- Developed a strong qualified sales pipeline of upcoming projects; and
- Net cash of $1.7m as at 31 December 2019.
Commenting on the 1H FY20 results, CEO and Managing Director Mr Peter McGrath, said: “Following a business restructure at the end of FY19, we are very pleased with the progress that has been achieved in the short period to 1HFY20. CommsChoice has beaten its expectations and continues to see strong demand from business and corporate mid-market customers for our products and services.
“The market opportunity remains significant for CommsChoice with our ability to offer additional value for clients and the latest service offerings in the unified communications space,” he said.
“We are particularly pleased to see the uptake of our MS Teams Calling offering by Australian and overseas corporations, and believe we are now one of the leading players in the market today with this offering."
Further details including a detailed investor presentation can be obtained on the investor section of our website.