Australia-based recruitment and consulting company HiTech Group Australia (HIT: ASX) reported revenue today for the six months ended 31 December 2023 of AUD 34.0 million (USD 22.2 million), down 16.4% compared to the same period last year.

The group also reported EBITDA of AUD 4.14 million, up 27% over the prior corresponding period.

“The performance of the HiTech Group is exceptionally satisfying,” CEO, Elias Hazouri said. “Our first-half FY24 results set a new record, underscoring the relevance and effectiveness of our service and value creation model. Achieving record profits involved prompt measures to reduce operational costs in areas with unattractive margins. We are now strongly positioned to enhance shareholder returns and fortify our cash reserves.”

“Our unwavering determination to achieve record growth in operating profits, positions us well to continue to supply a critical and essential service to the Australian community,” the company stated. “Despite facing challenges in the first half of FY24, we confronted them with renewed focus and determination. Demand for top-tier ICT talent and services in the government sector persists, despite recent changes in government. I extend my gratitude to our valued clients, candidates, contractors, and our highly dedicated and skilled staff for contributing to another successful half-year record,” Hazouri said.

Looking ahead, the group said it is well positioned to capture market demand for ICT talent and services with a strong balance sheet and long-term supplier agreements in place.

Hitech noted that the Australian government has targeted a reduction in ICT contracting in some agencies.

“We have seen a reduction in contracting agreements leading into the end of the calendar year, however, there are several government agencies still looking to bolster their talent pool, especially in the cyber security and digital infrastructure space which should counter the other agencies’ reduction,” the group stated. “Early signs of continued demand in the federal government sector for specialist IT talent are encouraging. HiTech remains fully prepared to take advantage of the demand for skilled IT talent as and when the opportunities present themselves.”

Hitech Group Australia shares closed at AUD 2.25 (UDS 1.47), up 7.14% on the day and 6.25% below its 52-week high of AUD 2.40 (USD 1.57), set on 19 January 2024. The company has a market cap of AUD 88.62 million (USD 57.9 million).