HiTech Group cites strong ICT market despite revenue hit
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HiTech Group cites strong ICT market
HiTech Group (HIT:ASX), an IT staffing provider, cited a strong market as profit rose despite a decline in revenue.
The Sydney, Australia-based company reported revenue fell 14.5% to AUD 63.6 million (USD 42.4 million) in its fiscal year ending 30 June. Profit rose 10.9% to AUD 6.0 million (USD 4.0 million).
“HiTech’s core business is the placement of [information and communications technology] contractors and recruitment services to the public and private sectors,” the company wrote in its earnings announcement. “ICT consulting services demand continues to be strong with several IT infrastructure and digital/cyber security transformation projects underway, requiring specialist IT talent.”
CEO Elias Hazouri said the company turned in record profit in its fiscal year 2024 despite revenue falling.
HiTech Group Australia - FY 2024
(AUD) | FY 2024 | FY 2023 | % change | FY 2024 (USD) |
Total revenue | 63,641,159 | 74,477,580 | -14.5% | 42,442,289 |
Gross profit | 12,806,900 | 10,989,942 | 16.5% | 8,540,922 |
Gross margin | 20.1% | 14.8% | 36.4% | - |
Profit | 6,031,458 | 5,437,729 | 10.9% | 4,022,379 |
Share Price
Shares in HiTech Group closed at AUD 2.01 (USD 1.33) on 14 August, little changed from their opening price of AUD 2.00, and were 10.14% above their 52-week low.