SOCO Corporation AGM reveals key insights

SOCO Corporation (ASX:SOC) held its Annual General Meeting where the Chairman discussed the company's FY24 performance and outlined expectations for FY25. The year included significant changes, such as the integration of Axsym and leadership transitions, leading to a 12% revenue growth. However, profit was impacted by Federal Government contract pauses.

SOCO Corporation's strategic outlook

During the AGM, SOCO Corporation highlighted the successful integration of Axsym, contributing to a 12% increase in revenue. Leadership changes occurred with the resignation of former CEO Simon Forth and the appointment of founder Sebastian Rizzo as CEO. Profitability was challenged due to Federal Government contract pauses, but improved profit levels were achieved by Q4 FY24. The company expects a 30% revenue growth in FY25 with stronger performance anticipated in the latter half. Changes in executive incentives now focus on long-term performance. A revision in revenue recognition policy was also made, impacting revenue figures for FY23 and FY24 but not profit. SOCO aims to maintain its competitive edge by providing exceptional employment experiences and targeting government and large corporate markets.

Executive insights from SOCO Corporation AGM

The year was challenging but marked by significant changes, including the integration of our first acquisition, Axsym, which contributed to a 12% revenue growth. Despite the revenue increase, we faced a considerable drop in profit due to Federal Government contract pauses affecting the IT and consulting industry broadly. Under the new leadership of Sebastian Rizzo, we returned to better profitability by the fourth quarter of FY24 and expect approximately 30% revenue growth in FY25.