Hubify (ASX: $HFY) 1H FY23 Results Overview

Hubify Limited (ASX: $HFY) has reported its financial results for the half year to December 2023, with managed services revenue increasing by 30% compared to the previous corresponding period (pcp). The company also saw a 19% growth in managed services recurring revenue. Additionally, there was a $3.5 million reduction in annualised salary and wages costs effective February 1st, 2024, compared to the first half of FY24. The company also settled the Connected Intelligence Acquisition with share consideration of $0.45 million to be issued at $0.03 per share.

Executive Commentary on 1H FY23 Results

Hubify Limited CEO, Victor Tsaccounis, expressed satisfaction with the company's performance, emphasizing the focus on Managed Services and the shift in strategy to achieve double-digit organic growth and net profit in the Managed Services and Cyber Security Divisions. He highlighted the company's strong cash position with no bank debt, positioning it well for continued investment in capability to execute on its organic growth goals and explore accretive acquisition opportunities in a fragmented market.

Summary of 1H FY23 Results and Outlook

Hubify (ASX: $HFY) achieved significant growth in managed services revenue and recurring revenue, along with a reduction in annualised salary and wages costs. The company's cash position remains strong with no bank debt, providing a solid foundation for future investments and exploration of acquisition opportunities. The Managed Service Division continues to be a major pillar of the business, with a focus on expanding Enterprise customer offerings and leveraging experience in providing solutions to the NDIS sector and specialist security projects within Retail & Warehousing. The company aims to drive a growing pipeline of new clients within these industries to improve annual recurring revenue in the Managed Services and Cyber Security divisions. Despite challenges from the Optus Network Outage, the company has stabilized its operations and reduced administration costs, ensuring stable underlying cashflow for the second half of FY24.