Visionflex Group Limited (ASX: $VFX) 1H FY24 Financial Report Highlights

Visionflex Group Limited (ASX: $VFX) has reported its financial results for the half-year ended 31 December 2023. The Group achieved an after-tax loss of $0.6 million, marking an 82.5% improvement from the loss of $3.3 million in the comparative 1H FY23 period. The consolidated revenue for 1H FY24 was $4 million, reflecting a 100% growth from the $2.0 million revenue generated in the comparative 1H FY23 period. The Group's principal activities during the financial half-year included the provision of healthcare and corporate online search and appointment booking services, virtual care, and remote diagnostic solutions into both local and international markets.

Executive Commentary on 1H FY24 Financial Performance

The 6 months ending 31 December 2023, has been a period of transformation and substantial growth for Visionflex Group Limited. Following the successful execution of a strategic restructure in FY23, the Group remains resolute in its commitment to catapult the business into an era of profitability with promising results achieved to date. The Group's overall financial performance for 1H FY24 was an after-tax loss of $0.6 million inclusive of the result from the discontinued operation (MyHealth1st). This represents a significant improvement of 82.5% from the loss of $3.3 million generated in the comparative 1H FY23 period after the Group achieved strong sales growth while effectively managing costs and improving operational efficiencies. The Group is strategically focused on substantially increasing the contribution of SaaS revenue to the overall revenue portfolio. Recurring revenue continues to grow quarter on quarter, as new clients purchase the Visionflex solution and existing clients upgrade to new products.

Outlook and Strategic Direction

Visionflex Group Limited (ASX: $VFX) has demonstrated a strong financial performance in 1H FY24, with a significant improvement in after-tax loss and a 100% growth in consolidated revenue. The Group's commitment to concentrating its efforts on high gross margin products and substantially increasing the contribution of SaaS revenue to the overall revenue portfolio reflects its strategic focus on sustainable growth. The decision to strategically exit the PetYeti and GoBookings businesses demonstrates the Group's commitment to enhancing shareholder value and focusing on the core business areas that align with its strategic objectives. The Group's ability to continue as a going concern is primarily dependent upon significantly improved operating financial results, growth of the Visionflex business, and the exiting of loss-making businesses. As a Company listed on the Australian Securities Exchange, the Directors are confident the Group will have the ability to raise capital in the future, if required. The Group is confident of the continued support from its facility providers who are major shareholders and have signed confirmations confirming the facilities will not be called upon for a minimum period of 12 months from 29 February 2024.