Sovereign Cloud Holdings Limited (ASX: SOV) reported an AU$4.0 million increase in group revenue, with underlying revenues growing by AU$1.9 million (41%) because of organic growth, notably in Cloud (up 33%) and Cyber (up 46%). Acquired entities contributed AU$3.4 million in revenue during two months of trading. The gross margin improved to 44%, driven by reduced direct costs and an increased focus on higher-margin cyber security and managed services.
The EBITDA loss decreased by AU$2.4 million, attributed to higher gross profit and lower direct costs. Cash flow management improved, with net outflows reducing by AU$6.5 million. The company’s closing cash balance of AU$27.2 million includes proceeds from an AU$30 million capital raise for acquisitions and related costs. Intangible assets rose significantly because of the acquisitions of PCG Cyber, Venn IT, and Arado, while property and equipment saw a decline of AU$3.1 million.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
