Spirit Technology Solutions has reported strong revenue growth for its security business in the financial year ending 30 June 2024.
Contributing to this result were a number of "significant multiyear cyber managed services deals" which will be delivered from its Brisbane SOC.
Unaudited results show the company's Intalock division secured $42 million in contract wins and renewals in FY24, up 24 percent on the prior corresponding period.
Intalock recorded $19.4 million in sales during the fourth quarter of FY24 which included "a number of significant multiyear cyber managed services deals."
In June 2024, Intalock achieved a record $7 million in revenue, up 55 percent on the prior corresponding period.
Spirit announced it was the "strongest sales quarter in its history."
Its InfoTrust business, which the company acquired in April 2024, achieved its earnings before taxes, depreciation and amortisation (EBITDA) target of $4.4 million. Spirit expects "strong demand for its services continuing into FY25."
Communication, managed services divisions
Spirit reported its "best-ever June sales month" in the communication and collaborations segment following a first half of FY24 "significantly impacted by low business confidence."
That business signed $5.4 million in total contract value (TCV) by securing deals with more than 380 new customers and more than 120 customers signing 5-year contract renewals.
Meanwhile, its managed services segment achieved its first profitable month in June 2024 following a two-year restructuring program, recording TCV of $5 million in new contracts and renewals in Q4 of FY24.
Preliminary results for FY24
Spirit reported preliminary unaudited group revenue for FY24 to exceed $125 million, compared with $127 million in the prior corresponding period.
It announced preliminary unaudited EBITDA to exceed $1.6 million, compared with $5.2 million in FY23.
The preliminary unaudited results show a statutory loss of between $9.6 million and $11 million for FY24, comapred with the $11.4 million loss reported in FY23.
Expects growth in FY25
The company "expects continued improvement" in its managed services in FY25 and projects that business unit will deliver a "modest" unaudited EBITDA in FY25 for the first time.
It predicted its strategy of selling combined cybersecurity and managed services would "enable strong organic growth over a three-year strategic horizon, with the pipeline of opportunities expected to grow."
Spirit managing director and CEO Julian Challingsworth stated: "We are excited to report our strongest quarter in terms of total contract value as well as our largest contracts to date with a number of major clients including our first significant combined cyber and managed services contracts."
"After a challenging year focused on stabilising and restructuring managed services, these wins show Spirit commences FY25 with significant momentum and a strong base to grow our new market offerings."
