The Spirit Technology Solutions Ltd (ASX: ST1) share price is shooting higher today. This comes after the company announced record results for the first-half of the 2021 financial year.
In early-morning trade, the company's shares swapping hands at 44 cents, up 10%.
How did Spirit perform for H1 FY21?
The Spirit share price is soaring today after the tele-communications company advised it had achieved record growth across all key business segments.
For the period ending 31 December, Spirit reported first-half total revenue of $42.7 million, reflecting a 243% increase year-on-year (YoY). The second-quarter did most of the heavy lifting, contributing $27.1 million, a jump of 338% YoY and 73% on the first quarter of FY21.
The robust result for Q2 came from recurring revenue which stood at $11.5 million, indicating a 116% lift YoY. In addition, its solutions and projects revenue delivered $15.6 million to the company. This represented a mammoth 1,768% growth YoY and 155% on the prior quarter. The projects department however did receive government grant infrastructure revenue, driving the sound performance.
Total contract value (TTV) sales soared to $14.1million, accelerating 303% YoY. This was credited to the strong demand for Spirit products from customers. Notably, pending installations, and IT services and technology are in the order book, worth $15.1 million and $6.6 million, respectively.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $4.1 million and $4.4 million. On the prior corresponding period (H1 FY20), EBITDA came in at $1.6 million.
The group recorded positive cash flow of $4.3 million from operating activities for the first-half.
Spirit maintained a healthy balance sheet with $23.3 million in cash at the end of the calendar year.
What did the managing director say?
Spirit managing director Sol Lukatsky welcomed the positive results, saying:
We have had an exceptional first half for FY21. Our record growth has continued as businesses seek to modernise their IT & Telco systems. We're now building scale and taking significant market share across SMB, essential services and corporate segments.
…The integration of Spirit's acquired businesses into a bundled offering is proceeding at speed, is ahead of schedule and already showing significant commercial results – as seen in our Q2 21 numbers. We are still expecting additional upside as the operating model matures in the market in H2 21.
About the Spirit share price
The Spirit share price has tracked well over the past 12 months, gaining more than 100% for investors.
Its shares hit a low of 12 cents in April, and reached a multi-year high of 45 cents in September.
Based on the current share price, Spirit commands a market capitalisation of around $172 million.
