The Spirit Technology Solutions Ltd (ASX: ST1) share price is up 1.3% in afternoon trading. This was slightly down, having been up more than 8% earlier today. At the time of writing, the Spirit Technology share price is sitting at $0.39.
We take a look at the telecommunication and cloud services provider's results for the financial year ending 31 December (H1 FY21) below.
What financial results did Spirit Technology report for H1 FY21?
The Spirit Technology share price got a boost from this morning's ASX release, revealing revenue and other income of $44.0 million for the half-year. That's a 253% increase from the prior corresponding period (pcp). Additionally, total recurring revenue leapt 99% from the prior corresponding period to $21.1 million.
Spirit indicated that securing higher value recurring revenue contracts for longer durations has helped drive the total revenue lift. Undoubtedly, this was credited to its ability to cross-sell its premium managed services and cybersecurity offerings atop its data offerings.
The company rebounded from a net profit after tax loss (NPAT) of $740,000 in H1 FY20 to report a positive NPAT of $508,000.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 176% year-on-year to $4.4 million.
Spirit Technology reported a positive operating cash flow for the half-year of $4.3 million. Additionally, with $23.3 million of cash and available debt as at 31 December.
Comments from the Director
Regarding the half-year results, Sol Lukatsky, Spirit Technology's Managing Director, said:
It is particularly pleasing to deliver a profitable H1 21 in a period of investment in scaling up the business, building a national brand and integrating multiple acquisitions. We've been able to adeptly respond to the changing needs of business, as their IT&T needs become increasingly complex by delivering a comprehensive bundled offering across cloud, voice, data, managed services and cyber security with a strong customer focus.
Looking ahead, Lukatsky added, "We have further growth in our sights as we launch new products, continue to expand our reseller network and realise the benefits of the investments made over the past year and during 2021."
Spirit Technology share price snapshot
The Spirit Technology share price has been an outperformer over the past 12 months, with shares up 95%. That compares to a 0.4% gain on the All Ordinaries Index (ASX: XAO) over that same time.
Year-to-date the Spirit Technology share price is down 2%.
