This article is from the Australian Property Journal archive
SERVICED offices provider Servcorp (ASX: SRV) continued to expand its footprint over FY24, contributing to growing profits across the year.
SRV posted a statutory NPAT of $39.0 million, up from $11.1 million in FY23. While Underlying net profit before non-cash impairments and tax (NPBIT) was up 18% to $56.6 million from FY23’s $47.8 million.
Underlying free cash was up 18% to $72.5 million, attributed to a strong operating performance driven by continued growth in revenue. With the group’s market guidance of between $50.0 million and $55.0 million NPBIT and underlying free cash of at least $70 million were successfully achieved.
Servcorp posted a final dividend of 13.0 cents per share, 20% fully franked, with total FY24 dividends at 25.0 cents per share. With cash and investment balances currently in excess of $120.0 million, with $115.3 million in cash and cash equivalents. NTA per share was stable at $1.77 per share.
Servcorp now has 141,000sqm in office operations open across 20 countries and 132 floors in 40 cities.
Over FY24, Servcorp opened nine new operations were opened, including four in Australia and New Zealand, two in North Asia, two in the Middle East and one in the USA.
While four locations were close over the period, including one in Australia and New Zealand.
With Servcorp’s ANZ and South East Asia segment profit from mature operations improved to $16.7 million, with profit margin up 4% to 24%.
Servcorp also completed its Middle East reorganisation to establish the Servcorp Middle East group.
Servcorp provided a FY25 guidance of an underlying NPBIT between $61.0 million and $65.0 million and underlying free cash of more than $75.0 million.
“FY24 marked a year of significant progress, with Servcorp delivering record underlying NPBIT and achieved substantial improvement across a majority of performance indicators, particularly in revenue growth from sustainable income sources. Most countries experienced positive progress year on year,” according to the company. “As FY25 begins, strong momentum in business continues. Servcorp remains cautiously optimistic about business outlook in FY25.”
