Comms Group Limited announces strong performance and strategic review at AGM
SYDNEY, AUSTRALIA: Comms Group Limited (ASX: CCG), a leading provider of cloud communications solutions for global businesses, held its annual general meeting (AGM) on Tuesday, November 21, 2023.
The company’s CEO, Peter McGrath, delivered a positive update on the company’s performance and outlook, as well as the progress of the strategic review initiated by the board in June 2023.
Mr. McGrath said that the company is seeing strong performance across all three business units in the first quarter of the financial year 2024 (FY24).
He reaffirmed the company’s FY24 revenue target of $53 million to $55 million and FY24 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) target of $6.5 million to $7 million.
He also highlighted the company’s achievements in the previous financial year 2023 (FY23), which included a 27% increase in revenue to $51.9 million, a 17% increase in underlying EBITDA to $4.8 million, and a 27% increase in gross profit to $24.2 million.
He attributed the growth to the company’s diversified portfolio of cloud communications products and services, which include communications platform as a service (CPaaS), unified communications as a service (UCaaS), and IT services.
Mr. McGrath said that Comms Group is a leader in Microsoft Teams calling for global businesses, with a network reach of over 120 countries and territories.
He said that the company’s goal is to be the leading provider in the Asia Pacific region for both CPaaS and UCaaS offerings, and that the company is expanding its network into new markets such as South America, South Africa, and the Middle East.
He said that the company is currently rolling out new customer facing systems for both its CPaaS and UCaaS offerings, with the aim of automating and streamlining many of the interactions with its key wholesale customers.
Mr. McGrath also updated the shareholders on the status of the strategic review, which was commenced by the board in June 2023 to consider all options available to the board, including a potential sale of one or more of Comms Group’s businesses, in order to maximise shareholder value.
He said that the company has received interest in a number of its business units, and that the assessment as to whether any business units will be sold or retained is still underway.
He said that all business units are performing well, with strong underlying growth expected across the board. He said that the company is seeing excellent cross-sell opportunities between its domestic IT services and telco businesses, and that the global business is seeing strong growth potential from a number of key wholesale clients.
He said that the board is keen to see further investment in and expansion of the global business, which he believes has a significant competitive advantage in the market.
Mr. McGrath concluded his speech by thanking the shareholders for their continued support and confidence in the company, and said that he looks forward to delivering further value to them in the future.
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