Spirit Technology continues growth hot streak from new contract wins

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Spirit Technology continues growth hot streak from new contract wins
Sol Lukatsky (Spirit Technology)

Spirit Technology Solutions has posted strong revenue, earnings and profit growth as its pivot to IT services through an aggressive acquisition spree continues to pay off.

In the half year ended 31 December 2020, the company reported revenue of $44 million, up 253 percent year over year, and EBITDA of $3.4 million, up 320 percent from $800,000 the previous year.

Spirit also reported $500,000 in net profit after tax, compared to a $700,000 loss reported in H1 of FY2020. Underlying EBITDA, which excludes business acquisition and integration costs, share based payments and restructuring costs, increased 176 percent to $4.4 million.

“This excellent result validates the strength of our business strategy and our sharp focus on execution. It is particularly pleasing to deliver a profitable H1 FY21 in a period of investment in scaling up the business, building a national brand and integrating multiple acquisitions,” Spirit managing director Sol Lukatsky said.

“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.

“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 said the increase in sales was due to increased traction in the SMB and corporate markets, reporting a 221 percent increase in contract value to $23.1 million. Recurring revenue is also up 99 percent to $21.1 million.

The company said the larger value recurring revenue contracts it has secured have a longer duration as a result of Spirit’s new ability to cross-sell its managed services and security offerings, alongside a data product range.

“We are winning materially sized complex contracts across the corporate and enterprise space thanks to our long-standing relationships combined with ability to resource at scale and therefore deliver a competitive offering,” Lukatsky added.

“The Spirit X platform enables us to provide the right data products at attractive price points, overlaying this with high-value MSP service offerings delivered by leaders in their respective fields. The swift integration of the businesses we’ve acquired over the past year has meant we’ve been able to seize these opportunities.”

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