IGNITE Doubles Profit Amid Revenue Dip, Declares Dividend
IGNITE Limited reports a notable turnaround with statutory profit doubling despite a 7% revenue decline, alongside a reinstated dividend reinvestment plan and a fully franked dividend.
- Statutory profit doubles to $1.235 million
- Revenue declines 7% to $90.156 million
- Gross profit margin improves to 13%
- Final fully franked dividend of $0.035 per share declared
- Company holds $5.3 million cash with zero debt
Financial Performance Overview
IGNITE Limited (ASX – IGN) has delivered a mixed but ultimately positive set of full-year results for the period ending 30 June 2025. While revenue fell by 7% to $90.156 million, the company managed to increase its gross profit margin from 12% to 13%, reflecting improved cost management and operational efficiencies. This margin expansion helped drive statutory profit to $1.235 million, a 100% increase compared to the previous year.
Underlying profit, which adjusts for one-off costs such as restructuring and legal fees, rose 40% to $1.417 million, signaling a more sustainable earnings improvement. EBITDA also grew by 34% to $1.387 million, underscoring stronger core profitability despite top-line pressure.
Cash Position and Capital Management
IGNITE’s balance sheet remains robust, with $5.3 million in cash and no debt, providing a solid foundation for future growth initiatives. Net cash from operating activities was $1.987 million, down from the prior year but still positive, supporting ongoing operations and shareholder returns.
The Board declared a fully franked final dividend of $0.035 per share, payable on 12 September 2025. This dividend signals confidence in the company’s cash flow and profitability trajectory. Additionally, IGNITE reinstated its dividend reinvestment plan (DRP) with a 5% discount, encouraging shareholders to compound their investment at a favorable rate.
Strategic Outlook and Leadership Commentary
Executive Director Cameron Judson highlighted the company’s focus on productivity and performance, emphasizing the leadership team’s commitment to continuing the successful turnaround. Judson expressed optimism about delivering year-on-year profit growth in FY26, suggesting that the company’s efforts to streamline operations and reward employee contributions are beginning to bear fruit.
Despite the revenue decline, the improved profitability metrics and strong cash position suggest that IGNITE is navigating market challenges effectively. The reinstatement of the DRP and the dividend declaration also indicate a shareholder-friendly approach, which may help maintain investor confidence as the company pushes forward.
Bottom Line?
IGNITE’s profit momentum and shareholder returns set the stage for a pivotal FY26 amid revenue headwinds.
Questions in the middle?
- What specific factors contributed to the 7% revenue decline despite profit growth?
- How will IGNITE sustain profit improvements in the face of ongoing market pressures?
- What uptake is expected from the reinstated dividend reinvestment plan among shareholders?
