Ignite Limited Posts 100% Profit Growth on $90M Revenue

Financial Performance Overview

Ignite Limited (ASX – IGN) has released its audited full-year results for the financial year ending 30 June 2025, revealing a mixed but ultimately positive performance. While the company experienced a 6.7% decline in revenue to $90.156 million, it managed to more than double its net profit after tax to $1.235 million, compared to $616,000 in the previous year. This improvement was underpinned by a stronger gross profit margin and disciplined cost management.

The gross profit margin rose from 12% to 13%, reflecting a strategic shift towards a more profitable business mix. Despite the revenue dip, total gross profit edged up slightly by 0.7% to $11.7 million, signaling effective margin enhancement efforts.

Operational Efficiency and Cost Management

The company’s focus on productivity is evident in its headcount reduction from 44 to 40 employees, even as employee benefits expenses increased marginally by 1.8%. This suggests a leaner workforce delivering improved output per employee. Occupancy expenses rose modestly by 5.4%, but overall cost control appears to have contributed positively to the bottom line.

Ignite’s cash position strengthened significantly, with cash and cash equivalents rising to $5.321 million, supported by net operating cash flow of nearly $2 million. Notably, the company did not draw on its debtor facility, indicating robust internal cash generation and financial discipline.

Dividend and Shareholder Returns

In a confident move, Ignite declared a fully franked final dividend of $0.035 per share. The reinstated Dividend Reinvestment Plan (DRP) offers shareholders a 5% discount, encouraging reinvestment and signaling management’s commitment to shareholder value. This dividend marks a positive return amid a challenging revenue environment.

Business Segments and Outlook

The Specialist Recruitment segment remains the dominant revenue contributor, accounting for 98.7% of continuing operations, with Technology Solutions making up the remainder. While the report does not provide explicit forward guidance, the improved profitability and cash flow position suggest the company is well placed to navigate ongoing market challenges.

Investors will likely watch closely for further commentary in the forthcoming full annual report and any strategic updates that could clarify Ignite’s growth trajectory and market positioning.