XRF Scientific’s Profit Rise Masks Revenue Stagnation Risks
XRF Scientific Limited reported a 17% increase in net profit for FY2025 despite a 1% decline in revenue, while announcing a higher final dividend and completing a strategic acquisition.
- Revenue marginally down 1% to $59.45 million
- Net profit after tax up 17% to $10.38 million
- Final dividend increased to 4.5 cents per share
- Acquisition of Labfit Pty Ltd contributed additional revenue and profit
- Net tangible assets per share rose to $0.31
Financial Highlights and Profit Growth
XRF Scientific Limited has delivered a solid financial performance for the year ended 30 June 2025, posting a 17% increase in net profit after tax to $10.38 million. This growth comes despite a slight 1% decline in revenue, which fell to $59.45 million from $60.12 million the previous year. The company’s ability to grow profitability amid flat top-line conditions suggests improved operational efficiency or a favourable product mix.
Dividend Increase Signals Confidence
Reflecting its stronger earnings, XRF Scientific declared a final dividend of 4.5 cents per share, up from 3.9 cents in the prior year. This marks a notable increase in shareholder returns, with the dividend fully franked. The record date for dividend entitlements is set for 12 September 2025, with payments scheduled for late September. The company also maintains a dividend reinvestment plan, offering shareholders flexibility in managing their returns.
Strategic Acquisition Bolsters Growth
During the year, XRF Scientific acquired 100% of Labfit Pty Ltd, a Western Australia-based business, on 12 December 2024. Labfit contributed $536,000 in revenue and $91,000 in net profit before tax for the period it was owned. Had the acquisition occurred at the start of the financial year, consolidated revenue and net profit before tax would have been $60.2 million and $14.6 million respectively. This acquisition aligns with XRF’s growth strategy and may provide additional operational synergies going forward.
Balance Sheet and Asset Strength
Net tangible assets per share increased to $0.31 from $0.28, indicating a strengthening balance sheet. This metric reflects the company’s underlying asset base after liabilities and is a positive sign for investors assessing the company’s financial health. Detailed financial statements and segment performance are available in the company’s 2025 Annual Report, which provides further insight into operational trends and future outlook.
Looking Ahead
While revenue growth was modest, the profit uplift and dividend increase demonstrate resilience and effective management. The integration of Labfit Pty Ltd will be a key factor to watch as XRF Scientific seeks to leverage this acquisition for sustained growth. Investors will be keen to see how the company navigates market conditions and capitalises on its strengthened position in the scientific instruments sector.
Bottom Line?
XRF Scientific’s profit surge and dividend hike set a positive tone, but sustaining growth amid flat revenue remains the challenge ahead.
Questions in the middle?
- How will XRF Scientific integrate Labfit Pty Ltd to drive future revenue growth?
- What operational changes contributed to the 17% profit increase despite revenue decline?
- Can the company maintain or increase dividends if revenue growth remains subdued?
