StepChange Holdings Limited reported a $2.69 million loss for its inaugural financial period ending June 2025, completed a significant $18.3 million acquisition, and successfully listed on the ASX in July 2025.
- Loss of $2.69 million for period ended 30 June 2025
- Successful ASX listing raised $14.7 million before costs
- Acquisition of StepChange Consultants Pty Ltd for $18.3 million post-reporting period
- Granting of 4 million share options to key executives
- No dividends declared; audited with unmodified opinion
A New Entrant in IT Services
StepChange Holdings Limited, a freshly incorporated IT services company, has marked its first financial year with a $2.69 million loss. Founded in June 2024 and listed on the Australian Securities Exchange (ASX) just over a year later, the company is positioning itself as a consolidator in the IT services sector.
Financial Performance and Capital Raising
The loss reported for the period ending 30 June 2025 reflects the typical early-stage expenses of a company in growth mode, including legal, accounting, and consultancy fees associated with its Initial Public Offering (IPO) and acquisition activities. Despite the loss, StepChange successfully raised $14.7 million (before costs) through its IPO at $0.20 per share, providing a solid capital base for expansion.
Strategic Acquisition Post-Reporting Period
Shortly after the reporting period, StepChange completed the acquisition of StepChange Consultants Pty Limited for $18.3 million, a deal structured with $10.8 million in cash and 37.5 million shares valued at $7.5 million. This acquisition is a critical step in the company’s strategy to build scale and capability in the IT services market. The financial impact of this acquisition will be reflected in future reporting periods.
Executive Incentives and Governance
StepChange has granted 4 million share options to its managing director Shane Bransby and chief financial officer Richard Jarvis as part of their remuneration packages, aligning executive incentives with shareholder value creation. The company’s governance framework follows ASX best practice recommendations, with an experienced board including industry veterans Geoffrey James Lewis and Adam Thomas Simpson.
Outlook and Market Positioning
While no dividends were declared in this initial period, the company’s focus remains on growth and integration of its recent acquisition. The successful IPO and acquisition signal StepChange’s intent to establish itself as a meaningful player in the IT services sector. Investors will be watching closely for the company’s ability to meet EBITDA targets and deliver on its strategic milestones.
Bottom Line?
StepChange’s maiden financials and strategic moves set the stage for a pivotal year ahead as it integrates its acquisition and seeks to translate capital into growth.
Questions in the middle?
- How will the acquisition of StepChange Consultants impact the company’s earnings and cash flow in FY26?
- What are the specific EBITDA targets tied to executive incentives, and how realistic are they given current market conditions?
- How will StepChange manage potential dilution from share options and new equity issuances post-IPO?