Can Comms Group Sustain Growth Amid Rising Competition and Integration Risks?

Domestic Expansion and Strategic Acquisition

Comms Group’s 2025 financial year marked a pivotal phase of growth and consolidation, underscored by the acquisition of TasmaNet. This move not only bolsters the company’s footprint in Tasmania but also adds a substantial portfolio of government and corporate clients, including 29 cornerstone Tasmanian Government customers that account for roughly 40% of TasmaNet’s revenues. The acquisition was funded through a combination of an expanded debt facility and equity capital raise, signaling confidence in the long-term value of this strategic investment.

The domestic business units, comprising Cloud Communications and Collaboration alongside Secure Managed IT Solutions, demonstrated resilience in a competitive market. They maintained steady revenue streams while improving margins and cash profitability, reflecting disciplined cost management and strong customer retention. This solid domestic foundation provides a reliable base for Comms Group’s broader ambitions.

International Growth and Market Reach

On the international front, the Global and Wholesale Unified Communications division continued to execute its growth strategy effectively. The division expanded its product offerings and secured new multinational enterprise customers, deepening partnerships with key service providers. This resulted in a significant uplift in new sales contracts and enhanced strategic importance of existing wholesale relationships. The company’s ability to deliver managed unified communications services across more than 65 countries positions it well to capitalize on the growing demand for seamless global connectivity.

Financial Performance and Future Flexibility

Financially, Comms Group posted a revenue increase to $56.6 million and an underlying EBITDA of $5.7 million, a commendable outcome given the targeted investments in global business resources. Recurring and services income now represent 93% of total revenue, highlighting the strength of its annuity-based business model. New annual recurring revenue contracts surged by 35% to $10.4 million, underscoring the company’s ability to secure sustainable growth opportunities.

Adding to its financial agility, Comms Group secured a refinancing offer from a major Australian trading bank, improving pricing and increasing capacity headroom. This refinancing provides the company with enhanced flexibility to pursue further operational and strategic initiatives, a critical advantage as it navigates a dynamic technology landscape.

Leadership and Outlook

The Chairman’s address also acknowledged leadership transitions, notably the resignation of long-serving Chair John Mackay and the ongoing stewardship of CEO Peter McGrath. The board expressed confidence in the company’s strategic direction and operational execution. Looking ahead, Comms Group appears well-positioned to leverage its expanded capabilities and market reach to sustain growth momentum into FY26 and beyond.