Rising Losses Overshadow ikeGPS’s Revenue Gains in Latest Results
ikeGPS Group Limited reported a modest revenue increase for the first half of FY2025 but faced a significant rise in net losses, with no dividend declared.
- Revenue from continuing operations up 5.6% to NZD 12.85 million
- Total revenue increased 7.2% to NZD 13.05 million
- Net loss from continuing operations widened 38.6% to NZD 4.37 million
- No interim dividend proposed
- Net tangible assets per security steady at NZD 0.04
Revenue Growth Amidst Rising Losses
ikeGPS Group Limited, a player in the technology sector specialising in geospatial software solutions, has released its unaudited financial results for the six months ending 30 September 2025. The company reported a 5.6% increase in revenue from continuing operations, reaching NZD 12.85 million, alongside a 7.2% rise in total revenue to NZD 13.05 million. These figures suggest that ikeGPS is managing to grow its top line despite challenging market conditions.
Widening Net Losses Raise Questions
However, the positive revenue trajectory is overshadowed by a significant increase in net losses. The company’s net loss from continuing operations expanded by 38.6% to NZD 4.37 million compared to the prior period. This widening loss indicates that operational costs or other expenses are outpacing revenue gains, a concern for investors looking for sustainable profitability.
Dividend Policy and Asset Stability
Reflecting the financial pressures, ikeGPS has not proposed any interim dividend for this period, maintaining a cautious stance on shareholder returns. On a more positive note, the net tangible assets per quoted equity security remained stable at NZD 0.04, suggesting that the company’s asset base has not deteriorated despite the losses.
Looking Ahead
The results announcement was authorised by James Macdonald, who also serves as the contact for investor inquiries. While the unaudited interim financial statements provide a snapshot of the company’s current position, they leave unanswered questions about the drivers behind the increased losses and the company’s strategic response. Investors will be keen to see how ikeGPS plans to convert its revenue growth into profitability in the coming periods.
Bottom Line?
ikeGPS’s revenue gains are encouraging, but rising losses and no dividend signal cautious times ahead.
Questions in the middle?
- What specific factors contributed to the 38.6% increase in net losses?
- How does ikeGPS plan to achieve profitability given the current cost structure?
- Will the company consider resuming dividends once profitability improves?
