Servcorp has reported a robust first half for FY2026, with underlying profit soaring 34% and a strong dividend declared, signalling sustained momentum despite economic uncertainties.
- Underlying net profit before tax rises 34% to $47.0 million
- Operating revenue grows 11% to $182.0 million
- Underlying free cash flow up 30% to $52.7 million
- Interim dividend declared at 16.0 cents per share, 10% franked
- Full-year dividend guidance maintained at no less than 32.0 cents per share
Strong First Half Performance
Servcorp Limited has unveiled a record-breaking first half for the 2026 financial year, posting an underlying net profit before tax of $47.0 million, a significant 34% increase compared to the same period last year. This impressive growth was underpinned by an 11% rise in operating revenue, which reached $182.0 million, reflecting steady demand for the company’s workspace solutions across its global footprint.
The company’s underlying free cash flow also surged by 30% to $52.7 million, highlighting robust operational cash generation and financial discipline. These results underscore Servcorp’s ability to capitalize on its extensive network of 135 floors in 38 cities across 19 countries, maintaining its position as a leading provider of premium workspace and IT infrastructure services.
Dividend and Shareholder Returns
In line with its strong financial performance, Servcorp declared an interim dividend of 16.0 cents per share, 10% franked, payable on 1 April 2026. The company also reaffirmed its commitment to shareholders by forecasting full-year dividends of no less than 32.0 cents per share, although the level of franking remains uncertain. This guidance reflects confidence in sustained earnings and cash flow generation, balanced against ongoing global economic and currency uncertainties.
Servcorp’s net tangible assets per share increased by 7% to $2.32, further strengthening the company’s balance sheet. With cash and investment balances exceeding $150 million, Servcorp is well-positioned to navigate potential market volatility while continuing to invest in growth opportunities.
Outlook Amid Economic Uncertainty
Looking ahead, Servcorp reaffirmed its full-year guidance for underlying net profit before tax between $80.0 million and $84.0 million, alongside underlying free cash flow exceeding $100 million. The company emphasised a conservative growth approach, mindful of currency fluctuations and the broader economic environment. This cautious optimism suggests Servcorp is confident in its business model’s resilience but remains vigilant to external risks.
CEO Alf Moufarrige highlighted the sustainable momentum achieved in the first half and the company’s commitment to maintaining disciplined growth. The upcoming results presentation and online webinar will provide further insights into Servcorp’s strategy and market positioning.
Bottom Line?
Servcorp’s record half-year results and solid dividend outlook set the stage for cautious optimism amid global uncertainties.
Questions in the middle?
- How will currency fluctuations impact Servcorp’s full-year performance and dividend franking?
- What strategies will Servcorp employ to sustain growth across its diverse international markets?
- How might global economic uncertainties influence Servcorp’s conservative growth guidance?