HiTech FY2026 revenue falls 3.2% as NPAT drops to $4.11 million

Profit declines as recruitment demand softens

HiTech Group Australia Limited (ASX:HIT) entered FY2027 with a larger strategic ambition but a smaller earnings base. Revenue for the year ended 30 June 2026 fell 3.2% to $65.95 million, while underlying net profit after tax dropped to $4.11 million from $6.38 million a year earlier. Basic and diluted earnings per share declined to 9.70 cents from 15.08 cents.

The financial statements report sales revenue of $65.61 million, with the higher $65.95 million figure including other revenue, primarily interest income. Profit before tax fell to $5.87 million from $8.93 million, as gross profit declined to $9.43 million from $12.66 million. HiTech attributed the result to a difficult economic climate and reduced federal government spending, while saying demand for specialised ICT talent remained strong.

Cash generation supports the Hudson expansion

The balance sheet provides a measure of financial resilience. HiTech held $10.56 million in cash at 30 June, up from $9.65 million, and reported no debt. Operating cash flow almost doubled to $5.07 million, despite the lower profit, helped by movements in receivables, payables and provisions. Net tangible assets rose to 28 cents per share from 27 cents.

That cash position was achieved alongside $4.02 million in dividend payments. The board declared a fully franked dividend of 4 cents per share, although the report describes it inconsistently as both paid and due to be paid on 22 September 2026. The subsequent-events note sets the total dividend at $1.692 million and gives 7 September as the record date.

Hudson deal changes the scale of the business

After the reporting date, HiTech completed the acquisition of selected Hudson Global Resources Australia assets on 11 September for $5.1 million upfront, with approximately $3.9 million in deferred consideration. The chairman said the transaction was expected to strengthen HiTech’s market position, expand its capabilities and enhance returns, but the annual report does not provide a forecast contribution to FY2027 revenue or earnings.

HiTech subsequently announced a $4 million institutional share issue on 16 September. The funds, less fees, were due to become available on 23 September. The transaction gives the company additional funding around the acquisition, but also means the post-deal capital structure and future earnings profile will need to be assessed against a business that produced $4.11 million of profit before the Hudson assets were added.

Recurring contracting revenue remains the core test

ICT contracting and consulting remained HiTech’s principal revenue engine, with the group supplying permanent and contract staff across areas including cloud integration, cybersecurity, infrastructure, operations and project management. Management said the government and private sectors continued to seek specialised ICT skills, while identifying office support, human resources, finance and professional services as smaller areas with room to grow.

The directors offered no precise FY2027 forecast, saying the outlook would depend on local and global economic conditions. The next results will therefore need to show whether Hudson expands recurring contracting revenue and cash generation quickly enough to offset the weaker starting point, while clarifying the cost of integration and the obligations attached to the deferred consideration.