HiTech share price climbs 11% on record full-year results

The HiTech Group Australia Limited (ASX: HIT) share price rocketed to a six-month high today after the company posted a record result for FY22.

Shares in the information and communications technology (ICT) staffing firm are up 11.51% to $2.18 in early afternoon trade.

In contrast, the All Ordinaries Index (ASX: XAO) is falling 0.61 % following a mixed lead from Wall Street overnight.

HiTech full-year results highlights

It isn’t only the increase in revenue and profit that’s getting shareholders excited. HiTech also upped its final dividend by a cent to 6 cents a share.

Management reported double-digit growth in both revenue and earnings. It claimed that this is its eighth consecutive year of double-digit revenue growth.

Below is a summary of the key figures in its FY22 results.

• Operating revenue of $63,096,126, an increase of 49.6% over the previous corresponding period (pcp) (FY21: $42,168,504).
• Gross Profit of $9,304,117, an increase of 31.8% over pcp (FY21: $7,059,491).
• Net profit after tax (NPAT) of $4,403,625, an increase of 21.1% over pcp (FY21: $3,636,602).
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6,757,822, an increase of 29.6% over pcp (FY21: $5,214,886)

HiTech’s shares on an earnings high

Staff shortages, particularly in the technology industry, have been a significant tailwind for the business.

HiTech’s core business is the recruitment of ICT professionals and the supply of contracting services. Its key clients are in the public and private sectors.

Further, there are several digital transformation projects in the works that are further boosting the demand for skilled IT staff.

What did management say?

Commenting on the results driving the HiTech share price today, the company said:

The record FY22 results highlight the company’s successful and continuous efforts predominantly in the government sector, to capitalise on strong demand for ICT talent and services as organisations embark on the complex task of building new digital services and integrating them with legacy national systems.

Many of the embedded ICT based projects will require additional ICT specialists to meet project timelines and additional support personnel post delivery.

Outlook for the HiTech share price

Anyone trying to hire in this environment knows how difficult it is to fill job vacancies. The country continues to suffer from the fallout of the COVID-19 pandemic that restricted travel and migration.

HiTech looks to be a beneficiary of this, and management has painted a positive picture for what lies ahead. But it didn’t quantify the upside for the current financial year.

It did say the company is well placed to capitalise on the “consistent demand” for tech professionals. It added that it is setting its sights on achieving another year of strong returns in FY23.

HiTech share price snapshot

While the HiTech share price may be outperforming today, it’s still down around 8% over the past year. However, it is up more than 11% year to date.

The All Ordinaries Index has shed around 7% over the past 12 months and is down 6% so far this year.

The post HiTech share price climbs 11% on record full-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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