Cirrus Networks grows through govt and resources wins

Perth-based Cirrus Networks has reported record revenue and earnings in the past financial year due to strong contributions from its government and resources business.

For the year ended 30 June 2023, the ASX-listed managed services provider posted revenue of $112 million, up 8 per cent year over year.

Adjusted EBITDA was $4.8 million, up 127 per cent year over year.

Federal, state and local government customers represented 45 per cent of revenue for the period, while tier one major Australian resources clients represented 25 per cent.

Services revenue was $33.9 million, up 10 per cent year over year, while managed services revenue was $15.4 million - meeting expectations despite a delay from Cirrus’ managed services contract with Iron Water.

Professional services revenue was $18.5 million, 11 per cent up year over year, thanks to improvements in project environment as conditions continue to normalise after post-COVID-19 disruptions to global supply chains and tight labour markets.

Product revenue was 7 per cent higher at $78 million, citing improvement in the company’s sales execution within the enterprise sales team.

Cirrus also reported a product order backlog of $7 million, down from $12 million at 30 June 2022.

“The FY23 result is a very pleasing outcome for the business continuing its renewed momentum," Cirrus managing director Chris McLaughlin said.

"The speed, success and sustainability of the business decisions has led to another strong half result, and a record year for all our key indices," McLaughlin added. 

“Growing revenue and margins on a lower annualised overhead cost run rate comes from having quality staff.

To this end I want to recognize and thank the wonderful Cirrus staff across all our locations who have continued to focus on and deliver great client outcomes and enhanced business value,” he said.

McLaughlin added Cirrus is in its strongest position it has ever been going into a new financial year due to the significant ongoing momentum, growing pipeline of opportunities and “enviable” client base, coupled with a debt-free balance sheet and $13.9 million of cash at year end.

He said these factors provide confidence to deliver continued improvement in FY24 earnings.

Cirrus anticipates the Icon Water contract, its strong backlog, “positive” pipeline of opportunities and strategic focus on higher margin services revenue would deliver a “robust” 2024 financial year, and the balance sheet and cash balance indicates Cirrus will continue pursuing business opportunities to drive strategic growth.

“Although we are pleased with this result we believe that we can improve execution and financial performance as we accelerate into our growing opportunity set.

Strategically we are very well placed in our key locations with large total addressable markets serving a very high-quality client base across government, major resources companies and other enterprise level customers,” he added.

“We move into FY24 with a high degree of anticipation and excitement.”