Specialised communications and managed IT services provider Comms Group has delivered revenue ($56.6 million) and underlying EBITDA ($5.7 million) for FY25 at the top end of its guidance range.
While revenue was up 2 per cent on FY24, underlying EBITDA did decline when compared to FY24 ($6.6 million) due to higher costs, attributable predominantly to additional resources added to the company’s Global & Wholesale Unified Comms division.
Comms Group also saw a total of $10.4 million in new annual recurring revenue in sales contracts won during the financial year, an increase of 35 per cent over FY24.
TasmaNet acquisition currently being integrated
In May, Comms Group signed a binding agreement for the $10 million acquisition of the business and assets of communication and managed IT services provider TasmaNet, and select assets of the broader Field Solutions Holdings Group.
Key focus areas outlined by Comms Group for FY26 include the transition and integration of TasmaNet, along with the integration and rationalisation of duplicated networks and platforms to reduce overall costs and enhance capabilities.
The company said that the integration and transition of Tasmanet is currently going to plan with key customers (including 30+ Tasmanian government entities) novated.
National network and Private Cloud technology stacks that were acquired are currently being rightsized for the group, with a synergy and rationalisation plan commencing in Q2 FY26.
Comms Group said it expects to have a transition plan and network rationalisation program completed within six to nine months of acquisition, with early indications are that annualised financial estimates expected to track in line with expectations subject to successful transition.
New sales have already started to flow in, including two key deals won with a key aquaculture player and a NSW government agency for a Wi-Fi and CCTV deal.
Two out of three divisions post positive revenue
As well as its Global & Wholesale Unified Communications division, which under the Comms Group Global brand services enterprise and wholesale customers with UCaaS and wholesale voice services, the company also has a Secure Managed IT Solutions division under the onPlatinum brand, a managed IT and cloud services provider, and a Communications & Collaboration division under the Next Telecom brand, a full-service telco service provider to SMEs, enterprise and government.
The Communications & Collaboration division will also include TasmaNet once integrated.
The Communications & Collaboration and Global & Wholesale Unified Comms divisions rose slightly in terms of revenue, finishing FY25 with $24.3 million and $13.1 million respectively (up from $23.9 million and $12.3 million in FY24), with Secure Managed IT Solutions suffering a neglible drop in revenue to $19.2 million in comparison to FY24’s $19.3 million.
Looking ahead to FY26, Comms Group said that for the Global & Wholesale Unified Communications division, it intends to leverage its growing footprint and capabilities to provide key services to additional MNCs and wholesale partners.
For the Collaboration and Communication division, Comms Group said it aims to enhance its direct sales network and reseller partners to target additional government and mid-market customers.
In the Secure Managed IT Solutions division, the company said it continues to see strong opportunities in the mid-market corporate and government sectors, where cross sell opportunities are being driven by the adoption of best-of-breed workplace solutions.
In FY26, it aims to explore additional opportunities with newly gained customers from the TasmaNet acquisition.
Looking to accelerate organic growth
Comms Group CEO Peter Mcgrath said FY25 was a pivotal year for Comms Group, with highlights being the acquisition of TasmaNet and the continued scaling of the company’s Global & Wholesale Unified Comms business, a key driver of organic revenue growth.
“Comms Group achieved revenue and earnings at the top end of the revenue and EBITDA guidance range whilst undertaking the TasmaNet acquisition, a major achievement and testament to the dedication of the incredible team we have at Comms Group,” he said.
“The step change in annualised revenue, EBITDA and free cash flow to occur over the coming months lays the groundwork for the company’s next phase of growth.
“Looking forward, we remain focused on integrating TasmaNet to unlock cross-sell and synergies, while driving disciplined execution to accelerate organic growth across all three divisions.”
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