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Highlights
- SXE achieved its highest-ever profit for the second consecutive year in FY24, with a revenue increase of 18.8% YoY to AUD 551.9 million and an order book of AUD 720 million.
- The company acquired MDE Group for AUD 10.55 million. This is expected to contribute at least AUD 5 million to FY25 revenue.
- With a projected 32% increase in EBITDA in FY25, the company anticipates further growth fuelled by infrastructure, decarbonisation, and data centre expansion.
Southern Cross Electrical Engineering Limited (ASX:SXE) is an ASX-listed company offering electrical and communication services. The company primarily provides electrical, instrumentation, communication, and maintenance solutions.
In the financial year ending 30 June 2024, the company recorded its largest-ever profit for the second consecutive year, boasting a record order book of AUD 720 million (up 18% YoY) and a cash balance of AUD 84.1 million (up 8.3% YoY). Revenue for the year rose by 18.8% YoY to AUD 551.9 million, surpassing the targeted guidance of over AUD 500 million. This growth was largely supported by increased revenue from the commercial and infrastructure sectors.
During this period, EBITDA rose by 5% YoY to AUD 40.1 million, and NPAT increased by 9.1% YoY to AUD 21.9 million. The company announced a final dividend of 5 cents per share, up 25% YoY.
The company noted that three structural tailwinds—infrastructure, data centres, and electrification and decarbonisation—present substantial growth opportunities.
Acquisition of MDE
In May 2024, the company announced the acquisition of MDE Group, an east coast communications specialist, for AUD 10.55 million. MDE Group offers electrical, data, and communication services for construction and fit-out projects in several sectors. Southern Cross expects this acquisition to contribute at least AUD 5 million to FY25 revenue, with further growth anticipated in subsequent years.
Outlook
In FY25, the company targets EBITDA of AUD 53 million, representing a 32% YoY increase, with additional growth expected in FY26 and beyond. This outlook is supported by a record-breaking order book and key structural drivers: ongoing infrastructure development, decarbonisation and electrification initiatives, and data centre expansion.
Share performance of SXE
SXE shares closed 0.95% lower at AUD 1.570 on 11 November 2024. In the past one year, SXE’s share price has increased by whopping 79.43%, while in the past three months, the share price has dropped by almost 6.27%.
52-week high of SXE is AUD 1.96, recorded on 26 August 2024, while 52-week low is AUD 0.81, recorded on 28 November 2023.
SXE Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 11 November 2024. The reference data in this report has been partly sourced from EODHD/Others.
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