Kordia Group Half Year Results Announcement FY25

Kordia Group, a leading provider of mission critical connectivity, cyber security and cloud solutions, has reported revenue of $73m for the half year ended 31 December 2024. The Group’s EBITDA was $9.1m and the company declared a profit after tax of $0.7m.

Revenues were down by $3.7m year-on-year, with EBITDA also $1.7m behind. This reflects the soft economic conditions and rising costs, as well as expenses associated with the reset of a major contract and divestment from a joint venture with Tait Communications.

Kordia Chair, Sophie Haslem, says the results reflect the consistent delivery to customers by Kordia’s business units.

“Thanks to solid performances by the Maritime and Solutions businesses, as well as continuing demand for cloud and cyber security services, the group is in a steady position to continue the rest of the year,” says Haslem.

Despite challenges in the market, Haslem points to optimism around the group’s strategy, with Neil Livington recently confirmed as CEO. A transformation project is in progress to ensure the business operates efficiently and effectively while demonstrating a clear purpose and strategy.

“In January 2025 the board confirmed the permanent appointment of Neil Livingston as CEO. Neil has been acting CEO since April 2024, and we are very pleased he will steer the company through its transformation,” says Haslem.

“Kordia is navigating economic pressures and working through disruption in the media and government consulting landscape. In addition, the cost to maintain Kordia’s critical assets is increasing considerably. However, Kordia’s transformation programme will support the company to best navigate these challenges, positioning the business to continue to deliver value.”

Business performance

Overall, Kordia’s business units performed well and in line with budget expectations. The company renewed a major 10-year contract with Maritime New Zealand, worth $55m, which sees Kordia continuing to provide safety of life at sea radio communications through its Maritime Operations Centre.

Haslem says: “Kordia has proudly delivered this service for over 30 years and is pleased to continue our partnership with Maritime NZ to deliver this critical service.” The contract also provides for an upgrade of the technology used to deliver the service, as well as maintenance of the VHF coastal radio network.

A new 2-year contract with the Australian Maritime Safety Association (AMSA) to deliver technical support and logistic services has also contributed to a positive performance by the maritime division.

Kordia’s field solutions business had a strong half driven by a good pipeline of new mission-critical projects, including telecommunications and radio broadcasting infrastructure builds and maintenance across New Zealand. Highlighting the critical work Kordia performs, several engineers and technicians were deployed to assist the Vanuatu government restore essential radio communications following the devastating earthquake impacting the Pacific Island nation in December.

Mobile media performed well, due to an active schedule of live sport including cricket and A-league football. The media business has been focused on renewing DTT contracts with broadcasters, as well as supporting the upcoming migration of New Zealand’s Freeview DTH service to a new satellite.

Growth in cyber security and cloud has been a key focus for Kordia, and the company continues to meet market demand with best-in-class managed services and expertise. “Kordia’s contribution to the New Zealand cyber security industry was recognised at the 2024 iSANZ awards, where Kordia was named Best Security Company in New Zealand,” says Haslem.

Demand for cloud services remains high with a YTD increase in revenue of 32% on the prior year. There continues to be a degree of softness in the cyber consultancy space, due to reduced government spending. Connectivity continues to be challenging in a competitive market.

Public Safety Network Contract

Kordia has played a critical role in delivering the Public Safety Network's Land Mobile Radio network. In July 2024, Kordia and Tait agreed to reset the project and its commercials, to simplify both the operational and governance decisions within the customer. Kordia divested its shares in the Joint Venture company and Tait assumed 100% ownership of the entity contracted to lead the project.

The amendments to the contract were signed on 6 August 2024, and Kordia has since continued to work on the PSN project as a subcontractor, with a revised scope better suited to the group’s core strengths – providing mission critical build, design, and colocation services.

At 30 June 2024 the assets sold under the reset agreement were disclosed Assets Held for Sale with the majority being settled in cash during August 2024. Additional costs relating to the reset have been incurred in current financial year resulting in lower profits, however this is expected to improve as the building of new sites ramps up.

Strategy and transformation

In FY24, Kordia completed a strategic review. The findings of this review are informing a transformation programme, which will ensure Kordia has an appropriate level of capability, capacity, internal controls and systems to effectively deliver on its strategy and manage risks. A restructure of the company was confirmed late last year, and once fully implemented in the second half of FY25 will evolve the legacy operating model. The oneoff costs of the strategic review and the subsequent restructuring are reflected in the financial results.

Our People

Kordia employs just over 450 people, encompassing a wide range of skillsets and experience across cyber, cloud, connectivity, and mission-critical infrastructure. Health and safety remain a top priority for Kordia. Ensuring all employees stay safe at work is firmly embedded into the company’s ethos. Kordia’s TRIFR at the end of the first half was 3.04, which is under target. The company’s leadership remains committed to continuously improving health and safety practices and procedures.

Ensuring Kordia attracts and retains the best talent has been a key focus, and to that end the business achieved the Gender Tick accreditation during the Q2. This validates the company’s commitment to building an inclusive workplace for all genders.

Outlook

Haslem says the outlook is encouraging for Kordia, however economic conditions will determine the customer demand. “Kordia is in a good position to grow its position as the New Zealand leader of mission critical technology services and solutions, to further capture market position in cyber and cloud managed services, and to renew important media contracts and expand new innovative product services to customers.