Kordia Group, a leading provider of mission critical connectivity, cyber security and cloud solutions has reported a revenue of $77m for the half year ended 31 December 2023. The Group’s EBITDA was $10.9m and the company posted a profit after tax of $1.3m.
Kordia Chair, Sophie Haslem, says the results reflect the solid performance of Kordia’s business units, with revenues growing $8m year on year.
“EBITDA is $2m lower year on year, due to softening economic conditions and rising costs across our business, coupled with costs associated with the delivery of the PSN project.”
Business performance
Growth in Cyber and Cloud has been a key focus for Kordia, and the company continues to meet market demand with best-in-class solutions and expertise.
“Revenues have lifted in Managed Security and Cloud by 25% and 57% year-on-year respectively, demonstrating the business’s ability to capture new growth and leverage cross-sell opportunities within Kordia’s existing customer base,” says Haslem.
There continues to be a degree of softness in the cyber consultancy space, due to early signs of economic slowdown.
Kordia’s Solutions business had a very strong start to FY24 driven by a good pipeline of new mission-critical projects. The Maritime businesses traded in line with expectations, reflecting the solid underpinning of contracted work.
The Mobile Media division had an active year to date, thanks to a robust schedule of sporting events, such as Summer of Cricket and the Women’s Football World Cup.
Through the Tait-Kordia joint venture, Kordia has delivered mission-critical communications infrastructure services for the Land Mobile Radio component of the new Public Safety Network, Te Kupenga Marutau. The project has incurred elevated working capital and associated costs.
As a result of elevated working capital requirements across the group, a half year dividend has not been declared.
Our People
Kordia now employs over 490 people, encompassing a wide range of skillsets and experience across cyber, cloud, connectivity, and mission-critical infrastructure.
The excellent employee engagement score of 83% and NPS score of 54 demonstrates the company’s strong culture and dedication to providing “The Kordia Experience” to the many private and public organisations that it counts amongst its customers.
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 4.07, which is under our target. The company’s leadership remains committed to continuously improving health and safety practices and procedures.
Kordia’s people were recognised in recent industry awards, with notable wins at the Reseller News Innovation Awards and the Women in Security Awards. A senior cyber professional was also named a finalist in the iSANZ awards, recognising excellence in the information security industry.
Creating Value
Kordia continues to create value for the communities and industries it operates in. In November, Kordia renewed its Cyber Academy initiative to develop new talent, supporting the development of New Zealand’s much needed pool of skilled cyber security specialists. This year seven budding professionals were placed into internships within Kordia’s cyber security division.
To encourage a diverse and inclusive workplace, on 1 July 2023 Kordia introduced new parental benefits to support employees as they embark on their parenthood journey. This includes salary top ups of parental leave payments, additional leave for primary and secondary carers, and continuity of KiwiSaver contributions. These initiatives form part of Kordia’s commitment to achieving the Gender Tick accreditation.
Outlook
Haslem says Kordia is in a good position to capture market demand around managed services, and a comprehensive breadth of mission-critical technology services and solutions to offer customers.
“Cyber and cloud are key areas for Kordia, with the company delivering pleasing revenue growth in both areas and the company is well resourced to provide for customers in this area. The outlook is encouraging, however economic conditions will determine the customer demand.”
“As the business meets market demands for holistic cyber security and cloud services, Kordia can expect to continue to perform.”
