SU Group Holdings Limited announced its financial results for the fiscal year ended September 30, 2024, reporting an 11.3% increase in revenues to HK$182.2 million (US$23.4 million) from HK$163.7 million (US$21.0 million) in fiscal year 2023. Net income also grew by 8.7% to HK$10.7 million (US$1.4 million) from HK$9.8 million (US$1.3 million) in the prior fiscal year. This growth was primarily driven by an increase in revenues from the security-related engineering services business.
Despite the top-line growth, the company experienced a slight decrease in gross profit by 0.9% to HK$47.6 million (US$6.1 million), with the gross profit margin declining to 26.1% from 29.3% in fiscal year 2023. This was attributed to a net impact of decreased gross profit margin in security-related engineering services projects and higher labor costs for security guarding services. Selling, general, and administrative expenses decreased by 2.1% to HK$36.0 million (US$4.6 million), aided by a reversal of provision for credit loss.
The company demonstrated improved cash flow generation, with net cash provided by operating activities rebounding to HK$14.1 million (US$1.8 million) in fiscal year 2024, compared to net cash used of HK$13.5 million (US$1.7 million) in fiscal year 2023. Cash and cash equivalents significantly increased to HK$52.3 million (US$6.7 million) as of September 30, 2024, from HK$16.4 million (US$2.1 million) in the previous year. This indicates a stronger liquidity position and a solid foundation for future growth, as noted by CFO Calvin Kong.
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