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SOCO Corporation Ltd (ASX:SOC)

ALERT: Price-sensitive ASX Announcement for SOC
Current share price for SOC : $0.041 -0.015 (-26.79%)+
Announcement
Release
27 Feb 2026 3:43PM
Price at Release
$0.056
Full Release
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Summary
SOCO Corporation Ltd (ASX:SOC), an Australian information technology services consultancy, reported its 1H FY26 results with a consolidated revenue of $9.7 million, marking a 12% decline due to delayed federal government projects affecting Axsym revenue. However, the core business revenue grew by 8.2%. Despite a challenging environment, the company recorded its strongest first-half contracted sales and anticipates improved profitability in the second half. The company underwent restructuring to reduce costs and enhance sales capabilities, resulting in an underlying EBITDA of ($0.6m) and a statutory NPAT of ($5.9m), significantly impacted by a $4.6 million non-cash goodwill impairment related to the Axsym acquisition. SOCO is repositioning its services to build recurring revenue and improve visibility, with strategic engagements and a robust sales pipeline. The company has invested in AI, data, and security capabilities to enhance operational efficiency and client offerings.
Key Points
  • Consolidated revenue decreased by 12% to $9.7 million.
  • Core business revenue increased by 8.2% to $6.6 million.
  • Axsym revenue decreased by 39% due to project delays.
  • Restructuring reduced the cost base and improved sales capacity.
  • Strongest first-half contracted sales on record.
  • Gross margin decreased to 20.1%, but underlying services margin steady at 28.3%.
  • Underlying EBITDA was ($0.6m); statutory NPAT was ($5.9m).
  • Non-cash goodwill impairment of $4.6m related to Axsym.
  • No further earn-out payment required for Axsym acquisition.
  • Strategic repositioning to increase recurring revenue and improve visibility.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.