DUG results bolster share price

Shares in high powered computing company DUG Technology have gained 10 per cent after the company posted several records in its FY24 results.

Sales were up 35 per cent to a record US$67.4 million, while the company’s order book grew by 31 per cent during the year.

Profit after tax was down 33 per cent on FY23, which managing director Matt attributed to a non-recurring $6.57 million cost of outsourcing compute operations while the company’s own assets were upgraded – with DUG’s compute capacity quadrupled by the upgrade.

That cost saw the earnings before interest, tax, depreciation and amortisation margin decrease five per cent to 25 per cent, although the company still managed to lift EBITDA by 10 per cent to $16.61 million.

Underlying EBITDA – measured by removing non-recurring costs like the third-party compute – was up 54 per cent to $23.18 million.

“Operating cash inflows were impacted by third-party compute costs, delivering US$12.1 million for the year,” he said.

“Property, plant and equipment grew by $31.3 million, primarily due to the new compute hardware in Houston that we announced during the year.

“With a 30 June 2024 order book of US$36.5 million we are expecting a strong FY25.”

The results come after a busy few months for the company, which opened its fifth office in Abu Dhabi in May, and inked a deal with the world’s largest supplier of cooling solutions to data centres, Baltimore Aircoil Company, for the use of the proprietary DUG Cool immersion cooling technology in August.

DUG Technology shares priced at $3.16 at 11.45am AWST today.