)
Shares in serviced offices provider Servcorp (ASX: SRV) have surged to levels not seen since 2019 today after reporting a 253 per cent increase in net profit after tax (NPAT) to $39 million, delivered in a whimsical company presentation that certainly cannot be unseen.
Replete with costumed variations of a signature wombat character, the presentation combines financial performance information with an artificial intelligence-generated smattering of disparate images: a fish tank, ballroom gowns, a horse, violins, chess sets, cactii, a terracotta warrior, and so much more.
The wombat character has evolved over many years in Servcorp's unconventional annual reports, which veered from industry norms during the global financial crisis, enlisting graphic designers to provide a stroke of light-hearted fun in the serious world of ASX reporting.
"Annual reports can be a little bit dry in many cases, and Servcorp has always done something a little bit differently on annual reports to engage with shareholders, and potential new shareholders as well," Servcorp's chief financial officer David Hunt tells Business News Australia.
"It doesn't take away from the content there. The content is very, very important for our shareholders to get across our business."
This year Servcorp opted for a 'clean' annual report and a colourful company presentation instead. Whether it's the creative direction or the result itself, the group's strategy paid off today with shares up 10.44 per cent at $4.815 at the time of writing, or more than 60 per cent over the past 12 months.
The company opened nine new operations globally in FY24 and completed the reorganisation of what is now Servcorp Middle East Group. With 132 floors in 40 cities, Servcorp expects to add four more floors to commence operations in the current financial year.
Servcorp's service expenses increased marginally by 2 per cent and spending on marketing and advertising rose by 16 per cent, returning "pleasing growth" in its sustainable revenue stream. with total revenue up 7 per cent at $317 million.
Leases and occupancy are its largest expense though, and through negotiations Servcorp was able to reduce this figure by $4 million to $109 million.
Servcorp points out it is the team members and their quality that count in generating these kinds of results, highlighting the group has 10 staff for every 100 offices compared to an industry average of less than three per 100.
"Our critical mass, backed by an IT ecosystem manned by 100 in-house IT experts, ensures rocket fast Wi-Fi, provides help when needed by our clients, and assists us in maintaining our premium positioning," states the company, which also plans to invest more than $4 million in IT development this year.
Enjoyed this article?
Don't miss out on the knowledge and insights to be gained from our daily news and features.
Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.
Support independent journalism and stay informed with stories that matter to you.
)
)
)
)
)
