SU Group Holdings Limited (SUGP) Q4 2023 Earnings Report

SU Group Holdings Limited (SUGP) delivered QQ4 2023 results characterized by a meaningful YoY and QoQ revenue decline alongside a small positive EBITDA impression but a reported net loss for the quarter. Revenue totaled HKD 33.33 million, down 31.32% year over year and 27.44% quarter over quarter, with a gross margin of 33.8% (gross profit HKD 11.27 million) and an EBITDA of HKD 0.25 million. Operating income was negative HKD 0.055 million, and net income registered a loss of HKD 0.150 million, translating to EPS of -HKD 0.0125. The quarter also reflected pronounced working capital dynamics: a substantial decrease in working capital tied to inventory and receivables movements, contributing to negative operating cash flow of HKD -6.406 million and negative free cash flow of HKD -6.462 million. On the balance sheet, the company shows a solid asset base with total assets HKD 114.44 million and a net cash position (net debt) of HKD -12.63 million, supported by cash and cash equivalents of HKD 16.40 million and a current ratio of 1.78. Deferred revenue of HKD 22.75 million signals a material backlog that could support revenue visibility going forward, should operating conditions improve.