Highlights

  • Revenue fell to A$98.6 million in FY26 from A$116.8 million, while underlying EBITDA declined to A$9.8 million.
  • A Goodwill Impairment of A$6.5 million contributed to a statutory net loss of about A$4.0 million for FY26.
  • Net Debt dropped A$6.7 million to A$20.0 million, and directors declared no Dividend for the year.
  • Shareholders will vote on auditor replacement and a higher director fee pool at the 12 November 2026 AGM.

A Leadership handover and a reset cost base frame the start of FY27 for COSOL (ASX:COS). Former chief financial officer and chief operating officer Anthony Stokes became interim chief executive in August 2026, after Scott McGowan stepped back to an executive director role focused on strategy, and the board has begun a search for a permanent CEO.

The changes follow a difficult FY26, the year to 30 June 2026, in which the enterprise asset management and digital services group recorded lower Revenue and earnings, booked a goodwill impairment and declared no dividend.

Coal Weakness and a Lost Contract Weigh on FY26

Revenue declined to A$98.6 million from A$116.8 million, split almost evenly between H1 at A$49.6 million and H2 at A$48.9 million. The company linked the weakness to subdued Demand for Australian asset management services, particularly in east coast coal, and the end of a managed services contract in H1 that affected its data and digital consulting work.

Underlying EBITDA fell to A$9.8 million from A$16.8 million, though the second half delivered A$6.3 million against A$3.5 million in the first. Underlying net profit was A$3.3 million, while a A$6.5 million goodwill impairment resulted in a statutory net loss of about A$4.0 million. Chairman Geoff Lewis described the year as disappointing for revenue and profitability.

Cash Conversion Helps Shrink Net Debt

Operating cash flow of A$9.2 million represented cash conversion of 107.7%. Net debt fell A$6.7 million to A$20.0 million, helped by a contingent consideration adjustment and repayment of part of its Westpac facility, leaving about A$11.0 million of borrowing capacity at year end.

Natural resources clients generated about 51% of revenue, with the balance from utilities, government, defence and public infrastructure. Australia contributed 87% of revenue and the United States 13%. During the year COSOL won two transport contracts using its Transport Intelligence Suite, including CDPQ in Montreal, and completed its first large-scale IBM Maximo asset management as a service implementation in North America for a US east coast port authority.

Three-Year Plan Targets Margin Recovery

Management's three-year strategy aims to grow its higher-margin AI, data and industrial mathematics business, support Hitachi Energy Ellipse clients planning platform transitions between 2027 and 2030, and return traditional consulting to historical margins. The chairman has framed FY27 as the start of a return to sustainable, profitable growth, supported by better pipeline visibility, while the CEO acknowledged the operating rebound remains below expectations. No numerical guidance has been issued.

The AGM is scheduled for 12 November 2026 in Brisbane. Resolutions include the remuneration report, the re-election of Stephen Johnston, additional 10% Placement capacity, an increase in the director fee pool from A$600,000 to A$750,000, and replacing auditor Elderton Audit with Pitcher Partners. The board also plans a director renewal process during 2027.

Shares were unchanged at A$0.165 on 2 November 2026, giving a Market Capitalisation of A$30.03 million, down 65.98% over 12 months.