Highlights

  • SOCO reported FY26 Revenue of A$20.6 million, down 3.1%, while gross Margin improved to 25.6% from 24.2%.
  • A non-cash A$5.1 million Impairment of the Axsym Business drove a statutory net loss of A$6.35 million.
  • Contracted sales topped A$24 million in FY26, a record, with 33 new clients won during the year.
  • Shareholders will vote on director elections and an incentive plan at the AGM in Brisbane on 18 November 2026.

A stronger second half and record contracted sales sit alongside a heavy write-down in the latest annual accounts of Soco Corporation Ltd (ASX:SOC). The Brisbane-based IT consultancy, which focuses on Microsoft cloud, business applications and integration projects, reported a statutory loss for FY26 to 30 June 2026 after impairing its Axsym business, even as margins and Recurring Revenue moved higher.

The company now heads into its Annual General Meeting with a refreshed board, a three-pillar strategy and a pipeline of work carried into FY27.

Second Half Lifts Margins Despite Softer Full-Year Revenue

FY26 revenue eased 3.1% to A$20.6 million, but Gross Profit rose 2.6% to A$5.28 million as gross margin improved to 25.6%. The split between halves was stark: H1 revenue of A$9.71 million carried a 20.1% gross margin, while H2 revenue rose 12.5% to A$10.92 million at a 30.5% margin.

Underlying EBITDA was a loss of A$426,000, against a positive A$209,000 in FY25. The statutory net loss of A$6.35 million included a A$5.12 million non-cash impairment of the Axsym cash-generating unit. Before impairment and the Amortisation of acquired intangibles, the loss was A$752,000. SOCO noted that no further earn-out is payable on Axsym, and no Dividend was declared.

Contracted Work and Balance Sheet Position

Contracted sales exceeded A$24 million during FY26, a record for the company, with second-half contracting up more than 40% on the first half. SOCO added 33 new clients, more than 20 of them within its target verticals and size profile. Support and recurring revenue reached A$2.77 million, rising 25% between halves.

Cash at 30 June 2026 was A$1.09 million, down from A$1.51 million a year earlier, with current borrowings of A$662,000 and an undrawn Debt Facility of A$255,000. Net current liabilities stood at A$371,000. The directors prepared the accounts on a Going Concern basis, pointing to contracted work with confirmed start dates, cost reduction measures and Cash Flow forecasts.

Board Changes and AGM Agenda

Independent Non-Executive Director Khatiza Brown resigned on 5 October 2026. The AGM at 10:00am (Brisbane time) on 18 November 2026 will consider the remuneration report, the re-election of Chief Executive Sebastian Rizzo, the election of Chair Don Pasquariello and Kirsty Garrett, and approval for up to 6.97 million securities under the Omnibus Incentive Plan.

FY27 Plans Built on the Second-Half Base

Management has described H2 FY26 as the base for FY27 and carried about A$9.5 million of contracted project value into the new year, with a further A$4 million of contracted sales signed since 30 June. No numeric Earnings guidance has been issued.

The strategy rests on three pillars: streamlining by protecting margin and converting contracted work into revenue and cash, optimising Working Capital and support revenue, and growing a pipeline in target verticals. Planned AI work includes preparing Microsoft 365 environments for AI adoption, agentic solutions and governance advisory.

Shares were unchanged at A$0.038 on 2 November 2026, giving a Market Capitalisation of about A$5.3 million, down 36.67% over 12 months.