Dataworks Faces Going Concern Risks Despite Contract Wins and Loss Reduction

Financial Performance and Loss Reduction

Dataworks Group Limited has reported its preliminary unaudited results for the financial year ended 30 June 2025, showing a slight revenue increase to $8.35 million, up 1.7% from the previous year. Despite ongoing losses, the net loss attributable to members narrowed by 2.4% to $10.03 million, reflecting the impact of significant business restructuring and efficiency initiatives.

The company’s gross profit improved to $6.32 million, supported by foundational contracts in Australia and Canada. However, operating expenses remain substantial, including employee benefits, share-based payments, and amortisation costs. Cash and term deposits declined to $404,599, down from $1.15 million the prior year, highlighting the importance of recent capital raises.

Strategic Contract Wins Bolster Revenue Base

A key highlight for Dataworks was securing a landmark A$10 million, five-year contract to provide an online gambling self-exclusion platform for Ontario, Canada. Awarded by iGaming Ontario, this contract positions Dataworks as a leading provider of Centralised Self-Exclusion (CSE) technology internationally.

Domestically, the company secured a two-year extension of its exclusive BetStop National Self-Exclusion Register contract with the Australian Communications and Media Authority. This extension is expected to generate at least $4.25 million annually, providing a reliable recurring revenue stream and reinforcing Dataworks’ leadership in RegTech solutions aimed at mitigating gambling harm.

Operational Advances and Leadership Changes

Dataworks continued to demonstrate operational excellence with BetStop, which has registered over 45,000 individuals and completed more than 28 billion verification checks since its launch. The platform maintains 100% system uptime and integrates with 202 licensed operators, underscoring its robustness and scalability.

The company also deployed its Secure Data Engine integrated with Microsoft Azure under a multi-year agreement with the Western Australian Biodiversity Science Institute, expanding its footprint beyond gambling into environmental analytics.

Leadership adjustments included the appointment of Greg Nichelsen as Chief Information Officer, bringing 25 years of data analytics experience, and the transition of Julian Babarczy to Executive Chairman, signaling a strengthened executive focus on growth.

Capital Raising and Financial Position

To support its growth trajectory and operational restructuring, Dataworks successfully raised over $5 million through share placements during the year. These funds have been pivotal in stabilising the balance sheet and funding ongoing initiatives aimed at achieving cashflow positivity, which the company now expects to reach in the first half of FY26.

Despite the positive momentum, the company’s financial statements remain unaudited and subject to completion by September 2025. The Board acknowledges the material uncertainty related to going concern, contingent on successful capital raising and commercial execution.

Looking Ahead

Dataworks Group is positioning itself as a global RegTech leader, leveraging its intellectual property and proven platform performance to expand into new markets. The combination of secured contracts, operational efficiencies, and leadership renewal sets a foundation for potential shareholder value creation, though investors should remain mindful of the risks inherent in the company’s path to profitability.