Hancock & Gore Faces Dividend Pause Amid $4.9m Loss and Acquisition Costs
Hancock & Gore reports a statutory loss for FY25 amid major acquisitions and strategic transformation, setting sights on $200m revenue by FY27 as it rebrands to Schoolblazer Limited.
- 41.6% revenue growth to $10.3 million but $4.9 million statutory net loss
- Acquisitions of Schoolblazer Limited and Trutex Investments Ltd completed
- Formation of Schoolblazer Group targeting $200m revenue and $25m EBITDA by FY27
- Transition from investment entity to consolidated operating company reporting from FY26
- Dividend pause in 2025 to fund deferred acquisition payments, expected to resume in 2026
A Year of Transformation
Hancock & Gore Limited (ASX, HNG) has delivered a financial year marked by significant strategic evolution. Despite reporting a statutory net loss after tax of $4.9 million for the year ended 30 September 2025, the company’s revenues surged 41.6% to $10.3 million. This divergence is largely attributed to impairments in its investment portfolio and acquisition-related costs, reflecting a deliberate pivot from a diversified investment entity to a focused global school uniform business.
Building a Global Schoolwear Platform
Central to this transformation are the acquisitions of Schoolblazer Limited in October 2024 and Trutex Investments Ltd in August 2025. These moves have consolidated Hancock & Gore’s position in the school uniform sector, forming the Schoolblazer Group; a global platform with leadership in the UK, Australia, and New Zealand. The Group reported pro-forma unaudited revenues of $181.4 million and underlying EBITDA of $17.6 million (excluding Australian start-up costs) for FY25, setting a robust foundation for growth.
Strategic Outlook and Operational Integration
Management, led by Executive Chair Tim James, is driving integration efforts across the Schoolblazer Group, focusing on synergies in procurement, IT systems, and e-commerce innovation. The Group aims to surpass $200 million in revenue and $25 million EBITDA by FY27, with a strong pipeline of new school contracts secured in Australia and New Zealand. The company is also leveraging Trutex’s international sourcing capabilities to improve margins and expand global reach.
Financial Reporting and Capital Management
Reflecting its new operational focus, Hancock & Gore will transition from investment entity accounting to consolidated financial reporting starting FY26, providing clearer visibility into the Schoolblazer Group’s performance. To fund acquisitions and deferred consideration payments, the company realised $32 million from its investment portfolio and secured a $19.5 million loan facility post year-end. Dividends were paused in 2025 to preserve cash but are expected to resume in 2026 as the Group optimises its balance sheet and cash flow.
Leadership and Governance
The year also saw key management changes, including the appointment of Tim James as Executive Chair of Schoolblazer Group, bringing deep industry expertise. The Board remains committed to disciplined capital allocation and long-term value creation, supported by a strong alignment between management and shareholders, who collectively own over 20% of the company.
Navigating Challenges Ahead
While the investment portfolio underperformed and contributed to the statutory loss, the operational businesses within Schoolblazer Group are gaining momentum. The company acknowledges that synergy realisation and cost optimisation will take time, with earnings expected to be weighted to the second half of the financial year. The upcoming FY26 half-year report, the first on a consolidated basis, will be a critical milestone for investors seeking transparency on the Group’s trajectory.
Bottom Line?
Hancock & Gore’s transformation into Schoolblazer Limited sets the stage for growth, but investors should watch closely as integration and synergy realisation unfold.
Questions in the middle?
- How quickly will Schoolblazer Group’s cost synergies and margin improvements materialise?
- What impact will the transition to consolidated reporting have on future earnings transparency?
- How will the company balance funding deferred acquisition payments with resuming dividends?
