Hitech (ASX:HIT) is a small, tightly held, illiquid personnel resources company that punches way above its weight—and has done so for over a decade, even in the very fluky macro conditions for this industry over the last two years. With a ROCE of 75% in FY25, it donkey-licks industry heavyweights SEEK (SEK) with 4% and Mader (MAD) at a more respectable 33%. Forget the rest, they literally caved in with the legislative changes affecting casual employees.

Of course, FY25 was also an election year, so the brakes on staff employment were ‘hard on’ for most of 2HFY25 (particularly in the IT area of the Public Service, where HIT dominates). And whether you like him or not, the ‘Albo-tross’ got up and yippee, it was giddy spending time again, despite what Grim Jim might say publicly. And the spending party is continuing!

 The easiest way to assess HIT’s performance is to count the number of job vacancies on its website each month, and they are revealing.

 Immediately after the elections in May 2025, the jobs advertised went ballistic – great for the profitability in June and even better for the FY26 year, where the company will not only collect about $3m+ in excess cash which had accumulated in debtors at FY25, but for the 4 months of this year, the job vacancies are better than comps.

 To this simple man, this screams more 1HFY26 revenue, profits, and cash!

Bingo! The Holy Trinity. Yet the market suggests there are problems as it drifts lower for this debt-free, pile-of-cash company that pays brilliant, fully franked dividends. Plus, the macro market for IT staff in the Public Service, given requirements for AI and emerging specialty interests in defense, etc., suggests strong tailwinds.

 It’s a pretty good addition to one’s SMSF – particularly in pension mode – a grossed-up dividend nearing 9%!