ASG Group lifts earnings guidance

IT services provider ASG Group Limited today announced profit guidance for the year to 30 June, 2007.

ASG is forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) for fiscal year 2007 (FY07) of at least $10.7 million. This compares with EBITDA of $4.2 million for the December half and with full year EBITDA of $7.2 million in 2006.

The forecast EBITDA for FY07 represents an increase of 48.6% on FY06.

Managing Director Geoff Lewis said the improved FY07 result has been driven by continued contract success and performance across the company's Australia-wide operations and improved operational benefits flowing from economies of scale.

ASG will now deliver two consecutive years of greater than 40% growth in EBITDA.

A key contributor to the improved performance was the acquisition of Vindaloo Systems, which became part of the ASG Group late last year and has provided critical mass and a springboard for major business wins in the Sydney market including Qantas.

Mr Lewis said new business flow continued to grow substantially and ASG's pipeline of new work and tender opportunities positioned the group well for continued EBITDA growth into FY08.