Perth-based IT services provider ASG Group Ltd is expecting to report earnings before interest tax depreciation and amortisation for 2006 of at least $6.7 million, representing a 42.5 per cent increase on 2005 financial year.
For the December half, the company made EBITDA of $2.9 million, while in 2005 the company posted $4.7 million EBITDA.
ASG managing director Geoff Lewis said the improved FY06 profitability has been driven by strong performance across the company's Australia-wide operations and improved operational benefits flowing from economies of scale.
ASG announced in late December it had been selected with partner CSC Corporation for the $87.8 million, 10 year contract.
Mr Lewis said ASG is completing another productive business development year, whilst continuing to invest in infrastructure and human resources to enhance the current platform for continued, sustainable growth in revenue and earnings.
At 930 WST, shares in ASG were up 2.5 cents to 72.5 cents.
Below is the full announcement:
ASG Group forecasts stronger full year earnings
IT services provider ASG Group Limited (ASX: ASZ) today announced profit guidance for the year to 30 June, 2006.
ASG is forecasting EBITDA for FY06 of at least $6.7 million. This compares with EBITDA of $2.9 million for the December half and with full year EBITDA of $4.7 million in 2005 (an increase of 42.5%).
Managing Director Geoff Lewis said the improved FY06 profitability has been driven by strong performance across the company's Australia-wide operations and improved operational benefits flowing from economies of scale.
The company is issuing definitive guidance having fully analysed the financial impact in FY06 of preparations and transition activities associated with the contract to supply hardware and support to the WA Government's Shared Corporate Services program.
ASG announced in late December it had been selected with partner CSC Corporation for the $87.8 million, 10 year contract.
Mr Lewis said ASG is completing another productive business development year, whilst continuing to invest in infrastructure and human resources to enhance the current platform for continued, sustainable growth in revenue and earnings.
