IT services provider ASG Global says it is assessing acquisition opportunities as it delivers a 32.5 per cent lift in its first-half net profit after tax to a record $6.5 million.
The profit increase was on the previous corresponding period.
Earnings before interest, tax, depreciation and amortisation climbed 14.5 per cent to $10.4 million, while earnings per share increased 24.3 per cent to 4.7 cents.
Meantime group revenue fell 9.3 per cent to $58.2 million, reflecting lower product sales and revenue from capital projects that were offset by continued growth in ASG's services business.
"Continued strong growth in revenue from managed services contracts and cost control initiatives put in place to respond to the economic downturn were key drivers of strong operating performance and the record profit," ASG said.
The board declared an interim dividend of 1.5c per share, fully franked, up 50 per cent on the previous corresponding period.
ASG managing director Geoff Lewis said the result reflected the strength of the company's business base and the benefits of having an efficient national IT platform.
"We have performed well in very challenging market conditions because of the calibre of our customers and service contracts," he said.
"In addition, the cost cutting measures we put in place back in late 2008 as a result of the GFC have delivered us a significant advantage, allowing ASG to grow profitability given that the economic downturn had only limited impact upon our key businesses.
"Our cash flows remain very strong and our balance sheet continues to strengthen, giving us a great platform to pursue organic and acquisitive growth.
"We are currently assessing a number of acquisition opportunities and expect to be able to make further announcements during the second half of FY10. "
Since the start of the year, ASG has announced several major contract wins including a $35 million deal with Western Power and a $23 million contract with the state's Department of Education.
The contract wins have boosted ASG's order book to $450 million.
Shares in ASG shed 5.5c to $1.185 at 12:29 AEDT.
