27/05/2009 - 11:50

ASG lifts full-year earnings forecast

27/05/2009 - 11:50

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IT services provider ASG Group expects its earnings for the 2009 financial year to rise nearly 17 per cent on the previous year after securing several major contracts.

ASG lifts full-year earnings forecast

IT services provider ASG Group expects its earnings for the 2009 financial year to rise nearly 17 per cent on the previous year after securing several major contracts.

Perth-based ASG expects earnings before interest, tax, depreciation and amortisation (EBITDA) for fiscal 2009 to be at least $19 million, up from last year's EBITDA of $16.3 million.

In its interim report for the six months to the end of December 2008, ASG achieved an EBITDA of $9 million.

Managing director Geoff Lewis said the positive result was driven by ASG's asset bank of long-term, secured managed services contracts and the company's success in securing new contracts with a range of new and existing clients.

"We're forecasting a robust result for the 2009 financial year due to our success in securing a number of new managed services contracts," said Mr Lewis.

"These new contracts not only provide us with a strong revenue position for the current period but because they are multi year arrangements, they also provide ASG with revenue locked in for years to come.

"In addition, these contracts typically provide us with significant incremental revenues from additional services".
Mr Lewis said the outlook beyond the 2009 financial year is very positive.

"We are expecting double digit growth in revenue and earnings in the 2010 financial year.

"As it now stands, our contracted managed services revenue over the next four years is approximately $400 million, which is an outstanding asset bank and springboard for further investment in our business of long term contracts.

"It's a model that has served ASG very well since inception, with an unfaltering track record of securing contracted revenue with blue chip corporate and government customers."

ASG recently won a new 3 year contract with the Federal Government's Civil Aviation Safety Authority (CASA) valued at $8 million with three 2 year extension options potentially providing a 9 year engagement.

Earlier this year, ASG announced that it had won new contracts with a range of new and existing clients with a total value of approximately $30 million including Symbion Pharmacy Services, the Department of Prime Minister and Cabinet, Airservices Australia and the National Museum of Australia.

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