ASG posts 28% net profit boost

Perth-based IT services provider ASG Group Ltd has reached its earlier earnings forecast, with full year net profit after tax up 28 per cent on the previous year to $9 million.

Earnings before interest tax depreciation and amortisation for the 2008 financial year increased 46 per cent to $16.3 million, slightly higher than forecasts announced last month of a 44 per cent increase.

Revenue increased by 46 per cent to $111 million.

Basic earnings per share rose 22 per cent to 7.1 cents and ASG directors have declared a full year, fully franked dividend of 5 cents per share.

Earlier this year, ASG has locked in about $75 million worth of new multi-year contracts with a range of new and existing customers including Multiplex, Virgin Blue and Inpex.

ASG also secured a four-year, $30 million contract with the Federal Government.

Chief executive officer Geoff Lewis said with the contracts locked in, the company is well placed to continue earnings and revenue growth in fiscal 2009.

"With approximately 70% of each year's revenue coming from rolling, multi-year contracts, we essentially have a large chunk of earnings 'locked-in' year on year," he said.

"This provides us with added security and also enables us to plan for activity levels and maintain economies of scale in our business to sustain longer term growth. It is quite different from a business model based on repetitive short term sales."