ASG profit falls, maintains guidance

Perth-based IT firm ASG Group posted a near-3 per cent fall in first-half profit but maintained its revenue guidance for the full year.

ASG’s profit fell 2.8 per cent to $5.5 million in the six months to December, while revenue gained 12.6 per cent to $88.2 million.

Earnings before interest, tax, depreciation and amortisation were 14.4 per cent higher on the previous corresponding period, to $12.7 million.

“ASG is now in a position where we have matured our New World offering, which has enabled us to leverage our resources and our reference-ability to secure strategically significant contracts in key sectors,” chief executive Geoff Lewis said.

“As we continue to move into the delivery phase of deals that were won in FY15 and FY16, our revenue stream will strengthen into FY17, FY18 and beyond.”

The company maintained its revenue guidance of between $185 million and $190 million for the full year.

ASG also announced it had won a $29 million contract with the Department of Finance at the end of the half-year mark, to provide its ‘desktop as a service’ solution.

The company said it was well-positioned to assist organisations seeking to drive efficiencies and cost savings in their technology environments.

ASG said it had a pipeline of over $340 million worth of work for the next six months.

ASG shares were 1.3 per cent lower to 92.7 cents each at 12:20pm.