ASG reports 18 per cent spike in profit

IT services company ASG Group has announced a solid lift in interim net profit, despite difficult market conditions.

ASG reported net profit of $7.2 million for the six months ended December 31, up from $6.1 million the previous corresponding period.

Revenue came in at $76 million, up 2.7 per cent on the previous half year’s $74 million.

ASG will pay a dividend of 2.0 cents per share, after recording earnings per share of 4.19 cents.

ASG said the first half of the year had been challenging, with clients holding back on new projects and capital expenditure.

Managing director Geoff Lewis said the company would focus on growing its footprint in the emerging cloud computing sector over the second half of the financial year.

“Our ability to provide the entire solution and with a differentiated offering is exciting and puts us in a great position to deliver on our federal government strategy,” Mr Lewis said.

“With an increased focus on cash flow and capital management in the next half, I am confident we will continue to produce revenue and profit growth in the second half of the year, 2013 and beyond.”

Mr Lewis said ASG would also target contracts from Foreign Service providers over the coming year.

At 9:50AM WST, ASG shares were up 8 per cent, at 83 cents.