Perth-based IT services provider ASG Group Ltd made a net profit after tax of $7 million in the 2006-07 financial year, an increase of 36 per cent, the company has announced.
Perth-based IT services provider ASG Group Ltd made a net profit after tax of $7 million in the 2006-07 financial year, an increase of 36 per cent, the company has announced.
The full text of a company announcement is pasted below
IT services provider ASG Group today announced a full year net profit of $7.0 million for the year ended June 30, 2007, a 36% increase on the previous year.
ASG also reported record revenue of $75.5 million (up 28%) and EBITDA of $11.1 million (up 55%).
The record result was achieved as a result of strong organic growth, the Company's increasing success as a prime contractor in major bids and the successful acquisition and integration of Sydney-based Vindaloo Systems.
The Board has declared a final fully franked dividend of 2.5 cents per share, lifting the full year distribution to 4 cents - a 25% increase over the previous year.
Full year EBITDA was $11.1 million, a 55% increase over the FY06 level of $7.2 million.
Second half EBITDA was $6.9 million, representing 62% of the full year total. All measures showed acceleration of growth rates in turnover and profitability in the second half, positioning the business well for the current financial year.
ASG Managing Director Geoff Lewis said the Board was pleased to have again achieved record levels for revenue, EBITDA, net profit, earnings per share and dividends.
"We are particularly pleased we have been able to grow profits by leveraging our infrastructure and country-wide delivery capability through what was a period of strong growth," said Mr Lewis.
"This included a major expansion of our business levels in Sydney and Melbourne and the integration into the group of the Vindaloo Systems business.
"Most importantly, we have increased efficiencies and productivity to offset pressure on salary rates and hold unit labour costs steady, contributing significantly to profitability.
"Our strategy continues to be utilisation of infrastructure, processes and superior systems to grow earnings well in excess of revenue growth."
Mr Lewis said FY07 also saw ASG achieve another substantial increase in long-term contracted revenue from government and blue-chip corporate customers.
"Our underlying business strategy is to build our cumulative revenue model under which we lock in predictable cash flows with long-term contracts and allowing as much as 70% of current year revenue to roll forward to each succeeding year," he said.
"A major feature of FY07 was success in winning contracts as a prime contractor heading up consortia including major multinational services and product vendors.
"This has greatly enhanced ASG's positioning and credibility with large clients and places us in a strong position to win some very large competitive bids that are up for decision during the next financial year."
Mr Lewis said ASG would put a strong focus in FY08 on continuing to leverage its national business presence and operating network.
"We have achieved scale and critical mass that not only delivers a superior financial result for our shareholders but also a greatly enhanced operational capability. Our national delivery model is flexible, efficient and very cost effective," he said.
"ASG has also invested heavily in a senior management team that has achieved exceptional results in each of our markets, with major new contract wins and successful implementation. The team is settled and established and we expect to capitalise on that with even better results in future years."
The company continues to make a major commitment to staff education and professional development as part of its strategy of attracting and retaining key personnel in a competitive labour market.
Mr Lewis said that while ASG expected to achieve strong organic growth in FY08, the company continued to assess acquisition opportunities.
"We have demonstrated our ability to buy well and successfully integrate new acquisitions," he said.
"We would give serious consideration to further acquisition opportunities that meet our strict financial and business criteria."
