Amcom confident of growth

20/11/2013 - 12:49

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Amcom chairman Tony Grist told the company's annual meeting today it was well placed to deliver another year of double digit percentage growth in underlying net profit after tax.

Amcom’s profit rose 23 per cent to $20.8 million in FY13, making it the 11th consecutive year where underlying profit has increased by at least 20 per cent.

Dividends of 5.5 cents per share were paid for the year, an increase of 10 per cent from the previous year.

Mr Grist told shareholders the higher earnings had contributed to strong shareholder returns, via an increased share price and dividend payments.

"If we compare the share market performance of your company since the last AGM, the total shareholder return has been 51 per cent which is almost double the performance of the wider ASX as measured by the S&PASX 300 Accumulation Index which had a return of 28 per cent over that period." Mr Grist said.

Amcom’s profit rose 23 per cent to $20.8 million in FY13, making it the 11th consecutive year where underlying profit has increased by at least 20 per cent.

Dividends of 5.5 cents per share were paid for the year, an increase of 10 per cent from the previous year.

Mr Grist said company growth would continue, following its investment in the Cisco cloud-based unified communications platform and its recent $14.3 million purchase of data centre company aCure.

"Amcom's growth momentum has continued into the new financial year with a broadened and fully integrated product offering, addressing high growth markets and operating Across Australia," he said.

"The core data networks business is expected to remain strong and will be complemented by an increasing contribution from newer offerings such as Cloud Services and the Amcom Cloud Collaboration.

"In FY14 Amcom is well placed to deliver another year of double digit percentage growth in underlying profit after tax." 

Amcom now has seven data centres in Perth, all connected via its fibre network.

“The move towards cloud or third-party hosted services is a global phenomenon," Mr Grist said.

"Our key market of corporate and government customers want more flexible solutions for their telecommunications and IT requirements going forward, with services provided on-demand rather than spending significant sums up-front on their own IT infrastructure."

Speaking at a Business News  Success and Leadership breakfast in September, chief executive Clive Stein said carefully chosen acquisitions and organic growth was helpful for the company.

"From our perspective we've been an organic machine," Mr Stein said.

"Driving sales growth for us is relatively easy, doing acquisitions is quite challenging. Acquisitions involve people and the integration of two organisations into one does take time. It takes a lot of effort...and to execute the acquisition and to drive the synergies is relatively hard." 

Amcom shares are trading 3 cents higher at $2.04 as of 12.30pm, WST.

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