Amcom forecast 30% increase in profit

Perth based company Amcom Telecommunications Ltd has announced a forecast 30 per cent increase in net profit for the financial year, in comparison to its 2007 result.

An anticipated net profit of $9 million is expected, with an increased demand of fibre products believed to be a key driver in the expected result.

Full Media Release below:

Amcom Telecommunications Limited (ASX: AMM, AMMO) today announced earnings guidance for the financial year ending 30 June 2008 of at least 30% over 2007 in respect of the net profit after tax from the wholly owned business before earnings from associate. This is an upgrade to previous guidance of at least 25% issued on 27 February 2008.

The overall reported net profit after tax including adopting market consensus earnings from associate is anticipated to be approximately $9m for the financial year ended 30 June 2008.
A key driver of the earnings upgrade has been the increased demand for Amcom's fibre based products. The annualised recurring revenue base at the end of March 2008 stood at $41m which is a 48% increase in the base since March 2007.

"Last December we targeted an annualised recurring revenue base of $40m by June 2008, we have now achieved and surpassed that milestone. This revenue base is dominated by corporate, government and wholesale customers, we see not only the quantum but also the quality of this base as being important to deliver sustainable earnings growth" commented CEO Clive Stein.
In terms of revenue, Amcom expects to record total revenue growth for the 2008 financial year of at least 17% and after excluding project revenue an increase of at least 30% over the 2007 financial year for the core business.