Amcom reports 11% profit boost

18/02/2014 - 12:18

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Amcom Telecommunications has reported strong results from the first half of the financial year with underlying profit increasing 11 per cent.

Amcom chief executive Clive Stein says the company has taken advantage of the converging telecommunications and IT sectors.

Amcom Telecommunications has reported strong results from the first half of the financial year with underlying profit increasing 11 per cent.

The Perth-based company has marked a 4 per cent increase in revenue (to $82.9 million) across all its service offerings compared with the previous corresponding period.

The growth translated into after-tax profit of $11 million for the six months. Net profit after tax prior to Amcom's $13.2 million acquisition of data centre company aCure Technology was $11.5 million.

As a result, Amcom shareholders will be paid a 2.2 cent per share interim dividend in April - a 10 per cent increase on the last interim dividend paid.

Shareholders received a dividend of 5.5 cents per share following the company’s 23 per cent profit growth for the 2013 financial year.

At the time, Amcom said it expected to continue to deliver double-digit growth, and it has stuck by that forecast following the mid-year results.

Amcom chief executive Clive Stein said the company benefited from an 18 per cent increase in revenue from annuity style business streams over the first half, which now amounted to a recurring annual base of $116 million.

He said demand for Amcom’s core data networks had increased, with revenue for this line of work up 11 per cent compared with the previous corresponding period.

“Over the past few years we have invested in the opportunities arising from the convergence of the telecommunications and IT sectors,” Mr Stein said.

“We have successfully balanced performance and growth - continued execution will drive shareholder returns in the future.”

Amcom acquired data centre company aCure Technology for $14.3 million and also deployed a new cloud-computing platform, which it expects to complement continued growth in demand for core networks business.

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