East coast operations drive Empired's earnings

09/08/2017 - 13:03

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Local IT firm Empired has grown its revenue for the 2017 financial year on the back of a surge in earnings from its operations on the east coast and in New Zealand.

Russell Baskerville says the company achieved significant results in NSW and Auckland. Photo: Attila Csaszar

Local IT firm Empired has grown its revenue for the 2017 financial year on the back of a surge in earnings from its operations on the east coast and in New Zealand.

Empired achieved revenue of $168 million for FY17, up 5 per cent on its FY16 result, with earnings before interest, tax, depreciation and amortisation up 105 per cent to $15.4 million.

The Perth-based company also flagged a $1 million non-cash charge in depreciation and amortisation associated with the moving of its Wellington office, coupled with the writing-off of legacy assets.

The company will release its audited results later this month.

“This result cements a successful recovery year, putting the challenges of FY16 clearly behind us and sets a foundation for growth in FY18 and beyond,” managing director Russell Baskerville said.

“Underpinning year-on-year growth is our recurring revenue base as well as growing revenue from multi-year contracts.

“Pleasingly a focus on our key growth markets has delivered exceptional results with NSW sales up 32 per cent and Auckland sales up 67 per cent.”

Mr Baskerville said the ramp up of Empired’s delivery centre in Bengaluru, along with significant operating leverage and a more efficient, lower cost operating model was expected to continue to deliver margin expansion over the medium term.

“The proliferation of digital business models heavily reliant on data analytics, modern applications and mobile devices is ever present and underpins an exciting growth opportunity for Empired for many years to come,” he said.

Empired shares were up 6 per cent to 61.5 cents each at 1pm.

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