Empired reports $1.7m loss

Perth IT firm Empired has sunk into the red but believes a strong recovery in the second half of the 2016 financial year has put it in a good position for FY17.

Empired posted a net loss of $1.7 million for the 2016 financial year, down from a $5 million profit reported last year.

However, revenue was up 25 per cent and climbed to $160 million, up from $130 million in FY15.

Earnings before interest, tax, depreciation and amortisation fell 31 per cent to $7 million.

The company declared no dividends.

“Following significant integration activities and disappointing earnings in the first half we are pleased to report a strong recovery in the second half,” managing director Russel Baskerville said.

“Importantly we have experienced pleasing operating cash flow in the second half significantly reducing our net debt level.”

The local IT firm will enter FY17 with a record level of contracted revenue.

“High levels of contracted revenue, a healthy sales pipeline and services aligned growth segments of the market provide us confidence in delivering a strong financial performance in the coming year.”

Empired shares were 7.7 per cent higher at 49 cents per share at the time of writing.