Empired shares up on FY21 forecast

Perth-based IT services provider Empired has forecast solid revenue and earnings growth in the current financial year on the back of multi-million contracts.

Empired told the market it expected to generate between $87 million and $89 million in revenue in the first half of FY21, up from $84 million last year.

It has forecast earnings before interest, tax, depreciation and amortisation of about $16 million, doubling the $7.8 million EBITDA reported in the first half of FY20.

Empired’s shares closed up 16.4 per cent on the news to trade at 74 cents.

Managing director Russell Baskerville said the business had ramped up its services after being awarded a number of key contracts in the past six months.

That includes $61 million in work with Western Power under two separate contracts.

The work includes providing end-user computing services to 3,300 Western Power staff along with a broad range of systems integration services for the company’s corporate requirements, asset operations, asset maintenance and power distribution network.

Empired said the contracts would also support its FY22 growth.

The business said it also had a number of strategic contracts, to be contested within the next 12 months.

Further, Empired flagged its intention to begin dividend payments, with the first to be declared in February along with the 1H financial results.

“In the face of challenging conditions, our team has transitioned and commenced service delivery ahead of time and in line with anticipated financial performance,” Mr Baskerville said.

“This, combined with pleasing earnings growth across the Australian east coast and an outstanding performance from our New Zealand operations, provides confidence in our solid first-half guidance and continued growth into the second half.”