Software development company Empired Limited has secured an extension to the lucrative e-recruitment deal with the State Government worth about $2 million over the next three years.
RAMS extension a boost for Empired
Software development company Empired Limited has secured an extension to the lucrative e-recruitment deal with the State Government worth about $2 million over the next three years.
The news comes as Empired examines its opportunities offshore and funding for its interstate and international expansion plans.
Earlier this year, the Perth-based firm secured a three-year deal worth more than $500,000 with the State Government to deliver the public service’s employment requirements online.
The system, Recruitment Advertising and Management Systems (RAMS), allows all public service agencies to have multiple employment services via a single point of entry and was the subject of a Government advertising campaign earlier this year.
“The WA Government has expanded and varied the contract to enable every agency in WA’s public sector to use our system,” Empired executive director Gavin Burnett said.
“The contract value is now in the order of $2 million, but the savings to Government are substantial.”
Managing director Justin Miller said the Government’s savings would be about $2 million a year, which in effect was a 12-month return on investment on the contract.
Mr Burnett said the RAMS systems streamlined job opportunities for job seekers and drove efficiencies within government agencies by automating work flow and eliminating double handling within the system.
“We’ve also imported 10 years worth of historical data,” he said.
The board was now one of the top 10 job boards in the country, Mr Burnett said, and was positioned alongside the likes of Seek.
News of the deal follows a trip by Empired to CeBIT US 2004 where the company, along with three other WA-based companies – Brookstone Technologies, Secure Systems and Lasata Software – sought opportunities in the offshore markets.
“Out of CeBIT is looks like we’ve picked up a New Zealand distributor,” Mr Miller said.
The company was also examining “a significant opportunity out of Germany that would put all our other contracts to shame in terms of the size”, he told WA Business News.
“There are some fantastic international opportunities. A small piece of business in those regions is a large piece of business here.
“Our decision now is how we expand because the international market looks a lot more attractive, so we have some big decisions over the next few months.”
But Mr Miller said the company would require capital to fund its offshore plans.
“The valuations we are getting offshore are significantly higher than what we are seeing domestically by three or four fold,” he said.
“We’ve a number of competitors in the recruitment space, but no-one has gone the whole employee life cycle.
“There seems to be recognition offshore about the value of the business.
“We have four ways for us to raise capital – bank debt, private equity, grants and venture capital for emerging businesses.
“We’ve looked at three of those but haven’t gone the fourth route, which is venture capital.”
Mr Miller said Empired was in discussions with a venture capitalist firm in New York and was looking at potential distributorships in the US, rather than selling directly.
While not ruling out the possibility of an initial public offering, he said “it was not the preferred route” for Empired to raise capital at this time.
“Some businesses are forced to go down that path because it’s the only way they can go to grow their business,” Mr Miller said.
Mr Burnett said the company was looking to establish a presence in Melbourne or Sydney to service a raft of new contracts, which included Kentucky Fried Chicken, Royal Melbourne Hospital, Southern Health the NSW Fire Brigade, and the Victorian Government.
EMPIRED GROWTH
- Empired’s deal for RAMS e-recruitment system with State Government extended.
- RAMS in top 10 job boards in Australia.
- Empired pursues offshore plans.
