Solid year for ASG

16/08/2016 - 12:56

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Perth IT firm ASG Group has boasted a strong financial year on the back of growth in large-scale contracts and a tightening of its operations.

ASG Group chief executive Geoff Lewis.

Perth IT firm ASG Group has boasted a strong financial year on the back of growth in large-scale contracts and a tightening of its operations.

ASG posted a 26.1 per cent rise in net profit to $12 million for the 2016 financial year on record revenue of $188.7 million, up 16 per cent.

The group also achieved record earnings before interest, tax, depreciation and amortisation of $26.7 million, up 32 per cent on the previous year.

No dividend was declared, but the company said there was scope for payouts in FY17.

Chief executive Geoff Lewis said the FY16 result provided a springboard for ASG to deliver meaningful earnings growth in FY17 and FY18.

“The improvement in ASG’s margins was particularly pleasing and a reflection of tight operating disciplines, including a shift of some functions to offshore outsourcers,” he said.

“Our EBITDA margin of 14.2 per cent will continue to strengthen as our revenue base builds, giving further momentum to earnings growth in FY17.”

ASG has $185 million of revenue locked in for FY17, with a pipeline of work valued at $370 million.

Mr Lewis said the strength and predictability of the company’s service model allowed it to look to the next two financial years with great confidence.

“Two key drivers of profitable growth will be scale benefits from our growing revenue base and the opportunity to achieve further efficiencies, including through more outsourcing offshore and collaboration with partners,” he said.

ASG shares gained 14.2 per cent, or 15 cents, to $1.20 at 12:30pm.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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