Information and communication technology group, Synergy Plus has recorded a $140,000 net profit after tax for the 2010 financial year.
Information and communication technology group, Synergy Plus has recorded a $140,000 net profit after tax for the 2010 financial year.
This compared to a $1.06 million loss during the 2009 financial year.
The 2010 result was built on record revenue of $154.5 million up 6.5 per cent on its revenue of $145.1 million for the previous corresponding period.
The Group also increased its service revenue by 15 per cent.
"The Group's strategy of diversifying its reliance on its traditional states of the ACT and WA via acquisitions continued during FY10 through the acquisition of Paragon and Synergy Plus," the company said in a statement.
"With the return to profitability in FY10 coupled with the acquisitions, the Board is of the view that positive progress has been realized in positioning the Group for the future," the statement said.
See company statement below:
The Group recorded revenue for FY10 of $154.5m which reflects an increase of 6.5% on its revenue of $145.1m for the financial year ended 30 June 2009 ("FY09").
The Group increased its service revenue by 15% during FY10 compared to FY09. This is a result of the Group's focus on increasing its professional service and managed service offerings.
The Group's strategy of diversifying its reliance on its traditional states of the ACT and WA via acquisitions continued during FY10 through the acquisitions of Paragon and Synergy Plus.
Considerable focus has been placed on the integration of the businesses acquired. As at the date of this report, the two businesses acquired have been fully integrated into the Company's systems and premises and all operational efficiencies identified have been realized.
Gross margin of $32.3m was recorded in FY10 compared to $27.1m for FY09. The gross margin percentage increased to 21.3% compared to 19.0% for FY09 due to the increase in service revenues and the reduction in product revenues.
Operating expenses (excluding interest and depreciation) increased to $30.0 for FY10 compared to $25.2m for FY09. The main reasons for this were the increases in salaries and wages due to fulfilling the vacant managerial positions and the acquisitions of new businesses.
During the year the group's employee count reached 269 compare to 223 in FY09. The Group continues to monitor its cost base in light of changes in market conditions.
Interest paid to third parties has increased. This is mainly a result of official interest rate increases over the period.
The Group produced an operating profit before tax of $0.78m for FY10 compared to a net loss before tax of $1.1m for FY09.
With the return to profitability in FY10 coupled with the acquisitions, the Board is of the view that positive progress has been realized in positioning the Group for future growth.
As at 1 June 2010 the Company purchased a trade debtors insurance policy covering all commercial trade debtors balances.
