ARN

ASG experiences strong profit growth

Integrator aims to grab a share of $700 million tender market in the next couple of years
ASG Group has recorded a healthy 28.4 per cent increase in net profit

ASG Group has recorded a healthy 28.4 per cent increase in net profit

Despite gloomy economic conditions Western Australia-based service integrator, ASG Group, has achieved $110.9 million in revenue in the 12 months to June 30.

The result is a 46.2 per cent increase on the previous year.

The ASX-listed integrator (ASX:ASZ) also recorded a 28.4 per cent increase in net profit totalling $9.03 million for the financial year.

CFO, Dean Langenbach, attributed the growth to good contract wins throughout the year.

“The federal region has been our best performing region this last year and we’re seeing a lot of growth there,” he said.

In April, ASG secured a $30 million four-year deal with the Federal Department of Infrastructure, Transport, Regional Development and Local government. Earlier this year, it also announced $75 million in new and revised customer contracts.

Langenbach said there was in excess of $700 million worth of contracts up for grabs over the next couple of years that the integrator intends to bid for.

“We’re pretty confident in winning our share of that and growing our existing customer base,” he said. “If we do those two things, we should see some growth levels similar to what we experienced in the last few years.

“We’re not seeing a softening in the market. We’re still seeing both government and commercial customers spending on IT.”

ASG had about 200 customers on its books that ranged from multimillion-dollar contracts to small pieces of project work, Langenbach said. He hinted the company was also on the hunt for acquisitions.

“They have to be a good fit for ASG and need to have application managed services,” he said.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ASG
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the ARN comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: ASG Group, growth, revenue, Western Australia
rhs_login_lockGet exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
Find distributors by name | vendor | location
Channel Deals
/deals/aca-pacific/415_bonus-500-gift-card-with-every-sgi-is5000-sp-s
ACA Pacific

Bonus $500 Gift Card with Every SGI IS5000-SP Storage Subsystem. Ends June 30th, 2012.

More details »
ARN Vendor Directory
Find vendors by name | category

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.