ASG produces record profit

ASX-listed ASG Group (ASX:ASZ) has posted a $6.5 million record net profit for the first half of the financial year.

Pre-tax earnings rose 32.5 per cent to $10.4m in the six months to December 2009. The result was attributed to its managed services contract wins and cost control initiatives put in place in response to the economic downturn.

The Perth-based company also noted services revenue jumped 7.4 per cent, although overall revenue was down 9.3 per cent to $58m.

ASG managing director, Geoff Lewis, said the market was looking extremely positive, particularly in 2011.

“We’ve announced contracts worth $60m,” he said. “There’s no more cost cutting going on and the structure will stay the same, but we’ll grow the business. We’re confident that 2010 is looking positive for new contract wins.”

In the next six months, ASG is hoping to acquire companies in the managed services applications and business intelligence space, Lewis said.

“We’ll be looking to create an environment where we can lock down managed services contracts and are able to bring extra value to our customers,” he said. “Our cash flow remains very strong and our balance sheet continues to strengthen, giving us a great platform to pursue organic and acquisitive growth.”

The integrator recently sealed a $35 million deal with Western Power Corporation.

In January, ASG locked in a contract with the Depart of Education in Western Australia worth more than $23 million.

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