ASG predicts bigger and better FY11

ASX-listed ASG Group (ASX: ASZ) has predicted FY11 will be even better than its record full year profit report for the 2010 financial year ending June 30.

Net profit (NPAT) for the services provider was up 9 per cent to $12.3 million. Although the company revenue was down 5 per cent to $120.8 million, ASG predicts a revenue increase of at least 40 per cent in FY11.

“We had a softer second half from the core business but the locked-up revenue we secured from that period starts to contribute in FY11,” ASG CFO, Dean Langenbach, said.

Despite being a significant Government player, Langenbach said the services provider was unconcerned by the controversial removal of Gershon savings reinvestment by the Federal Government.

“The impact of that will be felt more in the consultancy and project space.” Langenback said. “We play primarily in the managed services space, so we’re not concerned”

Highlights for the year included securing more that $220 million in new contracts with blue chip public and private sector clients, the launch of a Perth datacentre, and the integration of three acquisitions – which should have an earning per share accretion in FY11.

Langenbach said the continuing trend towards outsourcing put the service provider in good stead for the near future.A

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