More acquisitions are on the horizon for BigAir Group as it posts a record first half for the six months to December 31.
It has put the spotlight on potential acquisitions within metro and regional wireless infrastructure operators, niche managed service providers, community broadband businesses and operations in other growth industries such as mining, defence, and aged care.
“There’s the potential to pursue further acquisitions to consolidate BigAir’s market position and enhance scale,” BigAir CEO, Jason Ashton, said. “With a strong balance sheet that has no debt, and a growing cash balance, BigAir is well positioned to take advantage of attractive acquisition opportunities as they arise.”
Underlying net profit was up 15 per cent to $2.37 million. Gross profit is also up 30 per cent to $10.5 million and revenue was up 36 per cent to $14.97 million compared to the same time last year.
Ashton attributed the positive results to an increasing demand for its business fixed wireless and community broadband services.
“We have a strong competitive position via our significant technical expertise and extensive high speed network coverage,” Ashton said. “The substantial investment we have made over the past few years in building our own wireless networks is now starting to flow through to improved bottom line returns.”
Despite earnings growth, margins were down during the past six months due to the acquisitions of Allegro and Link Communications in June last year, which aimed to boost its business fixed wireless division. The integration of these acquisitions are slated for completion by the end of this financial year and are expected to contribute about $2.5 million of additional run-rate EBITDA for the company.
“We had similar experiences after acquiring Clever and AccessPlus, and we expect to see strong margin improvement from the second half of this financial year as acquisition synergies are unlocked,” he said.