UXC profits up 59 per cent, to $7.5m

Revenue from continuing operations up 7.3 per cent, to $275 million

ICT consultancy firm, UXC Limited (ASX:UXC), has announced a Net Profit After Tax (NPAT) from continuing operations of $7.5 million – up 59 per cent from the same period last year.

Its revenue from continuing operations was up 7.3 per cent, to $275 million.

UXC chairman, Geoff Cosgriff, said the profit recognises the company's progress towards fulfilling its strategic plan.

“The completion of the first half marks the second six-month reporting period during which we have operated as a pure play IT company. We continue to take advantage of this sharper focus, and as a result are able to report strong growth in revenue, earnings, EPS, dividends and cash flow,” he said.

It reported earnings per share from continuing operations of 2.46 cents per share, also up by 59 per cent. Its net cash balance stood at $5.5 million, an improvement of $7.1 million since last year, after disbursements of $11.8 million for acquisitions.

“Although we divested the Field Solutions Group [FSG] during the previous corresponding period, we still have accounts that report the results of discontinued operations for the current period, in addition to the core IT businesses which are reported as continuing operations,” Cosgriff said.

UXC Limited managing director, Cris Nicolli, attributed its success to key account wins, customer retention and its improved delivery process.

“We have been entrusted with some very significant contracts – the largest in our history. Also, the ongoing improvement in the delivery of our projects has enabled a range of key operating improvements in the areas of utilisation and gross margin quality,” Nicolli claimed.

He also noted its consulting, applications and infrastructure operating segments each delivered margin improvements.

“Our focus on margin growth has driven a 17 per cent growth rate in underlying EBITDA from seven per cent revenue growth rate.

Nicolli added that the company attention will remain on achieving its medium term targets as a major driver of continued earnings improvement.

The company said, in a statement, that it will also continue with the strategy of building increased capability in its targeted go-to-market areas by “increased scale and geographic reach, where required”.

UXC also announced new appointments to its board, naming former Oracle Asia-Pacific senior vice-president, Brian Mitchell, and Accenture Australia managing director, Doug Snedden, as its new directors.

“Together with all the directors, I look forward to making further progress on our strategic plan and in thereby, improving shareholder returns,” Cosgriff said.

Read more: UXC names new CTO and CIO

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