The shift towards a managed services model is beginning to pay off for ASX-listed SMS Management and Technology (ASX:SMX), which has seen net profit soar 48 per cent to $8.6 million and revenue rise 15 per cent to $176.4 million for the first half of 2015 financial year ending December 31.
The managed services provider secured $212 million in customer contracts during the first half, up 21 per cent on the previous period.
SMS highlighted financial services, ICT and state government were the key performing industry sectors while federal government and utilities contracts were flat compared to the previous period.
“The business has made good progress to expand into the managed services space,” recently appointed CEO, Jackie Korhonen, said. “This not only provides increased diversity of service offerings, but also reduces the dependency on traditional service lines and geographies.”
An additional $1 million was set aside for the Indicium acquisition in July 2013. Indicium is expected to over-achieve its earn-out profit targets, entitling the former owners to additional consideration in accordance with the sale and purchase agreement.
“The company has achieved strong revenue growth with NSW Consulting and M&T Resources leading the way,” SMS CFO, Rick Rostolis, said. “Consultant utilisation has improved. Our challenge is to build on that as we enter the second half of the financial year. “