IT services provider, ASG (Amcon Solutions Group), has ascribed $2.48 million profit and increasing annual revenue to its acquisition of the Accounting Systems Software Implementation and Support Team (Assist) business and growth across the eastern states of Australia.
According to the Western Australian-based company’s 2003/2004 annual financial report, more than a third of its total turnover in the three months to June came from sales to clients in Sydney, Melbourne and Canberra – cities previously untouched by ASG.
Overall, ASG’s revenue reached $24.6 million, up from just under $5 million in the last year.
ASG stated the services side of its business now represented 97 per cent of its total income.
ASG CEO, Geoff Lewis, said the company had grown organically over the past 12 months, driven by big investments into its east coast operations. A large proportion of this investment was the purchase of the Assist business, formalised in January.
Lewis said the merger with the Oracle Solutions business had provided ASG with the opportunity to strengthen its presence in the government sector, as well as increase its services business to new customers.
Although ASG already sold Oracle products in WA, Assist had provided the company with the opportunity to stretch into eastern states, he said.
“Assist was a successful company,” he said. “Not just from a financial side but also from the strategic side – its client base allows us to sell our other services too.”
Lewis said ASG had spent the first six months of this year consolidating the Assist acquisition into its local presence and client contacts in the Melbourne, Sydney and Canberra markets.
This had resulted in a raft of new contracts wins, to be announced shortly, he said.
Over the next year, the company would look to acquiring more niche area businesses to expand its services offerings, Lewis said.
“They will have to fit with the parameters we set: have to profitable, have to be strategic to our business, and they have to have a good client base to leverage our other products on,” he said.
Further acquisitions were likely to be companies boasting of expertise in niche areas, Lewis said.