ASX-listed IT services provider Commander continues to thrive on the back of its acquisitions of ISP, RSL Com, and reseller, Centari Systems, reporting impressive gains in both revenues and profit for the 12 months to June 30, 2003.
Commander’s revenues for the 12-month period increased by 67 per cent to $333.6 million off a substantial base. The company attributed much of its growth to the acquisitions of RSL Com in March 2003 (purchased for $72.4 million), which added $55.7 million in revenues for the year, and leading HP/Compaq reseller Centari Systems in August 2002 (for $20 million).
The increased revenues, in combination with a restructuring that brought about ‘significant reductions’ in the company’s cost base, aided the company’s $15.2 million net profit for the year, up 51 per cent on the prior financial year.
The company attributed $900,000 of that profit and a further $1 million of the profit to the acquisitions of RSL Com and Centari Systems, respectively.
The company said it did not expect a strong first half to the 2003/04 financial year, due to the cessation of a retail relationship with Telstra.
However, the service provider expects better performance in the second half as it replaces these lost revenues with the sales of customers acquired as part of a new wholesale agreement Commander has signed with the same carrier.