ASG Group financials highlight national growth

ASG Group financials highlight national growth

ASG Group has attributed a 19.5 per cent increase in profits for the financial year ended June 30 to its successful acquisition and national growth plans.

The WA-based services provider chalked up $2.96 million in net profits off the back of $40.8 million in revenue. Managing director, Geoff Lewis, said its interstate offices had brought in 64 per cent of total revenues this year, compared to 46 per cent in the previous financial year.

"Strategically, we were very happy with the results all the way around," he said. "We have won good corporate contracts on the east coast and with the Victorian government.

"Our WA business was bigger in size but, strategically, our customer growth in Victoria and NSW was very strong."

ASG has spent the past 18 months developing a national presence. The company acquired Exceed System Integration in November for $10.2 million, as well as Oracle provider, Assist, in February 2004. It has 80 staff in Melbourne, 100 in Canberra and 30 in Sydney.

While the cost associated with the acquisitions had impacted last year's results, Lewis expected to see profitability grow significantly this financial year.

"We are in a situation now where we can drive a lot more revenue as we won't be making as big an investment into infrastructure," he said.

The company had also secured long-term contracts which would provide about 60 per cent of budgeted revenue in the next year, he said.

This included a $2.2 million contract struck with the Department of Finance and Administration (DOFA) in August.

Lewis said the company was also seeking more strategic acquisitions to expand its services business, particularly in the Sydney market.

ASG was also keen to talk to organisations with skills in Oracle, Microsoft and other applications, he said.

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