Sydney strength fuels Oakton

Sydney strength fuels Oakton

Oakton has attributed solid annual financial results to a push on single branded services and significant wins in Sydney.

The Melbourne-based services company reported a full-year profit after tax of $8.34 million, up 22.6 per cent on last year's result. Overall revenue increased by 20.8 per cent to $53.98 million, while EBITDA rose by 23.9 per cent to $14.18 million.

Oakton managing director, Neil Wilson, said its NSW business had doubled during the past 12 months, making it one of the key growth drivers. The state now accounted for 37 per cent of total revenue. "We see it as bigger than Melbourne from a market share point of view," he said. "It's a huge opportunity in the medium term."

One of the other highlights for the year had been the swell in staffing numbers, Wilson said.

The company hired 104 in the last financial year, as well as 27 between June and August, growing total headcount to 390.

"As we grow, we're bidding for more substantial engagements," he said.

"A number of our jobs this past year have been $1 million plus. Historically we have not had a lot of these."

One of the core initiatives touted by Oakton in its last financial year was the need to expand services contracts with existing customers.

To achieve this, the company segmented its customer base into its top 10 and top 30 clients, Wilson said.

Its tier one customers, which accounted for about 45 per cent of revenue, were now utilising more than four of its services lines on average. Although the company was keen to hone in on Sydney sales, Wilson highlighted Queensland as a potential growth area.

Acquisitions were also on the cards, he said.

"We are talking to a couple of companies at the moment," Wilson said.

"These are organisations that provide services that fit in with our model. We have a full integration strategy so we wouldn't run these separately." Oakton was also planning to improve its existing services, rather than adopt new ones, he said.

"The growth has to come from providing these services in more areas and to more people," Wilson said.

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