Increased efficiency and securing more repeat business has helped Hostworks record a huge jump in net profit for the financial year ended June 30.
The application management and hosting specialist reported a 14 per cent rise in revenues to $16.34 million. Net profits were $1.05 million - 172 per cent higher than in the previous financial year.
According to managing director, Marty Gauvin, better use of the company's fixed costs and a scaling up of the business had been key to the improved results.
"More of our revenues are flowing through to the bottom line giving much stronger growth in our returns," he said. A focus on customer retention and the creation of sales teams to farm existing clients had also boosted profitability, Gauvin said. The recent $6.1 million addition to its Ticketek contract typified this.
"We might start with a website or our software-as-a-service offering then move into backend systems and critical application management, which is where we excel," he said.
During the year, Hostworks had also created additional revenue streams through customer acquisition and new offerings such as Accipter's online ad-serving, Gauvin said.
Hostworks would continue to look at acquisition as a viable growth strategy, he said, and had identified media, travel, franchising and government as important verticals for the year ahead.