Eastern states drive ASG revenues

Eastern states drive ASG revenues

WA-based ASG group has recorded higher full-year sales across its east coast operations than in the west for the first time.

"Our revenue in the west represented about 45 per cent, while the east coast hit 55 per cent," ASG chief financial officer, Dean Langenbach, said. "We expect this figure to rise as far as 65 per cent in the next year.

"It shows we are becoming a national business rather than Perth-centric."

According to its full-year results to June 30, ASG recorded a 99 per cent increase in net profits, up from $2.6 million to $5.2 million in the year to June 30. This was off the back of a 45 per cent earnings rise to $59.3 million. EBITDA was also up to $7.2 million, representing a 66 per cent increase.

Langenbach said Canberra sales were a major contributor to the positive results.

He said contracts with the Department of Finance and Administration, Prime Minister and Cabinet and the Australian Competition and Consumer Commission were significant. The company also experienced strong growth in the west due to its position on the WA Government's Office of Shared Services contract for hardware and support services.

While sales in Sydney were still small, Langenbach said the state was expected to be the major growth driver in 2007. ASG would continue its hunt for an acquisition to boost its skills and scope in that market.

"We are tight on criteria; we have looked at many potential businesses already, and have rejected five or six in the last 12 months," he said. "We want to maintain our business model of long-term, cumulative revenue. We are also looking for more services rather than a lot of product."

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