Menu
Financial firms plan widely dispersed IT operations

Financial firms plan widely dispersed IT operations

IT procurement and services business Volante Group has again delivered dividends to its shareholders, with a profitable six months to December 31, 2001.

Despite the dramatic state of the market in late 2001, the group announced an after-tax profit of $3.1 million on revenues of $183.9 million, a 12.8 per cent increase on the same period in late 2000.

Most of these revenues were earnt by the group's IT procurement business, Volante Systems. Although the business grew in revenues compared to the corresponding period, the group was quick to point out that the 2000 figures included the acquisition costs of AAG, thus indicating the soft market actually made late 2001 lower on a like-for-like basis.

The group attributed the slightly lower revenues to reduced corporate IT spending and delayed purchasing in the shaky market. But Volante Systems still managed a positive contribution to the group through the use and sale of a procurement and supply-chain management software tool it developed called Customer Connect. The integration of its procurement businesses (AMS and VIT) to form Volante Systems is expected to bring the company cost savings in the next six months.

The group's IT services arm, Volante Solutions, achieved an increase of 40 per cent in revenues. Again these earnings did not translate into a great deal of profit for the group, due to high selling costs and low recovery rates. Nevertheless, the division signed new contracts with Australian Pharmaceutical Healthcare Systems, Lexmark and Melbourne Water.

The company's Affinity IT Recruitment business had a tough six months and is expecting a big improvement in 2002, while its global remarketing business made a small but positive contribution to the company's profits.

Group managing director Allan Brackin was pleased with the consolidated results, which improved slightly on the same period in 2000. He said the company is debt free, has a positive cash flow and a clearer brand to take 2002 head on.


Follow Us

Join the newsletter!

Error: Please check your email address.
Show Comments