ASG forecasts massive earnings growth

ASG forecasts massive earnings growth

WA services group says it will also consider further acquisitions to propel growth

ASX-listed services provider, ASG Group, has forecasted a jump in its full-year EBITDA to June 30 of at least $10.7 million. The figure represents a 48.6 per cent increase yea-on-year.

Managing director, Geoff Lewis, put it down to strong growth on the back of the Western Australian-based company's Oracle business, servicing the likes of Qantas.

"We're getting more of that kind of business all the time," he said. "The acquisition of Vindaloo Systems also helped us quite a lot. Probably about $2 million of EBITDA."

Lewis estimated around 30 per cent of its business was Oracle-related. Services around Microsoft products also represented up to to 30 per cent of its business. HP adds another 5 per cent.

Sydney-based Vindaloo Systems was an Oracle solution and managed services group. ASG acquired the company in November. Lewis said ASG could also look at further acquisitions to assist building up the bottom line.

"We have very stringent parameters when it comes to acquisitions. They must meet our strategic position and provide us with a customer base we can leverage other capabilities into, for example," he said. "It must also fit within the culture of ASG and be a services-based reseller, rather than a product-based one."

Lewis said the result meant ASG would be delivering two consecutive years of growth in EBITDA greater than 40 per cent.

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