Oakton revenues hit $94m

Oakton revenues hit $94m

ASX-listed services provider attributes strong results to organic growth and expanding customer base

Strong organic growth, along with an extra boost from its Acumen acquisition, has seen ASX-listed services company, Oakton (ASX: OKN), record a 101.3 per cent increase in half-year revenue to $94.65 million.

Net profits for the six months to December 31 also rose by 36.3 per cent to $12.5 million.

CFO, Mike Miers, said Oakton's organic growth hit 33 per cent in the first half of the financial year, demonstrating strength in its underlying business. The integration of Acumen Alliance, however, had had the most impact of results, he said. Oakton acquired Acumen in May last year.

Key customer wins during the first half of the year include an $8 million contract with Tenix.

"Our sales pipeline is really strong and generating good opportunities," Miers said. "Acumen gave use four new services in the consulting area, as well as a new location in Canberra, which has probably been the biggest influence on our results."

He said about 20 per cent of Oakton's revenue now stemmed from Federal Government contracts, up from less than 1 per cent before the Acumen purchase.

"Our industry mix changed a lot in the first half year-on-year," Miers said. "We are also finding that we are bidding more for job worth $1 million or more - our target size has gone up. I see us winning these sized jobs more and more."

He was conservative about the second-half of the year and agreed global economic issues and concerns of a US recession could have a negative impact on the corporate community. But he pointed out about 75 per cent of Oakton's second-half revenue was also locked in as part of annuity or project contracts.

"In previous years this would have been around 50 per cent," he said. "We're taking a conservative approach to the second half and will see how everything pans out."

Like most other integrators, Oakton would also keep an eye out on potential acquisitions, Miers said.

In other news, the integrator has appointed former Unisys managing director, Steve Parker, as its new chief operating officer. He will focus on day-to-day management responsibilities and assist with ongoing expansion of the business, the company said in a statement.

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