ASX-listed IT services outfit, DWS Advanced Solutions, intends to enter the Perth market and recruit more consulting staff as it looks to continue on the road to recovery following a poor third quarter.
The company restructured its senior management in February, with company founder and CEO, Danny Wallis, assuming managing director duties from the departing Glenn Fielding.
"We were having internal problems and had a change of management at that time to solve it," Wallis said.
DWS recorded pre-tax profits of $3.6 million dollars in the third quarter, less than half of what had been expected, but has predicted earnings of $10 million for the final quarter in its latest market guidance.
"We still have a lot of strong growth in the business; we have no debt and have lost no clients," Wallis said. "It was purely an operational issue that has been dealt with and put to rest."
DWS is expecting to record annual revenues of $88 million in the 12 months to June 30, an increase of about 38 per cent on the previous financial year. Pre-tax profits are expected to be up by 15 per cent to $27 million.
Wallis plans to expand the organisation and is examining the possibility of moving into the Perth market either organically or via acquisition.
"Perth will make us national and we'll have representation in all the main states," he said. "We've been looking at various options to get a foot in the door."
Wallis said he was also looking to recruit more IT consulting staff across its Sydney, Brisbane, Adelaide and Melbourne branches. DWS currently employs about 550 staff.
"The focus is to get enough staff to cover demand," he said. "We're growing strongly in the finance sector and will continue our growth in utilities."