ASG experiences strong profit growth

ASG experiences strong profit growth

Integrator aims to grab a share of $700 million tender market in the next couple of years

ASG Group has recorded a healthy 28.4 per cent increase in net profit

ASG Group has recorded a healthy 28.4 per cent increase in net profit

Despite gloomy economic conditions Western Australia-based service integrator, ASG Group, has achieved $110.9 million in revenue in the 12 months to June 30.

The result is a 46.2 per cent increase on the previous year.

The ASX-listed integrator (ASX:ASZ) also recorded a 28.4 per cent increase in net profit totalling $9.03 million for the financial year.

CFO, Dean Langenbach, attributed the growth to good contract wins throughout the year.

“The federal region has been our best performing region this last year and we’re seeing a lot of growth there,” he said.

In April, ASG secured a $30 million four-year deal with the Federal Department of Infrastructure, Transport, Regional Development and Local government. Earlier this year, it also announced $75 million in new and revised customer contracts.

Langenbach said there was in excess of $700 million worth of contracts up for grabs over the next couple of years that the integrator intends to bid for.

“We’re pretty confident in winning our share of that and growing our existing customer base,” he said. “If we do those two things, we should see some growth levels similar to what we experienced in the last few years.

“We’re not seeing a softening in the market. We’re still seeing both government and commercial customers spending on IT.”

ASG had about 200 customers on its books that ranged from multimillion-dollar contracts to small pieces of project work, Langenbach said. He hinted the company was also on the hunt for acquisitions.

“They have to be a good fit for ASG and need to have application managed services,” he said.

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