ASX-listed service providers have reported mixed results for the full-year to June 30.
Oakton rounded out a horror financial year with a 48.8 per cent drop in profit to $14.3 million. Revenues were also down by 3.8 per cent to $194 million but debt was reduced to $23 million, while operating cash flow is at $20.4 million.
Over the full year, the company reduced its headcount by 150 people in Australia to 1150, but increased its India-based resources by an additional 10 to 110.
Redundancies and non-recurring overheads cost the company $4 million over the year, while project write downs in the first half of the financial year cost another $4 million.
The economic downturn was “the most severe and pervasive, occurring more rapidly than any other we have experienced”, Oakton said in the ASX statement. However, it is maintaining a positive outlook and now claims to have costs under control and revenues of pre-crisis levels. It also cited opportunity in its strong markets of government, financial services and utilities.
Managing director and CEO, Neil Wilson, said the April-June period key indicators had returned to levels of prior years. Oakton also expects to eliminate its debt by the end of the 2010 financial year.
On the flip side, CSG pumped up its profits by 24 per cent for the full year to June 30 on the back of its acquisition of Commander’s managed services business and contract wins outside of its Northern Territory base. The ASX-listed IT services provider pulled in $197.3 million in revenues, up 48 per cent year on year. The company also reduced debt by $17.3 million to sit at $39.3 million.
CSG CEO, Denis Mackenzie, said it had completed several company changing events. He highlighted acquiring Commander’s managed services business, and winning its first contract outside of the Northern Territory with the Victorian Department of Education and Early Childhood Development.
“We are investing in some bits up here with the Northern Territory Government. We’ve got a large group of people working on bids for a six-month period on some large opportunities,” Mackenzie said.
“We have had to bring on some external people and are spending some money on these bids, which are not cheap. But, obviously, it’s a big opportunity in our back yard, which we see as important.”