IT services company, DWS Advanced Business Solutions, has experienced a 28 per cent increase in pre-tax profits to $13.4 million in its first-half. But the ASX-listed organisation remains cautious for the next six months ahead.
With looming federal and state elections, and the possibility of a second round wave of the financial crisis, company CFO, Lachlan Armstrong, cited challenges for next six months. A significant portion of DWS’ revenue comes from federal and state government business.
“Whenever there’s an election on the horizon, there does tend to be a slow down in spend until everyone understands what the political climate is going to be,” he claimed. “Sometimes that extends to the broader business and corporate spend as well.”
According to its financial report, revenue for the first half of the financial year to December 31, 2009 topped $48.12m. This was up 10 per cent year-on-year. Net profits were also up 28 per cent to $9.2m. Armstrong noted its Sydney office returned to growth after under performing in the last financial year. Its Brisbane and Adelaide bases have also experienced a strong six months.
Armstrong said more acquisitions were on the cards. DWS recently acquired Graeme V Jones & Associates (GVJ), which provided a presence in the SAP and PeopleSoft space. The company is seeking underperforming companies to help enhance its growth in the market.
“DWS balance sheet is very strong and our ability to generate free cashflow sees us well placed to take advantage of acquisition opportunities,” Armstrong said.