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Updated: Synergy revenues and profits up

Updated: Synergy revenues and profits up

ASX-listed integrator highlights services, datacentre growth and Leading acquisition for its improved result

ASX-listed integrator, Synergy Plus, has reported a 3 per cent increase in revenue in the first-half to December 31, 2009.

The company chalked up $76.8 million over the six-month period, up $2.3m year-on-year. Gross profits were also strong at $2.8m, compared to $100,000 in the previous corresponding half. The pre-tax result is also well up on Synergy’s forecasted figure of $1.5m-$1.6m, announced last month.

Net profit came in at $824,000, a massive contrast to its $753,000 loss in the corresponding half.

The results come off a massive six months for Synergy, which saw it acquire the business assets of rival player, Leading Solutions, from the company’s voluntary administrators in November. The deal was officially settled on February 8. Synergy also rebranded from ComputerCorp, six months after acquiring the IBM specialist business from Hyro for $9.3m.

According to its financial statement, the sales result included combined Synergy/Leading Solutions revenue from November 16. Alongside Leading’s contribution, the company also highlighted a 23.1 per cent increase in services revenue, as well as strong enterprise datacentre solution sales, as key contributors.

Acting CEO, Pete Cappendell, was pleased with the results and said they highlighted the company’s strong turnaround.

“We have a lot to do – we’re only a few months into the transformation of our business, but it’s a good start,” he told ARN. “The focus we have had is on integration with the old Synergy business, which was largely based on leveraging its enterprise datacentre business across the country.

“We’re focused on improving the services mix.”

The financial statement also revealed an increase in expenses over the six-months period to $15.6m, including a $184,000 one-off charge following its aborted acquisition of S Central, announced in April and abandoned in September. The Leading acquisition, which was valued at $3.9m, also cost Synergy $180,000, while relocation of its Perth and Sydney offices cost $200,000.

Synergy’s non-current liabilities were also up $8m to $50.4m, while its current liabilities were valued at $22.1m. Its share rights issue last year, meanwhile, raised $3.44m. Synergy originally announced plans to raise $4.2m in capital to help fund its acquisitions of Synergy and S Central.


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