KAZ Group announced earnings of $251.9 million for the year ending June 2002 last week, an 80 per cent increase on last year's figures and a vindication for managing director Peter Kazacos' big spend attitude over the last 12 months.
In an announcement to shareholders, Kazacos said that "although the uncertain economic climate has impacted margins, the company has maintained sound financial stability which is evidenced by the growth in cash flows." Cash flow sits at $25.4 million, up 108 per cent on the 2001 financial year.
The company reaped a net profit (after tax) of $18.9 million, a 30 per cent increase on the 2001 financial year, while revenue from ordinary activities for the period stands at $251.9 million, up 81 per cent.
KAZ said much of the cross-selling from Aspect (purchased in March for $20 million) has resulted in new incremental business opportunities, including the signing of the firms first government IT outsourcing contract.
"The Victorian Department of Education and Training and the Multimedia Victoria contracts were especially significant as an indicator of the possibilities of the combined KAZ/Aspect team to win joint application and infrastructure contracts at a government level against incumbent multinational vendors," the company said in its announcement.
"During the year all key contracts due for renewal were renewed for periods between two to seven years. These renewals demonstrate recognition of the quality of service and value provided by KAZ."
Long-term contracts account for approximately 73 per cent of revenue and carry a value of around $600 million.
KAZ has forged ahead in the international arena with its Xantic contract, which spans 16 countries. It has also strengthened foundations in the Asian regions through the establishment of KAZ Computer Services Hong Kong and the new HK data centre. New data centres have also been built in Perth and Adelaide.