Services provider, Synergy Plus, has recorded a positive 2010 financial year result with profit before tax reaching $780,000.
At the same time last year, it suffered a $1.1 million profit loss.
Revenue was up 6.5 per cent to $154.5m for the financial year ending June 30. Gross margin sat at $32.3m, up from $27.1m in FY09.
In a statement to the ASX (ASX:SNR), it said services revenue had also gone up 15 per cent compared to the previous year.
The company experienced the strongest last quarter in its history due to some substantial contract wins with the Federal Government, according to Synergy Plus.
The last six months of Synergy Plus’ financial year saw and overhaul of the senior management staff and a restructure of both its sales and engineering team as part of its business process improvement strategy.
“We looked at the structure of the sales team, how it engages [with clients] and what sales verticals were targeted,” Synergy Plus managing director, Garry Henley said. “We also restructured the engineering teams to make sure we are getting better access to national resources.
“We wanted to transition the business from where it had been in the past which had been sort of seven individual states to a much more national focused business.”
Synergy Plus acquired mobility solutions provider, AirData, just outside of its FY10 which would have added $20 million in revenue to the books.
Synergy’s operating expenses had increased to $30m, which it claims is due to an increase in salaries and wages due to fulfilling vacant management positions and the acquisitions of new businesses.
During the year, employee headcount had increased from 223 to 269, excluding the addition 30 staff from AirData.
The new financial year will see the services provider sniffing out new acquisitions again. It is on the hunt for a “mid-tier managed services type infrastructure business” valued at around $20-30 million.
“The business is focused in the large to mid-tier space – around 100 to 1000 seats – so we want to make sure the business is flexible enough to move and adapt to changes in that area,” Henley said.
Synergy Plus will continue to observe market trends such as those in cloud computing and virtualisation.