Amcom records double figure profit jump

Amcom records double figure profit jump

Revenues were up 56 per cent to about $136m in part due to the acquisition of Amcom L7 Solutions

Telco and converged IT services provider Amcom Telecommunications’s net profit after tax jumped 10 per cent to $24.8m for the year ended June 30.

Its revenues were up 56 per cent to about $136m compared to last year. The increase was in part due to the acquisition of Amcom L7 Solutions.

The ASX-listed telco services provider said the surge in earnings was achieved due to strong organic sales growth from Amcom’s core data networks (fibre) business and expanded business services offerings.

It expects continued growth from its data networks business as well as from opportunities in the Cloud (hosted IT) services market. It hopes to win additional annuity style businesses, and expects similar underlying earnings beyond the current financial year.

Its sales from data network for fiscal 2012 were 43 per cent more than its previous financial year with recurring revenue base for all annuity streams of the business now exceeds $90m at the end of the year.

Despite the investment Amcom has made in new operating capabilities, its operating margins remain healthy with EBITDA up 18 per cent to $34m and EBIT up 24 per cent to $25.1m, the company said in a statement.

Its operating cash flow grew by 30 per cent to $32.3m and free cash flow after capital expenditure jumped 82 per cent to $13.4m as its core data networks business continues to scale.

“Management delivered the tenth consecutive year of growing underlying earnings in excess of 20 per cent per annum. This financial year the strong profit result was also accompanied with an 82% increase in free cash flow,” Amcom chairman, Tony Grist, said in the statement.

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