SMS Management and Technology hunts for acquisitions

SMS Management and Technology hunts for acquisitions

Reports NPAT 15 per cent drop to $12.9 million for the first half of FY13

Systems integration services provider, SMS Management and Technology has stated it actively pursuing EPS accretive acquisitions to expand its geographic coverage or service offerings.

This comes on the back of the services provider posting its first half FY13 results, which saw a 15 per cent drop in net profit after tax to $12.9 million.

In a statement to the ASX, the company said this was largely due to reduced revenue within the ICT sector and an Asian based client.

SMS CEO, Tom Stianos, said sales to all other sectors combined have been resilient with revenue holding up relatively well despite the challenging trading conditions.

Revenue from services took at 15 per cent hit down to $144.8 million.

SMS stated it had taken action to reduce overhead costs and adjust capacity to match demand. SMS is pinning its return to growth in FY14 on new projects currently in negotiation and a stronger sales pipeline.

“SMS has a strong balance sheet with zero debt and more than $29 million in cash as at December 31,” Stianos said. “The cash holding has nearly doubled since December 31, 2011. This, plus our confidence in FY14 gives us the ability to maintain our dividend.”

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Tags financial resultsSMS Management & TechnologyTom Stianos

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