UXC posts 31 per cent profit drop due to redundancies, acquisitions

UXC posts 31 per cent profit drop due to redundancies, acquisitions

Reports full-year revenue of $643 million

IT solutions group, UXC, has has posted a full year profit of $15.7 million - a fall of 31 per cent on the previous year, which it puts down to a tough first half of the year.

UXC blames the profit fall on $2 million in acquisition costs alongside $1.8 million in redundancy costs.

This is despite booking record revenues of $643 million, an increase of 8.3 per cent. However, UXC says only one per cent of this was via organic growth, the remainder was from the aforementioned acquisitions and 'strong client support and customer wins.'

The company also increased its annuity revenue by 29 per cent, compared to the previous period. It now accounts for 27 per cent of the business.

According to a company statement, underlying earnings were in line with market guidance issued in June.

It posted an underlying EBITDA of 36.4 million, down two per cent. It blamed a rough first half of the year from a 'small number of large projects now complete' and the acquisition costs.

In December, the company acquired Keystone management solutions, Australia's largest reseller for ServiceNow.

The company has also acquired Tectura and White Labelled.

The impact of full year earnings from the FY14 acquisitions are expected to boost FY15 earnings, a company statement claims.

"Annuity contract and back of work now represent 60 per cent of FY15 revenue (up 46 per cent in FY14)," according to a statement.

"Margin growth and achievement of delivery improvement continues to be the highest priority and prospective driver of earnings."

Market dynamics also appeared to more positive with increased activity and decision making over the last five months.

"UXC is well placed strategically to increase market share, advancing the footprint in new emerging technologies and embarking on the next chapter of growth."

Read more: Dicker Data posts strong profit result despite lower revenue

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Tags UXCfull year profitfull year resultsWhite LabelledTecturaService Nowkeystone


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