Enhancements to its project delivery capability have paid off for ASX-listed IT services provider, UXC Group, which has reported a net profit after tax boost of 81 per cent to $7.1 million for FY15 half year ending December 31.
Revenue also increased nine per cent to $322.2 million and EBITDA jumped 47 per cent to $15 million.
UXC Group stated annuity revenue now made up 29 per cent of its total revenue, an increase of 23 per cent on the previous corresponding period.
UXC stated its profit result was a positive sign that its strategy to refresh and build scale in selected higher growth markets has gained momentum helping deliver improved and sustainable results.
“While 2014 was a year of acquisitions, the first half of FY15 has been one of integration, consolidation and earnings improvement,” UXC Group CEO, Cris Nicolli, said. “The increase in contracted services (annuity revenue) is the result of new contract wins in late FY14 and our focus on growing revenue with our existing key clients.”
Nicolli said its company strategy focused on strong client relationships, market leadership through its applications, infrastructure and consulting services capabilities and recognising its success is predicated on providing clients with value-adding solutions.
“UXC has been proactively managing its client mix with an emphasis on winning and retaining those clients who value longer term rather than just transactional relationships,” he said. “Together with changing the mix of revenue, we will overtime, see a decline in standalone product and license sales (typically lower margin) to be replaced with a higher value-added services mix. This upgrade to our mix of business should improve UXC’s margins and quality of earnings.”