DWS sees financial turnaround after restructure

DWS sees financial turnaround after restructure

Net profit falls 19 per cent to $10.4 million and EBITDA was down 13 per cent to $15.86 million

After restructuring parts of its business in Victoria, ACT and Western Australia, DWS began to see a financial turnaround in the fourth quarter of FY15.

For the financial year ending June 30, the ASX-listed IT services provider experienced a net profit fall of 19 per cent to $10.4 million. Revenue was in line with the previous corresponding period, which totaled $94.63 million.

Underlying EBITDA was also down 13 per cent to $15.86 million.

The company noted that during the fourth quarter of FY15, it saw a financial performance turnaround after restructuring its business to improve utilisation, overhead cost reductions and experiencing some strong client demand, particularly in Victoria.

The number of consultants on its books was up six per cent to 517 after its acquisition of Symplicit added 44 consultants. The company also reduced its headcount due to attrition and restructuring in Victoria, ACT and Western Australia, but this was offset by hires in NSW and South Australia.

Recent acquisitions of Symplicit and Phoenix IT&T are expected to contribute annualised revenues of more than 50 per cent, and provide cross-selling and collaboration synergies.

DWS noted that it continued to experience strong demand for its services from the banking and financial sectors as well as government, which was supported by higher revenue from state government departments and defence.

It recently bought 75 per cent of Phoenix IT & T Consulting for $19.5 million, which has more than 200 staff across Sydney and Melbourne. The Phoenix brand will be retained and it will operate as a separate business unit.

The acquisition is expected to provide DWS with annual revenue of more than $40 million across a diverse base of clients from sectors such as telecommunications, financial services, utilities and transport.

It will also broaden DWS’ IT services offerings in areas such as productivity and sourcing, and business consulting.

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Tags DWSfinancial resultsacquisitionsSymplicit


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