ASX-listed IT services provider, ASG Group, has experienced a record year of contract wins, signing more than $200 million worth of deals.
“The growth that we have seen this year stands ASG in a very favourable position moving forward to FY16, FY17 and beyond,” ASG Group CEO, Geoff Lewis, said.
During FY15 revenue climbed three per cent to $164 million, net profit was up six per cent and EBITDA was down 8.1 per cent to $20.2 million.
Due to its contract wins during FY15, the company has a record level of locked in revenue for FY16 of $160 million and has another $50 million worth of deals expected to be signed in the first quarter.
Its ‘Cloud first’ approach in the government sector has seen it land a number of significant deals such as Australian Maritime Safety Authority, Department of Defence and Department of Communications.
ASG has also been engaged in a contract deals with Biosecurity NSW, Department of Transport and the Department of Trade, Investment, Regional Infrastructure and Services. It has also built up significant traction within the utilities sector, securing deals with Western Power and Synergy Energy in WA and is also close to signing another major deal along the east coast.
ASG Chairman, Ian Campbell, highlighted an important part of its drive for organisational efficiency was to progress its offshore strategy, which aims to see 10 per cent of the organisation's workforce offshored by the end of FY16.
“This will provide us with the agility and flexibility to grow our business in a market where margins continue to be under pressure,” Campbell said.
“Our investment in a New World model early in the evolution to Cloud, has resulted in ASG continuing to win business, even as increased competition from low-cost offshore providers starts to take hold.”