IT services company, UXC (ASX:UXC), has achieved top line revenues for its financial year ending June 30. The company revealed revenues of $686 million, up seven per cent from the same time last year.
The company’s net profit after tax (NPAT) totalled to $32.1 million, an increase of 47 per cent from FY14, while its earnings before interest, tax, depreciation, and amortisation (EBITDA) was $42.1 million, a 28 per cent increase from last year.
The company has also declared a final dividend of $0.036 per share, fully franked, bringing the total full year dividend to 5.3 cents per share. It said, on the ASX, that this represents a 79 per cent payout ratio based on net profit after tax attributable to members.
The company attributed its overall organic revenue (up marginally at 1.3 per cent) for the full year and i 2.7 per cent increase in the second half to its strategic shift away from lower margin product and licence revenues.
“The mix of revenue is now more aligned to higher margin services and solutions. This shift not only provides greater margin potential, but the focus on providing clients with high quality managed services with annuity revenue streams is also improving customer relevancy. Many of these wins were in transition periods in May to June and as such did not contribute revenue or earnings for the period but will support the growth expectations of FY16 and beyond,” it said on the ASX.
It also indicated that the strength of the back log of business, coupled with the impact of the recently won contracts, positions it strongly for FY16 and beyond.
“We are winning larger scale contracts, both in the ERP applications market and in the annuity managed services and infrastructure areas. These wins provide a growing confidence that customers value UXC solutions and the pragmatic outcomes delivered. The strength of these contracts should provide a boost to FY16 revenue and earnings.
“This confidence is based on having 53 per cent of our full year FY16 revenue already confirmed through annuity contracts and the contracted back log of orders. We are also encouraged by a number of large opportunities we are well positioned to win in Q1FY16.
“We believe our evolving strategic approach and plan is solid, whilst being aware of the need to focus on effective execution and exercising caution with our investments. Our goal is to continue to improve sustainable earnings growth into the future while continuing to invest to achieve our medium term strategic goals of building UXC into an even more robust and sustainable leader in the market,” it said.