ASG Group gets earnings guidance green light

ASG Group gets earnings guidance green light

FY16 will see revenue range fall between $185m and $190m

Perth-based IT services provider, ASG Group Limited (ASX: ASZ), has confirmed earnings guidance for the 2016 financial year.

The company said the full year result will be at the higher end of guidance, in a revenue range of $185 million and 190 million and an EBITDA margin of 14 per cent.

ASG chief executive, Geoff Lewis, attributes the company’s trading performance to its strong business model, ‘quality of delivery’ under managed services contracts and the successful transition of clients to ASG’s New World platform.

The company has continually experienced strong growth since Q2 of 2015, as reported by ARN. 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.

In this period, Lewis said, “The growth that we have seen this year stands ASG in a very favourable position moving forward to FY16, FY17 and beyond."

Additionally, the company continued success in Q1 of this year through its signing of more than $200 million worth of contracts, as reported by ARN.

Going forward, Lewis added that “Despite tightness in the economy, ASG’s outlook for FY17 and FY18 remains positive, with the company budgeting for growth on the back of full year contributions from a number of major, long-term contracts for New World Services secured in FY16".

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Tags Geoff LewisASG Group Limited (ASX: ASZ


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