RXP Services delivers $10.6 million profit in 2016

RXP Services delivers $10.6 million profit in 2016

Profit increases from $4.6 million the same time last year.

RXP Services (ASX:RXP) has reported a profit of $10.6 million for its financial year 2016 results ending June 30.

As revealed on the ASX, this is an increase of 131 per cent from the $4.6 million in NPAT it brought in the same time last year.

The company’s revenue was up $47.9 million (61 per cent), reaching $127.1 million while its EBITDA increased $8.9 million to $16.6 million.

RXP Services CEO, Ross Fielding, said the company delivered significant growth across all metrics, and that its focus will be on the continuous evolution of its people and its capabilities.

“Growth in the RXP business and demand for our services meant that we grew headcount by 310 over FY16 to 779 people," he said.

"Staff utilisation was in line with expectations throughout the financial year and this, along with management of our key operational levers, helped the company deliver this result."

Fielding said that the growth was in addition to progress achieved through the Engage Viidacom and 10Collective acquisitions.

“In terms of the Engage Viidacom and 10Collective acquisitions that were completed in FY16, they are both now fully integrated into the One-RXP model," he added.

"Both acquisitions have performed well and have helped to build RXP’s end-to-end capabilities and are now making a significant contribution to the core practice opportunities we are seeking."

The company also announced staff growth, increasing its headcount by 66 per cent to 779 people in that year.

According to Fielding, the company is well positioned going into the new financial year.

Fielding said its board of directors have declared a final FY16 fully franked dividend of $0.02 per share, bringing the total for FY16 to $0.03 per share - the dividend will be paid on October 7, with a record date of September 16.

"With a talented and committed team, an end-to-end capability set, growing client engagements, and a strong pipeline of work on in place, we look forward to FY17 with confidence," he added.

"In terms of outlook, our sector remains buoyant and we expect revenue to grow in the range of 10 to 15 per cent over FY17, and we maintain our target EBITDA margin of 13 to 14 per cent.

"Given the healthy outlook and strong balance sheet and cash generation, our progressive dividend policy remains in place."

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Tags growthASXfinancialsrxp servicesRoss Fielding

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