DWS revenue was down by 4.9 per cent for the financial year ending 30 June 2017. The company reported $137.4 million revenue from continuing operations, down $7.06 million from the previous year.
DWS said the decline in revenue was due to a number of reasons, including a decline in contractor numbers as a result of a decrease in demand from a “large IT&C client”.
The company has downsized its number of consultants from 715 to 596 in order to “match client demand”.
DWS said that it will continue to vary its workforce to match specific needs from its clients.
The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $26.9 million, representing a growth of 4.6 per cent compared to the previous year.
DWS reported EBITDA of $26.2 million, a 3.2 per cent increase from the previous year. Net profit after tax (NPAT) was also up 5 per cent, posting $17.7 million.
Banking and finance as well as IT&C markets are still the major revenue generators for the se4rvice provider. The company has increased its presence in both Government and defence and transport sectors due to new project wins.
The Melbourne-headquartered service provider’s bank debt has decreased from $24 million down to $15 million. DWS expects the debt to decrease further with no M&A planned.
In February, DWS entered into a scheme to acquire SMS Management & Technology in a deal valued at approximately $124 million.
A few months later, Perth-based IT solutions firm ASG Group made a bid to acquire SMS. DWS, who spent $749,000 related to the proposed acquisition of SMS, decided to not put forward a counter bid leading to SMS final decision of being acquired by ASG instead.
For the 2018 financial year, DWS expects to grow revenue from selling “enhanced service offering” to new and existing clients. DWS also expects growth from the IT&C sector.