Web hosting outfit WebCentral trebled its net profits to $1.3 million in the last financial year, a result credited largely to its Complex enterprise unit.
Complex broke even in just its second six months of operation, 12 months earlier than had been expected, and accounted for more than a quarter of WebCentral monthly revenues in June.
As previously reported in ARN, Complex won a $20 million Education Queensland (EQ) contract back in April.
But WebCentral CEO, Lloyd Ernst, said only one month of this deal was included in the FY03 figures. With that in mind, he expected the EQ contract to be a healthy addition to the bottom line next year.
“We were probably thinking it would take another year for Complex to break even because the deal cycles are that much longer,” he said.
“But we have seen heightened activity in corporate and government sectors due to pressures on capital expenditure budgets and increased security risks.”
Complex could account for as much as 50 per cent of the WebCentral business by the end of the current financial year, Ernst said.
“The deals are that much bigger with Complex,” he said. “We’re pretty happy with the sales pipe the Complex guys are working on and if a few of those deals drop we will be doing well.”
Although unwilling to provide details of potential customers, Ernst said the Complex team would be concentrating on government, financial services and large Sun One installations.
WebCentral revenues for the 2003 financial year rose by 31 per cent to $28.9 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 54 per cent, totalling $6 million.