Cirrus Networks recovers from loss as revenue jumps to $45M

Cirrus Networks recovers from loss as revenue jumps to $45M

Managed services-based revenue grew by 136 per cent

Matt Sullivan (Cirrus Networks)

Matt Sullivan (Cirrus Networks)

Credit: Cirrus Networks

Cirrus Networks has bounced back from its previous half year loss after posting a net profit after tax (NPAT) of $135,000.

The managed services provider saw its revenue soar by 49 per cent to $45.7 million for the period ending 31 December off the back of recent geographic expansion, in particular in eastern Australia.

The results signal a recovery for Cirrus following its $390,000 net loss in the corresponding period of 2018 financial year.

Citing its revenue as a record, the publicly-listed company claimed it saw 58 per cent increase in overall services revenue year-on-year, which included 136 per cent increase in managed services-based revenue.

“This growth in higher margin services revenue contributed to the improved earnings result and continues to advance the strategic goal of being an innovative IT solutions provider and market leader in enterprise managed services,” the company told shareholders.

The company also cited an ongoing period of expansion across Australia as boosting the figures. In 2015, acquired the Perth-based IT solutions provider L7 Solutions and then two years later, snapped up the Melbourne-based NGage for $2.5 million in 2017.

The same year, the firm acquired Canberra-based systems integrator Correct Communications for $5 million, which was noted to be a “stand out performer” on the balance sheet.

The results also noted a one-off redundancy cost amounting to $172,000 due to a business review and restructure.

“The continued improvement in revenue and margins is once again very positive and demonstrates that Cirrus remains on track to deliver on our 2020 strategic goal,” Cirrus managing director Matt Sullivan said.

“The company’s ability to deliver significant top line growth while increasing profitability is a credit to our team and the value based solutions they deliver to a quality loyal customer base.

“The impressive 136 per cent  growth in managed services in particular, together with the growing contribution of our eastern seaboard businesses, demonstrates Cirrus’ evolution into a market leading and innovative IT managed service provider.”

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