IT services provider Empired has set its sights on $300 million worth of multi-year contracts as it targets double digit earnings growth for this financial year.
The Perth-based company expects to invests part of a $5.6 million capital expenditure in boosting its managed service capabilities in order to contest the upcoming contracts.
Its outlook follows a four per cent rise in year-on-year revenue to $88.6 million for the half year ending 31 December. Around two-thirds of this came from multi-year contracts, the publicly-listed company told shareholders.
Net profit after tax (NPAT) rose by nearly 50 per cent $2.2 million, while earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 23 per cent to $8.2 million.
Meanwhile, Empired also said it expected strong growth from its software-as-a-service (SaaS) business via its enterprise content management (ECM) service Cohesion. Ongoing capital investment is also expected to be pumped into the service.
According to the report, Cohesity contracted users rose by 65 per cent to 11,000 in the last half year. Revenue from its Australian digital solutions arm also grew by 16 per cent.
However, while the Australian business grew by seven per cent, the New Zealand arm continued its downward trajectory, falling by two per cent year-on-year.
The decline in New Zealand was markedly slower than the previous half year, when revenue dropped by 13 per cent and the 11 per cent fall at the end of financial 2018. However, Empired said it expected a return to growth in 2020.
“We are delighted to again deliver a solid financial performance whilst continuing to deliver on key strategic initiatives," Empired MD Russell Baskerville said.
"We are confident that our strategy firmly positions Empired as a leader in the Australian and New Zealand digital services market and that this will underpin future growth."