MOQ profit grows by 100 per cent to $2.3M

MOQ profit grows by 100 per cent to $2.3M

Helped by $1.4 million in deferred tax assets

Joe D’Addio (MOQ)

Joe D’Addio (MOQ)

Credit: MOQ

ASX-listed MOQ has seen its net profit after tax grow 103 per cent, going from $1.1 million in FY18 to $2.3 million in the year ended 30 June 2019.

The NPAT increase was due to a tax ruling that resulted in $1.4 million of deferred tax assets taken up as a result of $5.1 million in additional tax losses being recognised.

Revenue for the full year increased 15 per cent to $68 million as a result of a six per cent growth in services to $31.1 million and technology sales were up by 23 per cent to $36.5 million.

The company said that its services' recurring revenue grew 19 per cent to $13.5 million due to strong demand and as a result of onboarding six new clients during the financial year.

"Over the past twelve months we have continued to make significant progress in advancing our growth agenda," MOQ CEO and executive director Joe D'Addio told shareholders. "The year featured solid organic growth particularly within the recurring services and technology sales segments and culminated in the announcement of the acquisition of Wardy IT Solutions in early August 2019.

"MOQ maintains a healthy cash position post-Wardy and we are excited by the opportunity to drive momentum and sustainable growth in combination with the Wardy team in FY20 and beyond," he added.

On 12 August, MOQ announced the acquisition of fellow Microsoft partner Wardy IT Solutions in a $7.5 million deal.

The deal, expected to be completed by 30 August, will be paid both in cash ($2.5 million) and MOQ shares ($5 million) and could come to a total price of $13.5 million. This is due to a possible earn-out payable by October 2020 subject to Wardy IT achieving "certain performance criteria". The earn-out value could reach up to $6 million, MOQ said at the time.

"We are  working hard to set ourselves up for an even stronger FY20 boosted by the recent acquisition of Wardy IT Solutions," D'Addio added. "This acquisition is a further step to establishing MOQ as a leading mid-tier IT solutions provider and is anticipated to grow our services revenues in the Digital Services market in FY20 and be the basis for accelerated growth in FY21 and beyond.

MOQ was born out of the merger between Technology Effect and Breeze, listing with the Australian Securities Exchange in June 2015 as Montech Holdings. It employs more than 250 people and provides ICT consulting, integration, managed services and solutions.

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