Empired has hailed a promising year ahead by securing or finalising new managed services contracts worth $5 million in recurring revenue.
The publicly listed provider reassured shareholders the amount would plug the revenue hole left by the recent end of its IT infrastructure contract with Main Roads WA.
According to Empired, in addition to the base services revenue, the new contracts are anticipated to generate “significant” project services revenue each year.
The deal also shaves off a portion of the $200-million contract pipeline Empired recently claimed to have following the loss of the Main Roads deal,
Specifically, the provider claimed the contracts ranged from a NSW State Government department for application managed services; a WA University for cloud managed services; infrastructure managed services for Loyalty Pacific plus a finance company based in Victoria.
The WA Department of Planning, Land & Heritage WA was also said to have “uplifted” its infrastructure managed services deal.
“We are delighted with our recent managed services contract success, cementing our managed services operations and delivering on our commitments to building recurring revenue and long-term client partnerships,” Empired managing director Russell Baskerville said.
“Empired continues to have a strong strategic deals pipeline and is actively contesting a number of large multi-year, multi-million dollar per annum contracts and looks forward to updating the market accordingly.”
The deals, plus that of the recent five-year deal with Rio Tinto, come off the back of a rocky period for Empired.
In May, the Perth-based provider admitted it had lost out as preferred bidder for its existing
ICT infrastructure and systems services for Main Roads WA, which at the time claimed would impact its FY20 revenue by $10 million.
It then began the new financial year with a “cost reduction program” in an effort to alleviate roughly $14.3 million in net debt.
In an effort to expand its reach beyond the west coast, Empired last month appointed former Oakton CEP Craig Lennard as its executive general manager for eastern Australia.