PS&C returns to black after crushing $53M loss

PS&C returns to black after crushing $53M loss

After offloading security arm to Tessertent, company now focuses on organic growth

Robert Hogeland (PS&C)

Robert Hogeland (PS&C)

Credit: PS&C

PS&C has made a $3 million profit for the 2020 financial year, making a huge leap from last year’s $53 million loss.

The uplift comes despite a 4.6 per cent revenue dip to $51 million, year-on-year, and the $4.5 million purchase of real estate website, which PS&C admitted made an EBITDA loss of $21,115 after acquisition.

However, the financial year also saw PS&C sell its security arm to Tesserent for $16 million, allowing it to close the half year with a significantly reduced loss of $5.6 million.

Chair Renata Sguario admitted that the year ended 30 June 2020 began with “unease” but said the firm will now be able to maintain a strong balance sheet going forward in the absence of M&A activity and other investments.

She added that PS&C will put any direct surplus cash into generating organic growth opportunities.

“Even though the COVID-19 pandemic poses a level of uncertainty, we are forecasting the Australian IT industry to remain buoyant, with sufficient demand to support the current business with modest growth,” she said.

“We will aim to maintain and grow our traditional core project services consultancy, and grow our Salesforce offering in line with strong client demand in cloud-based CRM implementations.”

PS&C gained the massive loss last year after writing off $49 million of goodwill and posting more than $10-million in debt. 

Following this, CEO Glenn Fielding left the Canberra company after two years at its helm and was replaced by Robert Hogeland.

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