Empired has posted a half year 2021 profit leap of 284 per cent to $7.7 million following a long period of “disciplined” finances.
The Australian IT services provider maintained its recent return to profit for the six months ended 31 December 2020 following prolonged cost amid the coronavirus pandemic.
Revenue was also up by 7 per cent to $90 million, aided by the recent win of the $60 million Western Power Infrastructure Managed Services.
Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 43 per cent to $11.3 million or by 107 per cent to $16.2 million with the JobKeeper government wage subsidy factored in.
According to its shareholder update, Empired’s sales pipeline is up by 45 per cent with its top four customers on track to contribute more than $50 million in revenue for this financial year.
“Our focus has been highly centred around partnering with our clients for success through an uncertain period whilst maintaining a disciplined focus across all levels of management on financial performance,” Russell Baskerville, Empired CEO and managing director, said.
“We are delighted that this client-centred focus has been valued by our clients and is evidenced through our rapid return to growth, the performance of our major clients continuing to expand services with us and a material jump in our client net promoter score over the last 12 months.”
Empired first set out on its cost-cut drive at the end of financial year 2019 in order to alleviate its $14.3 million net debt and to offset the $10 million revenue gap from losing its contract with Main Roads WA contract.
Following this, Empired picked up $61 million worth of contracts with Western Power in May 2020, which was boosted by a further systems integration deal in November.
Around this time, the company also flagged an expected surge in first-half pre-tax earnings and a host of new work coming through the pipeline.