IT Services company, Oakton, has posted a net profit of $4.8 million for the 2003 financial year, with three acquisitions increasing revenues by more than 50 per cent.
The services division of the ASX-listed company performed strongly – recording $44.6m in revenues, an increase of more than 62 per cent on the prior financial year. But the company’s products division, which until recently developed and sold software solutions for the law enforcement market, bled by over $3 million. This products business was sold to Canberra-based software company, The Distillery, in late July in a deal that obliges The Distillery to purchase $5.5 million in IT services from Oakton over the next three years.
Oakton managing director, Paul Holyoake, said the 2002/03 year represented both expansion and consolidation for the company.
As well as closing down its products division, Oakton acquired Oracle specialists mPower Systems in August 2002, the Australian arm of Tier Technologies in September 2002, and Microsoft Business Solutions reseller Aston IT Group Pty Ltd in May 2003.
“Oakton has been able to swiftly integrate these companies into its model, integrating technical staff and absorbing overhead structures and marketing and sales departments,” Holyoake said.
The company was still eyeing off more acquisition opportunities, Holyoake said.
“We will continue to identify further acquisitions that can be integrated into the company’s existing core businesses, which will further strengthen Oakton’s capabilities and diversify its spread of customers,” he said.
The company reported that it still has $2.8 million in cash, $10.3 million in receivables and more than $20 million in intangible assets.