Locally owned IT services company KAZ Computer Services (KAZ) has increased the 2001 revenue forecasts laid out in its prospectus earlier this year by 30 per cent, following the acquisition of outsourcing company the Ausdata Group.
A spokesperson for KAZ said the Ausdata Group acquisition represents excellent expansion opportunities for the company. Ausdata has a heritage of document management services for large corporate and government clients which adds significant value to KAZ's existing service offerings and customer base.
"Outsourced document management is Ausdata's core competency and represents a new service that we will be able to offer our existing customers," the spokesperson said. "There is also a great cross-selling and up-selling opportunity for us to approach their [Ausdata's] large customers with some of the other services offered by KAZ.
"This is a significant and exciting announcement for KAZ."KAZ announced the Ausdata acquisition deal in a statement to the ASX yesterday, at the time advising that the 28 million shares it issued at $0.50 had all been placed, allowing the company to raise the $14 million sought through the float.
A spokesperson for KAZ Computers told ARN that the financial forecasts following the acquisition are looking much better than what were already healthy figures in the prospectus. Revenue forecasts for 2001 have now been adjusted up to $96 million, with profits for the year expected to come in at around $18 million on that turnover -- a rise of 64 per cent on the prospectus quote.
Those profits will decrease after tax and other costs to represent a dividend of 1.37 cents per share, well ahead (51 per cent) of initial forecasts.
The move continues the rapid growth of KAZ Computers which, after a successful float earlier this year, has been the primary vehicle that has propelled managing director Peter Kazacos into the BRW Magazine's recently-published Rich 200 list.