ASG revenue and profits climb
- 02 August, 2007 16:15
ASG Group has posted a 28 per cent increase in revenue to $75.5 million in the 12 months to June 30. The Perth-based services company also reported a 36 per cent increase in full-year net profit to $7 million.
Chief executive, Geoff Lewis, said a strong performance in the eastern states, as well as several prime customer contract wins, helped push the figures up.
"I think it's been a pretty strong market for everyone," he said. "People are looking for an alternative. We are an Australian company with customer reference capability and our pipeline is incredibly strong.
"The organic growth we have recorded this year has been very strong. We've started to leverage our investments in setting up in Sydney and Melbourne and are starting to see the benefits."
The east coast represented about 60 per cent of total revenue in the past financial year. This was expected to rise to 70 per cent in the current year and higher in 2009.
The ASX-listed provider's customer list also expanded significantly over the past year, with a host of public and private sector businesses signing contracts including Qantas, Ericsson and the Victorian Government. Many of these long-term contracts have seen ASG engage as the prime contractor with its multinational partners, such as IBM Global Services and CSC, as sub-contractors. Lewis said these customer deals would contribute significant revenue over the next couple of years.
ASG's acquisition of managed services outfit, Vindaloo Systems, in November had also brought new opportunities and high-quality customers to the table, Lewis said.
He forecast the company would better its results over the coming year as some of the Federal Government's longstanding outsourcing arrangements were broken up and put to tender. ASG was also confident of securing work shortly from its Western Australian preferred tender status.
And while acquisitions would continue to be a focus over the next year, Lewis said it was seeking organisations that offered strategic growth.
"We won't just bulk up for the sake of it. Our organic opportunities are very strong and the cost of winning that type of business is lower than if we acquired it through another organisation," he said.