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Empired reaches $174M revenue mark, despite NZ dip

New Zealand revenue down 11 per cent
Russell Baskerville (Empired)

Russell Baskerville (Empired)

IT services provider, Empired is expected to see revenues increase four per cent reaching $174 million during the 2018 financial year, ending June 30.

Specifically, Australian revenue is expected to be up 12 per cent to $117 million, while New Zealand revenue was down 11 per cent to $57 million, according to the company’s unaudited FY18 results.

"With the recovery in New Zealand well underway and our Australian operations performing strongly we have set ourselves up for a watershed 2019 year,” Empired managing director, Russell Baskerville, said.

Meanwhile, underlying earnings before tax is expected to be up 10 per cent  to $17 million, year-on-year with second half earnings sitting in at $9.7 million.

The ASX-listed company has also reduced its net debt from $13.8 million in June last year, to $9.3 million.

The company expects a strong level of contracted work will continue to drive double-digit revenue, earnings before tax and net profit growth into the 2019 financial year.

"We remain steadfast on our goal of being the leading digital solutions provider of choice across A/NZ," Baskerville added.

"We are confident that our strategy, centred around industry aligned solutions, supported by software IP and technology specialists will differentiate our solutions enabling Empired to capture market share as enterprises rapidly embrace digital transformation."

In February, Empired signalled that the New Zealand business experienced a 13 per cent drop in revenue following a decline in public sector spending during the Kiwi election period.

Three months prior, in December, the provider secured a “multimillion-dollar” deal with Catholic Education Western Australia (CEWA) to build a Microsoft-based platform.

Terms of the agreement will see Empired develop the CEWA administration of schools (AoS) platform, which will form the core engine for the digital transformation of LEADing Lights.