ASG Group enters ASX trading halt

Halt will continue until company announces major contract win

ASG Group (ASX: ASG) is in a trading halt as it prepares to announce a major contract win.

In a letter released to the ASX today, ASG Group company secretary Peter Torre requested that the trading halt begin today and continue until an announcement “in respect to the major contract win” or the opening of ASX trading on 10 September, 2014.

In August 2014, ASG Group CEO Geoff Lewis said the company had signed $100 million worth of contracts during the past six months. Its customers include Clough, Australian Transport Safety Bureau and the Australian Maritime Safety Authority (AMSA).

ASG Group signed a five-year ICT services contract with AMSA for an undisclosed sum in early August this year.

At the time, Lewis said the company would work with AMSA to transform its ICT from a “capital intensive” services model to a business outcomes based delivery model.

“This agreement gives AMSA both control over the expenditure, as well as flexibility,” he said. “It enables them to scale up rapidly during emergencies, without having to pay for that extra capacity on a continuing basis."

The IT services company reported a revenue of $160.1 million for the financial year 2014, an increase from last year’s revenue of $152.5 million.

Earnings before interest, tax, depreciation AND amortisation (EBITDA) was $22 million, up from a loss of $19.9 million in 2013.

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More about ASG GroupAustralian Maritime Safety AuthorityAustralian Transport Safety BureauCloughTransport

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