Contract wins boost ASG Group revenue

IT service provider posts revenue of $164m

Private and public sector contract wins boosted ASG Group's revenue to $164 million for the year ended 30 June 2015, the IT service provider has reported.

This was up from $160 million in 2014. ASG signed over $200 million in contracts over the last 12 months.

However, earnings before interest, tax, depreciation and amortisation was $20.2 million, down from $22 million last year.

Net profit after tax (NPAT) was $9.5 million, up from $9 million last year.

ASG CEO Geoff Lewis said the number of contract wins has resulted in locked-in revenue.

“The growth in that [revenue] we have seen this year stands ASG in a very favourable position moving forward to FY16, FY17 and beyond,” he said.

Due to growth, ASG incurred $2.1 million in bid and contract establishment related costs, compared to FY14.

“We are not expecting this level to recur in FY16 when the revenue from these deals will begin to flow through to the bottom line,” said Lewis.

Another $50 million of opportunities is expected to be signed in the first quarter of FY16.

In July, ASG signed a $35 million, five year managed services contract with contracting firm CIMIC Group.

The IT services firm will provide application and infrastructure managed services to support CIMIC’s JD Edwards enterprise resource management and business intelligence software suites in Australia, Asia Pacific, India, the Middle East and Africa.

A month earlier ASG announced a three-year contract with State Super Financial Services in NSW for the delivery of cloud services.

ASG will be delivering a “scalable and cost effective solution” as the super firm implements a more agile IT structure over the next three years. The company will also be adopting ASG’s utility based pricing model.

In addition, ASG signed a deal with Boral to re-engineer the company’s financial reporting through the implementation of financial analytics solutions.

Based on an Oracle platform, the system will include informatics and analytics capabilities. The two contracts are worth $15 million.

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