Revenue for IT services provider ASG Group was up 12.6 per cent in 1H16 compared to the first half of FY15, the company reported today.
The company reported EBITDA of $12.7 million, up 14 per cent, on revenue of $88.2 million for the first half.
ASG CEO, Geoff Lewis, cited the company’s ‘New World’ services model as helping drive contract wins in the half, including a $29 million ‘desktop as a service’ deal with the Department of Finance.
“ASG is now in a position where we have matured our New World offering, which has enabled us to leverage our resources and our reference-ability to secure strategically significant contracts in key sectors,” Lewis said in a statement.
“Our New World is an integral part of our core managed services business model, resulting in long-term engagements and locked in revenue streams.”
Under the New World model, ASG shuns providing commodity IaaS and PaaS cloud services.
“ASG is at the forefront of delivering a consumption based, utility model to the Australianmarketplace and we are anticipating that over 80 per cent of our new contracts are set to be New World,” the CEO said.
ASG has signed over $200 million worth of contracts in the last 12 months, the company said.
Along with the Department of Finance deal, they include renewed contracts with the Department of Infrastructure, Western Power, the Department of Communications, and Synergy, and new contracts with Victoria’s Department of Education and Training, United Energy & Multinet Gas, Cimic, and State Super.
ASG is maintaining FY16 revenue guidance of $185 million to $190 million.