SMS Management and Technology (ASX:SMX) has posted a rise in full year profits of 15 per cent with shareholders to receive a 16 per cent bigger dividend.
In a statement to the ASX, SMS said the second half of the financial year had seen a return to growth after a defensive stance last year.
“Our revenue increased 7% to $247.6m, with the second half revenue up 19% on the previous corresponding period,” CEO Tom Stianos said. “This strong growth is also reflected in our recruitment activity, which shows an increase in billable staff by 194, up 19%.”
Stianos noted additional cost pressures were experienced as a result of competition for staff but that “investment in broadband infrastructure will stimulate demand from the ICT sector in 2012”.
“Health initiatives will accelerate implementation work in 2011 as the sector seeks to achieve its eHealth agenda,” he said. “The finance sector continues to spend on core systems, compliance, and online service development and we expect government programs will drive further growth after the election period.”
The company has also committed itself to pursuing “value adding” acquisitions in the 2011 financial year and noted Federal Government agencies are likely to increase IT project activity on the back of reviews such as the Henry Tax Review, the Beale review on biosecurity and the Cooper review on superannuation.
“The post GFC rise in business confidence saw our Financial Services clients lift their investment in a broad range of new projects,” the SMS annual report posted to the ASX reads. “This resulted in a significant increase in demand for SMS services including core systems replacements, integration of acquired businesses, online strategies, mobile banking applications and knowledge management solutions.”