ASG has won $220m in deals this year

IT services provider ASG Group (ASX:ASG) has won $20m worth of new business so far in calendar 2010, and expects its recent acquisitions to start paying off in FY11

IT services provider ASG Group (ASX:ASG) has won $220 million worth of new contracts in calendar 2010.

In a presentation at the UBS Emerging Companies Conference, the company detailed several significant wins - including multiple long-term contracts - from the year so far.

Deals won this year include a seven-year contract to provide corporate IT services for VHA, a nine-year, $41 million equipment servicing arrangement with the Department of the Prime Minister and Cabinet, and a $13 million deal with the communications ministry.

The company revealed it now earns 60 per cent of its revenue from application and infrastructure managed services deals, 24 per cent from application and infrastructure projects, 11 per cent from business intelligence and five per cent from consulting.

Around 43 per cent of ASG clients are state government departments, and 19 per cent are federal government organisations. The remaining 38 per cent are blue-chip corporates.

ASG added that its recent acquisitions - including the purchase of SAP consulting and services provider Progress Pacific announced yesterday - should become earnings per share accretive in FY11.

The other recent purchases are < fellow SAP firm Courtland Business Solutions and consultancy Dowling Consulting.

The ASG Group is projecting revenue growth of at least 40 per cent in FY11, and revealed it had a pipeline of around $784 million worth of business opportunities in the financial year ahead.

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