ASG's New World service contracts help 1H16 revenue lift by 12.6 percent
Australian IT service provider ASG Group experienced a 14.4 percent uplift in earnings before interest, tax, depreciation, and amortisation (EBITDA) to AU$12.7 million for the six months ended December 31, 2015.
The company also reported operating revenue increased by 12.6 percent to AU$88.2 million, after securing additional contracts valued at a total of AU$200 million over the last 12 months.
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ASG CEO Geoff Lewis attributed the company's solid performance in FY15 to the continued organic growth that it saw from its "New World" service offerings, which he believes is a core part of the company's managed services business model and long-term revenue stream.
"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," he said.
During the half-year ASG secured a four-year AU$29 million contract with the Department of Finance to deliver a refreshed electronic workplace environment, with a new desktop environment, mail services, laptops, and Surface Pros.
The service provider also signed a AU$23.8 million deal with the Australian Department of Infrastructure and Regional Development back in September to deliver infrastructure and desktop services as well as end-to-end service management for five years, with options to extend the deal for a further three years thereafter.
In the same month, ASG inked a AU$9 million two-year managed services deal with the Victorian Department of Education and Training.
Looking forward, Lewis said ASG anticipates that over 80 percent of its new contracts will be "New World". As a result, the company maintains FY16 revenue guidance between AU$185 million to AU$190 million, and is on target for FY16 EBITDA to jump by 16 percent.
"The outlook of the remainder of FY16 is solid with record locked-in revenue and a pipeline in excess of AU$340 million," the company reported.