Oakton profits soar while local staff drop

Summary:Despite engaging in a court battle with Tenix, and experiencing falls in revenue and local staffing, Oakton today reported a record profit and international staff growth.

Despite engaging in a court battle with Tenix, and experiencing falls in revenue and local staffing, Oakton today reported a record profit and international staff growth.

Oakton logo

(Credit: Oakton)

The company today announced a 42 per cent increase in net profit from 2009. However, in an attempt to save costs, the company has cut an additional 73 staff in its Victorian operations this financial year.

Oakton's National Shared Services department also saw a decrease in nearly a dozen staff. However, the company has bolstered its operations in other Australian states such as NSW, Queensland and the Australian Capital Territory, and is increasing the staff in its international operations in India to "supplement emerging domestic resource shortages". The company also claimed that it is further "offsetting" its average headcount by using specialist contractors.

Overall, Australian staff numbers for the company have dropped.

According to Oakton, it has had to factor $1 million in court costs on a case it is running against Tenix into its earnings before interest, tax depreciation and amortisation (EBITDA).

Tenix has taken Oakton to court for $26 million. In response, Oakton counter-sued Tenix for $12 million.

Each party has claimed it is owed millions related to a contract that Tenix Solutions had won in 2007 to supply the Victorian Department of Justice with its Infringement Management and Enforcement Services (IMES) system.

ZDNet Australia contacted Oakton for an update on its court battle with Tenix, but Oakton was yet to comment at the time of publication.

Currently, Oakton's EBITDA for 2010 stands at $32.3 million, increased from the prior year of $24.49 million. Its revenue is $186 million, a drop from $193 million in 2009.

Topics: IT Employment

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