ASG Group has outed some of its major contract wins in the last six months in its half-yearly results presentation today, including a consulting services deal with troubled Queensland shared services provider, CorpTech, worth $1.5 million.
The deal sees ASG and Dowling Consulting provide "high-end consulting services" to the shared services provider, which faced a barrage of bad publicity last year due to its handling of the troubled roll-out of payroll services for Queensland Health. The problems ended in Queensland when Premier Anna Bligh announced that the government was dropping its one-size-fits-all shared services policy.
The state auditor-general reported at the time that CorpTech and its fellow shared services organisation Citec suffered from "serious security and change management issues", including excessive user data access privileges and poorly documented disaster recovery processes.
ASG took the opportunity to boast about other recent contract wins, flagging significant deals in its SAP, business intelligence and consulting businesses.
New deals included SAP projects with Hancock Prospects and Australian Premium Iron, business intelligence deals with Qantas worth $4 million, and a $6 million contract with a prevalent food and beverage vendor expected to be worth $15 million to $20 million beyond 2011.
ASG reported a half-year revenue rise of 27 per cent to $74.03 million to 31 December 2010 on the corresponding period last year. Earnings before interest, tax, depreciation and amortisation rose 17 per cent to $12.20 million.
The IT services company attributed its half-year profit growth to new offerings made possible by its acquisitions over the past 12 months, which include Progress Pacific, Dowling Consulting and Courtland, beefing up its SAP, consulting and business intelligence offerings.
"These businesses have already delivered $20 million in new contracts in target growth areas," ASG said in its results presentation today.
ASG also told shareholders that it feels ready to bid for more valuable contracts now that it has integrated these offerings into its business.
"With ASG's newly expanded product and service offering, the company expects to increase its conversion of the opportunity pipeline into new contracts, and importantly do so in direct competition with the major international service providers," ASG said.