​ASG scores AU$112m in extended government contracts

ASG has secured extended contracts with both the Victorian Department of Education and the Western Australian Department of Education.
Written by Aimee Chanthadavong, Contributor

ASG has secured a AU$105 million contract with the Victorian Department of Education and Training to develop a purpose-built, private cloud platform for finance and procurement applications.

According to ASG, the contract will be delivered under its New World model as part of a complete outsourced arrangement. This will be in addition to the company's contract with the department since 2007 to deliver the Oracle Peoplesoft HRMS and Payroll application

The contract has initially been awarded for five years, with a pair of two-year extension options.

In addition to this, ASG also signed a AU$7 million contract with the Western Australian Department of Education for an initial two years, with a one-year extension option. The company said it's an extension of an existing contract with the department to deliver Oracle Peoplesoft HRMS and Payroll managed services.

ASG CEO Geoff Lewis said the contracts will see the company expand its supported range of services and applications for both departments, adding that it will support the company's long-term managed service revenue base.

Earlier in the month, ASG reported its New World service contracts helped lift revenue by 12.6 percent to AU$88.2 million during 1H16, where it secured additional contracts valued at a total of AU$200 million over the last 12 months.

Earnings before interest , tax, depreciation, and amortisation (EBITDA) also lifted by 14.4 percent during the period, to AU$12.7 million.

At the time, the company said it anticipates that over 80 percent of its new contracts will be "New World". As a result, the company maintained FY16 revenue guidance between AU$185 million to AU$190 million, with FY16 EBITDA on target to jump by 16 percent.

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