ASX- listed ASG Group has reported a record revenue of $74.03 million in the interim first half financial report.
Net profit after tax, however, fell 5.7 percent to $6.09 million from the previous corresponding period. Revenue grew more than 27 percent on the prior corresponding period and earnings before tax, interest, tax, depreciation and amoritasation (EBITDA) grew 17 percent to $12.20 million.
EBITDA margins of 16.5 percent were a slight decline due to one-off costs relating to integration of acquisitions and rebranding margins, the company said.
ASG acquired SAP-partner Courtland Business Solutions Capiotech, Dowling Consulting and IT consulting firm Progress Pacific last year. Integration was on track, delivering $20 million in contracts in target growth areas of SAP services, business intelligence and consulting.
"Our exposure to the SAP market has significantly increased our pipeline of available opportunities and has also led to the signing of $12 million in new contracts with customers such as Citic, Hancock Prospecting, API, Macquarie, Woodgroup and Workcover," ASG Group managing director Geoff Lewis said in a statement.
"ASG's strategy to drive revenue growth by extending our geographical reach, product offering and successfully entering the strategically important SAP market is already delivering revenue growth and allowing us to compete more effectively with large foreign vendors,” he said.
ASG was now positioned to increase its contract deals from $100 million to the $500 million segment.
A growing IT market and our enlarged service offering will lead to strong revenue and profit growth in the second half of the year and well into the future, he said.
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