National IT services provider Anittel has reduced its headcount and restructured its growth focus following a profit drop of $13.5 million in the first half ending 31 December.
Despite reporting a strong revenue growth of 1221.6 percent to $31.7 million, the CRN Fast50 2010 No.1's net profit after tax dropped 1215.5 percent after a goodwill impairment of $10.9 million and $500,000 in paid redundancies.
Anittel blamed the drop on an under-performing IT services division, including a reduction in hardware sales primarily in Tasmania where the economy was in recession. It claimed that it had retained clients but lost business including in government.
As a result of the first half issues, the board and management regeared the business to focus on organic growth in stark contract to last year's acquisitive growth strategy when it bought eight regional resellers.
It also reduced its headcount by 10 percent, this included a reduction in directors from seven to four in December. In August, the company reported a head count of 230.
Anittel reported that as this transition continued, revenues would be less susceptible to regional fluctuations and margins would improve, giving the board confidence in the strength of the business and its future.
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