ASX-listed IT services firm collapses

Sirius Corporation has fallen to the administrators after years of decline.

The company, which is based in Melbourne, appointed FTI Consulting as voluntary administrators on 30 August.

The administrators did not respond to CRN's request for comment, so it is unclear what caused the collapse.

But the company had faced numerous challenges over recent years.

According to the managing director's report in its 2012 Annual Report, its financial performance had been "far from ideal".

In the report, chief executive Tony Onsley blamed management instability, stalled projects and high costs for the poor performance.

The long sales cycles selling to local government were also part of the problem.

Sirius made a post-tax loss of $2.2 million for the 12 months to 30 June 2012.

However, the company actually seemed to be turning a corner after a period of sustained decline.

In the first half of 2013, sales were on the up, it had recently signed a resale agreement in Canada and it had renewed its managed services deal with Qantas.

The 35-staff business generated $3.3 million for the half-year to 31 December 2012, its last reporting period before the collapse. This was a 29.3 percent increase year-on-year.

Sirius turned over $6 million in FY 2012 – a rise of 60.6 percent year-on-year.

It posted a $2.2 million loss in the same 12-month period, which was a significant improvement on its $5.2 million loss in FY 2011.

Sirius made a $36,000 profit in FY 2010.

The company's share price has been wallowing at 2c per share since 18 April, down from a 2013 high of 9c and a historic high of 49c in March 2001.

The ASX-listed IT company specialises in asset management software through its InfoMaster division.

The solution is particularly aimed at local governments, for managing infrastructure such as roads and public spaces.

Its Pinnacle business develops enterprise management software sold by the channel. It was acquired for more than $1 million in 2011 and counted the Department of Defence and Australian Technology Park as previous clients.

Sirius's managed services business focused on provided outsourced help desk services to government departments in Canberra, primarily for fax messaging and converting email to fax and vice versa.