Newly listed reseller group PS&C will have to work hard to meet its full-year earnings forecast, after today revealing normalised half-yearly revenues of $31 million.
The company said it was "pleased" that the result and reports earnings are on track, though first-half earnings represent only 33 percent of its full-year forecast. In its prospectus, the company forecast earnings would hit $75 million for the full year.
It's a mixed result for the group, which was formed by the merging of four resellers – covering security, consulting and communications – in November last year.
The results were tempered by the "distraction" of the merger as well as a "patchy market" towards the end of the half, according to today's earnings reports.
The group's security arm in particular has had a mixed first half, with delays to projects affecting one of the businesses. This is the smallest segment of the PS&C revenues, pulling in $2.3 million, compared with $20.4 million from the group's "people" segment.
Nevertheless, today's earnings announcement pointed to upcoming privacy changes coming into effect on 12 March as a potential driver of opportunities.
Earnings were also above expectation for the company's comms division, though a "big second half" will be required here, according to today's earnings presentation. The company is banking on some significant wins in the second half.
The strongest performer within the group was Systems & People, which would have accounted for revenues of approximately $20 million had the company had been part of the group from 1July 2013.
By contrast, Allcom Networks accounted for approximately $8 million, while Hacklabs accounted for $981,000.
PS&C had more than 300 staff when created by the merger of Hacklabs, Securus, Allcom Networks, Allcom Consulting and Systems and People late last year. The company listed on the ASX in November last year.
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