We're back in the black, says ASG

ASG announced a $35.7 million improvement in its net profit after tax, attributing the result to growth in what it calls "new world" services.

In its annual report submitted to the ASX, the Perth-headquartered systems integrator showed positive change in all the main financial indicators for the year ending 30 June 2014.

Revenue was up 5 percent to $160.1 million, while net profit turned around to $9 million after a loss of $26.7 million last year.

Cash flow has also improved. Operating cash amount was at $22 million at the end of the financial period – a record amount, according to the company. Net debt on 30 June was $22 million, which was $8 million ahead of target.

"We are now realising the return of our investments over the past few years," said chief executive Geoff Lewis. "Significant customer wins during financial year 2014 have vindicated that our business-focused, utility-priced solutions are key to continued growth."

This year CRN has reported on several significant government contracts won by ASG, and Lewis paid tribute to the work in that sector.

"ASG's reputation and positioning in this market as seen us continue to win high-value federal government contracts," he said. "Financial year 2014 has seen government and corporate entities actively pursuing the cost savings from 'new world' technology."

The company stated in the annual report that the outlook is "solid", saying the combination of offshoring, "new world" delivery model and fixed overheads will improve margins in the 2015 financial year. ASG has a target of sourcing 10 percent of workforce from overseas by 2016.

"We can already see the continuation of our growth in business levels throughout financial year 2015," said Lewis.

"Our pipeline of opportunities exceeds $250 million," he said. "We have decreased our costs and will accelerate our debt reduction with the recent sale of our data centre for $11.7 million."