RXP adds 200 staff and $25m of sales

Australian IT company RXP Services has posted an 86 percent increase in net profit after tax, after a busy year that saw it purchase six companies, double the number of staff and open new offices.

In just the third year as a publicly listed company, RXP's revenue shot up by $25.8 million to reach the $56 million mark for the year ending 30 June. NPAT went from $3.5 million last year to $6.5 million.

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Chief executive Ross Fielding told CRN that both the buyouts and RXP's ongoing operations contributed to the healthy numbers.

"We've grown our business 45 percent organically and 55 through acquisition," said Fielding. "So it's been a really, really good result. Our business at the core is strong and gets stronger everyday."

The Melbourne-headquartered firm's headcount rose from 212 to 420 during the 2014 financial year, and RXP has already hired a further 17 people since 30 June.

"The bulk of the [staff] growth is in consulting," Fielding told CRN. "From junior consultants all the way up to what we call principal consultants."

The CEO said that RXP inherited long-standing graduate programs in Hobart and Canberra through acquisitions, but it has now started new post-university intakes in Melbourne and Sydney.

RXP also used its announcement to the ASX to highlight its Hobart "near shoring" centre opened during the year. The software development house originated from the March buyout of Insight4, with the owner of that company, Jared Hill, now heading up RXP's Applications Development Group.

"We want to drive growth in Hobart, given the cost benefits it provides us and our clients," said Fielding. "And it means we can keep jobs in Australia. There are great grads coming out of Hobart."

A Brisbane office was also created in 2014, born out of acquisitions of Aptus and Integrated Value.

"Early days, but certainly producing new clients for RXP," said Fielding.

RXP intends to make further purchases in the coming year, presenting a ready balance sheet. The company reported zero debt and a cash reserve of $18.4 million as at 30 June. Fielding declined to comment on which areas the firm would be looking to bolster through buyouts.

RXP's 2015 outlook is positive, although it didn't put any numbers in its forecasts. Fielding said that at the current rate of growth there is a possibility of delivering a dividend in 2015, in just the fourth year as a public company.

"We have had a strong start to financial year 2015 with July revenue in excess of $6 million," said Fielding.

As well as Melbourne, Sydney, Brisbane, Canberra and Hobart, RXP also has a Hong Kong branch that saw a "performance turnaround in the second half" and has had a regional head specifically appointed since 30 June.