ASG is taking legal action against the State of Victoria in the Victorian Supreme Court to recover the full amount of expenses originated from a terminated contract.
The Department of Environment, Land, Water and Planning (DELWP) terminated an implementation project with ASG because of a strategic decision to adopt a new "whole of government" model for its ERP systems, according to ASG.
In an official statement, ASG stated that both parties failed to reach an agreement.
A DELWP spokesperson told CRN: "The State of Victoria through the DELWP was working with the ASG Group to develop a new business management system to replace its current ageing system.
"The department took the decision, late in 2015, to pause its work on the replacement project to align with a whole of government direction around the use of shared services across departments."
The spokesperson said the DELWP acted within its legal rights. "As this matter will be before the courts, the department will not issue any further comment."
Perth-headquartered ASG stated this should not impact the company's profit. ASG confirmed that it is on track to achieve a revenue of $185-190 million for the financial year of 2016. The company expects EBTIDA margin of 14%.
In February, ASG showed a 12.6 percent increase in revenue for the half-year ending 31 December 2015, registering $88.2 million.
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