Aussie reseller rollup could hit $80m in revenue

Australian reseller PS&C could see revenues of more than $80 million in its first full financial year after combining several different local IT providers.

While it hasn’t all been smooth sailing for PS&C, with disappointing results in some parts of the business, its ambitious move to combine several resellers appears to be paying off.

Managing director Kevin McLaine told CRN today the company's revenue could be in excess of $80 million for 2015, based on an announced forecast of a 30 percent improvement over normalised 2014 results. The normalised 2014 revenue was projected from the $35.92 million revenue PS&C actually earned in seven months as a combined business.

For the current financial year, earnings before interest and tax (EBIT) are expected to reach approximately $8 to $8.5 million.

Security is the big winner, with PS&C expecting a 100 percent increase in revenue for that part of its business. Pure Hacking is the star performer here, with its final revenue expected to be above the guidance supplied when it was acquired.

PS&C announced in August last year it would pay an initial $8.3 million to buy the company. The company indicated it's still open to further security acquisitions.

PS&C’s consulting and recruitment solutions business also recorded a record number of billable days during the year leading to an expected increase in revenue. A 25-30 percent increase in revenue in the network business is also forecast, though volatility in the last quarter pushed some income to the 2016 financial year.

Running a diversified channel business hasn’t come without complications though, with PS&C citing capacity issues affecting two of its security arms. Extra costs incurred in Securus Global due to ongoing capacity problems - which PS&C reports have been resolved - impacted it for much of the year and will mean a significantly reduced result compared to normalised 2014 figures. Hacklabs growth was also impeded by capacity issues.

However PS&C is expecting costs incurred in the security and people businesses and its head office will result in “benefits” in 2016.

PS&C was formed in 2013, combining Securus, Hacklabs, Allcom Networks, Allcom Consulting and Systems & People, and listed on the ASX the same year.