Cirrus Networks hits $50 million after NGage acquisition and Canberra expansion year

Perth based Cirrus Networks has more than doubled its revenue to hit $53.9 million for the 2017 financial year, and enjoyed four consecutive reporting periods of revenue growth.

The revenue growth represents a 176 percent increase on 2016’s results of $19.5 million, which the company attributed to the success of its growth-focused strategic plan.

Part of this growth strategy included the acquisition of repeat CRN Fast50 company NGage Technologies in March for $2.5 million. NGage Technology Group generated in excess of $15 million in revenue for Cirrus since its acquisition. Cirrus itself is a CRN Fast50 high-performer, coming in third place in the 2015 awards.

Among its results, Cirrus highlighted $2.5 million in annuity based managed services revenue, which was up 74 percent on the previous year. The company also identified its geographic expansion as a strategic part of the success.

“Whilst the Western Australian business continues to be the largest contributor, the company is seeing significant contributions from new geographics in growing market share and becoming a provider of choice in major market sectors including resources, financials, education, health, government and not-for-profit community services,” Cirrus reported.

Cirrus’ net profit after tax was $400,576. The company reported a number of one-off costs in the second half of the financial year that would have otherwise seen a higher consolidated NPAT, including the costs of establishing a new Canberra location to the tune of $1.14 million, due diligence related to the NGage acquisition of $104,000 and non-cash expensing of share-based options, costing $231,000.

The company said it was debt free and reported $5.7 million in net assets, including $3.95 million in cash.

Cirrus managing director Matt Sullivan said the result was a pleasing continuation of the success the company had been enjoying on delivering its strategy.

“To continue our strong revenue growth from the prior reporting periods while integrating the acquisition of NGage Technology Group and continuing to position our new location in Canberra, is an excellent achievement,” he said.

“The delivery of continued revenue growth, improving underlying financial performance and maintaining operating cash while investing for future growth provides us with great confidence as we move into the next phase of the business.

“None of this would be possible without high-quality staff, loyal customers, innovative solution-based offerings and strong vendor and supplier partnerships.”

Sullivan said Cirrus expected to look to more geographic and competency-based acquisitions in the 2018 financial year as the company continues its growth strategy.

In July, Cirrus announced the departure of founder Frank Richmond from the business, who also relinquished the non-executive director position he was expected to take up.

Richmond founded Cirrus as a private company in 2012 and was instrumental in growing the company as the managing director, and, more recently, the executive director.